Brussels will mediate the conflict between operators and large technology companies.
After the announcement at the beginning of the year of the prior consultation on the shared network costs and the conflict it caused, the European Commission is trying to mediate between telecom operators and tech giants, on who should finance the costs of the telecommunications infrastructures.
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Proposal of the Internal Market commissioner.
In a letter sent to the EU telecom ministers, Thierry Breton, Internal Market Commissioner, has proposed a solution that allows telecom operators to invest in next-generation networks, such as 5G technology, without neglecting the fair competition with technology companies.
Breton’s proposed solution is to create a fundraising mechanism that allows telecom operators to recover some of the costs of building next-generation networks from online service providers such as Google and Facebook. In addition, she proposes to establish a kind of ‘confidence pact’ that allows technology companies to use the services of telecom operators without fear of discrimination.
The keys: maintaining income and independence.
The European Commission’s proposal comes at a key moment when:
- On the one hand, operators are struggling to maintain revenue due to increasing competition from tech companies. As consumers become increasingly dependent on online services, telecom operators have lost ground in the market and are struggling to keep their market share.
- On the other hand, the EU is trying to increase its technological independence at a time when tensions with China are rising. The EU has set a goal to ensure that 20% of the key components of 5G networks are of European origin by 2025, and is looking for ways to encourage European companies to invest in building telecom networks.
Fair financing.
To sum up, the proposal of the European Commission through mediation seeks to establish a fair mechanism for financing the construction and maintenance of telecommunications networks, without neglecting to promote the technological independence of the EU and guarantee a fair market for all companies involved in the telecommunications industry.
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