UPDATE They are still at it! Executives from Europe’s largest mobile network operators and broadband service providers made another round of appeals with telecom authorities to require large content companies to contribute to network costs, Mobile World Live reported. The targeted content companies include the so-called FAANGs (Facebook, Apple, Amazon, Netflix, Google) along with Microsoft and Tik Tok.
Besides calls for “fair share” contributions from what these telecom operators perceive as the largest traffic generators on their networks, the MNO executives want a revision of spectrum policy from authorities with the realization that there is a “need for scale to avoid market fragmentation.” The telecom companies indicated such a regulatory overhaul would aid “Europe’s industrial champions and SMEs to compete globally.”
The latest open letter on the issue targeted at European Union regulators was signed by the heads of 20 MNO and broadband operators including Telefonica, BT Group, Deutsche Telekom, A1 Telecom Austria Group, Vodafone Group, KPN, Telecom Italia, Telia, Telenor and Orange.
The ongoing argument is that massive investments are needed in 5G and fiber to underpin the next wave of digital transformation, and support emerging applications in AI, VR and IoT. The operators also pointed out the demand for mobile and broadband data continues to escalate.
Citing European Union estimates of at least $181 billion in new network infrastructure investment needed to meet EU2030 connectivity targets, the group claimed, “the telecoms sector is currently not strong enough to meet that demand, with many operators barely earning their cost of capital.”
The executives noted they want rules to target only the very largest content companies while remaining in compliance with established net neutrality regulations.
Understandably, the content providers are pushing back, hoping to avoid any legislation that might affect their operations. They point out that it is actually the mobile and broadband subscriber demand that generates traffic on the carrier networks, and that content providers already make other cost contributions through carrier fees and services.
The issue has been pushed heavily by the mobile industry over the last 18 months and is currently being debated by European authorities as part of a wider look at the sector, according to Mobile World Live.
By John Celentano, Inside Towers Business Editor
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