EU explores big tech cost sharing for telecom networks and infrastructure

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This European Union policy move is set to open a door for big tech to shoulder a portion of the costs tied to telecommunications. Operators have long pressed for this kind of funding framework, and sources from the European Commission confirmed to EL PERIÓDICO DE CATALUNYA of the Prensa Ibérica group that a consultation will launch at noon on Thursday. This step marks the first move toward enacting a charge that could reshape how network costs are shared.

European Commissioner for the Internal Market, Thierry Breton, indicated two weeks earlier that the proposal would be announced at the start of the tech fair schedule on the opening day. The World Mobile Congress will be the backdrop, with Breton promising more specifics on the consultation when it is presented to the press on Thursday. The timing underscores how Brussels aims to align the plan with the pace of major industry events and public discourse.

The choice of topic is far from incidental. The EU Industry Head for telecommunications will participate in a session during the congress, though the exact timetable remains fluid. Brussels is moving in step with front‑line European operators who have pressed for years to have large digital platforms contribute to the costs of maintaining interconnection, broadband, and 5G networks. Industry insiders cited to Reuters that the consultation enjoys clear backing from European institutions.

web traffic area

The telecommunications companies regret the large, ongoing investments needed to build and maintain their interconnection networks. The core infrastructure powers internet broadband and 5G, while the largest digital service providers such as Google, Facebook, Netflix, YouTube, Amazon, and Microsoft collectively drive roughly sixty percent of network traffic, yet their contributions to these network costs are minimal relative to the scale of their traffic. Industry data illustrate this disparity and fuel the debate about fair cost sharing.

The pandemic accelerated connectivity demands, rendering data transmission more expensive for telecom operators. Sandvine, a network and application intelligence firm, reports a sharp rise in internet usage by these six giants between 2019 and 2021, a factor that has intensified the push from Brussels for a telecommunications tax on tech platforms for network use.

Denial of Big Tech

Opponents in Silicon Valley have argued that such a levy could clash with European standards on net neutrality, which require that all traffic on a network be treated equally. The net neutrality framework, established by European regulators in 2016, asserts that traffic should be identical regardless of content, service, application, device, or sender and receiver addresses. While the consultation signals a potential policy shift, it does not by itself become law. The discussion period is expected to run about twelve weeks, after which the European Commission will craft a regulation for debate by member states and the Parliament. Breton has expressed confidence that a decision will be reached before year’s end.

On February 10, Telefónica’s executive chairman, Jose Maria Alvarez-Pallete, who also leads the GSMA and has chaired the Mobile World Congress since January 2022, met with European officials in Brussels. After the meeting, Alvarez-Pallete commented that the telecommunications sector aims to work closely with European institutions to build a fairer and more prosperous future for all stakeholders in the digital economy.

This EU initiative repeats across the same narrative in another framing: a formal consultation will commence at noon on Thursday, signaling a deliberate procedure toward potential regulatory changes aimed at ensuring that the benefits of digital services are supported by those who run the underlying networks. Industry voices emphasize a shared goal of a robust, accessible, and forward-looking connectivity ecosystem that sustains innovation while distributing the costs of infrastructure more equitably.

Industry observers note that significant regulatory steps typically unfold over several months. The European Commission will craft a regulation for debate among the member states and the Parliament, and the ultimate decision will reflect a balance between promoting innovation, protecting consumers, and ensuring fair competition. The telecommunications sector remains keen on constructive collaboration with European decision-makers to shape a more just digital ecosystem for Europe and its partners around the world.

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