European Telecom Companies Want Google, Facebook, and Apple To Chip In For Network Costs

Posted Dec 8, 2010

France Telecom SA, Telecom Italia SpA, and Vodafone Group Plc are arguing that Apple Inc., Google Inc., and Facebook Inc. should chip in to help pay for the billions of dollars that is spend on network investments.

?Service providers are flooding networks with no incentive? to cut down on their costs said France Telecom CEO Stephane Richard. ?It?s necessary to put in place a system of payments by service providers as a function of their use.? Richard had mentioned the issue at the Le Web conference in Paris, France. The cost of building these bigger networks may outweigh revenue gains for the wireless companies.

I do not feel sympathetic for these companies because they already charge a premium on data network usage. What are your thoughts? Should tech companies like Google and Facebook that offer free services be responsible for helping telecom companies build their networks? Leave a comment.