Party line: Should telcos get a cut out of internet giants’ profits?

Party line: Should telcos get a cut out of internet giants’ profits?

Do you think it’s fair for local telcos to ask internet giants like Google and Yahoo to pay them a fee for hosting the web through which millions access them?

October 7, 2011 1:54 by p.deleon

Loss in voice revenues, increasing cost of telecom infrastructure, high revenues generated by internet websites from online advertising and of course increased competition have got Telecoms operators extending their hands and internet content providers arguing for and against the idea of creating a new revenue stream from global internet giants for the use of their infrastructure.

Gulf News recently reported that telecoms operators are seeking alternate income from global internet giants. The argument provided by telecoms is that internet giants enjoy upgraded services while they (telecoms) have to pay for the hefty infrastructure costs.

The consequences that might have on the regular internet user: If the internet companies do not pay part of the revenues to the telecoms then the latter might increase their services fees to make up for the money. On the other hand, if the internet companies do pay the Telecoms then innovation, creativity, and services provided by internet giants might be at risk.

So which side do you support? The Kipp is divided on this. Check our arguments below and do tell us which team you back up.