EU wants big tech to pay for mobile networks

The EU is investigating whether it is possible to have companies such as Meta, Google and Apple pay for mobile networks. The apps and online services they offer account for the majority of data traffic and so far only the end user pays. Gonny van der Zwaag | iCulture.nl – 24 February 2023, 11:31 whatsappfacebooktwittertelegramlinkedinmailprint

European telecom companies such as Vodafone and Telefónica need to set up 5G networks and other infrastructure to ensure that you can watch TikTok and Netflix videos all day long. The bill for all those investments ends up with the end user. However, the EU wants to see whether part of the costs can be traced back to the cloud and streaming providers. An investigation is underway to see if this is feasible. The European Commission has given itself until May 19.

Mobile subscription cheaper?

It would be great if this measure led to mobile subscriptions becoming cheaper, because part of the mobile network costs are borne by big tech. But it won't be that fast. Reuters quotes EU Internal Market Commissioner Thierry Breton. He emphasizes that it is not an attack on big tech, but that it is acting from the interests of European citizens. Network providers in the telecom world have to make large investments to roll out technologies such as 5G. Only the end customer pays, while companies such as Apple, Google and Amazon cause the data traffic.

Telecom companies are positive
Various payment models for this internet tax are being examined. The tech companies are, of course, opponents. Meta talks about an attack on net neutrality, but Telefónica boss José Maria Alvarez-Pallete disagrees. This would be an equal treatment: both the providers of cloud and streaming services and the end customers cause a large amount of data traffic and it is unfair that only the end customers have to pay for this.

What's in it for you?
The telecom companies are of course in favor of such an internet tax from the EU, because it can generate extra income for them, which they can reinvest in their networks. Whether they will pass it on in their subscription prices is still very much the question. It could compensate for a price increase here and there. On the other hand, we run the risk that cloud and streaming providers such as Netflix will pass on the internet tax in their subscription prices and then we are back to square one.


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