Optus, a major Australian telecommunications provider, is urging content streaming platforms to financially contribute to network costs. The company has made this case in a submission to a parliamentary inquiry into the “influence of international digital platforms.” Optus argues that streaming platforms should make a “fair contribution” to telecommunications costs, as these costs increase with the quality of streams.
Options for Contribution
Optus suggests several methods for streaming platforms to contribute financially, including: Implementing a per-unit charge directly levied by telecommunications companies.Negotiating commercial arrangements similar to the Media Bargaining Code, which requires social media platforms to pay for news content.Introducing a digital levy on streaming platforms’ revenue to support new telecommunications capacity.
According to Optus, as much as 80% of peak period traffic on Australian networks consists of streaming. While some streaming services charge customers extra for improved stream quality, they do not financially contribute to the costs associated with the traffic carried by telecommunications providers. Additionally, decisions made by streaming platforms regarding codecs (compression tools) can significantly affect bandwidth requirements and costs, with the burden primarily falling on telecommunications providers.
Optus points out that several countries, including the UK, Spain, France, and Switzerland, have taken action to address similar concerns. It suggests that there is momentum in more developed countries for streaming platforms to contribute to network infrastructure costs.
Proposed Solutions
Optus proposes several solutions, including a fee managed by the ACCC (Australian Competition and Consumer Commission), similar to interconnect fees paid by telcos to use each other’s networks, a negotiated settlement of costs similar to the Media Bargaining Code, or a levy where streaming platforms contribute to a central infrastructure fund that is then distributed among telecommunications companies.
This initiative reflects the ongoing discussion on how the costs associated with the growing demand for digital services and streaming can be fairly distributed among stakeholders in the telecommunications industry.
