European Telecom CEOs Call on EU to Make Tech Companies Pay for Networks
October 02 2023 - 12:23PM
Dow Jones News
By Adria Calatayud
European telecommunications companies urged the European Union
to overhaul the industry's regulatory framework and make big
technology companies contribute to fund the costs of network
infrastructure.
The chief executive officers of several of Europe's largest
telecom companies called on EU policymakers to ensure what they
called a fair contribution from tech companies to their networks in
an open letter published Monday.
The letter was signed by the CEOs of 20 European telecom
companies including Deutsche Telekom's Timotheus Hoettges, Orange's
Christel Heydemann, Vodafone Group's Margherita Della Valle and
Telefonica's Jose Maria Alvarez-Pallete.
The European telecom industry isn't currently strong enough to
meet new investment demands that the EU estimates amount to at
least 174 billion euros ($183.96 billion) by 2030, given that many
operators are barely covering their cost of capital, the letter
said.
"Big tech companies pay today almost nothing for data transport
in our networks, far from covering the costs needed to expand
networks and achieve the ambitious EU targets," the letter
said.
The European Commission, which earlier this year launched a
consultation on the future of the telecom sector and its
infrastructure, didn't respond to a request for comment on the
letter.
Thierry Breton, the European commissioner for the internal
market, said in a speech in February that content and application
providers had been able to develop attractive products thanks to
connectivity networks, which raised questions about the fair share
of funding for the next generation of infrastructure.
The Computer & Communications Industry Association Europe, a
trade group that represents tech companies, didn't respond to a
request for comment. It has previously said introducing
network-usage fees would lack justification and harm consumers.
Write to Adria Calatayud at adria.calatayud@dowjones.com
(END) Dow Jones Newswires
October 02, 2023 12:08 ET (16:08 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
Telefonica (NYSE:TEF)
Historical Stock Chart
From Nov 2024 to Dec 2024
Telefonica (NYSE:TEF)
Historical Stock Chart
From Dec 2023 to Dec 2024