No Need for Internet Platforms to Pay Network Operators
The Belgian telecoms regulator IBPT-BIPT has said that there is no clear need to make technological giants such as Google and Microsoft help to pay for the rollout of 5G and broadband networks in the country. The regulator published a report on Monday that examined the feasibility and desirability of imposing a fee on internet platforms based on the volume of internet traffic they generate or consume.
The report concluded that such a fee would not be justified, as it would not reflect the actual costs and benefits of network investments, and it would raise legal and practical challenges. The report also said that the need to oblige internet platforms to pay network operators is not sufficiently demonstrated, as there is no evidence that the platforms are free-riding on the networks or that they are causing congestion or degradation of service quality.
EU Telecom Providers Seek Fair Share Funding from Big Tech
The report comes amid a debate in the European Union over how to finance the deployment of 5G and broadband networks, which are expected to require significant investments in the coming years. The EU industry chief Thierry Breton had asked for feedback from both telecom providers and internet platforms by the end of June on what he said is an investment gap of 200 billion euros ($213.92 billion).
The EU telecom providers, such as Deutsche Telekom, have called for what they describe as “fair share funding” from the internet platforms, arguing that they should contribute to the network costs as they benefit from the increased connectivity and data consumption. The internet platforms, on the other hand, have rejected this idea, saying that it would amount to an internet tax that would harm innovation and consumer choice.
No Separate Fund for Temporary Peaks in Investments
The Belgian regulator also said that a permanent, separate fund to help finance temporary peaks in investments may not be appropriate, as there are already plans in place for the rollout of fibre networks and some rural areas will benefit from state aid. The regulator said that such a fund would create distortions in the market and would not be compatible with the EU regulatory framework.
The regulator added that the best way to ensure efficient and timely network investments is to foster competition and innovation in the telecom sector, and to promote cooperation and coordination among the stakeholders. The regulator also said that it will continue to monitor the evolution of the market and the impact of internet platforms on network development.
