Globally, the internet of things (IoT) is expected to grow rapidly. While forecasts vary, there is an industry consensus that the global IoT market is poised for double-digit growth in the coming years. This growth and the intersection of IoT with other technological trends such as AI, machine learning, big data and the cloud, offer the world unprecedented connectivity and innovation potential. The MEA (Middle East and Africa) region must make sure that it can benefit from this revolution.
Absent affirmative action, however, there is a risk that the region may fail to secure the full range of possible benefits from IoT, potentially falling behind other regions. For example, despite currently contributing 8.1 per cent to global telecoms revenues, the MEA’s share of IoT revenues today stands at only 5 per cent. This disparity underscores untapped opportunities and raises concerns that, in a rapidly evolving environment, the MEA region may fall behind and face increased challenges in bridging this gap in the future.
This fast-evolving environment requires institutions to perform ongoing analysis and evaluation of emerging issues and to scout for adequate solutions rather than focusing on ex ante regulation.
Recognising the urgency to harness the disruptive potential of IoT, our white paper aims to identify the key regulatory issues that may jeopardise this objective, benchmarks and international practices, and proposes recommendations for future actions. Consistent with the assessment made by the Body of European Regulators for Electronic Communications in its 2016 report on enabling the internet of things,1 the paper has identified the primary regulatory challenges that must be addressed to unlock the full potential of IoT technologies. These challenges mainly fall within the domains of cybersecurity, data flows, interoperability and portability, licensing and roaming. The paper goes on to provide the reader with insights into the international landscape. A comparative analysis sheds light on the approaches taken by different regions to address challenges and to capitalise on opportunities associated with IoT, offering a comprehensive understanding of global efforts to navigate the complexities of IoT-related issues. Despite being drafted by multiple authors, the paper converges on common outcomes emphasising how the global nature of the IoT ecosystem requires a fresh and innovative approach, a ‘2.0 framework’, to unlock its potential.
Instead of a rigid command-and-control strategy, institutions are urged to prioritise a more collaborative approach (in line with the ‘5th generation regulation’ promoted by the ITU2 ), recognising the limitations of inherently national regulations in the dynamic and global IoT landscape. This fast-evolving environment requires institutions to perform ongoing analysis and evaluation of emerging issues and to scout for adequate solutions rather than focusing on ex ante regulation.
Regardless of the chosen approach, promoting clarity and predictability within the regulatory framework is vital for fostering innovation and attracting investment. A transparent and predictable framework not only aligns the industry but also enables anticipation of market developments. A 2.0 framework should ultimately be light and flexible, promoting innovation and investment rather than imposing them, and allowing Adam Smith’s invisible hand to guide the way.
Our hope for this paper is to foster a dialogue about IoT among the various stakeholders. It also offers guidance to governments and regulators in formulating forward-looking policies to ensure that the internet of things is the success that we need it to be.
The white paper on the internet of things, ‘Proposals to unlock the potential of IoT and machine-to-machine communications’ was produced by the Digital Economy and Regulatory Modernization Committee of the IIC’s MENA Chapter and features multiple contributors. It can be downloaded at www.iicom.org/feature/internet-of-things/
