Several major European telecom operators are urging large digital content platforms to contribute to the costs of the connectivity infrastructure they rely on.
In a joint statement, the CEOs of Vodafone, Telefónica, Deutsche Telekom and Orange argued that content platforms should share responsibility for financing network capacity and upgrades.
“The current situation is simply not sustainable. The investment burden must be shared in a more proportionate way,” the CEOs said.
They noted that video streaming, gaming and social media—services provided by a limited number of large digital platforms—now generate more than 70 percent of traffic on their networks. “Digital platforms are profiting from hyperscaling business models at little cost while network operators shoulder the required investments in connectivity,” the statement said.
The operators pointed out that data traffic can rise by as much as 50 percent each year, making it difficult for them to secure a viable return on the large investments needed to expand and maintain networks. They warned that without additional funding sources, further infrastructure development could be jeopardized.
This debate echoes earlier discussions around net neutrality. Critics of abandoning net neutrality argued that allowing different treatment of traffic could create “fast” and “slow” lanes—where services or consumers that pay more receive better performance—raising concerns about competitive fairness and internet openness.
To avoid those concerns, the European CEOs emphasized that their proposal targets “large” digital platforms rather than all online services, seeking a proportionate approach focused on the biggest traffic drivers.
A related dispute played out in South Korea after the global success of the Netflix series Squid Game. South Korean broadband provider SK Broadband sued Netflix over increased traffic and associated maintenance costs, prompting discussion of national rules to require contributions from streaming services.
At the EU level, the European Commission has committed to creating frameworks ensuring that “all market players benefiting from the digital transformation (…) make a fair and proportionate contribution to the costs of public goods, services and infrastructures.” The operators welcomed that pledge and called on lawmakers to implement rules that would deliver it.
“The clock is ticking loudly, particularly given the huge investments still required to achieve the connectivity targets for 2030 set by the European Commission in its Communication on the European Digital Decade,” the CEOs said. “Without an equitable solution, we will not get there.”
(Photo by USGS on Unsplash)
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