06 May 2023

Another Look at the Debate on the “Fair Share” ProposaL

By Compass Lexecon

A report by Compass Lexecon commissioned by Telefonica highlights a market failure in the current model of investment in internet infrastructure, with Large Traffic Generators (LTGs) benefiting from telecom operators' investments without contributing proportionally to the costs of network infrastructure. The study proposes regulatory intervention in the form of mandatory bilateral negotiations between telecom operators and LTGs to rebalance market powers, ensuring the sustainability of investments and consumer welfare. 

Read the report