Europe’s telecom bosses urge IT firms to split internet network costs
Category: #world  By Saipriya Iyer  Date: 2022-09-28
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Europe’s telecom bosses urge IT firms to split internet network costs

The heads of the largest telecom companies in Europe, including Vodafone, BT, and Deutsche Telekom, have called on Internet giants, such as Amazon and Netflix to share some of the escalating costs of data caused by the worldwide streaming and internet boom.

This request from 16 chief executives comes at the same time as the European Commission gets ready to initiate a consultation on whether technology firms, such as Facebook, Google, Microsoft, and Netflix should be forced to pay some of the skyrocketing costs for the massive volume of international web traffic they hold in their telecom networks.

According to the European Telecommunications Network Operators’ Association (ETNO), a governing body representing the region’s telecom operators, over half of the world’s internet traffic occurs via six Silicon Valley organizations - Facebook, Google, Netflix, Amazon, Microsoft, and Apple. When gaming behemoths like Activision Blizzard, the company behind ‘Call of Duty’, are considered, the percentage of web traffic can reach as high as 80%.

European telecom service providers reportedly incur an annual cost of more than $47 billion for constructing and maintaining full-fiber broadband and 5G networks. This financial burden is being made worse by the ongoing energy crisis and rising cost of materials, such as fiber optic cables, whose cost has doubled this year.

However, internet and streaming companies have claimed that they do pay for their content through significant investments in infrastructure that drastically lower the costs for telecom firms.

These include huge networks of data servers that enable content delivery close to the networks of telecom operators, reducing the distance over which data must travel, and lowering the cost to customers. Silicon Valley firms pay for the transit costs in such cases.

Matt Brittin, Google's President of EMEA business and operations, stated earlier this week that the company invested more than $21 billion in capital expenditures last year, a large portion of which went into infrastructure.

Source Credit: https://www.theguardian.com/business/2022/sep/26/european-telecoms-chiefs-call-on-tech-firms-to-share-internet-network-costs



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Saipriya Iyer

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Saipriya Iyer

Saipriya Iyer develops content for Market Size Forecasters, Algosonline, and myriad other platforms. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her bel...

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