To accelerate the expansion of the mobile network according to the modern 5G standard, the European Union (EU) is considering relaxing merger rules for the telecommunications industry. In addition, large technology companies could share in the costs of fiber optic cables or transmission towers, according to a concept from the European Commission, which was seen by the Reuters news agency.
“The fragmentation of the EU market for electronic communications networks and services along national borders could impact the ability of operators to achieve the scale needed to invest in the networks of the future, especially with regard to cross-border services,” the newspaper said. EU Competition Commissioner Margrethe Vestager is expected to officially present the plans on February 21 and then seek the views of those involved.
The European telecommunications industry is currently in flux: the Spanish company Telefónica recently acquired almost its entire subsidiary Telefónica Deutschland. Due to intense competition, Vodafone has sold its Spanish subsidiary and is in “active discussions” about its Italian operations. The activities in the British home market will be merged with those of CK Hutchinson.
The so-called network fee levy for companies such as streaming provider Netflix or Alphabet subsidiary Google is controversial, even within the EU states. The telecom providers justify their demand for payments by saying that these companies are responsible for a large part of the data traffic. The technology companies counter that the value of their content for the digital ecosystem and the associated investments have not yet been taken into account.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
