Europe telecom groups target Google

Leading European telecoms companies want to levy significant charges on Google and other online content providers through an overhaul of the regime governing how data travel over the Internet.

Operators in Europe complain that they are contending with an explosion of data on their networks, much of which comes from US sites such as Google’s YouTube video service. Companies led by France Telecom, Telefónica and Vodafone favour the introduction of wholesale charges based on the volume of data traffic passing through their networks, which could result in online content providers making substantial payments to get their video material to consumers. The charging arrangements could result from reform of the so-called peering system, under which operators exchange traffic where their networks meet. Neelie Kroes, the European commissioner responsible for the European Union’s digital agenda, is concerned that telecoms companies are not investing enough to meet EU targets on improving broadband speeds. The companies have said they must be able to tap new revenue streams to help pay for those broadband speed investments. One such stream could result from the network operators’ interest in rewriting the peering agreements on data exchange.