France, Italy, and Spain Urge Tech Giants to Contribute to Telecoms Networks

The world’s biggest tech firms could be forced to foot the bill for enhancements to the Telecoms network to accommodate increased traffic flows.


FILE PHOTO: The logo for Google LLC is seen at the Google Store Chelsea in Manhattan, New York City, U.S., November 17, 2021. REUTERS/Andrew Kelly
FILE PHOTO: The logo for Google LLC is seen at the Google Store Chelsea in Manhattan, New York City, U.S., November 17, 2021. REUTERS/Andrew Kelly
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LONDON (Bywire News) - Large tech firms have been in the spotlight as France, Italy and Spain increase the pressure on the European Commission to conclude legislation that makes sure tech firms partly finance telecoms infrastructure in the bloc, stated a document shown on Monday.

This was the first time the three governments had a joint position on the issue.

EU regulators claimed that, in May, they were monitoring whether tech giants Google, Meta and Netflix should shoulder some costs of upgrading telecoms networks. 

A joint paper, a copy of which, was shown to the three governments, said that the six largest content providers were responsible for 55% of internet traffic.

The document said, "This generates specific costs for European telecom operators in terms of capacity, at a time they are already hugely investing in the most costly parts of the networks with 5G and Fiber-To-The-Home."

The paper called for new rules to ensure European telecom networks and large online content providers should pay an equally distributed share of network costs. 

"We call for a legislative proposal ... ensuring all market players contribute to digital infrastructure costs," the document added. 

Two Italian government officials confirmed the details of the joint document with one of them claiming Rome’s government was prepared to provide informal support in its caretaking capacity ahead of their general election in September.

The French and Spanish governments did not respond to a request for comment. 

A study released by telecoms lobbying group ETNO earlier this year showed that an annual contribution of 20 billion euros to network costs by tech giants could bolster the EU economy by 72 billion euros. 

However, digital rights activists warned the EU of the risks of making big tech giants pay for networks due to EU net neutrality rules that could eventually be watered down in a deal with tech companies to assist with telecom network funding.

The joint document said that any legislative proposal should "ensure fairness between users in accordance with the net neutrality rules, which is a core principle we absolutely need to preserve."

(Writing by Samba Jallow, editing by Klaudia Fior and Tom Cropper)

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