Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Exclusive-D. Telekom, Vodafone, others want U.S. tech giants to help fund network costs

Stock MarketsNov 29, 2021 11:43
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
5/5 © Reuters. FILE PHOTO: Technicians work at the top of transmitting antennas are seen on a mobile-phone network relay mast in Lambres-lez-Douai, France, September 30, 2020. REUTERS/Pascal Rossignol 2/5

By Foo Yun Chee

BRUSSELS (Reuters) - U.S. tech giants should bear some of the costs of developing Europe's telecoms networks because they use them so heavily, chief executives of Deutsche Telekom (DE:DTEGn), Vodafone (LON:VOD) and 11 other major European telecoms companies said on Monday.

The call by the CEOs comes as the telecoms industry faces massive investments for 5G, fibre and cable networks to cope with data and cloud services provided by Netflix (NASDAQ:NFLX) and Google (NASDAQ:GOOGL)'s YouTube and Facebook (NASDAQ:FB).

Investments in Europe's telco sector rose to 52.5 billion euros ($59.4 billion) last year, a six-year high.

"A large and increasing part of network traffic is generated and monetized by big tech platforms, but it requires continuous, intensive network investment and planning by the telecommunications sector," the CEOs said in a joint statement seen by Reuters.

"This model – which enables EU citizens to enjoy the fruits of the digital transformation – can only be sustainable if such big tech platforms also contribute fairly to network costs," they said.

The CEOs did not mention any tech firms by name, but Reuters understands that U.S.-listed giants such as Netflix and Facebook are companies they have in mind.

Signatories to the letter include the CEOs of Telefonica (MC:TEF), Orange, KPN, BT Group (LON:BT), Telekom Austria, Vivacom, Proximus, Telenor, Altice Portugal, Telia Company and Swisscom.

The CEOs also criticised high spectrum prices and auctions, used by EU governments as cash cows, saying that these artificially force unsustainable entrants into the market.

EU lawmakers' attempts to scrap surcharges on intra-EU calls also got short shrift from the CEOs who see this sector as a source of revenue from business users.

"We estimate that they would forcibly remove over 2 billion euros revenues from the sector in a 4 year period, which is equivalent to 2.5% of the sector's yearly investment capacity for mobile infrastructure," the companies said.

EU lawmakers have to discuss their proposal with EU countries before it can be adopted and may struggle to find agreement.

($1 = 0.8839 euros)

Exclusive-D. Telekom, Vodafone, others want U.S. tech giants to help fund network costs
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email