EU telcos demand money from US Internet companies for infrastructure expansion

EU telcos demand money from US Internet companies for infrastructure expansion

Amazon, Facebook & Co. generate enormous traffic on the Internet – and the European telecommunications companies are struggling to keep up with the expansion of their network infrastructure. In a joint statement, they are now demanding money from the United States. […]

US Internet giants are to participate financially in the expansion of the European telecommunications infrastructure. This is the central demand of a joint declaration signed by the heads of the leading eleven European telecommunications companies.  Even if they are not mentioned in the declaration, the addressees of the declaration are clear: corporations such as Netflix, Amazon and Facebook are contributing to the fact that the data volume on the internet is constantly increasing – and forcing the telecommunications companies to make ever more investments.

Switzerland is also there

The paper is signed by the CEOs of Deutsche Telekom, Vodafone, Telefónica and other large corporations, and it is also worth mentioning the signature of Swisscom CEO Urs Schaeppi – so the declaration is not a matter that is limited to the EU alone.

Broadband and 5G expansion require massive investments. In 2020, these amounted to 52.5 billion euros throughout Europe – according to the economic service “Reuters”, this is a six-year high. In their statement, the Group CEOs also criticize the high costs incurred by the national auctions for 5G radio frequencies. These auctions would be used by some states as a golden donkey, but they would hinder the emergence of sustainable business models.

The telcos also strongly oppose plans by the EU Commission to make Internet telephone calls within the Union free of charge. According to the company, such a regulation would deprive carriers of about two billion euros in revenue over a four-year period, which would correspond to about 2.5 percent of the annual necessary investments in the mobile Internet.

*Frank Kemper joined the team in 2001 and headed the print edition of INTERNET WORLD BUSINESS from 2013 to 2020. The graduate of the German School of Journalism in Munich can look back on over 30 years of editorial experience and has been online for almost as long.

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