Benzinga

España
Italia
대한민국
日本
Français
Benzinga Edge
Benzinga Research
Benzinga Pro

  • Get Benzinga Pro
  • Data & APIs
  • Events
  • Premarket
  • Advertise
Contribute
España
Italia
대한민국
日本
Français

Benzinga

  • Premium Services
  • Financial News
    Latest
    Earnings
    Guidance
    Dividends
    M&A
    Buybacks
    Interviews
    Management
    Offerings
    IPOs
    Insider Trades
    Biotech/FDA
    Politics
    Healthcare
    Small-Cap
  • Markets
    Pre-Market
    After Hours
    Movers
    ETFs
    Options
    Cryptocurrency
    Commodities
    Bonds
    Futures
    Mining
    Real Estate
    Volatility
  • Ratings
    Analyst Color
    Downgrades
    Upgrades
    Initiations
    Price Target
  • Investing Ideas
    Trade Ideas
    Long Ideas
    Short Ideas
    Technicals
    Analyst Ratings
    Analyst Color
    Latest Rumors
    Whisper Index
    Stock of the Day
    Best Stocks & ETFs
    Best Penny Stocks
    Best S&P 500 ETFs
    Best Swing Trade Stocks
    Best Blue Chip Stocks
    Best High-Volume Penny Stocks
    Best Small Cap ETFs
    Best Stocks to Day Trade
    Best REITs
  • Money
    Investing
    Cryptocurrency
    Mortgage
    Insurance
    Yield
    Personal Finance
    Forex
    Startup Investing
    Real Estate Investing
    Prop Trading
    Credit Cards
    Stock Brokers
Research
My Stocks
Tools
Free Benzinga Pro Trial
Calendars
Analyst Ratings Calendar
Conference Call Calendar
Dividend Calendar
Earnings Calendar
Economic Calendar
FDA Calendar
Guidance Calendar
IPO Calendar
M&A Calendar
Unusual Options Activity Calendar
SPAC Calendar
Stock Split Calendar
Trade Ideas
Free Stock Reports
Insider Trades
Trade Idea Feed
Analyst Ratings
Unusual Options Activity
Heatmaps
Free Newsletter
Government Trades
Perfect Stock Portfolio
Easy Income Portfolio
Short Interest
Most Shorted
Largest Increase
Largest Decrease
Calculators
Margin Calculator
Forex Profit Calculator
100x Options Profit Calculator
Screeners
Stock Screener
Top Momentum Stocks
Top Quality Stocks
Top Value Stocks
Top Growth Stocks
Compare Best Stocks
Best Momentum Stocks
Best Quality Stocks
Best Value Stocks
Best Growth Stocks
Connect With Us
facebookinstagramlinkedintwitteryoutubeblueskymastodon
About Benzinga
  • About Us
  • Careers
  • Advertise
  • Contact Us
Market Resources
  • Advanced Stock Screener Tools
  • Options Trading Chain Analysis
  • Comprehensive Earnings Calendar
  • Dividend Investor Calendar and Alerts
  • Economic Calendar and Market Events
  • IPO Calendar and New Listings
  • Market Outlook and Analysis
  • Wall Street Analyst Ratings and Targets
Trading Tools & Education
  • Benzinga Pro Trading Platform
  • Options Trading Strategies and News
  • Stock Market Trading Ideas and Analysis
  • Technical Analysis Charts and Indicators
  • Fundamental Analysis and Valuation
  • Day Trading Guides and Strategies
  • Live Investors Events
  • Pre market Stock Analysis and News
  • Cryptocurrency Market Analysis and News
Ring the Bell

A newsletter built for market enthusiasts by market enthusiasts. Top stories, top movers, and trade ideas delivered to your inbox every weekday before and after the market closes.

  • Terms & Conditions
  • Do Not Sell My Personal Data/Privacy Policy
  • Disclaimer
  • Service Status
  • Sitemap
© 2026 Benzinga | All Rights Reserved
October 31, 2022 7:24 AM 2 min read

Amazon, Netflix, Meta And Other Big Tech Could Soon Have To Compensate Telcos For Bandwidth In Europe

by Anusuya Lahiri Benzinga Editor
Follow

ArticleFeaturedTickersList12345!!!

Telecom groups pushed European regulators to consider a price for the companies that send traffic along their networks to help fund mammoth upgrades to their infrastructure, something known as the “sender pays” principle, CNBC reports.

European telecom providers made their most vigorous push for Big Tech to share network costs, citing the energy crisis and EU climate change goals.

Telecom groups found specific platforms, like Amazon.com Inc (NASDAQ:AMZN) Prime and Netflix Inc (NASDAQ:NFLX), chew through enormous amounts of data and should therefore foot part of the bill for adding new capacity to cope with the increased strain.

The idea won political support, with France, Italy, and Spain among the countries coming out in favor. The European Commission prepared a consultation examining the issue, likely to launch early next year.

For at least a decade, telecom firms struggled to get digital juggernauts to fork out to support upgrades to network infrastructure. 

Carriers have long been wary of losing income to online voice calling applications like Meta Platforms Inc (NASDAQ:META) WhatsApp, and Skype, for example, accusing such services of “free riding.”

The pandemic outbreak genuinely worried EU officials that networks might crumble under the strain of applications helping people work from home and binge films and TV shows.

Netflix and Walt Disney Co (NYSE:DIS) Plus took steps to optimize their network usage by cutting video quality, reviving the debate in Europe.

Meta, Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL), Apple Inc (NASDAQ:AAPL), Amazon, Microsoft Corp (NASDAQ:MSFT), and Netflix accounted for more than 56% of all global data traffic in 2021, ETNO report found.

Broadband operators invest €50 billion ($48.5 billion) annually into their infrastructure to support next-generation 5G and fiber networks.

U.S. tech giants should “make a fair contribution to the sizable costs they currently impose on European networks,” the bosses of 16 telecom operators said in September. 

Higher prices of fiber optic cables and energy have impacted operators’ costs, adding greater impetus for a network access fee.

Video services have driven an “exponential growth in data traffic,” according to Pescatore. Better picture formats like 4K and 8K — coupled with the rise of short-video apps like TikTok — mean that growth will “proliferate” over time.

“Telcos do not generate any additional revenue beyond the connection for providing access, whether that is fiber or 4G/5G,” media and telecoms analyst Paolo Pescatore said.

While a “mass market” metaverse has yet to be realized, once it does, “its traffic would dwarf anything we see now,” Dexter Thillien, lead technology and telecoms analyst, told CNBC.

Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.


Posted In:
NewsTechMedia
AAPL Logo
AAPLApple Inc
$259.07-0.16%
Overview
AMZN Logo
AMZNAmazon.com Inc
$239.29-%
DIS Logo
DISThe Walt Disney Co
$113.000.18%
GOOG Logo
GOOGAlphabet Inc
$338.14-0.11%
GOOGL Logo
GOOGLAlphabet Inc
$337.80-0.06%
META Logo
METAMeta Platforms Inc
$714.60-0.27%
MSFT Logo
MSFTMicrosoft Corp
$428.77-0.35%
NFLX Logo
NFLXNetflix Inc
$83.35-0.17%
AAPL Logo
AAPLApple Inc
$259.07-0.16%
Overview
AMZN Logo
AMZNAmazon.com Inc
$239.29-%
DIS Logo
DISThe Walt Disney Co
$113.000.18%
GOOG Logo
GOOGAlphabet Inc
$338.14-0.11%
GOOGL Logo
GOOGLAlphabet Inc
$337.80-0.06%
META Logo
METAMeta Platforms Inc
$714.60-0.27%
MSFT Logo
MSFTMicrosoft Corp
$428.77-0.35%
NFLX Logo
NFLXNetflix Inc
$83.35-0.17%
Comments
Loading...