Meta Slams Telco Fee Proposal, Says ISPs Should Pay Their Own Network Costs
Proposals to pay for broadband networks by imposing new fees on Big Tech companies "are built on a false premise," Meta executives wrote in a blog post today. From a report: "Network fee proposals do not recognize that our investments in content drive the business model of telecom operators," Meta executives Kevin Salvadori and Bruno Cendon Martin wrote. Meta's comments came a few weeks after Netflix co-CEO Greg Peters spoke out against the proposal being reviewed by European regulators. Meta executives said telecom operators and content application providers (CAPs) "are symbiotic businesses, occupying different but complementary roles in the digital ecosystem. Every year, Meta invests tens of billions of euros in our apps and platforms -- such as Facebook, Instagram, and Quest -- to facilitate the hosting of content. Billions of people go online every day to access this content, creating the demand that allows telecom operators to charge people for Internet access. Our investment in content literally drives the revenue and business model of telecom operators." Internet service providers in the EU argue that Big Tech companies should pay a "fair share" toward network-building costs. In the US, Federal Communications Commission Republican Brendan Carr claims that "Big Tech has been enjoying a free ride on our Internet infrastructure while skipping out on the billions of dollars in costs needed to maintain and build that network." Big Tech companies don't actually get free access to the Internet, though. Anyone distributing content over the Internet pays their own providers, builds their own network infrastructure, or does some combination of the two. For extremely large companies like Netflix and Meta, investments include building their own content-delivery networks. "Over the last decade, CAPs have collectively invested over $880 billion in global digital infrastructure, including approximately $120 billion a year from 2018 to 2021," Meta's blog post today said. "These infrastructure contributions made by technology companies save telecom operators around $6 billion per year."
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