Developing POLICY FRAMEWORKS for successful ......INTELLIGENT TRANSPORT SMART ENERGY NETWORKED...

Developing POLICY FRAMEWORKS for successful INDUSTRIAL transformation

IOT POLICIES

IOT POLICIES | © Ericsson AB 2017 | 2017-02-07 |

DIGITAL TRANSFORMATION

INTRODUCTION TO THE STUDY

SECTORAL HIGH LEVEL FINDINGS

POLICY CHALLENGES

POLICY RECOMMENDATIONS

QA

agenda


Introduction some observations

Regarding digital transformation


ANY THING THAT CAN BE CONNECTED WILL BE CONNECTED…..


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


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


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


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


INTRODUCTION to the study


Ericsson’s IOT business focus

Public safety

Intelligent transport systems

Automotive

ENERGY

MARITIME


› 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


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


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


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


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


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


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


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


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


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


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


ITS public transport & Maritime/ShippingLegal Hot Spot

/Domain

Legal issue

ITS Public Transport Multimodal ticketing

Passenger information

Maritime / Shipping Vessel tracking

E-forms


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


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


IDENTIEFIED POLICY ISSUES and impact

24760

13750

TOTAL

TECHNOLOGY

COMMERCIAL

TERMS

REGULATION


SECTORAL HIGH LEVEL regulatory FINDING


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



Cybersecurity

› Telecom - spectrum


› Cloud computing

› Liability

› ITS Road – data ownership

› ITS Rail – data collection & exchange

› ITS Public Transport – multi modal

ticketing

› Shipping

ITS & MaritimeStakeholders & Legal hotspots Data


Cybersecurity

Telecom

Data flow and IT platform regulation

Cloud computing


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

http://www.google.nl/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwje09Pe_7vMAhWLjSwKHau3D3EQjRwIBw&url=http://www.lunashipping.co.uk/index.php/contacts/&psig=AFQjCNFKGUULN6tU-KvX1fDSZnlfZZR_RQ&ust=1462299311193068



› Cybersecurity

› Anti-discrimination and equal treatment

› Consumer protection

› Product safety

› Telecom


› Cloud computing

Energy: Smart Metering Stakeholders & Legal hotspots Data


Security

Anti-discrimination

and equal treatment

Consumer protection

Product safetyTelecom


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



› Cybersecurity

› Telecom


› 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


Cloud computing


Evidentiary value of the

collected data

Access to classified

information

Drones

Access to public

information

Border and security

information systems

KEY FINDINGS


Policy challenges


Regulatory & Policy issues

50REGULATION

COMMERCIAL

TERMS

ITS ROAD

ENERGY

AUTOMOTIVE

PUBLIC SAFETY

TELECOM

DATA PROTECTION

28HIGH – MEDIUM

IMPACT


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


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


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


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


Policy RECOMMENDATIONS IOT TRANSFORMATION STRATEGY


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


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


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


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

Developing POLICY FRAMEWORKS for successful ......INTELLIGENT TRANSPORT SMART ENERGY NETWORKED...

Documents

Transcript of Developing POLICY FRAMEWORKS for successful ......INTELLIGENT TRANSPORT SMART ENERGY NETWORKED...