The Limited Times

Now you can see non-English news...

Telekom and Vodafone are demanding that Google and Facebook participate in network expansion

2021-11-29T10:30:09.625Z


In the corona crisis, home office and streaming increased the burden on the digital infrastructure. The telecommunications companies do not want to pay for the rising network costs alone.


Enlarge image

Telecommunications companies like Telekom want to involve US corporations in network expansion

Photo:

Oliver Berg / dpa

The European telecommunications companies want large US tech companies to share in the costs of network expansion in Europe.

"A large and growing part of network traffic is generated and monetized by large US platforms, but that requires continuous, intensive network investments and planning by the telecommunications sector," said a joint statement by 13 European companies.

In addition to Deutsche Telekom and Vodafone, the signatories also include Telefonica, Orange, KPN, BT Group, Telekom Austria, Vivacom, Proximus, Telenor, Altice Portugal, Telia Company and Swisscom.

The telecommunications industry is facing massive investments in 5G, fiber optic and cable networks in order to cope with the data and cloud services of Netflix, Google's YouTube and Facebook, among other things.

And these investments could only be sustainable if large tech companies made a "fair contribution" to network costs, the statement said.

Investments in the European telecommunications sector rose last year to a six-year high of 52.5 billion euros.

From 2022, Telekom alone plans to raise six billion euros a year for the expansion in Germany.

In order to be able to cope with these expenses, the Dax group is teaming up with investors, as in a joint venture with the infrastructure investor IFM from Australia, in order to build gigabit-capable connections in the Federal Republic of Germany.

Network load increases during the pandemic

The names of tech companies were not mentioned in the letter, but the corona crisis saw the demand for streaming services such as Netflix and Disney +, YouTube and Spotify rise rapidly.

Even in non-pandemic times, streaming films made up a large part of data traffic; in the corona crisis, in addition to mobile work equipment in the home office, streaming and online games also experienced enormous demand.

This also increased the load on the digital infrastructure.

Last year, the managing director of the Association for Telecommunications and Value-Added Services (VATM), Jürgen Grützner, said that due to the new technical challenges, the demand from companies for better infrastructure and connections had increased significantly.

hba / Reuters

Source: spiegel

All business articles on 2021-11-29

You may like

Trends 24h

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.