European telcos want to impose a success tax on tech companies
More than 20 European telecommunications operators, including Telefonica, Deutsche Telekom, Orange, BT, KPN and Vodafone have called on the European Union to require the technology companies that create the most network traffic to contribute to infrastructure costs by law.
On the one hand, it’s hardly surprising that these companies are asking for more money: they spend more than €50 billion a year in laying, upgrading and maintaining their infrastructure, which is used by businesses and the public for a growing range of services generated by technology companies.
But on the other hand, while technology companies products and services use telecoms networks, without them, demand would be infinitely lower, and telecommunications companies would still be anchored in the past, charging the public for the amount of time we spend talking and how far away the person we’re talking to is.
Why should technology companies, which are ultimately responsible for the growth of telecommunications companies with their products and services, contribute to the cost of infrastructure? Let’s put it another way: would it make sense for large shopping malls and businesses that bring people out to buy stuff to have to contribute to the cost of building and maintaining those streets?
