Page 80 - SAMENA Trends - July-August 2022

ARTICLE SAMENA TRENDS

the United States, policymakers are moving billion by 2025”. The contribution would targets 30 Smart Africa member countries
towards universal service also funded by have many other positive effects such and proposes several different initiatives to
digital platforms. as on employment, user experience and achieve a broadened base of contributors
innovation as well as energy consumption to broadband infrastructure.
A recent report by AXON Partners for ETNO and carbon emissions. In terms of
[26] has examined the socio-economic possible tools for a contribution, the report Concluding remarks
benefits of a fairer balance between tech proposes a regulated mechanism for direct Given changed market realities and the
giants and telecom operators for Europe’s agreements between network operators changed role that broadband plays in
internet ecosystem instituted through and the largest Digital Platforms in line our economies and societies, there is a
an annual OTT contribution, arguing with the approach taken for the regulation call among many industry stakeholders,
that in the absence of intervention, the of “gatekeepers” under the Digital Services institutions, and organizations for
European Commission’s “Digital Decade” Act. [27] contributions to broadband infrastructure
connectivity targets would be threatened by all those that benefit from broadband
as viable returns for network operators are At this stage, many recommendations infrastructure, in particular big digital
undermined. “Telecom network operators have been made, but little concrete steps platforms. The rationale seems clear:
are in no position to negotiate fair have been taken. To put recommendations broadband is the fundament of our digital
commercial terms for their networks’ ever- into actions, Smart Africa together with economies and societies. Thus, calls are
increasing use by the leading OTTs: their SAMENA Council during ITU’s World Tele- growing louder for models of provision to
offerings are now indispensable to users; communications Development Conference reflect new “fair share” paradigms of shared
their market dominance is ever more 2022 (“WTDC22”) in Kigali at the Partner benefits, collective responsibility, and
entrenched; and there are no economic, to Connect (“P2C”) Roundtable announced predictable and sustainable commitment to
regulatory or policy mechanisms in place its joint pledge to advocate and drive the ensure that all can share in the benefits of
to help restore a more level playing field.” implementation of the first strategic rec- the digital revolution. It remains to be seen,
The Report concludes that “an annual ommendation “Broadening the Base” of how these calls and recommendations
contribution of €20 billion by OTTs to the the BBCom’s WG Report on 21st Century are turned into actions and how they are
development of telecom infrastructure in Financing, Funding, and Investment models implemented across different jurisdictions.
the EU would raise GDP by as much as €72 to close the connectivity gap. The pledge

1. https://www.itu.int/en/ITU-D/Regulatory-Market/Pages/Economic- 18. https://www.oecd.org/newsroom/130-countries-and-jurisdictions-join-
Contribution.aspx bold-new-framework-for-international-tax-reform.htm
2. https://www.lesechos.fr/tech-medias/hightech/bruxelles-veut-taxer-les- 19. The evolving digital economy benefits substantially from the digitalization
gafam-pour-financer-les-reseaux-telecoms-1404614 of business models enabling multinational companies to carry out business
3. https://www.axonpartnersgroup.com/etno-report/ in countries where they do not have a physical presence. The relevance
4. https://www.gsma.com/publicpolicy/wp-content/uploads/2022/05/ of the OECD work will be to seek to correlate, fairly and reasonably, value
Internet-Value-Chain-2022.pdf capture per jurisdiction with the appropriate taxation to apportion to that
5. https://www.gsma.com/publicpolicy/wp-content/uploads/2022/05/ territory. This work will help localize taxes to these jurisdictions where such
Internet-Value-Chain-2022.pdf companies do not pay tax. Addressing the Tax Challenges of the Digital
6. Axon Partners 2022 Economy’, Action 1 Deliverable 2014, https://read.oecd-ilibrary.org/taxation/
7. Europe’s internet ecosystem: socio economic benefits of a fairer balance addressing-the-tax-challenges-of-the-digital-economy_9789264218789-
between tech giants and telecom operators, Axon Partners, May 2022, see en#page1 ; and any subsequent reports on BEPS by the OECD. https://
https://www.axonpartnersgroup.com/etno-report/ www.oecd.org/tax/international-tax-reform-multilateral-convention-to-
8. CNBC, “Meta says its metaverse ambitions won’t be possible without better implement-pillar-one-on-track-for-delivery-by-mid-2023.htm
cellular networks”, https://www.cnbc.com/2022/03/02/meta-says-todays- 20. https://digital-strategy.ec.europa.eu/en/policies/digital-services-act-
cellular-networks-arent-ready-for-themetaverse.html package
9. European Commission, “2030 Digital Compass: the European way for the 21. https://digital-strategy.ec.europa.eu/en/policies/digital-principles
Digital Decade”, 2021; Available at: https://eur-lex.europa.eu/legal-content/ 22. https://www.politico.eu/article/commission-present-connectivity-
en/TXT/?uri=CELEX%3A52021DC0118 infrastructure-act-eu/
10. https://www.mckinsey.com/industries/technology-media-and- 23. https://www.telekom.com/en/company/details/united-appeal-of-the-four-
telecommunications/our-insights/telecoms-future-in-the-web3-era-jose- major-european-telecommunications-companies-646166
maria-alvarez-pallete-lopez?cid=eml-web 24. https://www.canto.org/conference-speeches-and-presentations/
11. Finger, Matthias, and Irina Lapenkova, 2019, Digital Platforms – The New 25. The court confirmed two-sided structure of the market on the basis that Netflix
Network Industries? How to regulate them? Network Industries Quarterly, has one business relationship with SKB and another with its subscribers
Vol. 21, No. 3, September which it accesses via the SKB’s network. The court also confirmed that the
12. See https://broadbandcommission.org/Documents/working-groups/ question of payment for the delivery of Netflix data is entirely separate from
DigitalMoonshotforAfrica_Report.pdf Net Neutrlaity and protections of end users access to the Internet.https://
13. https://broadbandcommission.org/Documents/working-groups/ www.fiercevideo.com/regulatory/netflix-handed-loss-south-korea-network-
DigitalMoonshotforAfrica_Report.pdf usage-fee-court-case , https://globalcompetitionreview.com/review/the-
14. https://www.broadbandcommission.org/working-groups/21st-century- asia-pacific-antitrust-review/2022/article/overview-cartels-and-abuse
financing-models-2020/ 26. Europe’s internet ecosystem: socio economic benefits of a fairer balance
15. https://smartafrica.org/knowledge/recommendations-to-smart-africa- between tech giants and telecom operators, Axon Partners, May 2022, see
alliance-member-countries-to-address-digital-infrastructure-financing/ https://www.axonpartnersgroup.com/etno-report/
16. See p.16 of “The impact of Over-The-Top Applications and Services on the 27. A new regulatory obligation could include principles of fair and
Telecommunications Sector in Africa”, https://smartafrica.org/knowledge/ proportionate compensation, and an enforcement or dispute resolution
recommendations-to-smart-africa-alliance-member-countries-to-address- mechanism based on, e.g. the example of the Australian News Media and
digital-infrastructure-financing/ Digital Platforms Mandatory Bargaining Code. https://www.accc.gov.au/
17. https://unctad.org/webflyer/digital-economy-report-2019, p. XX focus-areas/digital-platforms/news-media-bargaining-code

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