Most EU countries are against "contributions for 5G" from Big Tech
The deployment of fifth-generation (5G) mobile networks in the European Union is facing some challenges in implementation. Most European telecommunications operators are demanding that large technology companies operating in the EU market assist in the deployment of 5G and broadband connectivity across Europe. However, at least 18 EU countries' ministers of communication have rejected or criticized this step, according to Republicworld.
Telecommunication operators worldwide want to carry out significant upgrades to their network infrastructure to launch fifth and sixth-generation communication. Such upgrades require substantial funding to increase capacity, adapt to the latest technologies, and involve other resources.
However, the process of deploying 5G in the European Union is progressing slowly due to a lack of funding. That's why telecommunications operators have proposed that tech giants finance part of the 5G deployment work, as they and their services are among the largest consumers of traffic.
Not satisfied with this proposal, most EU countries have rejected the idea. Ministers of telecommunications from 18 EU countries did not approve the suggested network fee imposition during meetings with the EU industry chief, Thierry Breton, in Luxembourg.
Major telecommunications companies such as Deutsche Telekom, Orange, Telefonica, and Telecom Italia supported the idea of demanding funds from large technology companies. This contribution proposal was also supported by the EU industry chief Breton, former CEO of France Telecom and French IT consulting company Atos.
Disagreements intensified due to the refusal of technology companies like Alphabet, Apple, Meta, Netflix, and Microsoft to pay the contributions. These tech giants reiterated that they invest in potential digital ecosystems rather than network deployment.
EU ministers expressed concerns that the requirement for such contributions from tech companies would lead to increased costs for consumers and pose a high risk to the investments and financial factors of major technology companies. It would also potentially violate EU net neutrality rules that require equal treatment of every user in terms of innovation and affordable services.
Among the countries that criticized the proposal are Austria, Belgium, the Czech Republic, Denmark, Finland, Germany, Ireland, Lithuania, Malta, and the Netherlands. Cyprus, France, Greece, Hungary, and Italy supported the idea. Poland, Portugal, and Romania maintained a neutral approach and did not take any action.