Italy to Share Telecom Infrastructure Costs with Big Tech

Italy is advancing efforts to require major technology companies, such as Google, Meta, Amazon, Apple, and Microsoft, to contribute to the costs of developing the country’s telecommunications infrastructure. The initiative, announced by Industry Minister Adolfo Urso, reflects growing sentiment that Big Tech firms, which generate vast amounts of internet traffic, should help fund the expansion of high-speed networks.

Telecom operators, including Deutsche Telekom, Orange, Telefonica, and Telecom Italia, have long advocated for what they call “fair-share” funding. These companies argue that Big Tech’s significant use of internet bandwidth imposes a disproportionate burden on telecom networks, and that sharing the costs of infrastructure upgrades is a logical step. However, tech giants have pushed back, claiming that such measures would amount to an unfair “internet tax.”

Speaking at an event in Milan, Urso expressed strong support for the proposal. “It makes good sense for big tech to contribute to the workload that is then entrusted to the large telecommunications networks,” he said, signaling that Italy is committed to advancing this initiative.

Lawmakers in Italy have already begun drafting proposals aimed at formalizing this contribution. One proposal, presented by Andrea Dara of the League party, calls for large online platforms, search engines, and gatekeepers to negotiate technical and financial terms with telecom operators, ensuring that these platforms contribute to network investment costs.

“Our proposal aims to introduce a contribution from online platforms, very large online search engines, and gatekeeper services to support investments in electronic communications networks,” Dara’s amendment reads.

This move is aligned with broader efforts at the European Union level. Before the European elections in June 2023, the EU had already begun exploring similar policies, aiming to secure financial contributions from Big Tech for network development across member states. European Commission President Ursula von der Leyen, who secured a second term in office, has previously highlighted the importance of addressing the balance of power between tech giants and telecom operators in Europe’s digital economy.

While Italy’s proposal is still in its early stages, it reflects a growing trend across Europe to ensure that the digital economy’s infrastructure is sustainably funded. As more data-heavy services and platforms emerge, the strain on telecommunications networks will only increase, making the debate over infrastructure funding more urgent. The outcome of Italy’s efforts could set a precedent for other countries seeking similar measures.

This development marks a significant step in the global conversation surrounding the responsibilities of Big Tech in supporting the broader digital infrastructure they heavily rely on. For Italy and its telecom operators, success in implementing such measures could help bridge the gap between rapidly growing internet usage and the resources needed to maintain and expand network capabilities.

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