# Exclusive-With eye on Big Tech, energy crisis, EU telcos call for shared network costs
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-09-26
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: European Telecom Giants Urge Big Tech to Share Network
Meta Description: European telecoms providers, including Deutsche Telekom and Orange, urge Big Tech to help fund 5G and fibre roll-out due to rising costs and energy crisis.
URL: https://financedigest.com/exclusive-with-eye-on-big-tech-energy-crisis-eu-telcos-call-for-shared-network-costshtml

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By Foo Yun Chee

BRUSSELS (Reuters) – Deutsche Telekom, Orange, Telefonica and 13 other European telecoms providers on Monday made their strongest push for Big Tech to share network costs, citing the energy crisis and EU climate change goals.

The call comes as the European Commission prepares to seek feedback from both sides before making a legislative proposal that could force tech companies to help pay for the roll-out of 5G and fibre cables across the 27-country European Union.

The sector which invests some 50 [billion euros](https://www.financedigest.com/europes-spend-on-energy-crisis-nears-800-billion-euros.html "Europe’s spend on energy crisis nears 800 billion euros") ($48.5 billion) annually in infrastructure, needs more funding and urgently, the chief executives of the companies said in a statement.

[“Costs of planning and construction works](https://www.financedigest.com/finance-teams-have-been-left-in-the-dark-on-the-real-cost-of-working-from-home.html "Finance teams have been left in the dark on the real cost of working from home") are increasing. [Prices for fibre](https://www.financedigest.com/uks-ofcom-delays-bt-fibre-pricing-decision-after-ceo-remarks.html "UK’s Ofcom delays BT fibre pricing decision after CEO remarks") optic cables, for example, have almost doubled in the first semester 2022. Similarly, the hikes in energy [prices and in the prices of other inputs are also hitting the connectivity](https://www.financedigest.com/immediate-lift-of-oxford-property-prices-to-result-from-new-direct-high-speed-rail-connection-with-london.html "“Immediate lift” of Oxford property prices to result from new direct high speed rail connection with London") sector,” they said.

Timely action is a must: [Europe missed out on many of the opportunities offered by the consumer](https://www.financedigest.com/gumgum-powers-into-europe-as-new-research-shows-consumers-reject-behavioural-ads.html "GumGum Powers into Europe as New Research Shows Consumers Reject Behavioural Ads") internet. It must now swiftly [build strength for the age of the metaverses,” the CEO’s](https://www.financedigest.com/meet-tilak-joshi-the-fintech-ceo-building-modern-solutions-for-the-gig-economy.html "Meet Tilak Joshi: the fintech CEO building modern solutions for the gig economy") said.

For this to happen, and to be sustainable over time, we believe that the largest traffic generators should make a fair contribution to the sizeable [costs they currently impose on European](https://www.financedigest.com/analysis-east-europeans-count-their-pennies-for-christmas-as-food-costs-soar.html "Analysis-East Europeans count their pennies for Christmas as food costs soar") networks,” they said.

Other signatories to the statement include Vodafone, Bouygues Telecom, KPN, BT Group, TIM Group, Telia Company, Fastweb and Altice Portugal.

Europe’s telecoms operators argue that U.S. tech firms such as Alphabet’s Google, Meta and Netflix [account for more than half](https://www.financedigest.com/half-of-employees-aged-40-and-over-in-the-accounting-banking-and-finance-industries-think-they-will-have-to-work-longer-to-live-the-life-they-want.html "Half Of Employees Aged 40 And Over In The Accounting, Banking And Finance Industries Think They Will Have To Work Longer To Live The Life They Want") of internet traffic and should bear some of the cost of upgrading infrastructure.

[Big Tech](https://www.financedigest.com/startups-spring-from-ashes-of-big-tech-purge.html "Startups spring from ashes of Big Tech purge") has rebuffed such requests, saying they are already investing in equipment and technologies to deliver content more efficiently.

($1 = 1.0301 euros)

(Reporting by Foo Yun Chee;Editing by Elaine Hardcastle)


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