Policy Brief | Issue 12 | May 12, 2023
The European Commission has launched a consultation on the question whether data traffic-intensive over-the-top (OTT) providers should contribute to the network expansion costs of telecommunications companies. In its policy brief „A contribution from data traffic-intensive over-the-top (OTT) providers to the costs of telecommunications network expansion should be rejected!“ published today, the Monopolies Commission takes a critical view. Currently, the Monopolies Commission does not consider a regulatory intervention to be justified that forces OTT providers to pay telecommunications companies:
- According to the current assessment of the Monopolies Commission, new conditions in peering and transit markets do not legitimize a contribution for network expansion costs, because it is not apparent that OTT providers exploit their increased bargaining power.
- There are no indications that a redistribution mechanism between OTT providers and telecommunications companies would improve the market situation. However, such intervention may cause distortions of competition.
- The financial resources for fixed and mobile network expansion are sufficient.