OECD work on Internet of Things

The liberalisation of the SIM-card

Disclaimer

The views expressed here are my own and may not reflect those of the OECD or its member countries.

OECD work on IoT

• ICT Applications for the Smart Grid. Opportunities and Policy Implications

• Smart Sensor Networks: Technologies and Applications for Green Growth

• International Energy Agency: Technology Roadmap: Smart Grids

• OECD-NSF Workshop: Building a Smarter Health and Wellness Future

• Renewable energy and smart grids: new challenges for competition policy

• Smart Electricity Grids• Policies to support smart water systems. Lessons from

countries experience• And more (to come)

M2M, Connecting billions of devices

• Study published January 2012 DSTI/ICCP/CISP(2011)4/FINAL

• Analysis of M2M impact on – Competition (liberalisation needed)– Spectrum (lock in of bands)– Privacy and security (streetlights privacy

sensitive)– Numbering (you may run out)– Access to (Public Sector) Information (share)

• Only touch on competition here. The rest is equally important!

What Network?

GEOGRAPHICALLYDISPERSED

Application: smart grid, meter, cityremote monitoring

Technology Required:PSTN, broadband, 2G/3G/4G, power line communication

Application: car automation, eHealth, logistics, portable consumer electronics

Technology Required:2G/3G/4G, satellite

GEOGRAPHICALLY

CONCENTRATED

Application: smart home, factory automation, eHealth

Technology Required: wireless personal area (WPA), networks, wired networks, indoor electrical wiring, Wi-Fi

Application: on-site logistics

Technology Required: Wi-Fi, WPAN

GEOGRAPHICALLY FIXED GEOGRAPHICALLY MOBILE

Mobile networks

• 2G/3G/4G networks standardized by 3GPP globally most prevalent networks

• Allow communication everywhere, where there is a road.

• 220 countries, ~800 operators• Roaming supported• Connect once, connect everywhere• IMSI as the basis, SIM for

authentication

Current market failures M2M• 20 year lock-in with mobile operator

– Changing SIM is undoable for million devices

• No competition in roaming • No way to route around network

failure– 20% devices unavailable >10 mins/day– National roaming is solution.

• Mobile networks only cover 80% M2M devices– National roaming 2 networks cover 98%

• No innovation to bypass mobile operator

SIM = Control

• SIM allows zero user-configuration authentication to networks. (it just works)

• SIM contains IMSI-number and encryption parameters/keys.

• SIM is property of mobile network• Networks verify authentication with

owner of SIM (correct crypto, bills paid etc.)

• Governments only give IMSI-numbers to telco’s, not car companies or others.

Control of SIM saves Billions• Proposal to give M2M end user (car

company, energy) control of SIM– Makes M2M user == Orange == AT&T (except

for spectrum license)

• Would solve all market failures– Choice between 1, 2 or x

networks/country• Roaming only exists in telco’s imagination

– Easy switchover. • Allow access on network B on day 1, switch

off network A on day 1+ (allow for testing)– Innovation like access to Wifi with EAP-

SIM• Saves billions and generates new

services

Market reaction

This is an excellent document !Congratulations on the authors for their foresight. It deals with one of

the key issues we are facing as GPS-based toll operator (i.e. locked in

with the SIM card suppliers.)(Reaction to OECD – International Transport Forum Policy Brief on

Internet of Things and Transport)

Market reaction

• 2 major car manufacturers now gathering all data necessary to become independent

• Consumer electronics company: “everyone wants this”

• Several telecom service providers see enormous new business

• Governments slowly moving to liberalisation.

Impact of liberalisation

• M2M customer in control – ‘million device user’ – Private Virtual Network Operator

• Competition between network operators– National and international– Change operators in hours/days

• Customer-led innovation– ie. new data roaming for laptops/tablets– Paying for x pictures uploaded to

Facebook

Soft-SIMs

• Everyone has a proposal/patent on Soft-SIM and eUICC– 3GPP working on proposal

• Development blocked by stakeholders– Afraid of Apple/Google

• Proposals designed with operator in control

• User can only do what operator wants

Soft-SIMs don’t scale• The million device user wants control

– Determine which network the device works on– Change operator when network is down or

border is crossed (which is actually the same)– Bypass the telco and its cost structure

• eUICC doesn’t allow this– No change of operator when network is down

or crossing border– Can’t support move of million devices in a day

from one operator in once country to another operator in another country.

• Million device user wants Soft-SIM but only when it can control it.

Contact

• Rudolf van der Berg• Rudolf.vanderberg@oecd.org