EU Considers Network Usage Fees for Big Tech Telecoms
Big Tech and Telecoms Clash at MWC
[Asia Economy Reporter Oh Su-yeon] In Europe, big tech companies are considering directly paying network usage fees to telecom operators. Related discussions will be concretized at the upcoming MWC this month. The confrontation between big tech and telecom companies is expected to intensify.
Major foreign media outlets such as Bloomberg reported that the European Union (EU) is discussing measures to make big tech companies with high traffic usage, such as Netflix and Google, bear the costs of telecom infrastructure investment.
The EU Commission document confirmed by these media proposes creating a mandatory system where big tech companies generating large-scale traffic either contribute money to a digital fund to share the costs of network infrastructure construction or pay telecom operators directly, and sought opinions from companies on this. It also inquired about the criteria for generating large-scale traffic from the companies.
Until now, Europe mainly discussed indirect contributions by big tech to network investment costs through funds. This is the first time a move to mandate direct payments has been proposed.
European telecom operators argue that six big tech companies, including Google and Amazon, account for more than half of total traffic and should share the network investment costs. Big tech counters that such claims are a kind of internet traffic tax.
The Commission is expected to release this document next week and receive feedback from telecom operators and big tech. Next, consultations with EU member states will be necessary.
However, Bloomberg forecasts that the bill will not be enacted soon. The Commission began consultations on network usage fee-related legislation in mid-last month and estimated it would take about 12 weeks to produce a draft bill. Previously, the Body of European Regulators for Electronic Communications (BEREC) stated in October last year that there is no basis for platforms like Netflix and YouTube to pay telecom operators for contributing to network infrastructure investment.
At the world's largest mobile exhibition, Mobile World Congress (MWC), held in Barcelona, Spain on the 27th, discussions on network usage fees among global telecom operators, big tech, and governments are expected to be concretized.
Senior officials from telecom companies such as Deutsche Telekom, Saudi Telecom, and the Global System for Mobile Communications Association (GSMA), as well as big tech companies like Meta and Netflix, will attend the session titled "Network Investment: Delivering The Digital Revolution" on the 28th. Minister Lee Jong-ho of the Ministry of Science and ICT will also participate.
In this session, amid surging traffic and increasing network investment costs, a tense confrontation between telecom operators and big tech over network usage fees is expected to continue.
The keynote speech on the opening day of MWC is titled "A Vision for a Fair Future." It is presumed to emphasize that as big tech's data traffic increases, they should share the network investment costs. Mats Granryd, Secretary-General of GSMA, and CEOs of major European telecom companies such as Telef?nica and Orange will be speakers.
As calls for network usage fees grow mainly in Europe, the dispute between big tech and telecom operators is expected to intensify.
Meanwhile, seven amendments to the Telecommunications Business Act, including provisions related to network usage fees, are pending in the Korean National Assembly.
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