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Telecom Industry Proposes Tech Companies to Fund for 5G's Implementation

CIO Insider Team | Thursday, 18 May, 2023
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According to a draft proposal from the telecom industry, technology companies that provide more than five percent of a telecommunications provider's peak average internet traffic should contribute to funding the implementation of 5G and broadband across Europe.

The suggestion is a response to the European Commission, which in February began a survey on the subject. Responses must be submitted by Friday.

The report, which was examined by Reuters but has not been made public, was put together by the lobbying organizations GSMA and ETNO.

Deutsche Telekom, Orange, Telefonica, Telecom Italia, and Vodafone are some of its members.

Since they consume a significant portion of the internet traffic in the area, telecom operators have pushed for years for top technology companies to sponsor the roll-out of 5G and broadband.

"Large traffic generators would only be those companies that account for more than five percent of an operator's yearly average busy hour traffic measured at the individual network level," the draft said.

Moreover half of all internet traffic is accounted for by Alphabet's Google, Apple, Meta, Netflix, Amazon, and Microsoft.

With the claim that they are responsible for a significant portion of the internet traffic in the area, telecom operators have fought for years for major technology companies to contribute to the cost of 5G and broadband roll-out. They are attempting to establish a criterion for who should pay for the first time.

Meta urged Brussels to veto any plans to bill Big Tech for additional network expenses.

"We propose a clear threshold to ensure that only large traffic generators, who impact substantially on operators' networks, fall within the scope," GSMA said.

"Large traffic generators would only be those companies that account for more than five percent of an operator's yearly average busy hour traffic measured at the individual network level," the draft said.

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