A European Community cunning plan which would make tech giants contribute to the cost of telecommunications infrastructure is finding a lot of opposition from internet exchange bodies and net neutrality advocates.
The European Union wants Big Tech firms to pay for telecom operators’ network costs. However, the European Internet Exchange Association (Euro-IX) claims the move could lead to systemic weakness in critical infrastructure and a “traffic jam”.
Euro-IX was established in June 2001 to grow, bolster and enhance the IXP community. It has 69 IXPs as members from different parts of the globe.
Europe’s digital chief Margrethe Vestager said in May that tech giants should be required to contribute to the cost of telecommunications infrastructure, something that telecoms operators have been lobbying for a long time.
Telecom operators have frequently voiced their annoyance at the fact that companies like Google, Netflix, and others have profited from fibre and cellular infrastructure investments and have to ensure enough capacity to satisfy demand.
European commission industry chief Thierry Breton said in September that he would launch a consultation on SPNP (Sending Party Network Pays) model at the beginning of 2023 before proposing legislation.
But Euro-IX warned that the measures to make tech companies contribute to the cost of telecom infrastructure run the danger of lowering the quality of service for internet users in Europe. In a letter to Breton and Vestager, it said the move could “accidentally create new systemic weaknesses” in critical infrastructure.
“The internet is a complex ecosystem, and it is policy-makers who are ultimately responsible for systemic effects resulting from policy choices”, wrote Bijal Sanghani, managing director of Euro-IX, adding that lawmakers should avoid prioritising administrative rules over technical necessity or a high-quality internet.
In recent months, opponents of the planned SPNP model have expressed concern that the so-called “traffic tax” might force digital platforms such as Facebook to route their services through ISPs outside the EU.
There is a possibility that platforms would lower the quality of their services to save money on fees, which might have a knock-on effect on users in Europe. They might pay the fees but charge the end users instead.
Critics also argue that the new measures violate the EU’s net neutrality regulations, which forbid ISPs from throttling or blocking traffic to give specific services priority over others.
Telecom lobby group ETNO (European Telecommunications Network Operators), which represents Telefonica, Deutsche Telekom, Orange Group and others, responded to BEREC’s conclusions by claiming they were out of date, announcing that it would provide the European Commission with new information in support of its position.
