The ITU's Telecommunication Reform Trends 2016, the world's most comprehensive study of ICT policy and regulatory trends, compiles views from a variety of leading global experts to help regulators, ICT analysts, and technical journalists better understand the issues that will increasingly affect ICT actors and consumers.
New ICT goods and services bring with them significant social and economic disruptions, but while substantial benefits can be reaped, the report highlights the regulatory challenges that must be addressed to preserve the level playing field considered essential for competition and innovation. The report, whose theme this year is "Exploring Regulatory Incentives to Create Digital Opportunities," emphasizes the growing importance of flexible, non-interventionist, and technologically neutral regulatory principles that stimulate market growth while protecting consumer rights and attracting new entrants.
“Information and communication technologies are already everywhere and will be essential in helping the world achieve the 17 Sustainable Development Goals. The role of ICT regulators in creating an enabling environment for ICT growth and development has never been more important,” said Houlin Zhao, Secretary-General of the ITU. “The ITU’s annual report, Trends in Telecommunication Reforms, helps regulators worldwide adopt the right policies for their national markets.”
“To realize the full potential of the digital economy, public authorities and regulators must play a leading role in creating policy and regulatory environments in which new technologies can thrive,” said Brahima Sanou, Director of the ITU Telecommunication Development Bureau. “This 16th annual Telecommunication Reform Trends report focuses on regulatory incentives to create digital opportunities, which, in my view, embody the ultimate goal of regulators: serving consumers.”
Main conclusions of the 2016 edition:
Broadband Investment
: Capital expenditures on fiber infrastructure are projected to exceed US$144.2 billion between 2014 and 2019.
More than 40 operators have launched or are planning LTE-A deployments worldwide; 88% of these operators are located in developed markets.
Increased consumer data usage could boost Wi-Fi investments.
A growing number of existing operators, new entrants, and financiers are defining alternative financing approaches for broadband network investments.
Broadband infrastructure investments are also coming from more unusual institutions such as hedge funds or companies that do not traditionally invest in telecommunications infrastructure.
Network sharing
When network coverage no longer allows operators to differentiate themselves from the competition, they may find it necessary to consolidate networks (by sharing them) to stop investing in infrastructure and start focusing on developing innovative services.
Governments currently allocate spectrum primarily for specific purposes. With new dynamic spectrum access (DSA) technologies, devices can use spectrum when it is not being used in a particular geographic area or at a particular time.
Network sharing can have many advantages, but also disadvantages, such as a decrease in the intensity of competition, risks of collusion and information sharing, and a limitation of options for competitors that only offer services.
IoT:
The mobile industry association, the GSMA, predicts between 1 and 2 billion M2M connections in 2020. Some experts believe the IoT device market will grow exponentially and generate more than $1.7 trillion in added value for the global economy in 2019.
The simplest IoT technology, passive RFID tagging, is already widespread in stores, transport tickets, and access control. Near-field communication (NFC) is already built into the latest smartphones and enables applications such as contactless payments.
More complex M2M systems can send information over cellular networks. Examples include electricity meter readings sent to power companies and airbag deployment alerts sent to emergency services. Hundreds of millions of M2M systems are being deployed virtually worldwide.
IoT technical standards have evolved from diverse applications and stakeholders with different purposes and requirements, and further research is needed to integrate different regulatory frameworks. A uniform network of “things” is unlikely to develop in the medium term. Smart meters are unlikely to communicate directly with heart rate monitors or prescription planners. Some networks will use public infrastructure, while others will be entirely private. Some applications will have high bandwidth and interactivity requirements (such as video surveillance), while others will only transmit brief bursts of information (such as smart meters).
For the IoT to truly become a ubiquitous technology, the cost of tags, sensors, and communication systems must fall to a level that represents a tiny fraction of the total cost of the objects that carry them, and readers must be readily available. Even the least expensive (printed) tags, called Quick Response (QR) codes, have not yet generated significant interest in consumer advertising campaigns.
High levels of reliability are also important in large-scale systems that can comprise thousands of sensors, devices, and readers. Without adequate security, intruders can infiltrate IoT systems and networks, accessing potentially sensitive personal information about users and using vulnerable devices to attack local networks and other devices. IoT system operators and other entities with authorized access can compile, analyze, and utilize copious volumes of data obtained from traditionally private spaces.
The privacy of all personal information that can be obtained from seemingly innocuous sensor data must also be considered, especially when combined with user profiles and data from other sources.
Interoperability
The concept of 'interoperability' is much broader than mere technical compatibility and has implications at four key levels: technology, data, people, and institutions. Systems can increase interoperability in the following ways:
- offering greater opportunities for technical interconnection;
- being less strict about the types of systems and services that can be interconnected;
- supporting a greater variety of data;
- making it easier for people to take advantage of interconnections.
Interoperability can also increase opportunities for system exploitation. A system with more access points allows for: 1) the connection of more types of systems, 2) data processing with fewer limitations, 3) an increased number of potential attack vectors, and 4) more opportunities for malicious actors to exploit data or inject malware.
Higher levels of interoperability tend to increase user choice and autonomy.
Interoperability is not an end in itself, and it is not always necessary to maximize it. Instead, private sector actors and regulators should carefully collaborate to optimize the level of interoperability needed to achieve their objectives.
Challenges of interoperability include:
- Increased complexity of interoperable systems, which can lead to decreased reliability because receiving systems become increasingly dependent on transmitting systems.
- Greater homogeneity and less diversity in the market.
- Reduced privacy because a growing number of individuals have access to one's personal information.
- Threats to business models when higher levels of interoperability are unevenly distributed in a market. Some companies may have an interest in maintaining lower levels of interoperability to retain their customers.
