developing policy frameworks for successful ......intelligent transport smart energy networked...
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Developing POLICY FRAMEWORKS for successful INDUSTRIAL transformation
IOT POLICIES
IOT POLICIES | © Ericsson AB 2017 | 2017-02-07 | Page 2
DIGITAL TRANSFORMATION
INTRODUCTION TO THE STUDY
SECTORAL HIGH LEVEL FINDINGS
POLICY CHALLENGES
POLICY RECOMMENDATIONS
QA
agenda
IOT POLICIES | © Ericsson AB 2017 | 2017-02-07 | Page 3
Introduction some observations
Regarding digital transformation
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ANY THING THAT CAN BE CONNECTED WILL BE CONNECTED…..
IOT POLICIES | © Ericsson AB 2017 | 2017-02-07 | Page 5
ICT Transforming industries
INTELLIGENT TRANSPORT
SMART ENERGY
NETWORKED SECURITY
SMART CITIES
INDUSTRY 4.0
ICT
INTERACTIVE E-HEALTH
INDIVIDUALIZED E-LEARNING
TRANSPORT
ENERGY
SECURITY
PUBLIC SERVICES
INDUSTRY
ICT
HEALTHCARE
EDUCATION
CONSUMPTION
PRODUCTION
BUSINESS MODELS
INDUSTRY-STRUCTURE
DISTRIBUTION
CHANGED
ORGANIZATION
ICT
IOT POLICIES | © Ericsson AB 2017 | 2017-02-07 | Page 6
ICT Reshaped business
BETTER PERFORMANCE
OF CURRENT OFFERING
IMPROVED OFFERING TO
CURRENT MARKET
SYNERGY OFFERING
ACROSS INDUSTRIES
PROFOUNDLY NEW
OFFERING CREATING
NEW MARKETS
OUTSIDE DRIVE
INSIDE CONTROL
EVOLUTION DISRUPTION
IOT POLICIES | © Ericsson AB 2017 | 2017-02-07 | Page 7
Realizing the full potential of the networked society
Positive impact on GDP,
environment and quality of life
Improved public services e.g.,
Healthcare, Utilities, Transport
Improved consumer services
and enterprise productivity
Smarter & more
connected devices
Increased
digitalization
Faster & more
intelligent networks
Cloud compute,
storage, IT
2g 3g 4G 5G
IOT POLICIES | © Ericsson AB 2017 | 2017-02-07 | Page 8
Realizing ICT benefitsWhy policy makers need to act!
ICT benefits are not
automatic
No deterministic built in
design in to technology
ICT outcomes can be
negative if not backed by
adequate policies
Policy choices shape the size,
distribution and sustainability of
benefits
Must be backed by
resilient & adequate
policy
Technology can’t do it
alone
IOT POLICIES | © Ericsson AB 2017 | 2017-02-07 | Page 9
INTRODUCTION to the study
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Ericsson’s IOT business focus
Public safety
Intelligent transport systems
Automotive
ENERGY
MARITIME
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› Supra National:
– EU Law and International
Treaties (Maritime, Automotive)
› UK
› Germany
› United States
› Australia
› Brazil
Regional focusJurisdictions covered
The legal study was conducted by DLA Piper
IOT POLICIES | © Ericsson AB 2017 | 2017-02-07 | Page 12
Legal Focus of the study
FOCUSING ON LEGAL HOTSPOTS
Data protectionTracking &
profiling of usersIoT & ubiquitous
computingCloud computing
Data flow regulation
Net Neutrality Security/
encryption Data Ownership TelecomSector-specific
topics
Liability law StandardizationPublic
procurementPublic private partnerships
Other areas of IT/IP law
Competition law Labor law Tax law Corporate lawAccounting standards &
reporting
IOT POLICIES | © Ericsson AB 2017 | 2017-02-07 | Page 13
High level observationsMacro trends
Heavily regulatedindustry sectors
Automotive, ITS, Utilities, Public Safety sectors
By nature intensive government
influence due tocritical societal
impact
Government often direct stakeholder in
value chain
Immatureregulatoryframework
Legal blind spots (e.g. liability and autonomous
cars)
Old rules applicable but often not adequate (e.g. ePrivacy/location/traffic
data)
New rules to boost the market (e.g. roaming,
battery incentives) or toprotect stakeholders due to cold water feet
(eg. big data)
Non-harmonizedregulatoryframework
Governments going their own independent
way
Mostly local rules;
Sometimes regional rules
Seldom internationalrules
Issues may be the same, but differently
solved in different jurisdictions
Complexregulatoryframework
General rules (privacy, IP, liability, security,
spectrum)
Sector-specifc rules(electricity, water, gas,
public safety, public transport, …)
Regulatory frameworkin motion (moving
target) (e.g. E.g. Vienna Convention)
Transformingregulatory framework
Convergence of different sectors
(Overlay of sector specific rules)
Changing value chain with changing roles forstakeholders (Energy
provider still onlyenergy provider? Carmanufacturer cloud
provider?)
Governments andmarket players pushed
out of their comfort zone
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High level observationsGlobal Legal challenges vs National Legal solutions
Common legal challenges due to global digital transformation
• Who owns the data?
• Who is held liable if it goes wrong?
• Which part of the spectrum can be used?
• What is the privacy impact of the product or service?
• Is the end-user sufficiently protected?
• Can continuity and availability be guaranteed?
• Will legislation influence systems interoperability?
• Can authorities access the data?
• Can non-EU systems/solutions be used?
• Are there any sector-specific rules we should take intoaccount?
Differing legal solutions due to different legalcultures
• Different priority setting for legal issues
• Some regulate, some do not
• Some standardize, some do not
• Some create obstacles, some create opportunities
• Some only encourage but do not oblige
Common legal
challenges
Divergent legal
solutions
IOT POLICIES | © Ericsson AB 2017 | 2017-02-07 | Page 15
Legal Focus of the studyNext step – into the details
FOCUSING ON LEGAL HOTSPOTS
Data protectionTracking &
profiling of usersIoT & ubiquitous
computingCloud computing
Data flow regulation
Net Neutrality Security/
encryption Data Ownership TelecomSector-specific
topics
Liability law StandardizationPublic
procurementPublic private partnerships
Other areas of IT/IP law
Competition law Labor law Tax law Corporate lawAccounting standards &
reporting
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Data Protection
Legal Hot Spot
/Domain
Legal issue
Data Protection Legitimate Processing
Reuse of data for various purposes
Tracking mechanisms
Accountability
Data subject rights
Applicable law
International data transfers
Government/Law enforcement access
Code of conduct / self-regulation
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Cybersecurity & Telecom
Legal Hot Spot
/Domain
Legal issue
Cybersecurity Technical and organizational security requirements
Data breach notification
Network and information security
Encryption
Critical Information, Critical Infrastructure Protection
Telecom Spectrum management
Data Retention
Roaming
MVNO
Connectivity
Net Neutrality
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Dataflow, Cloud and LiabilityLegal Hot Spot
/Domain
Legal issue
Data flow & Platforms Data ownership
Open data initiatives
Abuse of dominant position
Network neutrality
International data transfers
Cloud Computing Business Continuity
Availability of data
Monitoring and audit possibility
Liability Liability for unlawful content in the cloud
Delineation of responsibility stakeholders
Contractual liability, Product liability
Tort liability
Criminal liability
IOT POLICIES | © Ericsson AB 2017 | 2017-02-07 | Page 19
Autonomous & electric vehicles
Legal Hot Spot
/Domain
Legal issue
Autonomous Vehicles Focus areas of current policy initiatives
Vienna Convention on Road Traffic
Declaration of Amsterdam
G7
Required amendments
Electric Vehicles Type approval (EC Roadmap)
Safety rules
Battery rules(ownership, safety, recycling)
Electric charging infrastructure
State Aid
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Emergency calling & Sharing economyLegal Hot Spot
/Domain
Legal issue
Emergency calling eCall PSAP requirements
eCall type approval
Vehicle manufacturer obligations
Data protection implications
Sharing economy
solutions
Consumer protection
Competition issues
Tax implications
Discrimination
Employment/Labor law
Payment/Transactions
Insurance, Safety and Security
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ITS road & RAIL
Legal Hot Spot
/Domain
Legal issue
ITS road Real-time traffic information
Road safety-related information
Intelligent parking
Cooperative ITS
eCall
Electronic road tolling
ITS rail Telematics applications (passengers/freights)
Computerized reservation systems
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ITS public transport & Maritime/ShippingLegal Hot Spot
/Domain
Legal issue
ITS Public Transport Multimodal ticketing
Passenger information
Maritime / Shipping Vessel tracking
E-forms
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Energy: Smart metering
Legal Hot Spot
/Domain
Legal issue
Product Safety General consumer protection requirements
Sector-specific obligations for economic actors in view of safeguarding energy
consumers' rights
Consumer Product Regulation
Market Surveillance of Products
Issues relating to the protection of consumers
Energy-specific technical requirements
Advanced and dynamic tariff systems
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Public safety
Legal Hot Spot
/Domain
Legal issue
Attacks against information systems
General requirements (authentic, admissible, reliable )
Cross border cooperation in civil and criminal matters
Security clearance (personal and facilities)
Fragmented national regulatory framework
Classified information v. evidence
Right to access information
IOT POLICIES | © Ericsson AB 2017 | 2017-02-07 | Page 25
IDENTIEFIED POLICY ISSUES and impact
24760
13750
TOTAL
TECHNOLOGY
COMMERCIAL
TERMS
REGULATION
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SECTORAL HIGH LEVEL regulatory FINDING
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AUTOMOTIVEStakeholders, Legal hotspots Data
protection and privacy
Cybersecurity
Telecom
Data flows
Cloud computing
Liability allocation
Autonomous vehicle rules
Electric vehicle rules
Emergencycallling
systems
Sharing economy solutions
Vehicle manufacturers
Operators of connected services
Providers of in-vehicle
systems and technologies
Authorities
Emergency service
providers
Users
Insurance companies
Providers of navigation services
› Data protection and privacy
› Tracking and profiling of users
› Telecom
› Data flow and IT platform regulation
› Cloud computing
› Autonomous vehicles
› Electric vehicles
› Automated emergency calling systems
for vehicles
› Sharing economy solutions
KEY FINDINGS
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› Data protection and privacy
Cybersecurity
› Telecom - spectrum
› Data flow and IT platform regulation
› Cloud computing
› Liability
› ITS Road – data ownership
› ITS Rail – data collection & exchange
› ITS Public Transport – multi modal
ticketing
› Shipping
ITS & MaritimeStakeholders & Legal hotspots Data
protection and privacy
Cybersecurity
Telecom
Data flow and IT platform regulation
Cloud computing
Liability allocation
Sector-specific topics Road
Sector-specific topics
Rail
Sector-specific topics Public
Transport
Sector-specific topics
Shipping
Manufacturers of
vehicles
Operators of ITS systems
Providers of ITS services
and applications
Authorities
Emergency services
Users
Insurance companies
Providers of navigation services
KEY FINDINGS
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› Data protection and privacy
› Cybersecurity
› Anti-discrimination and equal treatment
› Consumer protection
› Product safety
› Telecom
› Data flow and IT platform regulation
› Cloud computing
Energy: Smart Metering Stakeholders & Legal hotspots Data
protection and privacy
Security
Anti-discrimination
and equal treatment
Consumer protection
Product safetyTelecom
Data flow and IT platform regulation
Cloud computing
Energy-specific
technical requirements
Customers
Distribution System Operators Energy Generators
Energy Market Suppliers
Metering Operators
Providers of Technologies, Products and
Services
Regulators:Transmission System
Operators
KEY FINDINGS
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› Data protection and privacy
› Cybersecurity
› Telecom
› Data flow and IT platform regulation
› Cloud computing
› Evidentiary value of collected data
› Access to classified information
› Video surveillance & drones
› National Borders
› Cybercrime
› National Security
Public safetyStakeholders & Legal hotspots
Manufacturers of surveillance tools
and equipment
Operators of situational awareness
systems
Public AuthoritiesEmergency
services
Citizens
Data protection
and privacyData
protection and law
enforcement
Cybersecurity
Telecom issues
Data flow and IT platform regulation
Cloud computing
Liability allocation
Evidentiary value of the
collected data
Access to classified
information
Drones
Access to public
information
Border and security
information systems
KEY FINDINGS
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Policy challenges
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Regulatory & Policy issues
50REGULATION
COMMERCIAL
TERMS
ITS ROAD
ENERGY
AUTOMOTIVE
PUBLIC SAFETY
TELECOM
DATA PROTECTION
28HIGH – MEDIUM
IMPACT
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HIGH Impact iot policy issues
10HIGH IMPACT
AUTONOMOUS DRIVING, LIABILITY.
PENALTIES (PRIVACY), NET NEUTRALITY, CLOUD.
PENALTIES (PRIVACY), LIABILITY, CLOUD.
PENALTIES (PRIVACY).
CYBER-SECURITY CROSS CUTTING ISSUE
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AUTONOMOUS DRIVING / LIABILITY
Allocation of liability and benefits of autonomous applications need to be developed
consistently across IoT sectors while enabling innovation and safety.
PRIVACY / PENALTIES
Predictable, and measured penalties, that penalize systematic non-compliance but do
not discourage digitization of IoT sectors.
NET NEUTRALITY
Open internet for consumers should and reasonable traffic management must not inhibit
legitimate innovations such as IoT applications and 5G architecture such as network
slicing.
CLOUD
Clear and demarcated responsibilities in data processing value chain are necessary.
Cloud providers roles and responsibilities should be clarified and developed in code of
conducts and use of certified standard terms. Open data flows are necessary to secure
efficient utilization of Cloud infrastructure.
CYBER-SECURITY
Ensure resilience of ICT capabilities across digitizing critical infrastructures, protect
organizations from espionage and malicious attacks.
High level policy asks
HIGH IMPACT
10
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medium Impact iot policy issues
18MEDIUM IMPACT
PENALTIES, SPECTRUM, ROAMING, NEW IOT
INITIATIVES*, EMERGENCY CALLING.
SPECTRUM, COMPETITION ISSUES**, NEW IOT
INITIATIVES*.
SPECTRUM, CONNECTIVITY REQUIREMENTS,
COMPETITION ISSUES**, NEW IOT INITIATIVES*,
ACTION PLAN***, COOPERATIVE SOLUTIONS,
EMERGENCY CALLING.
SPECTRUM, CONNECTIVITY REQUIREMENTS.
* Such as data ownership or other new sectoral policy issue, driven by digitization
** Abuse of dominant position, personal data consider in competition / M&A
*** EU ITS Action plan
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High level policy asks
SPECTRUM
Timely availability of sufficient amounts of globally or regionally harmonized
spectrum in low and high spectrum bands.
› Technology neutrality to allow the introduction of flexibility and innovation.
› Dedicated spectrum should be avoided to ensure healthy eco-system development
and avoid market fragmentation.
› No single band will provide a complete solution for 5G IoT requirements. Therefore
spectrum will be need in low, medium and high band ranges.
CONNECTIVITY REQUIREMENTS
Encourage far-reaching geographic coverage, enabling high speed services, allowing
for active and passive network sharing at market terms
EMERGENCY CALLING
Ensure automatized security features for connected cars based on industry
standards.
NEW IOT SECTOR POLICIES
See next section
MEDIUM IMPACT
18
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Policy RECOMMENDATIONS IOT TRANSFORMATION STRATEGY
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public policy rational
ICT EMBEDDED IN ALL SECTORS,
CONVERGENCE
DIGITIZATION IS PREDOMINANTLY
DRIVEN BY PRIVATE INVESTMENTS
ALIGNED SECTOR & FRAMEWORK
POLICY OBJECTIVES
BROADER POLICY TOOLBOX &
CHANGED COMPETITIVE DYNAMICS
KEY POLICY OBJECTIVE: PROMOTE
INVESTMENT & ENABLE INNOVATION
NEW POLICY & REGULATORY CHALLENGES
IOT POLICIES | © Ericsson AB 2017 | 2017-02-07 | Page 39
Telecom, Energy,
Transport, Health,
Banking, etc
Innovation Policy,
Procurement
Policy,
fundamental policy making challengesStriking the right balance
SOURCE: Industrial Policy After the Crises (Bianchi & Labory) and Ericsson Analysis.
FRAMEWORKPOLICIES
HUMAN CAPITALPOLICIES
ENTITLEMENTS
SECTOR REGULATION
INNOVATION POLICY
& PROCUREMENT
PROVISIONS
ADOPTION
INNOVATION
NET INCENTIVES
Employment policy
Education policy
Tax law, Bankruptcy
law, Competition law,
Corporate law,
Consumer Protection
IOT POLICIES | © Ericsson AB 2017 | 2017-02-07 | Page 40
ICT policy Issues
ICTSupply
Side
Roll-out of ICT infrastructure Scarce resource management Market Efficiency
3. Spectrum Management1. National Broadband Plans 2. Network Regulation
New consumer expectations, value-chain shifts and new business models
ICT empowerment for increased innovation and efficiency in industrial sectors
ICTDemand
SidePrivacy Protection & Innovative
Uses of Data, Cloud
5. Media & Content Regulation4. Industrial Internet /
Internet of things6. Data Protection & Data Driven
Innovation
Horizontal frameworksimpacting ICT Supply
and Demandside
Market access, Digital Services, Cross Border Data Flows,
Meta Regulation Investment Incentives, Licensing,Diffusion
8. Trade Policies7. Internet governance 9. IPR
Resilient ICT infrastructure and offensive & defensive measures protecting against cyber-attacks
10. Critical infrastructure and Cyber security
IOT POLICIES | © Ericsson AB 2017 | 2017-02-07 | Page 41
public policy rational
MAXIMIZING IMPACT BY ALIGNING SUPPLY AND DEMAND SIDE AND FRAMEWORK POLICIES
DIFFUSION & ADOPTION
INNOVATION IN PROCESSES, PRODUCTS, SERVICES,
DISTRIBUTION & BUSINESS MODEL
Economic impact from ICT
Increases with broad & deep adoption
and is sustained through innovation in
TECHNOLOGY
KEY OVERARCHING POLICY OBJECTIVE
PROMOTE INNOVATION DRIVEN GROWTH
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