Getty Images | Alicia Ropp
The European Union government is seeking public comment on a controversial proposal to make online platforms pay for upgrades and expansions of telecommunications companies’ broadband networks. If things go on like this, technology companies such as Google and Netflix, and possibly many others, could have to pay to finance broadband network deployments.
“There appears to be a paradox between the increasing amount of data on infrastructure and the diminishing returns and willingness to invest in network infrastructure,” the European Commission’s preliminary consultation announced today said. I’m here. Large telecom companies have sought payment from web companies, the consultation noted:
Some electronic carriers, especially incumbents, have established rules requiring content and application providers (“CAPs”) or digital players in general that generate significant amounts of traffic to contribute to the cost of deploying electronic communication networks. Seeking the need to. In their view, such contributions are “fair” because CAPs and digital players utilize high-quality networks but do not bear the cost of deployment.
Technology companies that have to start paying for it say, “Because traffic is demanded by end users and costs aren’t always traffic sensitive, there’s no need to pay for access to the network to deliver content, or for the amount of traffic sent.” It argues that paying for volume is not only unfair: it jeopardizes how the Internet works (especially on fixed networks) and can violate net neutrality rules,” the document states. .
Meanwhile, “other stakeholders have warned against hasty regulatory intervention,” the EC said. The consultation seeks public input over a 12-week period. The questionnaire asks whether there should be an “enforcement mechanism for direct payments from”. [tech companies] Contribute to the financing of network deployment”, and if so, whether to charge fees to all online content providers or only to the largest traffic generators.
Carriers: Big Tech should ‘contribute fairly to network costs’
The EC isn’t just asking for opinions. The company is seeking data from providers on network upgrade costs, prices paid for network peering and transit services, and other figures.
“[T]The preliminary consultation is part of an open dialogue with all stakeholders about the potential need for all stakeholders to contribute equitably to investments in connectivity infrastructure that will benefit from digital transformation. This is a complex issue that requires a comprehensive analysis of the underlying facts and figures before determining the need for further action. The European Commission is strongly committed to safeguarding a neutral and open internet,” said the EC.
Forcing tech companies to make new payments would accomplish a long-standing goal of the telecommunications industry. As Reuters wrote today, German firms such as Telecom, Orange, Telefónica and Telecom Italia have been lobbying big tech companies to contribute to network costs for “more than 20 years.”
In a letter issued in 2021 by the CEOs of 13 of Europe’s largest telecommunications companies, network investments are “sustainable only if such large-scale technology platforms also contribute fairly to network costs. ” is stated. In the US, a Republican on the Federal Communications Commission claims Big Tech is “free riding” on networks built by ISPs.
However, websites and other online service providers are already paying for their own Internet access, and in some cases building extensive network infrastructures to carry Internet traffic to broadband users. Web companies that produce the content Internet users demand also pay Internet transit providers and content delivery network operators.
