Written by Scott Bicheno
The European Commission is expected to detail the results of its consultation on whether big content providers should pay for network use.
Characterised as ‘fair contribution’ or ‘fair share’ by supporters of the concept, the essence of the argument is that a disproportionate amount of network traffic is accounted for by the big streaming video providers, such as Netflix and YouTube, so it’s only fair that they chip in for the cost of carrying that traffic. One counterargument is that network owners would have built that capacity anyway so its unfair to punish those that use it.
The European Commission decided to hold a public consultation on the matter, submissions to which closed last May. In its customary fashion, the EC decided to stew on it for a few months but is expected to share the results of that contemplation in the Autumn, which officially starts today. Presumably in anticipation of this, some interested parties have recommenced their own public lobbying, perhaps hoping the EC is still open to influence.
At the start of this week Juan Luis Redondo Maíllo, Director of Digital Public Policy at Telefónica, blogged on the matter, opening by stating “Europe needs €174 billion in order to achieve its Digital Decade targets and secure its digital competitiveness. To fulfil Europe’s economic potential and democratic mandate to achieve these targets, we must focus on shaping the solution.”
