Italy is moving towards new legislation that would require Big Tech companies to contribute to the costs of developing the nation’s telecom infrastructure, according to Industry Minister Adolfo Urso.
The telecom sector has argued that Big Tech companies, which generate substantial internet traffic, should help fund the high-speed network expansion efforts. Google, Facebook, Amazon, Apple, and Microsoft some of the Big Tech companies.
The latest GSMA report said 5G subscriber base in Italy will account for 84 percent of the total mobile connections in 2030 from 8 percent in 2023. This indicates that leading telecom operators such as TIM and Vodafone will be making significant investment to enhance 5G coverage in Italy.
Big tech firms are gaining from more than 90 percent mobile Internet penetration in Italy. GSMA Intelligence forecasts that four of the top 10 most penetrated 5G FWA markets will be in Europe by 2030.
In Europe, telecom operator Capex will be reaching €198 billion between 2023-2030. Revenue of telecom operators in Europe will reach €162 billion in 2030 from €156 billion in 2022, GSMA predicts.
Mobile data traffic in Europe will almost triple over the next five years, prompting telecoms to keep Capex for mobile network. Uptake of apps for gaming, extended reality and video are the primary drivers for the increase in data usage.
Operators are evolving their mobile networks to meet this growing demand and ensure a consistent experience across locations. But Big Tech are not supporting mobile service providers in terms of sharing the cost of building network.
Deutsche Telekom, Orange, Telefonica, and Telecom Italia advocate for what they call “fair-share” funding. They believe Big Tech should help cover infrastructure costs since their services consume a significant portion of the bandwidth. The tech giants, however, argue that this would essentially be an “internet tax” on their operations.
Speaking at an event in Milan, Adolfo Urso emphasized the importance of ensuring Big Tech contributes to the burden on telecommunications networks, adding that Italy is working actively towards such measures.
This proposal mirrors broader initiatives at the European Union level, where politicians and industry experts have been exploring similar policies. Italy’s push for Big Tech to negotiate both technical and economic conditions with telecom operators reflects a growing sentiment across Europe that large online platforms should help fund infrastructure critical to their business operations, Reuters news report said.
With backing from some ruling politicians, including Andrea Dara of the League party, the move could see online platforms contribute to future investments in electronic communications networks. The amendment put forward aims to impose this responsibility on major online platforms, search engines, and gatekeeper services, marking a significant shift in how internet infrastructure could be funded in Italy.
Baburajan Kizhakedath
