Telefónica demands global techs pay up
November 10, 2022
From David Del Valle in Madrid
Spain’s Telefónica is seeking compensation from the US online giants – such as Google, Amazon, Meta/Facebook, Microsoft and Netflix – for the ‘over use’ of its network.
The president of Telefónica, José María Álvarez-Pallete, has requested that tech companies that use more than 5 per cent of the network’s operations should pay them compensation.
“We only want them to sit down with operators and agree on a compensation as in the wholesale traffic,” Alvarez-Pallete told a conference in Madrid, and he requested a mediator in case of no agreement.
He explained that European operators have been investing between €30 and €40 billion a year to extend the networks to deal with a 30 per cent increase in data traffic. Álvarez-Pallete urged Brussels to “deregulate the market” and apply “the same rules” for “the same competitors”. Alvarez-Pallete was for the consolidation in the market and demanded Brussels not to impose conditions that destroy the value of the market.
His comments come soon after the GSMA has decided to extend its chairmanship decision until, at least, the end of 2024 with Bharti Airtel Group CEO Gopal Vittal taking over as deputy at the start of 2023.
Alvarez-Pallete took his current role at the Association earlier this year, replacing Orange CEO Stephane Richard. The Association named its 26 board members for a two-year term starting next January.