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? GEO Application: smart grid, meter, Application: car automation, GRA city eHealth, logistics, portable remote monitoring consumer electronics PHI CAL LY Technology Required:PSTN, Technology Required:2G/3G/4G, DIS broadband, 2G/3G/4G, power satellite line communication PER SED GEO Application: smart home, Application: on-site logistics GRA factory automation, eHealth PHI Technology Required: Wi-Fi, CAL Technology Required: wireless WPAN LY personal area (WPA), networks, CON wired networks, indoor electrical wiring, Wi-Fi CEN TRA TED 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.email@example.com