Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Exclusive-D. Telekom, Vodafone, others want U.S. tech giants to help fund network costs

11/28/2021 | 06:13pm EST
FILE PHOTO: A woman walks past a 5G data network sign at a mobile phone store in Paris

BRUSSELS (Reuters) - U.S. tech giants should bear some of the costs of developing Europe's telecoms networks because they use them so heavily, chief executives of Deutsche Telekom, Vodafone and 11 other major European telecoms companies said on Monday.

The call by the CEOs comes as the telecoms industry faces massive investments for 5G, fibre and cable networks to cope with data and cloud services provided by Netflix and Google's YouTube and Facebook.

Investments in Europe's telco sector rose to 52.5 billion euros ($59.4 billion) last year, a six-year high.

"A large and increasing part of network traffic is generated and monetized by big tech platforms, but it requires continuous, intensive network investment and planning by the telecommunications sector," the CEOs said in a joint statement seen by Reuters.

"This model - which enables EU citizens to enjoy the fruits of the digital transformation - can only be sustainable if such big tech platforms also contribute fairly to network costs," they said.

The CEOs did not mention any tech firms by name, but Reuters understands that U.S.-listed giants such as Netflix and Facebook are companies they have in mind.

Signatories to the letter include the CEOs of Telefonica, Orange, KPN, BT Group, Telekom Austria, Vivacom, Proximus, Telenor, Altice Portugal, Telia Company and Swisscom.

The CEOs also criticised high spectrum prices and auctions, used by EU governments as cash cows, saying that these artificially force unsustainable entrants into the market.

EU lawmakers' attempts to scrap surcharges on intra-EU calls also got short shrift from the CEOs who see this sector as a source of revenue from business users.

"We estimate that they would forcibly remove over 2 billion euros revenues from the sector in a 4 year period, which is equivalent to 2.5% of the sector's yearly investment capacity for mobile infrastructure," the companies said.

EU lawmakers have to discuss their proposal with EU countries before it can be adopted and may struggle to find agreement.

($1 = 0.8839 euros)

(Reporting by Foo Yun Chee; Editing by Toby Chopra)

By Foo Yun Chee

ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
ALPHABET INC. 1.12% 2606.215 Delayed Quote.-10.94%
BT GROUP PLC 1.70% 196.9 Delayed Quote.14.16%
DEUTSCHE TELEKOM AG -0.56% 16.63 Delayed Quote.2.59%
META PLATFORMS, INC. 0.64% 296.47 Delayed Quote.-12.40%
NETFLIX, INC. -1.79% 379.8 Delayed Quote.-35.81%
ORANGE 1.24% 10.454 Real-time Quote.9.70%
ORANGE COUNTY BANCORP, INC. -1.96% 39.54 Delayed Quote.0.00%
PROXIMUS SA -0.84% 18.305 Real-time Quote.7.73%
ROYAL KPN N.V. 0.38% 2.895 Real-time Quote.5.60%
SWISSCOM AG 0.38% 531 Delayed Quote.2.80%
TELEKOM AUSTRIA AG 0.00% 7.61 Delayed Quote.-0.13%
TELENOR ASA -0.61% 147.3 Real-time Quote.6.93%
VODAFONE GROUP PLC 1.19% 127.6 Delayed Quote.12.31%
Latest news "Economy & Forex"
11:20aExclusive-India plans over $40 billion for food, fertiliser subsidy for 2022/23 - sources
11:20aU.S. lawmakers urge GM, Mexico to safeguard worker rights ahead of union vote
11:19aDisney names alexia quadrani to lead investor relations -- disne…
11:19aIn fraud trial, defendant Michael Avenatti asks Stormy Daniels about chats with the dead
11:18aEuropeans set two-week deadline to review untenable Mali situation
11:17aRussia signals possible vote to stop U.N. meeting on troop build-up
11:17aCaterpillar sales soar, warns of margin pressure
11:14aBritain reports 89,176 new COVID cases, 277 deaths
11:13aMexico's economy likely entered recession in fourth quarter
11:13aBrazil rates set to soar further as US Fed prepares for lift-off
Latest news "Economy & Forex"