Meta balks at paying EU telcos for networks
Meta balks at paying EU telcos for networks, says tech partnerships should be prioritized.
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Meta balks at paying EU telcos for networks, says tech partnerships should be prioritized.
June 16th News: According to Reuters, Meta Corporation stated yesterday that subsidies from large tech companies should be the “last resort” for European telecommunications operators attempting to make American companies share a portion of the network costs.
This option should only be considered when other technical cooperation solutions are not feasible, and strict supervision of subsidy usage is required.
Deutsche Telekom, Orange, Telefónica and other EU operators have been lobbying US tech giants to contribute to the rollout of 5G and broadband for the past two decades.
Operators argue that the tech giants consume a large portion of the EU’s internet traffic and should pay for it.
IT House previously reported that the European Commission had started consultations earlier this year on whether technology giants should bear part of the cost of European telecommunications networks.
Companies such as Meta have said the move won’t solve the telco’s financial problems and ignores the huge investments made by tech companies.
Responding to the European Commission’s exploratory consultation on network fees, Meta said telcos receiving subsidies should also face strong regulation, including a process to ensure funds are only used for network investments .
Sources had revealed earlier this month that most EU countries are also refusing to impose network fees on big tech companies.
“The European Commission should first require any telco seeking subsidies to work in good faith with CAPs (Content Application Providers) to explore technical, non-subsidized solutions,” Meta said.
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