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MVNO EU Tech Change

MVNO EU Tech Change

MVNO Europe has noticed and argues with the discussions of Pushing Large Tech Companies to take up a percentage of the regions infrastructure cost.

The association, who represents MVNOs in Europe, have gone through the proposed changes and have come to the conclusion if mobile network operators get charged a fee from the companies such as Netflix, Google and Meta for carrying their traffic is a weak imperfect strategy.

MVNO Europe Associates truly believe this type of legislation would lead to major disruption of current peering and transit markets, currently functioning competitively and by giving MNOs a financial advantage and the upper hand that would harm MVNOs directly.

The Associates describe if Large Tech Companies are forced to pay- which result in MNOs could be getting payed multiple times for accessing their network.

If this goes ahead the largest telecom providers will charge for their network services several times.

  1. Customers
  2. Content
  3. Application providers

They could be paying as many as three times. (Operators who are already paying network access fee)

MVNO EU Tech Change

MVNO Europe is afraid by making the six largest online content providers (Large Tech Companies) pay for network access, many other companies would be also required to make substantial additional payments to the largest telecom companies for exchange and convey internet traffic, yet these companies normally already pay incumbents for access to their network on commercial or regulated terms.

What would happen if this change takes place?

The Associates are warning legislators to its unfairness theme, this proposal for Large Tech Companies to stump up more money in this way is an unwelcome artificial change to the economics of internet traffic handling.

The Associates see an unfair theme

This proposals put forward by the largest telecom companies will amount to a ‘direct contribution’ to be paid to them, on account of large internet traffic volumes to be carried on telecom networks on both fixed and mobile.

This fundamentally changes the internet from a set-up where all users in the ecosystem would pay for  their own connection to the internet, to a ‘sending-party-pays’ principle, through which payments are made at Trade/wholesale level to a ‘termination monopoly’ which has the end-user control.

The Association recommends the legislators consider the dangerous implications before taking any actions that would directly or indirectly impact the stability and sustainability of the European MVNO industry.

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By Abdul W Moghul


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