Italy Joins European Push for Tech Industry Investment in Telecoms

25 Oct, 2023

Italy Joins European Push for Tech Industry Investment in Telecoms

In a statement made on Tuesday, Italy's Industry Minister, Adolfo Urso, expressed broad support for European Union proposals aimed at ensuring that major technology companies contribute to the financing of telecommunications infrastructure within the EU. Speaking at an EU telecoms minister meeting in Leon, Spain, Urso emphasized the importance of all stakeholders benefiting from the digital transformation to make fair and proportionate contributions to infrastructure costs.

However, he also stressed the need for a thorough evaluation by the EU before introducing any legislative measures. This evaluation should assess the extent to which network infrastructure is genuinely strained by the content and services provided by major technology companies.

Telecom companies have been advocating for companies like Google (Alphabet), Facebook (Meta), Netflix, Microsoft, and Amazon to share in the costs of deploying high-speed networks, given their significant share of internet traffic. Telecom giants such as Deutsche Telekom, Orange, Telefonica, and Telecom Italia (TIM) refer to this concept as "fair-share funding," while the tech industry argues it's tantamount to an internet tax.

EU Industry Chief Thierry Breton, who previously served as the CEO of France Telecom and supports the telecom network operators' proposal, will outline a strategy on this issue. The decision on whether to propose legislation will be left to the new Commission that arises from the upcoming European elections next year, as reported by Reuters.