European regulators stressed that no decision on a ‘fair contribution’ had yet been made, with all options still on the table – except for changes to net neutrality rules
Telecoms networks should be built in Europe and for Europe: On 21 March 2023, ETNO (the trade body for large telcos in Europe) and POLITICO hosted an event bringing together the telecoms, tech and policy communities. ETNO’s Director General, Lise Fuhr, delivered some introductory remarks stating there is a need to ask “daring questions” on how Europe can foster a stronger homegrown ecosystem for telecoms, Fuhr’s keynote and the EC’s recent ‘explanatory consultation’ provided a platform for the subsequent discussion.
Orange seeks a more equitable digital ecosystem: Roberto Viola (DG CNECT) emphasised that the EC’s consultation on the future of the telecoms sector has not yet come to any conclusions. Viola also sought to assert a degree of linguistic control, stating his preference for the term ‘fair contribution’ over anything else, which he considers most closely reflects the text of the European Declaration on Digital Rights and Principles. Mari-Noëlle Jégo-Laveissière (Deputy CEO, Orange) highlighted the importance of universal access to the benefits of telecoms networks and services, and that all parties should play a sufficient part in ensuring their availability. Amid 30% annual data traffic growth and continued network investments by operators that far outweigh those made by Big Tech, Jégo-Laveissière claimed that the internet ecosystem is facing an imbalance in need of addressing.
Fairness should be considered in the round: Terminology aside, Phillip Malloch (Director of Economic and Social Policy, Meta) saw the balance of traffic as irrelevant – “a bit is a bit wherever it comes from”. Malloch also considered that fairness should be viewed with a wider lens, highlighting the role of Meta and other tech companies in Europe’s digital transformation. More pointedly, Malloch stated it is the job of telcos to build networks, which use digital services in their monetisation (echoing the symbiotic relationship outlined by Netflix at MWC23). Konstantinos Masselos (Chair, BEREC – which previously dealt a blow to the telecoms sector’s proposal), noted the clear interdependence between operators and content and application providers, and that sustainable investment in connectivity is broader than potential direct remunerations under a ‘sending party network pays’ model. To that end, Masselos highlighted additional policy tools to help accelerate deployments, e.g. the Gigabit Infrastructure Act, the Gigabit Recommendation and public subsidies, but that much work is left to do to stimulate demand.
Net neutrality does not enter into the equation: Responding to an audience question, Viola stated that net neutrality is a “sacred cow”, which is not up for discussion or change. He also did not see scope for conflict between a ‘fair contribution’ and a free and open internet, and so there was no need to include questions on net neutrality in the EC’s consultation. Jégo-Laveissière similarly felt that the current debate should not be conflated with net neutrality and it is instead about ensuring there is a regulatory framework in place to support commercial negotiations between telcos and Big Tech, particularly in light of 2030 Digital Decade targets and the European Green Deal. As the EU looks ahead to technological advancements such as 6G, autonomous vehicles and the metaverse, Viola wanted to see a human-centric approach to regulation remain, with Fuhr agreeing that many facets of the bloc’s framework have been positive and should be preserved, including its focus on consumer protection and its open internet principles.
