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Smart Cities

Pinsent Masons Smart Cities

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The challenges and the issues will differ from city to city. For example, in the UK and Europe, consumer utility costs and fuel poverty have driven some initial projects1 rising health costs, energy efficiency and transportation. In the the Middle East or Asia, social-economic, cultural or political challenges impact the direction of a smart city.

Supply and demand will always drive investment, but the key motivations and issues which we have seen arising from the need for greater energy efficiency on a city wide scale include:

• the upfront costs of smart technologies can be high unless demand dictates investment

• lack of available funding in this area and need for innovative funding models

• gaps in the supply chain and piecemeal development and lack of uniformity in approach

• data ownership issues and the potential for misuse of personal data

• regulatory frameworks and drafting regulations addressing the specific concerns in relation to a given project

• lack of awareness of the benefits of smart technologies in the community – a sense by some of gimmicks, rather than the real benefits of energy saving, waste management, intelligent traffic and movement systems, security and access to knowledge

• gaps in data collection management and the need to synergise data systems

• successful integration between technologies, networks, government authorities and stakeholders

What are the challenges?

What is a Smart City?

With the move to increased urbanisation of our cities, the competition to attract new business and investment ever increases. In parallel, communities within our cities have greater access to information and content than ever before.

This combination of changing the way in which we use our cities, with communities demanding more real time information and solutions in the areas where we live, work and play; the question remains whether our cities are ready for this challenge. We are beginning to see a period of technical innovation fuelled by the rapid growth of new and innovative technologies that both disrupt and benefit our lives, including the internet-of-things, cloud computing

and big data. The key factor here is that this is being undertaken at real scale and to make a real difference to the way we live our lives and the cities we live in.

The challenges an individual city faces are never the same, but the agenda is being accelerated by the ever increasing constraints on urban resources such as transport, energy and healthcare.

International law firm Pinsent Masons is helping a number of promoters and infrastructure providers globally who have each recognised the need for innovation and technological advancement in order to turn the challenge into opportunity.

“Cities worldwide are becoming digital. Digitization requires a combined understanding of government, citizen, and business processes in order to apply the appropriate networking technology strategies and architectures that will connect everything—people, data, actions, devices, machines—as well as embrace analytics and take a holistic approach to data security and privacy.”Amr Salem, Global Managing Director, Cisco

1 Peterborough City Council

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Pinsent Masons Smart Cities

What makes a city smart?Technology is playing a bigger role in helping to make city life run more smoothly, from networks of sensors that offer information about how traffic is flowing or where water pipes are leaking to apps designed to help citizens get the most out of their city.

2 BIS Report – The Smart City Market: Opportunities for the UK, October 20133 https://tfl.gov.uk/modes/driving/electric-vehicles4 Peterborough City Council – Peterborough Core, a Partnership with City fibre

Smart Grids – It is estimated that households could save 10% of their consumption through smart meters2. The Grid is set to get ever more chaotic with potential for greater interest in Electric Vehicles, so our demand for electricity is only set to rise. 1,400 charging points already exist in London and with the City’s commitment to a low-carbon environment, this is set to rise3.

“The transmission and distribution networks really benefit from improved load management and forecasting. It would also help reduce the strain on the energy infrastructure, particularly in those countries where there has been under investment in the grid, such as the UK and US. With the ever increasing popularity and movement to de-centralised renewable/low carbon power and domestic micro-generation in countries like the UK, the Smart Grid will become increasingly important” Peter Feehan – Head of Power and Carbon Advisory, Pinsent Masons

Smart Transport – From our road networks to the vehicles which we drive upon them, they are all becoming smarter, helping us move more efficiently around cities and environment, more quickly and safely. Motor vehicles themselves are becoming greener, more efficient and more smart (and in some cases autonomous). GPS has revolutionised how we track movement across our cities and how we and our vehicles respond to obstacles and congestion.

“Automakers are developing technology that will use cloud-computing to push data from a vehicle to municipal authorities in an innovative blend of connected car, big data and smart city technology. Infotainment and telematics enable smart traffic management, positioning & location-based services, car-to-car and car-to-infrastructure communication and – in the future – autonomous driving. But also the rise of the car sharing economy is one which will test and challenge the existing legal and regulatory framework from both operational and user safety perspectives”Stephan Appt – Head of Automotive Group, Pinsent Masons, Munich

Agile & Integrated ICT networks – Cities are beginning to invest in stronger more resilient and flexible technology infrastructure. We are currently working with local government on 1GB speed fibre broadband4 and harnessing city wide Wi-Fi to make the network accessible to all, improving local authorities’ engagement with their communities, from waste collections to social care. The Internet of Things is, and will continue to play an increasingly important role within our cities as they move to a higher level of sensory equipment being retrofitted into our buildings and the space around us.

“Whether it’s projects we have undertaken in the Middle East, Europe or Asia, one factor has been key to their successful planning and execution – a highly integrated telecoms and fibre network which is future proofed to deal with the ever increasing demands technology and society will place on it, as usually reflected through a regulatory framework aimed at fostering innovation and investment by operators.” Diane Mullenex – Head of Global Telecoms, Pinsent Masons

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5 Smart Plan London 2013, Mayor of London

Big Data and open data – Big data provides the backbone to planning and operating cities. It is used from everything to managing energy better, to improve efficiencies, transportation services and cut costs. Global cities such as London, Dubai/Doha, Riyadh, Istanbul and Singapore are beginning to recognise the power of Big data. In the UK, through London Data Store, the Greater London Authority provides one of the first platforms to make public data open and accessible to all, helping create new Apps to make London function better5.

“Given the increase in availability and now the usability of data that organisations increasingly gather, businesses are able to make business decisions informed by evidence rather than gut reaction”Marc Dautlich – Head of Information Law, Pinsent Masons

Future Transformation of public services – We are beginning to see how public services may be provided in the years to come. Greater interaction by communities is essential and expected, whether via

local government apps, provision of community and social care via remote monitoring platforms and a greater collaborative working model between local government and health and crime agencies. This public service transformation is particularly strong in areas such as e-Government, e-Health and digitisation of public essential services more generally at a global level.

Integrated Planning – Integrated planning and regulatory legislation, transport planning and master planning to deliver a true bundling of Smart City technologies.

“We specialise in working with cities, Governments, promoters and infrastructure providers. We advise on integrated planning and land assembly legislation and standards. This helps produce a truly integrated approach to Smart City delivery”Richard Ford – Head of International Planning, Pinsent Masons

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Pinsent Masons Smart Cities

How can we help?We provide a full advice service on all phases of delivering “Smart Cities” globally.

This includes:Legislation standards, land assembly and planning• Smart Cities legislation and industry

standardsdrafting – we draft the legislation and industry standards ensuring Smart City technology is embedded into new infrastructure, buildings and development projects (including energy, utilities,transport, commercial and residential buildings). This includes, in particular, drafting relevant regulations in relation to the roll out and use of broadband networks supporting Smart City technology (eg. wholesale reference passive offers), as well as appropriate standards and guidelines for the use of data to be collected by public authorities and private parties.

• Smart City masterplanning, planning legislation, planning applications and building permits. These include: - whole new cities, towns and urban quarters - intelligent transport and energy networks - individual landmark buildings and venues.

• Smart City land assembly, rights and easements, including via compulsory acquisition.

Structuring, procurement and finance• Smart City public-private partnerships - advising on

the funding, procurement, establishment and operation of public-private partnerships to deliver Smart City technology.

Implementation• Smart City technology supply contracts, including

procurement, drafting and negotiation. These include ICT, energy, utility, transport and building supply contracts.

• Ensuring compliance of all stakeholders with relevant data protection requirements and guidelines, including the implementation of security measures and protocols, especially within the public sector, for the ongoing protection of data.

• Smart City main construction contracts for delivery of the primary infrastructure

• Advising on successfully resolving any disputes.

Strategy

Com

plia

nce

& R

egulatio

n | Investment/M&A | Refinance | Tax | Dispute

Termination

Servicing

Implementation Financing

Procurement

Structuring

Legislation, standards, property and planningDisputes

Smart Cities

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Smarter cities of all sizes are taking advantage of new technologies and insights to improve their systems, operations and service delivery. We help in all of the areas illustrated below:

Government and agency administration

Planning and Management

InfrastructurePeople

City planning and operations

Buildings

Energy

Water

Smarter care

Social programmes

Public safety

IT/TechnologyEducation

As an example, we set out on the following page how we helped Peterborough achieve its smart city ambitions in the UK.

Transportation

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Pinsent Masons Smart Cities

“A ‘smart city’ is the effective integration of physical, digital and humans in the built

environment to deliver a sustainable, prosperous and inclusive future for its citizens”

British Standards Institute’s PAS 181 Smart City Framework

The challenge for Peterborough City Council

delivering improved services in the context of a budget deficit

The data gives the client a single view of a household…

…which, through scalability, gives us single views of communities…

…so that comprehensive data analysis…

…and working in collaboration with small and large disruptive

technology providers…

Data Platform

Public Data

Internal/Operational

Data

IoT Sensor Data

Realising an award-winning Smart City – Peterborough, UK

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Peterborough awarded Smart City of the Year 2015

Using Data and access to create self help solutions

for the communityDriving change through the

‘Internet of Things’

The data gives the client a single view of a household…

…can lead to a better city for its community.

Prevention

Demand Management

Early help

Types of Data UsedEnergyEnvironmentHealthSocio economic

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Pinsent Masons Smart Cities

Pinsent Masons has been at the forefront of helping clients meet the challenge and embrace the opportunities in the Smart environment.

The team was responsible for delivering the UK Industry Guidance on Energy Efficiency, which is now being considered for the basis of adoption by all member states by the EU Commission as part of the Transcendence EU Programme: http: www.communities-of-sustainable.eu. The team also developed the UK framework for energy efficiency for UK local government. This ground breaking contract has been implemented by a number of local government organisations in the UK to deliver energy efficiency and integrated Smart IT infrastructure into public buildings and schools to reduce energy costs and provide on-site renewable energy.

The on-going challenge is to understand how communities and citizens use their cities – meaning a greater need for disruptive IT and tech, wireless solutions and smart grid/energy solutions. We are also seeing an emerging trend of “self-help” communities through greater access to information and engagement with central and local Government, allowing for greater choice and access to the services provided by Government.

Our team, operating out of international hubs has advised clients (both public and private) in many jurisdictions. The team is multi-disciplined and draws from recognised experts in IT and telecoms, Data Protection, Energy Efficiency/ low carbon technologies and the automotive industry. The projects which it delivers are global and some are seen as pathfinder projects in certain areas, examples include:

UK Smart/Digital City – We are working with Peterborough City Council in the UK on a project which is levied at the recreation of a localised smart grid and “self-help” approach to social care and certain public services. The project has included the initial provision of over 90km of 1GB speed fibre optic and will ultimately see the development of an area wide Wi-Fi solution linked to all Council Services and providing data on how businesses and the community use energy in its administrative area. The project will see sensors established in the homes of elderly/vulnerable citizens to protect well-being and monitor those in fuel poverty in order for the Council to respond more quickly to those in distressed environments/situations.

Qatar Smart telecom & ICT network infrastructure – We advised Qatar National Broadband Network (QBN) in relation to drafting of a series of strategic, comprehensive and internationally benchmarked Reference Passive Offers for the regulated services of Dark Fibre Access and Infrastructure Duct Access, ensuring arrangements reflected a compliant, integrated and technology future-proofed set of terms to apply to smart developments in the State of Qatar.

We have also advised QNBN in relation to its rollout of physical infrastructure access arrangements underlying a smart city rollout implementation by a Qatari development company, taking into consideration issues of integration with multiple stakeholders ie. telecoms operators, broadband operators and global suppliers of technology platforms and government authorities and regulators.

Smart Planning and infrastructure – We advised UK Government’s Olympic Delivery Authority and London Legacy Development Corporation on Smart Technology planning requirements for the London 2012 Olympic Park and legacy 8000 home new urban quarter and Olympicopolis education and cultural

Smart telecom & ICT network infrastructure

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campus in East London. We also advised the UK Government’s Homes and Communities Agency and Private Sector delivery partner on Smart Technology planning requirements for a new UK Town near Cambridge, Northstowe, comprising 10,000 new homes, town centre and major employment park.

Further similar work includes advising: • Capco Plc, a UK FTSE listed company on Smart

Technology planning requirements for an 8000 new home urban village at Earls Court in London, also involving major retail and cultural destination venues

• Welsh Development Agency on the planning requirements of super-fast broadband in Wales

• UK Mid Sussex Local Authority on Smart Technology planning requirements for a 3,500 new Northern Arc scheme for Burgess Hill south of London.

Smart Stadia – We are working with an US/UK energy utility client in partnership with the English Football League and Scottish Premiership to deliver smart energy and IT/Wi-Fi solutions for over 100 Football Clubs in the UK. The solutions which we have structured for the client will deliver investment in renewable energy and energy efficiency products at no cost to the relevant Football Club. The investment is estimated to be £300m in UK stadia infrastructure. The partnership with the football leagues see engagement with supporters to become adopters of smart technologies in the home thereby raising awareness at “grass-root” level in smart energy solutions.

Smart Meter – We worked with Llandis and Gyr on their national supply of smart meters to a leading UK energy supplier. We advised on all aspects of the contract including functionality, capability and future-proofing. Working on the contract gave us an insight on how smart metering will be undertaken within the UK and the issues which suppliers, funders and data controllers will encounter on mass UK roll out.

Smart Vehicles – We have advised a German automotive OEM on its regulatory obligations in relation to its newest high-profile “connected car” product line. Our concise and commercially tailored work for this OEM drew on our knowledge of telecommunications regulation, privacy laws and our expertise in working with innovative technology. The client’s suggested scheme was particularly inventive and original, touching on areas previously unexplored by the regulatory framework which we have reviewed alongside the regulations of 39 jurisdictions in and outside Europe.

Similarly we are working with a high profile developer of autonomous logistics systems for last mile delivery of goods in smart cities. This client requires our advice globally on traffic, privacy and telecommunications law aspects as well as lobbying with local authorities.

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Pinsent Masons Smart Cities

Helping you with Smart Cities worldwide

“Smart cities are those who manage their resources efficiently. Traffic, public services and disaster response should be operated intelligently in order to minimize costs, reduce carbon emissions and increase performance.”Eduardo Paes – Mayor of the city of Rio de Janeiro

Key:PM offices

Smart Cities

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Contacts

Anthony FieldingSenior Associate, UKT: +44 (0)20 7418 9506M: +44 (0)7810 658890E: [email protected]

Richard LaudyPartner, UKT: +44 (0)20 7490 6259M: +44 (0)7767 754476E: [email protected]

Richard FordPartner, UKT: +44 (0)20 7490 6241M: +44 (0)7884 110265E: [email protected]

Jörn FingerhuthPartner, MunichT: +49 89 203043 531M: +49 172 368 01 84E: [email protected]

Anne-Laure FonadePartner, ParisT: +33 1 53 53 09 77M: +33 7 78 69 08 63 E: [email protected]

Christian LütkehausConsultant, MunichT: +49 89 203043 559M: +49 174 333 28 55E: [email protected]

Becca AspinwallSenior Associate, UKT: +44 (0)20 7490 6162M: +44 (0)7920 601164E: [email protected]

Diane MullenexPartner, UKT: +44 (0)20 7490 9250M: +44 (0)7979 477965E: [email protected]

Stéphane GasnePartner, ParisT: +33 1 53 53 09 89M: +33 6 35 52 14 16E: [email protected]

Peter BlackmorePartner, DohaT: +974 442 69214M: +974 3354 6929E: [email protected]

Frédéric GillionPartner, ParisT: +33 1 53 53 08 63M: +33 6 16 41 63 22E: [email protected]

Peter RosherPartner, ParisT: +33 1 53 53 02 28M: +33 6 19 46 28 44 E: [email protected]

Dr. Sönke GödekePartner, DüsseldorfT: +49 211 88271 506M: +49 172 414 86 22E: [email protected]

Dr. Florian von BaumPartner, MunichT: +49 89 203043 537E: [email protected]

Dr. Stephan ApptPartner, MunichT: +49 89 203043 561M: +49 174 333 2856E: [email protected]

Paul HaswellPartner, ChinaT: +852 2294 3315E: [email protected]

Annabelle RichardPartner, ParisT: +33 1 53 53 02 23M: +33 6 21 17 64 05E: [email protected]

Alexis ColemanAssociate, DohaT: +974 442 69235M: +974 3328 0057E: [email protected]

Dr. Thomas WölflSenior Associate, DüsseldorfT: +49 211 88271 505M: +49 172 315 59 11E: [email protected]

Alexandre BrazeauSolicitor, DubaiT: +974 442 69228M: +974 5585 8921E: [email protected]

Peter FeehanPartner, UKT: +44 (0)20 7490 6449M: +44 (0)7766 925103E: [email protected]

Legislation, standards, planning and property

Technology contracts and solutions

Construction, utilities and infrastructure

Pinsent Masons Smart Cities

Notes

Pinsent Masons LLP is a limited liability partnership registered in England & Wales (registered number: OC333653) authorised and regulated by the Solicitors Regulation Authority and the appropriate regulatory body in the other jurisdictions in which it operates. The word ‘partner’, used in relation to the LLP, refers to a member of the LLP or an employee or consultant of the LLP or any affiliated firm of equivalent standing. A list of the members of the LLP, and of those non-members who are designated as partners, is displayed at the LLP’s registered office: 30 Crown Place, London EC2A 4ES, United Kingdom. We use ‘Pinsent Masons’ to refer to Pinsent Masons LLP, its subsidiaries and any affiliates which it or its partners operate as separate businesses for regulatory or other reasons. Reference to ‘Pinsent Masons’ is to Pinsent Masons LLP and/or one or more of those subsidiaries or affiliates as the context requires. © Pinsent Masons LLP 2016.

For a full list of our locations around the globe please visit our websites: www.pinsentmasons.com and www.Out-Law.com