Europe: Telecom operators ask tech firms to share data costs

Europe’s biggest telecoms operators have called for platforms like Netflix an Amazon to pay for some of the soaring costs of data fuelled by the global streaming and internet boom. The European Commission is preparing to begin a consultation into whether technology companies such as Google, Facebook, Netflix and Microsoft should be made to pay some of the soaring costs for the huge amount of global internet traffic they carry on their telecoms networks, The Guardian reported.

OTT platforms are majorly responsible for the increase in data usage, thanks to their popular shows such as Netflix's Bridgerton and Amazon’s The Lord of the Rings: The Rings of Power.

According to ETNO, a lobby group for European telecoms operators, over half of global internet traffic takes place through six Silicon Valley companies - Google, Facebook, Netflix, Apple, Amazon and Microsoft. The proportion rises to as much as 80 per cent if you include gaming giants such as the Call of Duty maker, Activision Blizzard.

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“We believe that the largest traffic generators should make a fair contribution to the sizeable costs they currently impose on European networks,” the telecoms chiefs said in a joint statement. “A fair contribution would send a clear financial signal for streamers in relation to the data growth associated with their use of scarce network resources.”

They added that European telecoms companies spend €50bn ($49 approx.) annually on building and maintaining full-fibre broadband and 5G networks. The energy crisis and soaring costs of materials is adding to the financial burden.

“In this context, the issue of ensuring a sustainable ecosystem for the internet and connectivity is more urgent than ever,” the companies said. “Timely action is a must. Europe missed out on many of the opportunities offered by the consumer internet. It must now swiftly build strength for the age of the metaverses.”

Meanwhile, streaming and internet companies say they make huge investments in systems that dramatically reduce the costs to telecoms companies.

(With inputs from agencies)