Google has advised the European Union (EU) that proposals for giant tech corporations to make monetary contributions (opens in new tab) to cell and broadband deployments have been a ‘decade-old concept’ that didn’t mirror the very fact the corporate already invested thousands and thousands in infrastructure

Matt Brittin, president of EMEA enterprise & operations at Google, advised an occasion organised by telecoms group ETNO that Google was investing vital sums in communications infrastructure – together with subsea cables and knowledge centres – and that it carried its site visitors for ’99% of the way in which’.

He argued that any transfer by the EU to make tech corporations pay may enhance prices for shoppers and threaten the rules of the open web.

Fibre funding

“These arguments are much like these we heard 10 or extra years in the past and we now have not seen new knowledge that modifications the scenario,” Reuters quotes him as saying.

The telecoms business is more and more annoyed that corporations resembling Google, Meta, Netflix, and others profit considerably from their community investments whereas it’s operators who’re compelled to make sure there’s sufficient capability to fulfill demand.

Including gas to the flames is the truth that many of those corporations actively compete with the communications business, affecting revenues, however will not be topic to the identical degree of regulation. With out intervention, they argue, capital-intensive community builds will lack enough return on funding to be engaging.

The EU, which sees fibre and 5G as important parts of its social and financial agenda, seems to agree the present scenario is unsustainable and has put ahead the concept tech corporations that profit from this infrastructure ought to assist pay for it.

Nevertheless forward of any potential laws, the EU has invited either side of the argument to state their case. Earlier than Google’s feedback, the chief executives of 13 main telecoms corporations, together with BT and Vodafone, signed a letter urging to the EU to take motion (opens in new tab).

Howwver huge tech may have an unlikely ally within the type of cell digital community operators (MVNOs) who argue they are going to be collateral harm (opens in new tab) of any such laws.

Trade physique MVNO Europe says any laws wouldn’t simply topic its members be topic to extra prices, the funds they might pay can be used to strengthen the place of incumbent operators, making it extra problem to compete. This may not solely have an effect on worth, however would additionally make it unfeasible for a lot of area of interest MVNOs to supply their providers.

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By way of Reuters (opens in new tab)