The Impact of Tech Companies' Network Investment on the Economics of Broadband ISPs

INCOMPAS, the Internet and Competitive Networks Association, launched a paper that quantifies the investments tech companies have made in the global network infrastructure of the internet. The research, conducted by Analysys Mason and launched in partnership with CCIA, DOT Europe, the Asia Internet Coalition, and the Korean Internet Association, finds that tech companies have invested $883 billion in the internet’s infrastructure in the past decade, which saves broadband providers about $6.5 billion each year. Despite this significant investment, countries around the world are considering "network usage fees" that would tax these companies. These measures often are designed to discriminate against certain US-based content and application providers and would require them to pay tens of billions to the incumbent, often state-affiliated foreign telecom operators. Ultimately, research suggests that usage fees could disrupt incentives, investment, and competition, resulting in unintended negative consequences for the internet ecosystem. See the full report here.