On Thursday, Meta Platforms asserted that financial contributions from major tech companies should be seen as a last resort for telecom operators within the European Union when it comes to addressing network costs.
Telecom giants like Deutsche Telekom, Orange, and Telefonica have been advocating for nearly twenty years for US technology firms to support the expenses associated with the rollout of 5G and broadband infrastructure, citing the significant share of internet traffic they generate in the region.
Earlier this year, the European Commission initiated a consultation to explore the potential for these tech companies to help defray some of the costs tied to Europe’s telecommunications network.
In its response to the Commission’s inquiry, Meta argued that imposing such fees would not resolve the financial difficulties faced by telecom operators and overlooks the substantial investments made by technology firms in the network.
Moreover, Meta emphasized that any telecom operators receiving subsidies should be subjected to rigorous regulatory oversight, ensuring that the funds are allocated exclusively for network improvements.
Sources informed Reuters that a majority of EU member states have already expressed opposition to implementing a network fee on major technology firms.
The European Commission has not yet provided a comment regarding this matter to Reuters.
According to Meta, it is crucial for any telecom operator seeking subsidies to demonstrate that they have engaged in sincere discussions with content application providers to explore technical solutions that do not involve financial assistance.
Meta also suggested that any subsidies should be awarded through a competitive tender process to guarantee that all network operators, not just the largest ones, can access these funds.
Furthermore, the company stated that incumbent operators receiving what amounts to a government bailout should face additional restrictions, including the elimination of executive bonuses, limits on compensation, and freezes on dividend payments.
© Thomson Reuters 2023
