Exclusive – Big Tech, Eyes on Energy Crisis, EU Telcos Demand Shared Network Costs

BRUSSELS: Deutsche Telekom, Orange, Telefonica and 13 other European telecom providers on Monday urged big tech to share network costs, citing the energy crisis and the EU’s climate change goals.

The call prepares the European Commission to seek feedback from both sides before making legislative proposals that could force technology companies to bear the costs of deploying 5G and fiber cables in 27 European Union countries. It is done when

The sector, which invests about €50 billion ($48.5 billion) annually in infrastructure, urgently needs more funding, the two companies’ chief executives said in a statement.

“Planning and construction costs are increasing. For example, the price of fiber optic cable has nearly doubled in the first half of 2022. It’s hitting the sector,” they said.

“Timely action is essential. Europe has missed out on many of the opportunities that the consumer Internet has to offer. Now we must quickly build strength for the era of the Metaverse,” said the CEO. increase.

“For this to happen and be sustainable over the long term, we believe that the largest traffic generators will need to contribute fairly to the considerable costs they currently impose on European networks.

Other signatories to the statement include Vodafone, Bouygues Telecom, KPN, BT Group, TIM Group, Telia Company, Fastweb and Altice Portugal.

European operators say US tech companies including Alphabet’s Google, Meta and Netflix account for more than half of internet traffic and will have to shoulder some of the infrastructure upgrade costs. .

Big Tech denied such requests, saying it had already invested in equipment and technology to deliver its content more efficiently.

($1 = 1.0301 Euro)