iot market developments and regulations for autonomous …...global and local mobile broadband area...

IoT Market

Developments and

Regulations for

Autonomous Driving

Detecon International,

Rome, 26.09. 2018

Funded by the European Union

2

01 Definitions and Market Overview

02 Telco NRAs role in IoT Ecosystems

03Automotive Use Cases and enabling

Technologies

04 Regulatory Challenges

Table of Content

3

01Definitions and

Market Overview

4Funded by the European Union

There are three steps to achieve the goal of future autonomous driving.

Features

Role of

Driver

Liability

Automated DrivingSupported Driving Autonomous Driving

The car may hold the track, is

braking and speeding-up or

automatically executes parking

maneuvers.

The car is driving automatically in

specific cases defined by the

producer, e.g. stop-and-go traffic,

motorway traffic below max. speed)

The car is driving autonomously and

capable to master critical situations.

The autonomous mode may be

limited to certain fixed routes.

Driver is always responsible for

driving and has to keep attention to

traffic all the time. He may execute

permitted side tasks only (hands-

free telephony, music,…)

Driver is temporarily dismissed from

his driving tasks and may do side

tasks (e.g. reading, videos,…).

However he has to sit behind the

steering wheel and needs to be

capable to take over responsibility

upon request of the system.

Driver may give away driving task

completely to the system and

becomes a passenger. Car may also

drive without passengers. Switching

to manual driving may remain

possible, e.g. after leaving a

motorway.

Driver is always liable for accidents

or violations of traffic law.

Driver is liable only when he did not

take over responsibility upon request

of the system.

Driver/Passengers are not liable.

The operator has to supervise the

car to be able to react in case of

failures (punctures etc.)

Definitions for autonomous driving

1 32


Autonomous cars can drive without communication, but security and economic advantages are significantly enhanced with communication.

Autonomous Driving and Communications

Key Automotive requirements Car to X communication overview

City-Center

Zentrum

Rheinufer

100Road side

infrastructure(e.g. traffic lights, road

side unit)

5. INFRASTRUCTURE to BACKEND

Communications

Enhanced Security

Faster and Joint

Coordination of Maneuvers

1. CAR to BACKEND

Communications

Backend(e.g. fleet mgmt.,

remote services,

secure autocloud)

1. CAR to BACKEND

communications3. CAR to CAR

Communication

via Network Cell

2. CAR to CAR

Direct Communications

4. CAR to INFRASTRUCTURE

Communications

LOCAL SENSOR COVERAGE

Global and local mobile broadband area

coverage

Availability

High level of Reliability

Pro-active information

Fall-back solutions to alternative

communications

Global Standards, harmonized frequencies

Multilevel source of communication and

information

Regulatory Tasks


BY 2022 …

The Internet of Things is a network of physical objects connected to the internet, allowing them to send, receive and exchange data.

Source: Machina Research, 2017

18 BILLIONDevices will be connected

3 TRILLIONRevenue will be generated

1.4 BILLION TBData will be transported with IoT

Definition of Internet of Things (IoT)


Global SIM and HW-manufacturers

Delivery of IoT Services

Data sourcing Connectivity InteroperabilitySecurity /

Privacy

Data

Management

Computing

resourcesAnalytics

Gather / Generate data for the applications and services

Transport the data through various connectivity media through to aggregation

Manage connectivity, aggregate data streams

Manage security of application and users, manage privacy

Enable vertical and horizontal application development and operations

Create value from the data that the IoT provides

Store, protect and process data while guaranteeing its accuracy, accessibility, reliability and timeliness

Sensors, camera, user phones, cars, positioning device...

WiFi, 2G, 3G, 4G, 5G, ADSL, ...

Mediation devices and platforms

Firewalls, policies Cloud platform BI and Big Data tools and platforms

Enterprise bus, identity management

Local MNO/ MVNOs MNO, MVNO, CSP, OEM

CSP CSP, OTT players Platform providers, OTT players

Specialized ICT

Example

Role

Players

The IoT value chain is complex, and partnering is one important key for a successful delivery. Regulators and competition policy is challenged.

IoT Value Chain

Regulatory Tasks

http://www.gi-de.com/

http://en.eastcompeace.com/index.html


For different use cases in the IoT different access technologies coexist.

Some are falling under jurisdiction of Telecom NRAs.

IoT and Telecommunications Access Technologies

RFIDNFC

DECT

IEEE802.15.46LoWPAN

Low

Ban

dwid

thLo

w P

ower

/C

ost

Hig

h B

andw

idth

/D

ecen

t Ene

rgy

Wide Area Local Area

QR

Wide Area / Cellular Local Concentrator

Wide Area Low Power Local Use (Low/No Power)

NB-IoT

Regulated


Connectivity services in an IoT partnering network is typically provided by MNOs or MVNOs, if wide area mobile connectivity is required.

Operating an IoT solution: Connectivity Services

SIM card type / form factor

Data-, SMS-, Voice-services

Data volume (pooling), # of SMS, Voice

minutes

Roaming capabilities (countries, areas)

Local breakouts

Connectivity / Service portal required?

Setup of platform account

APN setup (public, private)

VPN setup

IP addresses

SIM Connectivity Management Network Operation Service

Network operation center (NOC) for

mobile & fixed line services

National / International WAN

Helpdesk services (2nd/3rd level)

Service assurance / incident

management

SLA monitoring

National application / licensing process

SIM card activation / deactivation

Data limit supervision

IP session monitoring

Roaming monitoring

SIM card ordering & shipping

SIM contract / tariff maintenance

SLA monitoring

Helpdesk services (1st level)

National service licenses, restrictive spectrum regulation, restrictions of permanent roaming and permanent use of foreign identifiers, retail price regulation as well as restrictive rules for data hosting are major regulatory bottlenecks for the

development of IoT solutions.


The worldwide revenue generated from IoT is expected to increase by 67 percent by 2022. Connected cars are the 4th largest revenue contributor.

Growth in revenue from IoT, worldwide (in USD million) Growth in revenue from IoT, by vertical (in USD million)

3,500,000

0

1,000,000

2,500,000

500,000

1,500,000

2,000,000

3,000,000

2,119,391

3,025,049

2018 2019 2020 2021 2022

2,726,245

1,816,343

2,426,539

+67%

1,500,000

500,000

3,000,000

1,000,000

2,000,000

2,500,000

3,500,000

0

211,852

20192018 2020 2021

633,088

204,086

454,796

2022

527,603

431,954

411,312

150,358

+14%

Connected Business

Connected Consumer Electronics

Connected Energy

Connected Health

Connected Home

Connected CitiesConnected Industry

Connected Car

Source: Machina Research, 2017

IoT Market Forecasts


Aus Rohdaten wird IntelligenzAnomalieerkennung unterstützt durch Künstliche Intelligenz (KI)

30%

Percentage ofdelayed shipments

worldwide

57 bn. €Value of stolen

shipmentsworldwide

850 bn. €Value of spoiledproducts due to

broken cold chain

€

21 Mrd. €

Losses due to cargotheft

Source: EPC Global 2014 Survey; CTA Policy Brief; Freightwatch Study; World Shipping Council;BSI’s 2015 Global Supply Chain Intelligence Report

1

1

IoT and Market Efficiency

IOT helps to solve the „Pain Points“ of global cargo & freight logistics

12

02 Telco NRAs role in

IoT Ecosystems


In a future Industry 4.0 environment NRAs increasingly have to co-operate with other Sector Regulators and should initiate ICT related general laws.

Future Regulatory Governance

Other Vertical Regulatory Authorities Telecom National Regulatory Authority “Horizontal” National Legislation

Data privacy and security

Cybersecurity

Consumer protection (B2C and B2B),

including e-commerce and audiovisual

media

Contract law (e.g. M2M contracts, digital

signature, liabilities of intermediaries)

Competition law

Taxation (double taxation, tax avoidance)

Intellectual Property Rights / Copyrights

Education and inclusion in ICT

….

ICT Ecosystems

InitiativesCo-operation

Telecom Sectorenables


The structure of an NRA should be adapted by creating a horizontal “Digital Transformation Unit” and vertically responsible “Sector Units”.

Future Regulatory Governance

Organizational Improvements to adapt to Digital Transformation

Ministry for Digital

Transformation

Other Ministries

Parliament, Councils

etc. with the right to

introduce draft laws

Finance Sector

Regulator

Energy Sector

Regulator

...

ICT Sector

Expert Units

Digital

Transformation

Unit

Telecom

Regulatory

Authority

Other TRA

Units

ICT related Laws

Other Sector

Regulators


Within the ecosystem major Telco regulation challenges are spectrum resources and identifiers, permanent roaming and carrier selection.

Telco NRAs role in autonomous driving ecosystem

Example: Traffic Sectors Example: BNetzA (German NRA) Example: Government

Best practice sector regulation in Germany

(2017) Traffic Infrastructure

Regulation:

Several roads opened for testing

autonomous driving, in particular

motorways in Bavaria and a city route in

Berlin. Further to come in other Federal

States

(2017) Automotive Sector: >52% of world

wide patents about autonomous driving

handed in by German Industry

Best practice Telco regulation in Germany

Spectrum: (2015) 270MHz of spectrum

in the 700, 900, 1500 and 1800MHz

bands have been re-farmed / auctioned.

Identifiers: (2016) permanent

extraterritorial use of national numbers for

M2M use allowed.

Roaming: (2017) EC decision to abolish

international roaming fees within EU

Carrier Selection eSIMS: no decision

Best practice legal development Germany

2017: Ethical Commission releasing a

report with 20 recommendations on

guidelines for autonomous driving

including rules, if an accident cannot be

avoided.

2017: Minister for Traffic and Transport

introduced a change of the general

traffic law including possibility for

automated / autonomous driving

Many liability issues still unsolved, in

particular for artificial intelligence software

producers.

16

03 Automotive Use

Cases and

enabling

Technologies


Autonomous driving of private cars opens new possibilities for drivers to use commuting time for business or entertainment purposes.

Automotive Use Cases

Use Case Description

Cars are handling traffic situations autonomous

without any intervention of a human driver.

Vehicles can be shared (taxis) or used as private

cars. Drivers are usually passengers, but may

take over upon request.

Technical requirements/specs

Ultra-reliable and Low latency

Enhanced sensor sharing, predictive QoS


High-Density Platooning can save significant costs in transport and road construction.



Electronically liked blocks of trucks or cars follow

each other on the road in very short distance.

This safes fuel (wind shadow) for the

consecutive vehicles in the platoon, may save

no. of drivers and can expand road capacity,

thus saving road construction CAPEX.

Vehicles in the platoon communicate with each

other to control the distance.

The distances between the vehicles are

minimized, limited by the reaction speed of the

autonomous and communications systems.


Ultra-reliable and Low latency

Enhanced sensor sharing, predictive QoS


Connectivity LookUp for vehicle summoning is a prerequisite forautomatic valet parking, using parking space more efficient.



This Use Case is assisting the Automated

Parking without driver, using parking space more

effieciently.

In order to park the vehicle remotely it needs to

be summoned (automatic parking system)

Connectivity LookUp serves as pre check

whether the intented area of parking is within the

coverage


Parking infrastructure connected to the network

Vehicle connected to the network and precise

positioning system

Mobile Network Operator able to “talk” with

parking infrastructure


Smart parking is an existing NB-IoT application which is a first stepfor future autonomous parking.



Drivers save time and reduce their stress level

Better traffic flows and use of free parking space

in cities

More detailed information for park surveillance

authorities, therefore more efficient prosecution

of parking violations


Parking infrastructure connected to the network

Mobile Network Operator and App service

provider able to “talk” with parking infrastructure

P


Dynamic Intersection controlled by car-to-X systems can improvethe traffic throughput of road intersections significantly.



Efficient and dynamic traffic flow control and

handling to improve capacity of intersections.

The idea is introduction of the central

intersection scheduler which assign vehicles in

three dimensional based order based on

position (X,Y) and time


Central Intersection Scheduler connected to the

network, low latency infrastructure

Vehicles connected to the scheduler and/or

network and precise positioning system

Legacy vehicles assigned with multiple blocks

by the scheduler

2453

1

22

Data hubs may be a new business for Telcos to become a “data aggregator” cross industry eco-systems. Where are the regulatory limits?

22



23

There is a pilot project between Volkswagen and the Energy company TENNET to use car sensor data for efficient energy distribution steering.

Example: Big Data collected by Automotive Industry

Energy Industry: Example TENNET

TENNET is operating a high-voltage network and a super grid in

the Netherlands and Germany. Regenerative energy is very

volatile and depends on wind, sunshine, snow, rain, dust, fog

etc.

Manual interventions of TENNET to keep voltage levels constant

causes costs of double digit million Euros. Local weather

forecasts could reduce these costs significantly, but fixed

weather stations are too inaccurate.

Sensor data from many cars about rain, daylight, temperature

etc. may improve automatic forecasts and reduce costs.

Automotive Industry: Example Volkswagen

Since more than 10 years most modern cars are equipped with

SIM cards to transmit communication, telemetry and

entertainment data.

Since March 2018 every car built in the EU has to be able to

transmit an automatic emergency eCall via 2G, 3G or 4G for

emergency purposes. Minimum data to be transmitted are

location, time, no. of passengers and type of fuel.

Automotive producers are collecting many more data for

maintenance and product development purposes.


Providing an accurate positioning based on 2 cm

accuracy

Required for:

• Platooning

• Automated parking

• Autonomous driving by remote

5G, LPWAN help GPS or

GLONASS to get very precise

positioning

Enabling Telecom Technologies

Precise positioning is a new technological enabler for a set of applications required for several autonomous driving use cases.

Precise positioning What is this service for?

Network RTK Server Collects satellite

observations from Ref.

Stns. Sends RTK corrections

to the vehicle

Vehicle

Ref. Stn.

Ref. Stn.

Ref. Stn.

Ref. Stn.

Precise

Positioning


Network slicing allows to establish a multitude of networks, in a single physical network, a prerequisite for specific automotive QoS bundles.


Slicing Principles

Networks are realized as SW layer

on top of a common infrastructure

Functionality will adapt Qos

combinations to specific use cases

(latency, data rate, mobility speed,

connectivity, reliability, security,…)

Resources can be dedicated

or shared (radio, servers…)

Per slice dedicated network

management

New business models required

(e.g. integration into customer

environment or customer provided

functionality)

Network Slicing

Mission-Critical

Communication

V2X

Communication

Logistic,

factory, …

Communication,

Internet

5G Core Network

5G Network

Network

Slicing



Predictive Quality of Service will be required as a new feature in mobile networks that are required for many autonomous driving use cases.

Autonomous driving application and network form open (initially) or closed (later) loop to balance safety and efficiency adjusted to the

connectivity situation. E.g. for a platoon of trucks the network informs whether established QoS values (latency, data throughput,

reliability) can be maintained or propose other available QoS values. The application may adapt its mode of operation based on proposed

values, e.g. the distance between trucks in the platoon.

QoS in next cell

Predictive

QoS


P-QoS allows an application to actively react on changes in the connection quality. This relates to automotive use cases which are

safety relevant or mission critical and have to rely on information received over a radio channel. AQoSA provides the advanced closed

loop between application (IoT backend) and the network. The concept requires two new interfaces: application and network interfaces.


Agile Quality-of-Service Adaptation (AQoSA) is an important enabler for advanced Connected-Vehicle Applications.

Monitors QoS

Adapts network parameterization

or configuration based on

conditions and requirements

Update the IoT device/UE on

current and predicted QoS

Informs the network about initial

and updated requirements

Provides initial requirements

Adjust the application settings

to recent and predicted QoS

Agile

Adaptation

Application

Adapted QoS

Requirements

NetworkPredicted

QoS


Edge Computing cuts out a small piece of the cloud (cloudlet) and places it into the Node B. Latency is reduced as required for autonomous driving.

In Edge Computing the

data processing is

performed at the edge of the

network, therefore moving closer

to the user device:

The objective is to enable low-

latency sensitive applications

and services by providing an

environment to execute tasks

in close proximity to the user

Integration of Edge data centers

providing computing and

storage under full control of the

operator

A USP for operators having

a huge advantage against

OTT Players

Access Access Node Data center Backbone InternetUser devices

Edge Data

Center

Delay + X ms

Peering Point

2-100 ms

Backbone

2-8 ms

IP transmission

1-20 ms

Access

10-30 ms

Edge compute

Fully managed latency by operator


Virtual Reality

Smartphones

Driveless Cars

5G

LTETower

MSAN

Low

Latency


Edge Computing

Latency in an application context:How much latency is typically relevant to humans?

Latency for humans

Typical unprepared reaction times (RTT) are up to 700ms, normally ranging from 150 – 300 ms (depending on age, health, stress, training, etc.).

In well-controlled environments humans can achieve very low latencies:*

150 msacceptable voice

delay (individual)

80 – 100 msaudio-muscular

reaction

30 – 50 mshaptic delay detection

8 – 10 msaudio event trigger

13 msimage recognition

* Sources if not further linked: https://techneconomyblog.com/2017/01/22/5g-economics-the-tactile-internet-chapter-2/

30

04 Regulatory

Challenges

31

IoT providers are part of a value chain with permanent roaming and provide virtually no voice service.

Traditional Mobile Operator

Typically few SIM per customer

Manual, individual customer contact

Voice and data communications;

medium requirements for availability

High bandwidth requirements and volume

of data through mobile Internet

High domestic share, rather low

int’l roaming requirements

IoT Provider

Many SIM per customer

Automated, with no customer

contact on per SIM basis

Data communication (IP/SMS) - barely voice;

Significant use cases require high availability

M2M use cases typically have low volume

and bandwidth requirements per unit basis

Use cases with high int’l roaming volume;

permanent roaming for max. availability at

low prices

Typically E2E service offering by OperatorOperator is part of a fragmented IoT value

chain; NRA cannot regulate E2E delivery

Prepaid deals and short contract duration

cause high turnover and high SAC

Long contract duration (typ. 3-5 years) and

high service provider switching costs

Number of

SIMs

Customer

Interface

Bearer &

Availability

Bandwidth

/Volume

Roaming

Churn

Value chain

complexity

Regulatory Challenges

A typical B2B

customer of Telco

has completely

different

requirements than

an IoT customer in

B2B segment.


32

IoT providers enter the market with very low prices in expectation of high SIM volume and future rising traffic.

Regulatory Challenges

Typical MVNO narrowband IoT offering: Low price, low data volume Regulatory Issues

2G/3G NB IoT solutions e.g. for parking lots

or automotive telemetry data are typically

used permanently in foreign countries.

Permanent use of foreign identifiers and

permanent roaming is often not yet allowed by

regulators.

MVNOs may not know, where their customers

use the SIMs. Individual licensing is

impossible.

While in usual mobile markets international

roaming is a bilateral monopoly problem with

expensive pricing, in IoT markets pricing

might not cover costs caused in the roaming

host network.

Collected national data may be hosted in

foreign data hubs which some security

authorities do not allow.


33

2G switch-off has enormous impact on the IoT industry and would lead to expensive equipment replacement.

Regulatory challenges - Spectrum

Spectrum management has to take care of the specific IoT needs

Operators switching off their 2G networks might cause enormous replacement costs for the NB IoT industry

However, lifetime of e.g. smart metering solutions is approximately 30 years or longer

212 301 437 625858

1.1221.411

1.7172.050

2.3732.696

2020201520142013 2016 2017 2018 2019 2021 2022 2023

+1.169,3%

Equipment lifetime

Consumer Electronics (~ 10 Years Lifetime)

Consumer Electronics are operational for approx. 10 years

Smart Metering (~ 30 Years Lifetime)

Smart Metering and other M2M monitoring services are operational for approx. 30 years

Total Cellular M2M Connections (mio.) and future Spectrum Scarcity

2G Switch Off

Cellular M2M connections are relying on spectrum which is used in the 2G, 3G, 4G and future 5G networks. 2G and sub 1GHz spectrum will be required for full area coverage needs.

5G spectrum will start with 3.4-3.6GHz, not suited for area coverage. Sub 1GHz spectrum blocked by 4G for years.

M2M spectrum use may cause congestions in mobile spectrum with reduced quality or increasing costs for all.


34

With IoT and M2M every device, every sensor, literally everything needs to be addressed in a network.

Regulatory challenges - Identifiers

Using the MNC** of an operator leads to a monopoly situation

With traditional SIM cards using an MNC no switching is possible

Lifetime of M2M equipment is approx. 30 years

Dedicated MNC and/or international MCC*** as solution

eSIM might be a game changer to switch between providers easily over the air

Applications may be bound to one

mobile operator for the whole

lifetime

Migration of IPv4 to IPv6 and introduction of all-IP networks solves the numbering issue

The introduction of NGN and ENUM is effectively solving the numbering issue

Migration of IPv4 to IPv6 will solver the scarcity problem for a long timeAll-IP networks as the next logical

step

Numbers are national resources and not foreseen for (permanent) international

use

The availability of MSIN* numbers is restricted to max 10 digits, this results in

numbers to be a potentially scared resource

Regulators need to allow permanent international use for many IoT use cases

Numbers are national resources

and overall availability is limited

*) MSIN = Mobile Subscription Identification Number

**) MNC = Mobile Network Code (Part of the IMSI)

***) MCC = Mobile Country Code Funded by the European Union

35

Regulatory challenges – Provider Competition

eSIMs in all “Things” bear the risk, that a change of providers is only possible by exchanging the “Thing”. This would be a barrier to entry.

Number portability

eSIMs could facilitate efficiencies in

terms of roaming, termination and

general competition in mobile

markets

Such efficiencies can only be realized

if users can easily switch profiles,

without changing their number

Common standards and independent

profile management

Should SIM-lock be permitted in IoT

applications or should eSIM provider

profiles be variable?

A common standard (e.g. OTA

provision) might have to be

established and implemented in the

market. Currently Apple and GSMA

Unbiased, independent and agile

user-profile management is needed

to foster competition in mobile IoT

markets

One number – different contracts

with several providers/operators

Optimized service consumption for

end-users could be realized with

parallel usage of multiple operator

profiles

Unfavorable outcome for operators

and thus unlikely, not designated by

GSMA

End-user

ONE

NUMBER

Operator

Profile 3

Operator

Profile 2

Operator

Profile 1

eSIM


36

Roaming costs, permanent roaming and big-data hosting are a threat to autonomous driving only solvable on an international level.

Regulatory challenges - Roaming

Connected Car services as an example for the need of roaming agreements

Roaming in

Austria

Roaming in

Italy

Roaming in

France

Roaming represents a cost factor for autonomous driving

services that should not be neglected

Connected cars depend on international roaming

A connected car, traveling from one country to the other

would require roaming in every country (narrow- and

broadband)

Exported cars with eSIMs operated by a producer country

Telco will permanently roam in the import country.

International solutions are needed

EU and BEREC as an enabler

Bilateral roaming agreements and MVNO licensing are a

first step as interim answer only.

Permanent roaming and dedicated M2M roaming tariffs are

a necessary way forward


Permanent

Roaming in

Egypt

Car export

with eSIM

37

Your contact!

Dr. Arnulf HeuermannDetecon International GmbHManaging Partner

Sternengasse 14-1650676 Cologne (Germany)Phone+49 221 9161 1550Mobile: +49 171 2254217

e-Mail: [email protected]

Funded by the Europan Union

iot market developments and regulations for autonomous …...global and local mobile broadband area...

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