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streaming platforms will pay for internet traffic

Going back to the time of the pandemic, the use of Netflix and streaming services increased so much that it and YouTube had to reduce the amount of data used by 25%. At this time the networks were overloaded and the operators issued numerous complaints about the high traffic and costs involved. Here, the European Union came up with the idea of ​​making streaming pay your share at operators to cover the cost of increasing traffic.

We have been knowing for a few months now that the operators are demanding that you help them when it comes to cover costs the increase in network traffic. And it is that, since COVID, the use of the Internet has increased in all sectors, making them lose money. In fact, the telecoms assure that the increase of a 40% downstream traffic and a 200% upstream traffic during the pandemic they were everything earnings for US streaming platforms. Now, Europe fears that if it leaves all the investment in the hands of the operators, this could cause us to fall behind the other countries.

The operators demand a payment and the companies answer that they already invest

Netflix servers Europe

Europe finds itself in that situation where it does not know what to do, since it has two sides that give their arguments in favor of themselves. On the one hand, we have the operators, who, as we said, are bearing extra costs that end up being benefits for other companies. On the other hand, technology companies such as Alphabet and Metathey assure that they have already invested billions of dollars in improving the infrastructure. These have been used to expand the network of submarine cables between continents and Meta says it has greatly benefited the European economy.

On the other hand, we have streaming companies like Netflixwhich ensures that you have installed thousands of servers in 700 cities in Europe. This has allowed them to compress and store videos locally, making the content not travel long distances, reducing traffic and cost. None of these companies is in favor of paying the operators for the traffic consumed. In fact, the president of Google in EMEA (Europe, Middle East and Africa), Matt Brittinensures that the customers will be the ones who pay with money or worse services if Europe adds this streaming rate for operators.

Italy and USA in favor of Netflix and YouTube paying for their traffic

EU YouTube Netflix Traffic 5G Operators

In Europe there is a duality, because there are countries that are in favor technology companies and streaming services pay operators for their traffic. Among these we have USA, Italy and France, which have decided that YouTube or Netflix should pay a fair share of their network usage. On the other hand, we have countries like Germany, Denmark and the Netherlandswho are against of this decision. In addition to these two positions, there are others who think that the cause of this is due to the large number of operators that we have in Europe.

And it is that, if we make a comparison, in USA only have 3 big mobile phone companies, which take most of the market. On the other hand, in Europe we have almost 40 operators, this fragmentation of the market being the main reason for this situation. This has caused a concern in the market that we are left behind. In fact, in 2021 Europe just had 5G in the 2.5% of mobile connections, compared to 14.2% in USA and the 28% from China, Korea and Japan.

Orange Masmovil Fusion

As a solution to this problem, it would be operator mergersomething you want to test with Orange and MásMóvil in USA. USA is once again first in something, because Telephone proposes a third option that is about making streaming companies and platforms negotiate directly with the operators on the cost of traffic.

“It’s not about you, big American platforms, be generous with us, because you’re huge,” Telefónica’s head of public policy said in an interview. Juan Montero Rodil. “Not at all. What we’re talking about is paying a price for a service we provide.”

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