The German Broadband Association (BREKO) comments on the joint statement published today by the European Telecommunications Network Operators’ Association (ETNO), GSMA Europe, AOMR, APMS, AssoTelecomunicazioni ATI, DigitalES and Fédération Française des Télécoms on the participation of the largest tech companies in the costs of digital infrastructures in Europe as follows:

“We welcome the commitment of the signatory associations to actively support the goals of the European ‘Digital Decade’ and the European ‘Green Deal’. BREKO and its more than 430 member companies are also working every day to promote the expansion of future-proof fiber optic networks as the basis for a sustainable digital transformation.

We also support in principle the contribution of the undersigned associations to the debate on how a fair contribution from all parties involved in the development and operation of high-performance digital infrastructures in Europe should be structured in the future. After all, European fiber optic networks form the basis for current and future 5G applications as well as for the success of data-intensive offerings from large tech companies such as Meta, Amazon, Netflix and Google.

In Europe and especially in Germany, the alternative network operators in particular are responsible for a large part of the fiber optic roll-out to buildings, for example around 75 percent* in Germany. From BREKO’s point of view, it is therefore of central importance that this debate takes place publicly and transparently with the involvement of all network operators and fiber-optic roll-out companies. This is why BREKO is also in favor of a public consultation – as some EU parliamentarians have also called for in an open letter to the European Commission.

From BREKO’s point of view, a possible contribution to the costs of fiber optic expansion in Europe by the companies with the largest data revenues would have to be implemented in such a way that three fundamental principles are preserved:

Distortions of competition in the telecommunications market must be prevented. To this end, a transparent procedure would have to be developed on the basis of a public consultation, according to which contributions are distributed fairly among all fiber optic (FttB/H) network operators – regardless of their size. Furthermore, it would have to be ensured that the participation of the largest traffic generators is implemented in accordance with the principle of net neutrality (Open Internet principles). Finally, for such a measure to really contribute to strengthening digital infrastructures in Europe, it would have to be ensured that additional financial resources are earmarked for the expansion of fibre optics right into buildings, that only investing companies participate and that the market dynamics currently observed in the expansion of the private sector are not jeopardized. This is because fiber optic networks form the basis both for wired Internet use, where the majority of traffic growth is taking place, and for mobile communications via modern 5G networks.

BREKO will continue to contribute to this important debate and advocate a balanced solution that fulfills the three criteria mentioned above and includes alternative network operators.”

* Source: BREKO market analysis 2021