Companies ask the European Union that companies like Netflix bear the costs of network development

The CEOs of 13 telecommunications operating companies, including José María Álvarez Pallete (Telefónica), Stéphane Richard (Orange), y Nick Read (Vodafone), among others they have signed a statement describing the enormous investment required the implementation of fiber and the 5G connection in Europe that has grown to 52,500 million euros per year, and how this network that they create is being widely used by companies such as Netflix, Google, Facebook or YouTube.

Companies ask the European Union for compensatory fees

As determined by the CEOs in this statement, this kind of rate that they request would serve to compensate for the high use of networks of those companies that offer cloud and streaming services. throughout the European territory. And although they are not mentioned, it is known that they refer to companies such as Facebook, Google or Netflix.

The document indicates that these companies also obtain high traffic and generate income thanks to the use of this type of network, and meanwhile, operators continue to invest in more 5G, fiber and cable infrastructures. In addition, to participate in plans to combat climate change through the European Green Digital Coalition (EGDC, for its acronym in English).

What do companies like Netflix say about paying a fee for network use?

Netflix, upon learning of this request, recently assured that these types of rates could cause an “unfair and anti-competitive environment”, especially if the operators set the prices.

Dean Garfield, vice president of public policy for Netflix, through an interview for Bloomberg said: “That this type of rates would harm the consumer, who would see an increase in their rate reflected in order to pay the cost set by the operators”

If the proposal is finally carried out, the companies must pay the amount agreed by the operators or the European Union, and the users as well.