European carriers set down for a round table conference, and after they had lunch and dinner plus a diet coke and some coffee, they could not sleep. I guess this was the reason they came up with the idea of demanding that companies such as Apple and Google offer data-intensive smartphones – and not to put their revenue into their own pocket, but rather invest in their network infrastructure according to their usage.
Yeah, this means they can not face the demand on their networks, as consumers drop their phones, replace them with smartphones at an amazing pace, and start consuming large amounts of data for purposes like video streaming.
Bloomberg reports: “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.”
On the carriers side there is a lack of billions of dollars that need to be invested in infrastructure just to keep pace with the growth in demand. So they made a move to replace unlimited data usage with various monthly data limits.
The same round table meeting resulted in rejecting Apple’s rumored plans for an embedded SIM card that would help customers to easily change their carrier.
On the other side, companies servicing the smart-phones noted that they failed to see why they should contribute to building out the carrier’s own infrastructure as they do not share in revenues.