Telecoms: the EU wants to make the digital giants pay


The question is an old sea serpent in the world of telecoms. Why should operators bear the financial burden of deploying and maintaining fiber optics and 5G networks alone, when it is other players who derive most of the benefit? Namely, the digital giants and streaming specialists such as Netflix, Disney +, YouTube or TikTok, large consumers of bandwidth.

European Commissioner in charge of the internal market, Thierry Breton summed up the situation by posting a tweet associating a screenshot with film posters available on the platforms. A way of illustrating the launch by the European Commission of a public consultation on the future of future connectivity infrastructures.

The Commission estimates the investment needs at approximately 174 billion euros between now and 2030. To complete very high-speed coverage, but above all to acquire “gigabit connectivity” to support new cases of use of the metaverse, the Internet of Things, blockchain or artificial intelligence. An investment that would be difficult to support only European operators, with lower margins than their American counterparts, and weakened by the current context of inflation, rising interest rates and geopolitical tensions.

The winning lobbying of operators

This public consultation, which should result in a proposal for a regulation, follows intense lobbying by the said operators. Last September, the main European players, including Orange and Bouygues Telecom, expressed in a document the wish that “the largest traffic generators contribute equitably to the significant costs that they currently impose on European networks”. A “fair contribution” would, in their view, allow a “faster and more inclusive” deployment of fiber and 5G.

Although the Commission does not explicitly mention the principle of a contribution from digital players, it is on everyone’s mind. Starting with that of Thierry Breton, who declares: “Broadband internet requires high investments. That is why […] we explore the important question of who should pay for next-generation connectivity infrastructure, including whether platforms should share the cost of investing in next-generation connectivity with telecom operators. »

Facilitate the deployment of new networks

It remains to be seen what form this contribution would take and from what threshold of bandwidth consumption a company could be eligible for it. Moreover, the question arises of a possible questioning of the sacrosanct principle of net neutrality. By contributing to the financing of telecom infrastructures, wouldn’t a player like Netflix or YouTube be entitled to demand the allocation of dedicated bandwidth?

Beyond this financing component, the Commission intends with its future “law on gigabit infrastructure” to accelerate the deployment of new networks by reducing administrative formalities and facilitating them with the simplification and digitization of authorization procedures. The future law will also encourage operators to coordinate their civil engineering works, making it possible to lay a sheath or erect a pylon, knowing that they represent up to 70% of the costs of deploying the network.





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