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- 1 European telcos want to levy network fees on Metaverse Streaming.
- 2 meta and others are lobbying against the suggestion.
The EU telcos are to levy network fees on metaverse streaming, while meta and others are lobbying against the step. In a keynote speech on February 27, at the Mobile World Congress (MWC), speakers said an increase in immersive metaverse technologies would require additional infrastructure. Hence they are asking for network fees from giants like meta, Netflix, and Alphabet.
EU is trying to monetize via metaverse
The European Commission suggested serious intervention is required to decide how internet connectivity will be funded a few years later. They think that the metaverse is in its infancy and is growing rapidly. Brisk development in virtual worlds, with added connectivity requiring high-speed bandwidth and lower latency. Bound to add pressure on existing infrastructure, and funds will be required for upgradation.
Zuckerberg owned, meta- the metaverse company, views the EU telco claims differently. They claim that it is only virtual reality and that current streaming requirements follow the current network parameters. However, the requirement of additional infrastructure is not required at the moment.
The Reason was Given for the Network Fee
EU telecommunication companies have argued that the metaverse adoption will require additional infrastructure. With increased immersive streaming, a robust system that could provide seamless data transfer will be required shortly. Additional funding will be required to build this, which is why an extra network fee is asked.
In February 2023, at the Mobile World Congress, EU lawmakers released an exploratory consultation on the future of network funding. At the same time, Thierry Breton, the bloc’s Internal Market Commissioner, said the call for the network fee is yet to be thought deeply, and no details have been decided yet.
Meta’s Response to the Erratic Decision
Meta’s VP of Network, Kevin Salvadori, and director and head of wireless technologies, Bruno Cendon, shared a blog post on March 23. The blog acknowledges the financial challenges ahead of the European telcos. However, imposing a network fee on Content Application Providers (CAPs) like Meta and others can only be a probable solution.
According to Meta, the whole network fee proposal is built on a false premise because they cannot understand the value CAPs create for the digital ecosystem. Plus, there are investments made by these companies in the infrastructure, which should not be undermined.
The Near Future of the metaverse
The blog further highlights that the metaverse adoption will only be dominated by Virtual Reality (VR) for the next few years. Further saying, almost every consumed VR content is either via a fixed network or over Wi-Fi, and this infrastructure is already healthy in major parts of Europe.
Moreover, Europe’s fixed network capacity can be easily upgraded with Fibre-to-the-home/building or FTTH/B deployment, which is supposed to be more than enough for the required supply and demand for the metaverse and other internet services years ahead. In comparison, the metaverse is supposed to be in the VR realm for quite some time.
Augmented Reality (AR) is another proposed possibility in the metaverse, which is supposed to blur the line between reality. But decades of research and development are required to achieve that perfection and immersive experience. New devices need to be invented, and existing prototypes need to be upgraded.
Even after that, the role of telecom companies will be to provide seamless network connectivity. It is sufficient with current requirements and will automatically upgrade with time. Hence there is no logical explanation for the requirement for network fees.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
