5G, because European telecommunications are attacking US big techs
CEOs of 13 European tlc companies want US tech giants (like Netflix, YouTube and Facebook) to help fund network costs
The US "big techs" should contribute to the construction costs of telecommunications infrastructures according to 13 European telco companies.
This is the request sent by the CEOs of 13 major European telecommunications companies (including Deutsche Telekom, Telefonica and Vodafone) to EU policy makers, according to Reuters .
The US tech giants would have to bear part of the costs of developing European telecommunications networks because they use them massively.
Note that the CEOs in their joint letter did not mention any tech company by name, but for Reuters they refer to Netflix, YouTube (Google) and Facebook (now Meta). European telecommunications companies described their proposal as “a renewed effort to rebalance the relationship between the global tech giants and the European digital ecosystem”.
The CEO's call comes as the telecom industry faces massive investments in 5G, fiber and cable networks to cope with data and cloud services provided by Netflix, YouTube and Facebook.
All the details.
THE DEMAND OF EUROPEAN TLC CEOs
"A large and growing portion of network traffic is generated and monetized by large technology platforms, but it requires continuous and intensive network investment and planning by the telecommunications sector," the CEOs said in a joint statement viewed by Reuters .
"This model, which allows EU citizens to reap the rewards of digital transformation, can only be sustainable if these large technology platforms contribute equitably to network costs," they added.
INCREASE IN INVESTMENTS
In fact, investments in the telecommunications sector in Europe climbed to 52.5 billion euros (59.4 billion dollars) last year, the highest in the last six years.
TELEPHONE, ORANGE, VODAFONE AMONG THE SIGNATORS
Signatories of the letter include: A1 Telekom Austria Group, Vivacom, Proximus Group, Telenor Group, KPN, Altice Portugal, Deutsche Telekom, BT Group, Telia Company, Telefónica, Vodafone Group, Orange Group and Swisscom.
ABSENT TIM
As TelecomTv notes, great absentee from the statement is the former CEO of the Italian Tim Luigi Gubitosi , who resigned at the end of last week.
NETFLIX AND FACEBOOK CALLS IN CAUSE
In their letter, the 13 European telecommunications companies did not mention any specific technology companies. But for Reuters "the giants listed in the United States like Netflix and Facebook are companies that have in mind".
CRITICISM OF CEOs
Sharing the costs of developing the network infrastructure is not the only argument of the 13 CEOs.
The letter also discusses other topics related to fiber and mobile broadband. According to the signatory companies, “the regulation must fully reflect the realities of the market… That is to say, that telecommunications operators compete face to face with the services of major technologies”.
Additionally, the ads have also criticized high-spectrum pricing and auctions. For example, Germany raised € 6.55 billion from the 5G spectrum auction, while the UK raised € 1.4 billion.
AGAINST THE BRUSSELS PROPOSAL ON SUPPLEMENTS FOR INTRA-EU CALLS
Finally, part of the letter concerns a proposal from Brussels to eliminate the surcharges on intra-EU calls.
Telecom companies estimate the potential for revenue of more than € 2 billion over four years, 2.5% of the industry's annual investment in mobile infrastructure. Unlike cost-sharing with US big techs, the latter is a problem that EU lawmakers need to discuss with member countries.
THE DIGITAL SERVICES ACT AND THE DIGITAL MARKETS ACT ARE COMING
The news of the request of the 13 European telecommunications companies comes a few days after the EU ministers responsible for the digital dossier meeting in Brussels agreed on a general approach for the Digital Markets Act (Dma) and the Digital Services Act (Dsa), the two proposals of regulation which articulates the legislative package aimed at countering the power of Big tech, proposed by the European Commission last December.
With the agreement of 25 November, the Council has a mandate to start negotiations with the European Parliament scheduled for 2022.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/5g-perche-le-tlc-europee-vanno-allattacco-delle-big-tech-usa/ on Tue, 30 Nov 2021 14:43:57 +0000.