The impact of the IoT: social & economics benefits. Taller Internacional de Regulación, CRC
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1 The impact of the IoT: social & economics benefits Taller Internacional de Regulación, CRC Alexis Arancibia, GSMA 1 September 2015
2 The GSMA The GSMA unites a fragmented Global Mobile Operator Community with the Broader Ecosystem GSMA Unites the World s Mobile Operators And the Mobile Ecosystem GSMA Representation 220 Countries & territories 800+ Operators 25 Board Members Accounting for 80% Market Revenue 250 Leading Ecosystem Members 2
3 The GSMA has three priorities Strategy Operator-led strategy development Collaboration with lead and participant operators PERSONAL DATA CONNECTED LIVING In-market support to create success stories DIGITAL COMMERCE NETWORK 2020 Stimulate global telecoms investment Advocacy Demonstrate value of mobile telecoms connectivity Enhance dialogue between MNOs and governments Ministerial Programme platform for industry leaders Enhance dialogue across the value chain Convene Ecosystem collaboration and advocacy positions Engagement via global and regional platforms
4 Connected Living Mobilising the Internet of Things OUR VISION: TO ENABLE THE INTERNET OF THINGS, A WORLD IN WHICH CONSUMERS AND BUSINESSES ENJOY RICH NEW SERVICES, CONNECTED BY AN INTELLIGENT AND SECURE MOBILE NETWORK. OUR AIM: TO HELP OPERATORS ADD VALUE AND ACCELERATE THE DELIVERY OF NEW CONNECTED DEVICES AND SERVICES IN THE M2M MARKET. ACHIEVED BY INDUSTRY COLLABORATION, APPROPRIATE REGULATION, OPTIMISING NETWORKS AS WELL AS DEVELOPING KEY ENABLERS TO SUPPORT THE GROWTH OF M2M IN THE IMMEDIATE FUTURE AND THE IOT IoT Connection Efficiency Future IoT Networks Remote SIM Provisioning for M2M IoT Business Enablers Ecosystem Engagement
5 Connected Living Mobilising the Internet of Things OUR VISION: TO ENABLE THE INTERNET OF THINGS, A WORLD IN WHICH CONSUMERS AND BUSINESSES ENJOY RICH NEW SERVICES, CONNECTED BY AN INTELLIGENT AND SECURE MOBILE NETWORK. OUR AIM: TO HELP OPERATORS ADD VALUE AND ACCELERATE THE DELIVERY OF NEW CONNECTED DEVICES AND SERVICES IN THE M2M MARKET. ACHIEVED BY INDUSTRY COLLABORATION, APPROPRIATE REGULATION, OPTIMISING NETWORKS AS WELL AS DEVELOPING KEY ENABLERS TO SUPPORT THE GROWTH OF M2M IN THE IMMEDIATE FUTURE AND THE IOT IoT Connection Efficiency Future IoT Networks Remote SIM Provisioning for M2M IoT Business Enablers Ecosystem Engagement
6 IoT Connection Efficiency Technical aspects Adaptation to IoT Congestion Decrease quality
7 Connected Living Mobilising the Internet of Things OUR VISION: TO ENABLE THE INTERNET OF THINGS, A WORLD IN WHICH CONSUMERS AND BUSINESSES ENJOY RICH NEW SERVICES, CONNECTED BY AN INTELLIGENT AND SECURE MOBILE NETWORK. OUR AIM: TO HELP OPERATORS ADD VALUE AND ACCELERATE THE DELIVERY OF NEW CONNECTED DEVICES AND SERVICES IN THE M2M MARKET. ACHIEVED BY INDUSTRY COLLABORATION, APPROPRIATE REGULATION, OPTIMISING NETWORKS AS WELL AS DEVELOPING KEY ENABLERS TO SUPPORT THE GROWTH OF M2M IN THE IMMEDIATE FUTURE AND THE IOT IoT Connection Efficiency Future IoT Networks Remote SIM Provisioning for M2M IoT Business Enablers Ecosystem Engagement
8 Future of Internet of Things Networks Capabilities among mobile operators -> value creation for all stakeholders security billing and charging device management and others Tailored for the emergent M2M.
9 Connected Living Mobilising the Internet of Things OUR VISION: TO ENABLE THE INTERNET OF THINGS, A WORLD IN WHICH CONSUMERS AND BUSINESSES ENJOY RICH NEW SERVICES, CONNECTED BY AN INTELLIGENT AND SECURE MOBILE NETWORK. OUR AIM: TO HELP OPERATORS ADD VALUE AND ACCELERATE THE DELIVERY OF NEW CONNECTED DEVICES AND SERVICES IN THE M2M MARKET. ACHIEVED BY INDUSTRY COLLABORATION, APPROPRIATE REGULATION, OPTIMISING NETWORKS AS WELL AS DEVELOPING KEY ENABLERS TO SUPPORT THE GROWTH OF M2M IN THE IMMEDIATE FUTURE AND THE IOT IoT Connection Efficiency Future IoT Networks Remote SIM Provisioning for M2M IoT Business Enablers Ecosystem Engagement
10 Ecosystem Engagement The GSMA works closely with its partners in the ecosystem to align it s strategy, understand their requirements and ensure its initiatives are adopted. By determining common capabilities we will make a positive impact on the industry creating solid foundations for IoT and enabling it to grow. Connected Living Mobilising the Internet of Things
11 Connected Living Mobilising the Internet of Things OUR VISION: TO ENABLE THE INTERNET OF THINGS, A WORLD IN WHICH CONSUMERS AND BUSINESSES ENJOY RICH NEW SERVICES, CONNECTED BY AN INTELLIGENT AND SECURE MOBILE NETWORK. OUR AIM: TO HELP OPERATORS ADD VALUE AND ACCELERATE THE DELIVERY OF NEW CONNECTED DEVICES AND SERVICES IN THE M2M MARKET. ACHIEVED BY INDUSTRY COLLABORATION, APPROPRIATE REGULATION, OPTIMISING NETWORKS AS WELL AS DEVELOPING KEY ENABLERS TO SUPPORT THE GROWTH OF M2M IN THE IMMEDIATE FUTURE AND THE IOT IoT Connection Efficiency Future IoT Networks Remote SIM Provisioning for M2M IoT Business Enablers Ecosystem Engagement
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13 What Developers want? M2M devices that are carrier agnostic Simple "plug and play" provisioning No reading manuals, changing settings, or setting IP addresses/firewalls Simply purchase a device, select a carrier, turn it on, and done Device + prepaid data + embedded application
14 The GSMA Embedded SIM Specification Operator OTA Especitfication for Remote Provising of SIM Cards
15 Operator 1 Operator 2 SIM Vendor 1 SIM Vendor 2 SIM Vendor 1 SIM Vendor 3 SIM Vendor 2
16 Interoperability Profile Operator 1 Operator 2 SIM Vendor 1 SIM Vendor 2 SIM Vendor 1 SIM Vendor 3 SIM Vendor 2
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19 What about Business Processes?
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22 Connected Living Mobilising the Internet of Things OUR VISION: TO ENABLE THE INTERNET OF THINGS, A WORLD IN WHICH CONSUMERS AND BUSINESSES ENJOY RICH NEW SERVICES, CONNECTED BY AN INTELLIGENT AND SECURE MOBILE NETWORK. OUR AIM: TO HELP OPERATORS ADD VALUE AND ACCELERATE THE DELIVERY OF NEW CONNECTED DEVICES AND SERVICES IN THE M2M MARKET. ACHIEVED BY INDUSTRY COLLABORATION, APPROPRIATE REGULATION, OPTIMISING NETWORKS AS WELL AS DEVELOPING KEY ENABLERS TO SUPPORT THE GROWTH OF M2M IN THE IMMEDIATE FUTURE AND THE IOT IoT Connection Efficiency Future IoT Networks Remote SIM Provisioning for M2M IoT Business Enablers Ecosystem Engagement
23 IoT Business Enablers A growing Internet of Things provides a huge range of socio-economic benefits. Governments and regulators can unlock these benefits by implementing policies that promote innovation and investment, as well as introducing regulatory frameworks that build trust and that are technology neutral. This will give confidence to consumers and the industry that will help to drive adoption of the IoT. Connected Living Mobilising the Internet of Things
24 M2M / IoT Forecasts 24
25 468 mobile operators offer M2M services across 190 countries*; this is equivalent to 48% of the world s mobile operators GLOBAL CONNECTIONS BEYOND HANDSETS mn M2M versus bn M2M NORTH AMERICA 20% % of Global M2M Connections EUROPE 32% % of Global M2M Connections ASIA 36% M2M commercially available LATIN AMERICA 7% % of Global M2M Connections MIDDLE EAST & AFRICA 5% % of Global M2M Connections % of Global M2M Connections Current CAGR Source: GSMA Intelligence & Machina Research 30% Source: GSMA Intelligence (Potential 2bn M2M, CAGR 40%)
26 Cellular M2M as a proportion of total cellular connections (Q1 15) % of regions M2M cellular connections over total cellular connections NORTH AMERICA 12 % M2M commercially available LATIN AMERICA 3 % EUROPE 6 % MIDDLE EAST & AFRICA 1 % ASIA PACIFIC 3 % Source: GSMA Intelligence
27 GSMA M2M forecasts for Latin America Latin America is expected to be the third fastest growing continent with 25% CAGR between Brazil is expected to have 41.9 million M2M mobile connections by 2020; representing 63% of total Latin American connections Mexico (11%), Colombia (7%), Argentina (6%), Chile (5%) and Ecuador (3%) Source: GSMA Intelligence (2014)
28 IoT will have a significant impacts on consumers, businesses, citizens and Governments One million The number of lives mhealth will save in sub- Saharan Africa over the next five years $400 billion The amount saved in 2017 from the annual health care bill in developed countries as a result of mobile healthcare solutions One in nine The number of lives saved in road accidents in developed countries over the next five years due to mobile enabled in-car emergency services A week back every year Smart commute interventions in developing world cities will give commuters back a whole week s worth of time every year $400 million The number of people in developing countries, equivalent to the population of Kenya, that can be fed each year due to fleet telematics preventing food 180 million wastage during transport The number of children in developing countries that will have the opportunity to stay in school between now and 2017 due to meducation 1.2 billion trees In developed world cities, smart metering will reduce carbon emissions by 27 million tonnes equivalent to planting more than 1.2 billion trees
29 The example of mhealth in Brazil and Mexico Range of mhealth benefit by 2017 Unit Brazil Mexico Additional patients reached mn Total care cost saved bn USD Public care cost saved bn USD Additional patient accommodated within cost savings mn Additional economic output generated by healthier patients mn USD Benefits can be generated though policies fostering integration into nationwide healthcare, harmonized regulations, appropriate incentives schemes promoting mhealth adoptionm2m connections accounted for 2.8% of all mobile connections, or 189 million, at the end of 2013 Savings can be generated by better prevention and diagnosis, more effective monitoring and more efficient systems
30 IoT services are different from traditional telecom services Connectivity is just one element of the service proposition Closed user groups Voice and internet browsing are not the main purpose of the service A huge variety of business models Mobile operator s customers are most often businesses (B2B2C) Global distribution platforms Low ARPU per connection Source: Machina research
31 How to maximise the benefits of the IoT opportunity? Allow simple, scalable, global platforms and cost-effective delivery models Ensure applicable rules are relevant recognize IoT is different Ensure a levelled playing field - equivalent services should receive the same regulatory treatment Avoid technology restriction, rely on competitive forces Focus on long-term benefits, avoid sector specific taxes Ensure regulation is relevant, flexible, balanced and technology neutral
32 Connected Living Mobilising the Internet of Things
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