The largest telecom companies in Europe have called on companies like Netflix and Amazon to cover some of the skyrocketing data costs brought on by the worldwide streaming and internet growth.
According to The Guardian, the European Commission is getting ready to start a consultation on whether technology giants like Google, Facebook, Netflix, and Microsoft should be required to foot some of the rising costs for the massive amounts of international internet traffic they carry on their telecoms networks.
OTT platforms are majorly responsible for the increase in data usage, thanks to their popular shows such as Netflix’s Bridgerton and Amazon’s The Lord of the Rings: The Rings of Power.
Over half of all internet traffic is routed through six Silicon Valley giants, including Google, Facebook, Netflix, Apple, Amazon, and Microsoft, according to ETNO, a lobbying organisation for European telecom carriers. If you take into account gaming behemoths like Activision Blizzard, the company behind Call of Duty, the percentage increases to as much as 80%.
‘We believe that the largest traffic generators should make a fair contribution to the sizeable costs they currently impose on European networks,’ the telecoms chiefs said in a joint statement. ‘A fair contribution would send a clear financial signal for streamers in relation to the data growth associated with their use of scarce network resources.’
They noted that 5G networks and full-fibre broadband construction and maintenance cost are approximately €50 billion ($49 billion) yearly for European telecom providers. The financial burden is being exacerbated by the energy crisis and rising material prices.
Post Your Comments