Caribbean Telecom Operators Hoping To Get Big Tech To Pay Up

  • Caribbean telecommunications operators will participate in a critical meeting in Miami on Friday in their ongoing quest to have Big Tech companies contribute financially to regional telecoms network infrastructure.
  • Bmobile said this is the second meeting where these operators will address the impact that companies like Meta, Google, and Netflix continue to have on the Caribbean telecommunications industry.
  • The mobile network said that regional operators face a significant financial burden associated with over-the-top-driven (OTT) costs. Meta (Facebook, Instagram, and WhatsApp), Alphabet (Google), TikTok, Netflix, Amazon, and Microsoft are responsible for 67% of the total internet traffic in the Caribbean. Despite this, the operators have complained that the Big Tech/OTT providers make no contribution or investment to local delivery networks.
  • ‘That market failure is taking place against a backdrop of stalled revenues for telecommunications, with limited prospects for future growth. By contrast, OTT providers' revenues grew by over 150% between 2017 and 2021. The rationale behind OTTs/ Big Tech paying their fair share is to address this market failure, ensure a level playing field, and promote the sustainability of telecommunications infrastructure which benefit the region's citizens," Bmobile further stated.
  • Notably, in 2022, European Commissioners and policymakers announced the intention to have OTTs make 'fair contributions to telecom networks." South Korea has already proposed legislation to ensure global content providers such as Netflix and Alphabet's Google, pay South Korean network fees.
  • However, not all companies believe this to be a good idea with Peters, co-chief executive officer of Netflix, speaking at Mobile World Congress, held in Las Vegas, noted that ‘Broadband customers already pay for the networks through their subscription fees,".
  • The way forward does appear gloomy for regional telecom operators, however, hope still lingers that an agreement can be reached.

(Source: CariCris)