The EU could force the OTTs to contribute to ultra-broadband expenses, but the OTTs already do it

The world of telcos has been talking about just one topic for weeks: i network infrastructure costs. If on the one hand we have the consultation of the European Commission, on the other there is the awareness that a regulatory reform is being prepared in Brussels that could significantly change the way the Internet works. There are still no official details in this sense, but Commissioner Breton’s statements indicate the existence of a strong political commitment in this direction. It is no coincidence that network operators have already taken the field. In Italy, Pietro Labriola, CEO of the Tim Group, has already spoken out, declaring himself in favor of sharing costs between managers and the main over-the-top operators.

Fair share or not?

The reform, called “fair share“, aims to regulate the costs for investments in telecommunications networks, introducing a sort of sharing of expenses through an Internet traffic pricing mechanism that would require the over-the-top companies that ‘produce the most traffic’ to pay a donation to the operators for the use of their networks. “The principle that content providers should pay for traffic on the network is an idea more than 10 years old, and there is no new data that justifies changes that would overturn the principles upon which the free Internet is based,” he replies Diego Ciulli, head of public policy of Google Italy.

A step back to explain, in a nutshell, the current situation. The internet is based on net neutralitya principle that all data should be treated fairly and without discrimination, regardless of who creates it or where it comes from. This means that telecom operators cannot slow down or block access to certain websites or online services. All this has a price that the managers collect from the subscribers’ monthly fees and the Otts from the services.

Google doesn’t fit

While operators complain about the costs incurred, Google points out that it is a major investor in infrastructure. “We take charge of our data traffic for 99 percent of the journey, we bring it close to people and make it more efficient, to the full benefit of our Telco partners”, Diego Ciulli explains to Foglio. “Of the 23 billion invested in 2021 in capital account, most of it was in infrastructure. These investments are used to build i data centers that operate Internet services, large submarine cables (one of which is also under construction in Italy), and host digital content on the local network, thus helping TLC companies manage traffic peaks and ensure that YouTube videos or Google searches load fast for users. We also invest significantly in improving video compression, and in delivering high-quality content without using unnecessary bandwidth. These investments allow Tlc companies to make great savings.”

A position also espoused by Innocenzo Genna, a jurist specialized in European strategy, public affairs and regulation in the telecommunications sector, who in Valigia Blu reiterated how the idea of ​​making the OTTs pay for traffic is “a ploy to charge twice the same transport service: first to the user, and then to the Ott.”

Given that Internet traffic will continue to grow steadily, the problem remains: how and why to impose it by law, as the proponents of fair share would like? A question that Brussels must answer.