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Business · South Africa

EU Rejects Proposal for Big Tech to Fund Telco Infrastructure

TechCentral · 2026/01/21

Summary

The European Union has decided not to require big technology companies to share the cost of building and maintaining telecommunications infrastructure. Previously, some telecom operators wanted these large tech firms, like Google and Facebook, to contribute to the expenses of the networks they heavily use. However, the EU ruled against this idea, meaning telecom companies will continue to bear the full cost of their own infrastructure. This decision is significant because it keeps the current system in place where big tech giants pay only for the services they use, not the network itself. For South African consumers and businesses, this serves as an important example of how telecom regulations are evolving internationally. It shows that while telecom companies may face high costs for infrastructure, governments might support a system that does not demand extra fees from tech companies. This can affect internet prices, service quality, and digital business growth in the long run.

OnABudget takeaway: Telecom companies will keep paying for infrastructure without support from big tech, which could impact service costs. Consumers and small businesses should watch how telco policies evolve, as they affect internet prices and connectivity quality.

Read the original article on TechCentral