May 18, 2023
According to a draft proposal filed by the telecommunications sector, big tech companies that generate more than 5% of a telecoms provider’s peak average internet traffic should contribute to the funding of 5G and broadband development across Europe.
The draft plan, which Reuters has seen but has yet to be published, was assembled by renowned telecoms lobbying organizations GSMA and ETNO. These associations represent 160 European operators.
According to the draft, the proposal includes a defined threshold to guarantee that only substantial traffic producers that have a significant impact on operators’ networks are included. Large traffic generators are defined as firms that account for more than 5% of an operator’s monthly average busy hour traffic, as assessed at the individual network level.
The idea is part of the response to the European Commission’s consultation on the subject, which began in February. It attempts to share the financial burden of 5G and broadband expansion among the major companies who stand to profit the most from expanded network capacity and enhanced connectivity.
According to industry estimates, the most probable candidates to be impacted by these levies are Alphabet’s Google, Apple, Facebook-owned Meta, Amazon, Netflix, and TikTok. Notably, Google, Apple, Meta, Netflix, Amazon, and Microsoft account for more than half of all data internet traffic.
The sources for this piece include an article in Reuters.
