OECD work on IoT. Regulatory impacts of IoT or the liberalisation of the SIM-card
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1 OECD work on IoT Regulatory impacts of IoT or the liberalisation of the SIM-card
2 Disclaimer The views expressed here are my own and may not be those of the OECD or its member countries.
3 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)
4 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!
5 GEOGRAPHICALLY CONCENTRATED GEOGRAPHICALLY DISPERSED What Network? Application: smart grid, meter, city remote monitoring Application: car automation, ehealth, logistics, portable consumer electronics Technology Required:PSTN, broadband, 2G/3G/4G, power line communication Application: smart home, factory automation, ehealth Technology Required:2G/3G/4G, satellite Application: on-site logistics Technology Required: wireless personal area (WPA), networks, wired networks, indoor electrical wiring, Wi-Fi GEOGRAPHICALLY FIXED Technology Required: Wi-Fi, WPAN GEOGRAPHICALLY MOBILE
6 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
7 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
8 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.
9 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
10 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)
11 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. Easiest money available
12 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
13 Soft-SIMs Everyone has a proposal/patent on Soft- SIM and euicc ETSI working on proposal Development blocked by stakeholders Afraid of Apple/Google Proposals designed with operator in control User can only do what operator wants
14 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.
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