iot regulatory initiatives in the americas

© Cullen International SA 2017

IoT policy initiatives in the

Americas

São Paulo, August 30 2017

Ana Carolina da Motta


Agenda

• Regulatory framework

• Definitions of IoT

• Overview of policy initiatives in the Americas (Argentina, Brazil,

Chile, Colombia and US)

• Statistics and “reality” of IoT by country

• Policy initiatives at regional level

• Specific resources allocated for IoT

• Spectrum, numbering resources, IP addresses

• Permanent roaming and M2M communication

• Case debate


The International Telecommunication Union defined the

Internet of Things (IoT) in Recommendation ITU-T

Y.2060 (06/2012) as:

“a global infrastructure for the information society,

enabling advanced services by interconnecting

(physical and virtual) things based on existing and

evolving interoperable information and communication

technologies.”

Definitions

https://www.itu.int/ITU-T/recommendations/rec.aspx?rec=y.2060


“IoT means the Internet that senses things and acts.

This is very close to the concept of a robot.”(Bruce Schneier, CTO IBM Resilient and Special Advisor to IBM Security)

Definitions

“IoT is the technology that

establishes intelligent

communication between

things” (Telefonica)


Horizontal and specific regulation are facing

digital economy challenges worldwide

Privacy

Security

Infrastructure-connectivity

Liability

(Cullen International)

Online platforms

and services

Sharing economy

E-commerce

Copyright


National ICT priorities in Latin America


Subtel ongoing study on IoT

IoT Plans in the Americas


IoT Plans in the Americas

• Argentina, Brazil, Chile, and Colombia are the countries in Latin

America addressing IoT in their agendas, although no official position

has been issued by the government or the respective country

regulators.

• In the US:

• The Senate (Committee on Commerce, Science, and

Transportation) approved Developing Innovation and Growing the

Internet of Things (DIGIT) Act - a bill to ensure appropriate

spectrum planning and interagency coordination to support

IoT and will soon be voted by the full Senate.

• "Securing the Internet of Things Act of 2017" was introduced at

the House of Representatives in March 2017. The bill requires

radio frequency equipment for which certification is required to

meet cybersecurity standards.

• In Canada no studies or regulatory initiatives on IoT have been

undertaken so far.

Overview


IoT regulatory framework

Argentina

• No specific law or regulation for IoT services

• No specific licence requirement for IoT service providers

• No specific resource allocated to IoT

• How does it work in practice?

Enacom Resolution 15 of 2016 sets power limits and spectrum allocation

for low power, short range devices.

Spectrum for short range devices (SRD) and industrial, scientific and

medical (ISM) uses can be used for IoT solutions.

http://servicios.infoleg.gob.ar/infolegInternet/anexos/255000-259999/258990/norma.htm


IoT Plan in Argentina

Jan. 2017

Ministry of communications organised a round table on IoT, where key IoT

issues and the role of the government in facilitating IoT development were

discussed.

Main findings and an action plan outline:

• a public consultation on IoT (may 2017)

• definition of a framework policy for IoT development

• analysis of privacy and security policies

• identification of standards to guarantee interoperability

• best practices to promote education and skills for IoT

• cooperation with other ministries to identify IoT priorities and to develop joint

action plans; and

• continued multi stakeholder collaboration and dialogue

https://www.argentina.gob.ar/noticias/se-realizo-el-encuentro-dialogo-publico-privado-internet-de-las-cosas


IoT Plan in ArgentinaRole of the government



Technology



Entrepreneurship and SMEs



Social and economic impact



May 2017

The Ministry of communications (MinCom) consulted on internet of things’

(IoT) regulation. A series of questions were presented for interested

stakeholders, including on:

• whether the government should regulate IoT in some way and how the

regulation should be updated

• potential distinction between apps and IoT

• potential specific numbering and interconnection conditions

• the role of roaming in international development of IoT

• unlicensed spectrum and secondary use of spectrum for IoT

• public use of data obtained through IoT services (specially regarding

health, environment, use of energy and safety); and

• regulation for data protection and security

Public consultation

https://www.argentina.gob.ar/comunicaciones/consultaiot


IoT Plan in ArgentinaStatistics and “reality” of IoT

• Cabase (chamber of ISPs) created an IoT coordination centre and

market place to bring together IoT solutions developers and service

providers.

http://www.cabase.org.ar/

http://www.cabaseiot.com.ar/biblioteca/reunion-1.html



• QuISI Index (índice de innovación de la sociedad) measures ICT

adoption by people, companies and government.

http://www.idclatin.com/QuISI/web/descargas/IDC-Qualcomm-QuISI-20151201-ARGENTINA.pdf


IoT Plan in Brazil

• Yes, specific laws or regulation

• Intelligent Brazil Programme approved (Decree 8.776/16) to

promote universal access to the internet and the development of

IoT, M2M, smart cities and other new technologies

• Yes, specific licence requirement for IoT service providers

• Specific IoT/M2M licence needed before Anatel

• Yes, specific resources have been allocated to IoT

• 71-76 GHz and 81-86 GHz bands allocated to M2M applications.

http://www.planalto.gov.br/ccivil_03/_ato2015-2018/2016/decreto/D8776.htm

http://www.anatel.gov.br/legislacao/resolucoes/2016/911-resolu%C3%A7%C3%A3o-671


IoT Plan in Brazil

January 2017

The Ministry of Communications, Science and Technology, and Innovation

MCTIC consulted on the machine to machine (M2M) ecosystem, in order to

build a Brazilian plan for the development of the internet of things (IoT).

MCTIC refered to the four-layer technological structure for IoT, originally

designed by the International Telecommunication Union (ITU).

http://www.mcti.gov.br/

http://www.participa.br/cpiot/o-que-e


IoT Plan in Brazil

Main regulatory questions

• Brazil defined M2M communications in its national legal framework in

2014, to clarify the scope of fiscal exemptions granted to M2M

technologies in 2012. The law defines M2M as: “the communication of

devices without human intervention, using telecommunication networks

to transmit remote data and applications and aiming to monitor, measure

and control such devices, their surrounding environment or the data

systems connected to them”.

• In its consultation MCTIC asks whether such definition is still adequate

and sufficient for the development of IoT activities in the country, or if on

the contrary it might require an update.

• Other regulatory issues covered in the consultation include the need to

have a IoT specific regulation, suitable radio spectrum for IoT services,

permanent roaming, interoperability, and tax issues, among others.

https://www.planalto.gov.br/ccivil_03/_ato2011-2014/2014/decreto/d8234.htm


IoT Plan in Brazil

December, 2016

MCTIC, together with BNDES, announced the preparation of a study to

support the development of a national plan on the Internet of Things (IoT).

A final report is expected to be published in October 2017, with the IoT Plan

being expected to be implemented by published by September 2017 and

implemented by 2022.


IoT Plan in Brazil

BNDES and MCTIC consultation


IoT Plan in Brazil


MCTIC consults on digital economy

MCTIC consults (until

August 30, 2017) on its

first digital economy

strategy, following the

creation of a working

group to define the

strategy earlier this

year.

http://www.cgee.org.br/prospeccao/exercicio/delphi/doc/168/EDB_RELATORIO_FINAL-rev-12-07-2017.pdf


MCTIC consults on CGI structure

MCTIC is consulting until September 8, 2017 on proposed changes to the

structure of CGI.br. CGI.br is the multi-stakeholder entity responsible for

strategic guidelines related to the use of the internet. The entity encourages

and advocates the adoption of (IoT-enabling) IPV6 technology.

http://www.mcti.gov.br/

http://www.participa.br/cpgovernancainternet

http://www.cgi.br/


IoT Plan in BrazilStatistics and “reality” of IoT

November 2016

During the IT Forum Expo in São IT companies discussed their

expectations for IoT-related activities. According to Mr Sérgio Gallindo,

President of Brazilian ICT association Brasscom “by 2025 IoT will move

US$19 trillion worldwide thanks to the connection of no less than 500

billion devices.” He further estimated that “Brazil could seize at least

US$ 350 billion of this total. That's why it needs public policies for IoT".

http://www.telesintese.com.br/plano-nacional-de-iot-sai-em-marco-diz-governo/

http://www.brasscom.org.br/brasscom/Portugues/


IoT Plan in BrazilStatistics and “reality” of IoT

Brazil ranks 30th (30/50) in Global Connectivity Index (GCI) 2017

The country:

• has rapidly developed its 4G penetration within last two years, which

leads to a full score in the mobile broadband assessment.

• is the fourth largest market of volume of internet subscriptions, it has

good potential to achieve a higher score in fiber-to-the-home (FTTH)

and 4G in future years.

• will hold 5G license auctions after 2020 once global terms on

bandwidth and frequencies are agreed by regulators and operators,

which could further drives the speed to increase.

• has attractive cloud computing and big data analytics markets

http://www.huawei.com/minisite/gci/en/country_profile-br.html


IoT Plan in Chile

• No specific law or regulation


• Yes, specific resource have been allocated to IoT

• The Telecommunications Observatory (created by Subtel, the telecom

regulator) is discussing to allocate resources to IoT.

http://www.subtel.gob.cl/subtel-lanza-oficialmente-observatorio-de-las-telecomunicaciones-para-el-chile-digital-del-2025/


IoT Plan in Chile

Nov. 2015

• A Digital Agenda 2020 was adopted by the Federal Government to foster

digital development in the country. It sets up 5 general work pillars, one of

them being Digital Economy.

• A Productivity Agenda outlines a Strategic Programme of Intelligent

Industries, including smart cities pilots.

May 2017

• Subtel launches the Telecommunications Observatory for Chile Digital

2025. The initiative will develop IoT pilot projects models and discuss the

regulatory framework, among other activities.

http://www.agendadigital.gob.cl/

http://www.agendaproductividad.cl/wp-content/uploads/sites/22/2014/10/Programa-Estrat%C3%A9gico-Industrias-Inteligentes.pdf

http://www.agendaproductividad.cl/wp-content/uploads/sites/22/2014/10/Programa-Estrat%C3%A9gico-Industrias-Inteligentes.pdf



IoT Plan in Chile

Statistics and “reality” of IoT

March 2016

Statistics from the private sector show 400,000 M2M lines.

By September 2017

The Telecommunications Observatory for Chile (created by Subtel in May 2017)

is discussing resources to be allocated to IoT.

“Lo que esperamos con el observatorio es tener una mejor mirada de lo que ocurre en el

mercado, desde la óptica de la demanda y desde la óptica de la ciudadanía, para que eso

nos permita modelar mejor nuestro marco normativo. El mercado reacciona y se mueve

muchos más rápido que el Estado, de modos que nuestra forma de regular es un poco

tardía, es decir, no hay una buena sincronía”, explicó Marcelo Flores, jefe de División de la

gerencia del Fondo de Desarrollo de las Telecomunicaciones.”

https://gallery.mailchimp.com/9da76cc577fd2f2315e16d8db/files/Politicas_IoT_5GA.pdf



IoT Plan in Colombia

• Yes, there are specific laws or regulation


• Yes, specific resources have been allocated to IoT

• How does it work in practice?

• The National Spectrum Agency (ANE) issued resolution 711/2016

increasing spectrum availability from 20 GHz to 40 Ghz for

unlicensed use to meet future needs of IoT. ANE also sets

technical recommendations regarding unlicensed use of spectrum

for IoT (Flash).

http://ane.gov.co/

http://www.ane.gov.co/images/COMUNICACIONES2016/RESOLUCION_711_2016.pdf

http://www.cullen-international.com/product/documents/FLECCO20160002



Nov. 2016

The Colombian ICT regulator, CRC, consulted on how to foster the

development of the Internet of Things (IoT). CRC also consulted on

'measuring the digital economy' to define a digital economy strategy and

included a roadmap for digital economy in its 2017-2018 regulatory agenda

Regulatory issues to be addressed in the future include:

• the adoption of a public policy for IoT

• the importance to set massive data plans for IoT

• rules to promote digital housing

• review of the regulation for the approval of IoT terminals and sensors

• recommendations on numbering resources and international roaming for

communications machine to machine (M2M)

• regulation of free use frequency bands by the spectrum regulator, ANE.

http://www.crcom.gov.co/recursos_user/2016/Actividades_regulatorias/PCA_IoT/Informe_6_PCA_IoT.pdf

http://www.crcom.gov.co/recursos_user/2016/Informes/Cartilla_Economia_Digital_V4.pdf



Statistics and “reality” of IoT

The Center for Excellence and Internet Acquisition of Things (CEA-IoT) is an

alliance between universities, global technology leaders and anchor

companies, supported by the Ministry of TIC to promote the country's economic

development from technology and innovation through the Internet of Things

(IoT ).

http://www.cea-iot.org/emprendimiento-e-innovacion/


IoT Plans – Regional harmonisation

Although the main focus of ICT policies in most Latin American countries

remains on connectivity and accessibility, national priorities are evolving.

Some countries have started to introduce IoT and smart cities in their national

agendas.

New opportunities bound to innovation and digital transformation could be

optimised if R&D and standardisation efforts were conducted at regional level.


IoT Plans – Regional harmonisation

July 2016

A Digital Agenda initiative within the Pacific Alliance also introduces

commitments towards digital economy development and regional integration

https://alianzapacifico.net/?wpdmdl=8789


IoT spectrum in the Americas

In the Americas, several countries identified free or unlicensed spectrum

bands and regulated on the use of short range devices.

During year 2016:

• the United States regulator, FCC, allocated spectrum for unlicensed

use, such as ultra fast Wi-Fi and short range devices for interactive

motion sensing (Flash).

• the Argentinian regulator approved Enacom Resolution 15 setting

power limits and definition of spectrum for low power , short range

devices.

• the Colombian spectrum agency (ANE) doubled the spectrum available

for free use, including higher and lower bands, and regulated its use

including the specific uses, emissions’ limits and device requirements

to operate in such bands.

http://www.cullen-international.com/product/documents/FLTENM20160012

http://servicios.infoleg.gob.ar/infolegInternet/anexos/255000-259999/258990/norma.htm


Spectrum allocation or plan for IoT

No specific spectrum for IoT

71-76 GHz and 81-86 GHz

bands allocated to M2M applications.

BUT

• Spectrum for SRD and industrial,

scientific and medical (ISM) uses can

be used for IoT solutions

• Long term plan to free 600 MHz

• 40 Ghz for unlicensed use

and set technical

recommendations

regarding unlicensed use

of spectrum for IoT

• Plan to free 600 MHz

Subtel ongoing study on IoT

FCC allocated10.85 GHz of spectrum above

24 GHz for licensed, unlicensed, and shared

use for wireless broadband services, including

5G

IoT spectrum in the Americas


IoT - Permanent roaming and M2M

communication in the Americas

• Extra-territorial use is defined as the permanent use of mobile numbers

outside the granting country, either by a permanent configuration in a foreign

network, or by permanent roaming.

• Machine-to-machine communications are defined as predominantly

automatized communications of technical facilities (machines, vehicles,

meters, etc.) either among each other or with a central IT system. There is

usually no human interaction, however some limited human interaction may

be allowed.

• Extra-territorial use of numbers (including permanent roaming) is considered

by many as a driver of growth for IoT / M2M, since the industry can

standardise products and sell globally.

• National operators are usually against use of foreign numbering resources in

the country, whereas foreign operators tend to support it.



communication in the Americas

Citel published a report in September 2016 recommending permanent roaming

for IoT (using E.164 and E.212 codes).

Among surveyed countries, permanent roaming is illegal only in Brazil. In most

countries, there is no specific regulation in force or proposed about permanent

roaming for M2M communications.

https://www.itu.int/md/D14-SG02-C-0373/en



communication in Brazil

Anatel understands that all companies using foreign simcards and numbering

for M2M communications in Brazil should request permission to the regulator

(based on art. 131 of Law 9,427)

The telecom regulator stated (in response to a private party) that “roaming must

be temporary; otherwise the regulator will have no power to protect users in

case of conflict with foreign operators”, adding that tax revenues would be

negatively affected (including numbering fees, paid once a SIM card is activated

and in subsequent years).

http://www.planalto.gov.br/ccivil_03/leis/l9472.htm



communication in Brazil

Nevertheless, foreign operators argued in a public consultation asking inputs for

a Brazilian national IoT plan that:

• Extra-territorial use of numbering and permanent roaming is allowed in

Europe and the United States

• MVNOs are not as efficient as permanent roaming, nor appropriate for all IoT

applications, which might slowdown innovation and new products in Brazil

• The IoT industry would face significant transaction costs and not benefit from

economies of scale if permanent roaming is forbidden, hindering the market

of IoT-based goods and services

• Regulatory and tax-related concerns raised by the regulator can be

addressed by local affiliated companies of foreign operators (SIM cards

would be considered in permanent roaming after 180 consecutive days).

http://www.participa.br/portal/blog/consulta-publica-iot



Case of Mexico

Operators offer embedded sim cards usable in multiple countries for M2M

connectivity. Telefonica is part of the IoT World Alliance, “a global partnership of

telecommunications providers dedicated to providing our multinational

customers with seamless machine-to-machine device connectivity around the

world.”

http://www.iotworldalliance.org/#section_intro



Case of the US

Operators have launched embedded sim cards usable in multiple countries for

M2M connectivity based on bilateral roaming agreements.

Examples: AT&T – that followed GSMA’s specifications of its embedded sim

project.

https://www.business.att.com/enterprise/Service/internet-of-things/networks/iot-global-sim/

http://about.att.com/story/att_launches_enhanced_global_sim_designed_to_meet_gsma_specifications_for_m2m_and_connected_device_manufacturers.html

http://www.gsma.com/connectedliving/embedded-sim/



Case of the US

US industry often addresses the prohibition of permanent roaming as a major

concern for IoT development. (See NTIA’s public consultations on IoT)

https://www.ntia.doc.gov/federal-register-notice/2017/comments-fostering-advancement-internet-things


IoT regulatory and technological

challenges


[email protected]

http://www.cullen-international.com/menu/regulatory-intelligence/geography/americas-level/americas-regulatory-intelligence/

mailto:[email protected]


[email protected]