Speaking at a telecommunications forum in Utah (USA), Mr. John Stankey emphasized the dependence of technology companies on Internet infrastructure provided by carriers like AT&T. He pointed out that the 7 largest and most profitable companies in the world all build their products based on the Internet and infrastructure of telecommunications companies. "Why don't they participate to ensure cheap and fair access to essential services today?" , CEO AT&T asked.

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AT&T CEO John Stankey believes Big Tech is making money off the networks of telecom companies. Photo: hpj

Currently, the USF spends about $8 billion a year and is funded largely through surcharges on mobile and landline subscribers. Stankey’s proposal seeks to shift some of the financial burden to the tech giants, arguing they have a responsibility to maintain the infrastructure on which their services are based.

Some EU carriers are also demanding that Big Tech share some of its telecom investments. They believe that tech companies are making huge amounts of money based on the carriers’ networks. For example, Meta – Facebook’s parent company – earned $18.585 billion from the US and Canada in the fourth quarter of 2023.

AT&T is committed to investing heavily in infrastructure to ensure a great customer experience. The company spent $4.601 billion in the final quarter of last year alone. The carrier now has 13.729 million wired broadband subscribers and an average revenue per user (ARPU) of $65.62.

AT&T has been expanding its fiber network, reaching 26 million locations by the end of 2023 and targeting more than 30 million by the end of 2025. Fiber ARPU is $68.5, reflecting the carrier’s focus on providing high-speed internet services. Over the past three years, the company’s fiber subscribers have increased nearly 70% to more than 8.3 million, bringing fiber revenue to more than $6.2 billion by 2023.

Stankey’s proposal is all the more urgent now that the U.S. government recently shut down a broadband internet subsidy program that served 23 million households. Before running out of funding, the program received $17 billion to help low-income people and those impacted by Covid-19. The White House’s efforts to get another $6 billion to keep the fund going have been unsuccessful.

The USF plays a vital role in providing access to telephone and broadband services to low-income people, schools, libraries, and rural health facilities. Several proposals are being made by Congress to expand funding sources for USF, including technology companies and broadband providers.

(According to telecomlead)