Italy supports EU proposal for big tech funding of telecom networks

Italy has endorsed European Union initiatives that call for big technology companies such as Google, Facebook (Meta), Netflix, Microsoft, and Amazon to participate in financing EU telecommunications networks. Telecommunications companies argue that these tech giants, which constitute a substantial share of internet traffic, should contribute to the expenses of expanding high-speed networks. Adolfo Urso, Italy’s Industry Minister, expressed this backing during a meeting of EU telecoms ministers in Spain.

Nevertheless, he underscored the importance of a thorough evaluation of the impact of content from major tech companies on network infrastructure prior to implementing any legal measures. The debate is ongoing, with telecom firms promoting ‘equitable funding,’ while tech companies oppose it, likening it to an ‘internet tax.’ EU industry chief Thierry Breton is slated to present a strategy on this issue, with the decision on legislation left to the forthcoming European Commission following the upcoming elections. Urso also called for a more extensive assessment of the network’s capacity to manage the traffic generated by tech firms.

Why does this matter?

The proposal highlights the debate about who should bear the financial burden of expanding and maintaining critical telecommunications infrastructure. It’s crucial because it could potentially shift some of the costs from traditional telecom companies to major tech giants. Furthermore, the discussion touches on the fairness of contributions in the digital economy. It addresses the question of whether companies that generate significant internet traffic should share in the costs of the infrastructure that facilitates their services.