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Exclusive-D. Telekom, Vodafone and others want US tech giants to help raise network costs

Brussels: US high-tech giants use European telecommunications networks so often that they have to bear some of the development costs, Deutsche Telekom, Vodafone and 11 other major European telecommunications companies. Said on Monday.

The CEO’s call comes when the telecommunications industry faces huge investments in 5G, fiber and cable networks to deal with the data and cloud services provided by Netflix and Google’s YouTube and Facebook.

Investment in the European telecommunications sector rose to € 52.5 billion ($ 59.4 billion), the highest level in six years, last year.

“Most of the network traffic is generated and monetized by the Big Tech platform, but it requires continuous and intensive network investment and planning by the telecommunications sector,” Reuters said in a joint statement. I am saying.

“This model, which allows EU citizens to enjoy the benefits of digital transformation, is sustainable only if such a big tech platform also contributes significantly to network costs,” they said.

The CEO didn’t mention tech companies by name, but Reuters understands that US-listed giants such as Netflix and Facebook are the ones they have in mind.

Signatories of this letter include CEOs of Telefonica, Orange, KPN, BT Group, Telekom Austria, Vivacom, Proximus, Telenor, Altique Portugal, Telia Company and Swisscom.

The CEO also criticized the high-spectral prices and auctions used by the EU government as dollar boxes, saying they artificially pushed unsustainable entrants into the market.

EU parliamentarians’ attempts to eliminate additional charges for calls within the EU have also been short-lived by CEOs who see the sector as a source of revenue from business users.

“We expect to force the sector to remove more than € 2 billion in revenue over a four-year period, which is 2.5% of the sector’s annual investment capacity in mobile infrastructure,” the two companies said.

EU parliamentarians need to discuss with EU countries before adopting a proposal, which can be difficult to find an agreement.

($ 1 = 0.8839 euros)

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Exclusive-D. Telekom, Vodafone and others want US tech giants to help raise network costs

Source link Exclusive-D. Telekom, Vodafone and others want US tech giants to help raise network costs

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