The expanding Internet of Things (IoT) will provide an array of socio-economic benefits to citizens and businesses around the world. The ability to connect everything from a washing machine to a street light will create numerous efficiencies, as well as giving people instant access to real-time data and allowing them to make informed decisions. The IoT will impact almost every vertical sector, enhancing utility meters, vending machines, vehicles, and medical monitoring and alerting, as well as consumer electronic devices, such as e-book readers, GPS navigation aids and digital cameras.
Machina Research estimates that the total number of M2M (machine-to-machine) connections will grow from five billion in 2014 to 27 billion in 2024, and the value of the market will reach $4 trillion by 2025, up from $892 billion in 2015. If regulators work with the rest of the ecosystem to create the right environment, the growth of the IoT will usher in huge benefits for both consumers and businesses.
As with all mobile services, a pro-technology regulatory framework will be required to realise the true potential of the IoT. Governments and regulators need to implement the right policies regarding the allocation of spectrum and create an environment that enables the market to flourish.
A service- and technology-neutral framework is also especially important to ensure future growth; any government that wants to see IoT services develop should implement a regulatory framework free of technical restrictions. This will build trust and give confidence to consumers and industry, both of which will help to drive adoption of the IoT.
The GSMA is working with governments and regulators from around the world to ensure that the benefits of the IoT are unlocked and that the right policies to promote and incentivise innovation and investment are being followed.
For example, governments should consider adopting IoT solutions in the public sector, funding research and development programmes, releasing sufficient spectrum and promoting interoperability. In particular, there are four areas governments and regulators should be focused on:
1. A technology-neutral environment: The IoT can transform economies and societies, but it is still at a nascent stage. An investment-friendly and technology-neutral environment is needed to realise these socio-economic benefits.
2. Licensed spectrum: Licensed spectrum can deliver the most trusted, reliable and scalable high quality services. It also has the capacity and coverage capabilities to support growth.
3. International spectrum harmonisation: Spectrum harmonisation is vital for a global, affordable market for cellular devices and other equipment.
4. Industry collaboration: Regulators should work closely with the mobile industry to account for the IoT in spectrum planning now and in the run up to 5G investment.
The IoT sector is still in its infancy and mobile operators should be allowed to use the technology they believe will work best to test its effectiveness. By applying this approach consistently across all players in the IoT ecosystem, policymakers will provide clarity and ensure a level playing field for the industry and build trust and confidence for end users.
In particular, operators should be allowed to use the latest mobile IoT technologies in their licensed spectrum bands, without any unnecessary roadblocks. New cellular standards enable GSM and LTE networks to support LPWA (Low Power, Wide Area) IoT applications in almost all licensed mobile bands.
A new GSMA report on the public policy dimension of the IoT is available here.