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Europe’s largest telecoms companies are urging the EU to mandate that Big Tech pay a “fair” contribution for using their networks, escalating a payment dispute between the industry and companies like Netflix and Google. The chief executives of 20 groups, including BT, Deutsche Telekom, and Telefónica, have signed an open letter that calls on technology companies that benefit most from telecoms infrastructure and drive traffic growth to contribute more to the costs. They are sending the letter to the European Commission and members of the European parliament.
The telecoms industry warns that future investments are at risk, emphasizing the need for regulatory intervention. They advocate for a fair and proportionate contribution from big traffic generators toward network infrastructure costs as the foundation of a new approach. Telecoms groups are investing billions in 5G deployment and full-fiber network upgrades and believe that regulators should take action to secure future investment.
The letter, signed by CEOs such as Timotheus Höttges at Deutsche Telekom and Christel Heydemann at Orange, proposes a payment mechanism that targets the largest traffic generators, emphasizing accountability, transparency, and direct investment into Europe’s digital infrastructure.
Support for the so-called fair share initiative has been increasing in Brussels. The European parliament has already called for a policy framework that ensures large traffic generators contribute fairly to the funding of telecom networks without affecting net neutrality.
The European Commission estimates that an additional €200bn of investment is necessary to achieve its connectivity targets of 5G coverage in all populated areas and full gigabit coverage across the EU by 2030. However, delays have occurred in the commission’s consultation process.
Data traffic has been growing by an average of 20% to 30% annually due to a small number of major technology companies. Telecoms groups project this growth to continue but believe that it will not generate a corresponding return on investment without fair contributions. The signatories claim that Big Tech companies pay minimal amounts for data transport in their networks, while some cloud providers charge customers significantly higher rates.
Tech groups have previously opposed fair share proposals, pointing out their own investments in internet infrastructure, content, and services. Daniel Friedlaender, head of CCIA Europe, which represents the tech industry, argues that telcos have benefited from innovative content and services produced by creative and tech firms.
“Now they’re trying to fool Europe into providing them with extra cash. Telcos want to get their networks fully subsidized by the same firms who have helped them grow and thrive,” said Daniel Friedlaender. He believes that telecom giants want European consumers to pay additional network fees on top of their subscriptions.
The executives’ letter also calls for a revamp of telecoms regulation, with a focus on acknowledging the need for scale to avoid market fragmentation. The industry is awaiting a decision from the European Commission on a proposed joint venture between Orange and MasMovil in Spain, which is seen as a test case for further consolidation across Europe.
A commission spokesperson stated that its recent consultation covered the issue of fair contribution to network costs and emphasized the need for a comprehensive understanding of the underlying facts and figures before making any decisions.
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