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European Carriers Claim Apple Should Pay for Network Infrastructure

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Bloomberg reports that European carriers are looking to band together in an effort to demand that companies such as Apple and Google offering data-intensive smartphones make specific contributions to network infrastructure according to their usage. The move comes as carriers struggle to handle the rapidly-growing demands on their networks as customers increasingly turn to smartphones and consume increasing amounts of data for purposes such as video streaming.
As mobile and Web companies add videos, music and games, operators including France Telecom SA, Telecom Italia SpA and Vodafone Group Plc want a new deal that would require content providers like Apple and Google to pay fees linked to usage.

"Service providers are flooding networks with no incentive" to cut costs, France Telecom Chief Executive Officer Stephane Richard said last month. "It's necessary to put in place a system of payments by service providers as a function of their use."
The carriers claim that the current business model for data usage is economically unsustainable given the billions of dollars worth of infrastructure spending needed just to keep pace with growth in demand. Those infrastructure needs come as revenue from customers has flattened amid stiff competition. Many carriers have already moved to limit unbridled data usage by doing away with unlimited data plans for customers and moving to tiered pricing with various monthly data limits.

Carriers have also pushed back against Apple's rumored plans for an embedded SIM card that would make it easier for customers to activate service and change carriers, with carriers threatening to withhold handset subsidies paid to Apple over fears that the moves would limit their ability to lock in customers to lucrative long-term contracts.

For their part, companies serving the network-intensive content to smartphones note that they do not share in revenues collected by the carriers and thus fail to see why they should have to contribute to building out the carriers' own infrastructure.

Article Link: European Carriers Claim Apple Should Pay for Network Infrastructure
 

alent1234

macrumors 603
Jun 19, 2009
5,688
170
that's impossible, everyone knows europe has the most advanced cell network along with internet pipes in the world and the US is the stone age of the internet.

european carriers should have no trouble keeping up with traffic since they can sell unlimited bandwidth for half the price of AT&T
 
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AlexisV

macrumors 68000
Mar 12, 2007
1,609
96
Manchester, UK
If you can't cope with the contracts you have signed, don't do deals with Apple and HTC to offer their handsets.
 
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donlphi

macrumors 6502
May 25, 2006
423
0
Seattle (M$ Country)
This could get ugly fast. However, I think Apple and Google have these companies by the short hairs. I don't see either company paying them for infrastructure. If anybody has to pay, it should be the consumers, but the providers know if they do that, consumers will jump ship.

Like the providers aren't making enough money. Pfft
 
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Gen

macrumors 6502a
Jul 15, 2008
894
94
Yeah I don't see why the people that make the phones should pay for the network to be able to have them.
Because, if they are paying for the infrastructure, what would the network pay for?
If you want that, might as well have Apple be the network provider as well. :p
 
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allpar

macrumors 6502
May 20, 2002
329
77
Only fools offer unlimited usage contracts... and then whine about it when customers take advantage of them.

The carriers used to make immense profits -- I didn't notice them offering to share back then.
 
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tonyc

macrumors newbie
Dec 8, 2010
1
0
errr .. how about data plans ..

oh yes, they already have that.

Hmm, perhaps they should stop whining and come up with sustainable pricing models ...
 
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manowarwi

macrumors member
Oct 14, 2008
56
0
What a great idea!

Up next, charging GM and Ford for road maintenance because their SUVs and trucks are putting more stress on roads than other companies! We should really go after the semi manufacturers too!
 
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ten-oak-druid

macrumors 68000
Jan 11, 2010
1,980
0
Apple should build a wifi network across Europe and get around the carriers completely. They could do this more easily in Europe than in the US.
 
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burgundyyears

macrumors 6502
Sep 3, 2010
380
193
that's impossible, everyone knows europe has the most advanced cell network along with internet pipes in the world and the US is the stone age of the internet.

european carriers should have no trouble keeping up with traffic since they can sell unlimited bandwidth for half the price of AT&T

No kidding, I thought everyone in Europe had 100up/100down fiber optic or cable internet for $30 a month and unlimited cell phone everything contracts for another $30 a month. Was I misled?
 
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AML225

macrumors regular
Apr 11, 2010
192
1
That's like car manufacturers paying for the roads or TV manufacturers paying for the power lines. Ridiculous. If you can't handle the heat then get out of the kitchen.
 
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fullstop102

macrumors member
Jul 11, 2008
60
2
West Yorkshire, UK
If you can't cope with the contracts you have signed, don't do deals with Apple and HTC to offer their handsets.

You hit the nail on the head with your comment. This is the dumbest carriers stance ever.

This is more stupid than when ISP's said the BBC should pay for infrastructure after iPlayer was launched.
 
Comment

Small White Car

macrumors G4
Aug 29, 2006
10,929
1,239
Washington DC
Geez.

PLEASE just charge us all per GB. How much did you use this month? Multiply it times $x and there's your bill.

I know people don't like the idea of their bill changing every month, but why should internet usage be any different than water, gas, or electricity?

Could you imagine if the electricity company charged us all the same (too small) amount and then tried to get air-conditioner manufacturers to pay them more? Insane. Just charge us what the service actually costs. If you need more money then you need to charge us more. This isn't hard.

AT&T got halfway there, but they still have different plans. No. No plans. Just $x per GB.
 
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tunerX

Suspended
Nov 5, 2009
355
839
that's impossible, everyone knows europe has the most advanced cell network along with internet pipes in the world and the US is the stone age of the internet.

european carriers should have no trouble keeping up with traffic since they can sell unlimited bandwidth for half the price of AT&T

Yes I agree wholeheartedly. I believe the Europeans have used the magic of Harry Potter to gain infinite bandwidth. We poor savages in America do not possess the power of British Magicians.

Listen here... Current technology can only squeeze so much bandwidth out of a finite spectrum.
 
Comment

nep61

macrumors 6502
May 17, 2007
318
1
Only fools offer unlimited usage contracts... and then whine about it when customers take advantage of them.

The carriers used to make immense profits -- I didn't notice them offering to share back then.

Exactly. We're beginning to see limited Data contracts with almost ALL of the Cell Companies with new devices hitting the market daily.

Service providers will profit from the EXCESSIVE USE of their networks... And they'll build new Cell Towers to accomodate... However, not in my backyard !! :)

This could get ugly.
 
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Oh-es-Ten

macrumors regular
Aug 14, 2007
181
37
London
This is what all the carriers have feared... They are no longer the "go to" hub - they are simply the 'dumb pipe' for data services.

I am looking at you Vodafone - no one really wants your portal and branding all over your phone and viewing web pages from your portal - the iPhone thankfully came along and put a stop to that - however it looks like Android means that they are hacking that stuff back into handsets again...

Luckily with O2 in the UK they don't bother me and I don't bother them. That's fine.
 
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blahblah100

macrumors 6502
Sep 10, 2009
272
30
That's like car manufacturers paying for the roads or TV manufacturers paying for the power lines. Ridiculous. If you can't handle the heat then get out of the kitchen.

Maybe the carriers should start charging Apple 30% of the cost of the iPhone as a distribution fee. :)
 
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jaywilliams

macrumors newbie
Mar 25, 2008
7
0
This has to be one of the most ridiculous things I have ever heard. Just because I buy a big fat power hungry fridge doesn't mean that the fridge company is going to subsidise the electricity network! I just pay more for electricity!

Telcos had better get used to the fact that they are going to become nothing but ISP's and should start shifting to a business model that supports that, otherwise faster more innovative companies will move in and the telcos as we know it will be no more.

Jay
 
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fowler.

macrumors 6502a
Apr 18, 2004
585
0
Pasadena
they absolutely should contribute if their phones take up that much bandwidth. with that though, they should get special treatment in the form or better subsidies, sim-less phones, everything that they've been trying to negotiate for.
 
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