Big tech firms face levies for 5G

According to a draft proposal filed by the telecommunications sector, big tech companies that generate more than 5 per cent of a telecoms provider’s peak average internet traffic should contribute to the funding of 5G and broadband development across Europe.

The draft plan, which Reuters has seen but has yet to be published, was assembled by renowned telecoms lobbying organizations GSMA and ETNO. These associations represent 160 European operators.

According to the draft, the proposal includes a defined threshold to guarantee that only substantial traffic producers that have a significant impact on operators’ networks are included. Large traffic generators are defined as firms that account for more than 5 per cent of an operator’s monthly average busy hour traffic, as assessed at the individual network level.

The idea is part of the response to the European Commission’s consultation on the subject, which began in February. It attempts to share the financial burden of 5G and broadband expansion among the major companies who stand to profit the most from expanded network capacity and enhanced connectivity.

According to industry estimates, the most probable candidates to be impacted by these levies are Alphabet’s Google, Apple, Facebook-owned Meta, Amazon, Netflix, and TikTok. Notably, Google, Apple, Meta, Netflix, Amazon, and Microsoft account for more than half of all data internet traffic.

The sources for this piece include an article in Reuters.

IT World Canada Staff
IT World Canada Staff
The online resource for Canadian Information Technology professionals.

Would you recommend this article?


Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.

Jim Love, Chief Content Officer, IT World Canada

Featured Download

ITW in your inbox

Our experienced team of journalists and bloggers bring you engaging in-depth interviews, videos and content targeted to IT professionals and line-of-business executives.

More Best of The Web