EU sets up 12-week consultation
The European Commission has launched a consultation on the future of Europe’s telecoms sector, starting a process that could result in Google, Apple, Meta and Netflix having to pay some network costs. Meanwhile the EU is seeking feedback on this multi-levelled issue: however critics say every complex problem has a solution that is simple, neat and impractical.
For over two decades Deutsche Telekom, Orange, Telefonica, Telecom Italia (TIM) and other operators have lobbied for leading technology companies to contribute to 5G and broadband roll-out, Reuters has reported. The telcos have presented the case that since the likes of Amazon and Microsoft have accounted for more than half of all the data traffic across their networks, these companies should pay toward the investment they made. The tech firms counter argue that this is effectively an internet tax that will undermine EU network neutrality rules, by failing to meet the brief of treating all users equally.
A 12-week consultation is currently addressing the question: Should businesses be able to recover their costs and if so, how? The inquiry is due to conclude on May 19. EU industry chief Thierry Breton cited the heavy investments required to roll out 5G and broadband, saying he was not targeting any company. “The burden of these investments is heavier and heavier. And that is in part because of a low return on investment in the telecoms sector, the increase of the cost of raw materials, and the world geopolitical context, the cost of energy, of course, because that has a big role to play,” Breton told a news conference, “I want to say right away, that all of this reflection isn’t aimed against anyone at all, rather it’s for our fellow citizens.”
Breton said a contributions mechanism could be one of the solutions. According to a document seen by Reuters last month, respondents will be asked whether large traffic generators should be subject to a mandatory mechanism of direct payments to finance network deployment and also whether the EU should create a continental or digital levy or fund. “We hope to move very quickly so that in the summer we can come back with conclusions and then we will see what we do to continue to make progress,” said Breton.
Any legislative proposal will need to be agreed with EU countries and EU lawmakers before it can become law. “This consultation is a positive and urgent step towards addressing major imbalances in the internet ecosystem to the benefit of European end-users,” said the telecoms industry lobbying group ETNO in a statement. However the Computer & Communications Industry Association (CCIA) has criticised the proposal. “Europeans already pay telecom operators for internet access, they should not have to pay telcos a second time through pricier streaming and cloud services,” said Christian Borggreen, CCIA Europe’s senior VP.