Personal Finance

Companies seek payments for use

European phone operators, fed up with Google ( GOOG ), Apple ( AAPL ) and Facebook's enormous appetites for bandwidth services and having to pay those social networking websites' billion-dollars-worth of network investment, are asking those sites to help foot the bill, Bloomberg reports .

As those sites' capacities increase, the European companies are pursuing a deal to require them to remit fees correlated with usage. Those companies include France Telecom, Telecom Italia SpA, and Vodafone Group Plc.

"Service providers are flooding networks with no incentive" to cut costs, France Telecom chief executive officer Stephane Richard told Bloomberg last month. "It's necessary to put in place a system of payments by service providers as a function of their use."

Expenses for building bigger networks could end up surpassing revenue growth as the number of consumers accessing the Internet with mobile devices grows.

"There's a clear competitive response by the carriers to try and make moves to ensure that the likes of Google and Apple don't have it their own way," Paolo Pescatore, an analyst at CCS Insight in London, told Bloomberg.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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