European operators want Apple, Google and Facebook to pay for mobile data
While major European mobile carriers are reporting high revenues thanks to the surging of mobile data usage in the last few years, they’re also worried about it.
As more and more phone owners use services provided by the likes of Google, Facebook, Apple and Yahoo on their handsets, carriers are faced with bandwidth problems and the need of building bigger networks.
Reportedly, operators’ annual spending on network equipment will rise 28% by 2014, while overall end-user revenue is expected to fall about 1% a year. This, of course, can lead to lower profits.
Bloomberg has it that Vodafone, Orange, Telefonica and Telecom Italia want content providers like the ones listed above “to pay fees linked to usage.”
“Service providers are flooding networks with no incentive to cut costs. It’s necessary to put in place a system of payments by service providers as a function of their use,” declared Stephane Richard, CEO of France Telecom (which operates under the Orange brand).
It remains to be seen if Google, Apple, Facebook and the other service providers will agree to pay fees to carriers.