Telecommunications companies in Europe have requested that large US companies that use their infrastructures (such as Netflix or Google), bear some of the costs of network development, as advanced Reuters. The petition has been signed by 13 CEOs of European operators, such as José María Álvarez Pallete (Telefónica), Stéphane Richard (Orange), or Nick Read (Vodafone), and it comes after investment in telecommunications in Europe grew to 52,500 million euros per year.
This kind of rate would also serve to compensate for the high use of networks by those companies that offer cloud and streaming services throughout Europe. Among them (although they are not mentioned): Facebook, Google or Netflix. These companies also obtain high traffic and generate income thanks to the use of this type of network. Meanwhile, operators continue to invest in more 5G, fiber and cable infrastructures. Also in plans to fight climate change through the European Green Digital Coalition (EGDC).
“This model, which enables EU citizens to enjoy the fruits of digital transformation, can only be sustainable if these large technology platforms also contribute fairly to network costs.” Operators insure it’s a statement published in the European Association of Telecommunications Network Operators (ETNO).
What do companies like Netflix say about a network usage fee?
If the proposal is finally carried out, the companies must pay the amount agreed by the operators or the European Union. However, and as expected, it is not something that big technology likes. Netflix, in fact, recently assured that these types of rates could cause an “unfair and anti-competitive environment”, especially if the operators set the prices.
Dean Garfield, Netflix vice president of public policy, also confirmed (via Bloomberg) that these types of rates would harm the consumer, who would see an increase in their rate reflected in order to pay the cost set by the operators.
Beyond a fee to Netflix and other companies, the heads of Telekom Austria Group, Vivacom, Proximus, Telenor Group, KPN, Altice Portugal, Deutsche Telekom, BT Group, Telia Company, Telefónica, Vodafone, Orange Group and Swisscom, also They have asked the EU for greater reinforcement in those projects that allow “collaboration in industry” and unify the public and private sectors. They also request end high-spectrum pricing and network auctions. The proposal will be processed by the legislators of the European Union and will have to be negotiated with the member countries.