NAIROBI, Kenya
Orange Kenya CEO Mickael Ghossein has called on search giant Google to consider sharing revenues accrued from traffic that runs on other internet service providers’ networks to enhance partnerships and the development of the digital ecosystem. Speaking during a panel discussion on digital ecosystem evolution at the 9th East Africa Com conference held at Nairobi’s Safari Park Hotel, Mr Ghossein said partnerships between the different players in the digital ecosystem are crucial.
“Partnerships are key between the various providers,” he said. “Revenue share between Google and mobile network operators is necessary as Google’s services and traffic utilize our networks. Google has to pay us as you can’t use the Orange network – which is like a highway for Google – without paying a fee to us to maintain the network.”
The Orange Kenya CEO was part of the panel that focused on key players’ strategies for 2013 and beyond in East Africa – building on improved networks to deliver more advanced services, as well as new business models and partnerships to seize the opportunities in the region. Mr Ghossein’s sentiments echo calls from other European Union-based operators to Google to consider the revenue share model.
“Users are not paying Google but paying us to access Google services. All operators are talking about the issue globally and this is not just an Orange issue with Google in Kenya. Network operators can’t be expected to have first-class infrastructure when others riding on their networks are utilising them for free,” said the Orange Kenya CEO.
In mid-2010, several EU operators – including Telefonica, Deutsche Telekom and France Telecom – called on Google to start paying them for carrying content such as YouTube videos on their networks. The network operators said that the search giant “should share some of its online advertising revenue with carriers to compensate them for the billions of euros they are investing in fixed-line and mobile infrastructure to increase download speeds and network capacity.”
They called on industry regulators to step in to supervise a settlement if no revenue sharing deal is possible between the parties. The network operators’ calls for revenue share with Google are based on the fact that most of Google’s services are reliant on their networks and infrastructure, which cost huge amounts of cash to deploy and maintain. Arbor Networks reports that Google’s overall global traffic rose six-fold between 2007 and 2009.
The two-day East Africa Com meeting – held under the theme Seizing the digital growth opportunities in a better connected East Africa – brought together delegates and industry leaders deliberating and sharing latest business knowledge on various topics including digital transformation; customer experience management; digital services as well as mobile marketing in East Africa among other industry issues.
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