Keynote:

IoT for Digital Productivity

Jeanine Vos, Executive Director, GSMA

Summit Pais Digital

Santiago, 7 September 2016

About the GSMA

What is the Internet of Things?

GSMA definition: The Internet of Things (IoT) describes the

coordination of multiple machines, devices and appliances
connected to the internet through multiple networks.

Devices in IoT: Vast array of devices covering many vertical

industries; smartphones, tablets and consumer electronics, and
others including vehicles, monitors and sensors equipped with M2M
communications that allow them to send and receive data.

Growing number of connections: IoT sees innovative new

business models create value by connecting existing and new
Things together to create new business processes and
efficiencies including data analytics.

Anything that will benefit from being

connected will be connected
Networked Society 2012

The IoT enables impactful innovations around the world

Smart Cattle solution in Spain

Cargo tracking of perishable

goods in the United States
IoT Traffic Management and Smart
Parking in Taiwan

Handpumps in Rural Kenya equipped

with GSM receivers

Monitoring climate conditions

for agriculture in Chile

Source: OxWater

Creating a market of tremendous global scale and scope

MARKET GROWTH

IoTIoT
M2M
Connections
M2M
Connections

LPWA
as percentage of mobile connections

IoT M2M ConnectionsMARKET GROWTH

Forecast Growth

MARKET OPPORTUNITY

2015

IoT Big Data harmonised

2020

Non-Cellular MARKET
data OPPORTUNITY
and APIs
By 2020 nearly 20% of mobile
connections will be cellular or
LPWA = 1.8 billion

Cellular M2M Connections (M)

Connected Car
Connected Cities
Connected Health
Connected Industry
Connected Living & Working
Total Cellular M2M Connections
Source: Machina Research, 2016

Cellular

Customer focused remote

SIM provisioning

2015 2020
6bn 15bn
Source:
Machina Research, 2016

Mobile IoT to develop licensed

LPWA opportunity and pilots

2015
168
19
11
39
120
357

2016E
241
23
17
47
158
486

Supportive IoT regulatory

& policy environment
Active cross-sector
industry engagement

More info - www.gsma.com/connectedliving

Based on new business models, partnerships and value chains

Smart
modules

Diverse range of new and

existing companies will build
innovative partnerships
across value chain

Smart
objects

Individual

Traditional telecom: B2C

Operate
network

Government

Enable
Service

Integrate
systems

Provide
Service

Enterprise

IoT enabled world: B2B2C

Multiple companies will hold

a direct relationship with the
end customers

Smart Cities

Automotive

Telecom Operator

Customer

Telecom Operator

Customer

Manufacturing

Example: Automotive

Distinct elements of the

value chain might be
performed in different
geographies

Connected cars
manufactured in
one location

Distributed globally with

installed sensors,
seamless connectivity,
data and analytics

With strong IoT growth foreseen in Latin America

IoT revenues in Latin America

IoT connections in Latin America

1000

IoT connections (million)

800

70

IoT revenues (USD billion)

900

80

IoT connections 2015-20 CAGR:

14% (IDC)
19% (Machina)

700
600
500

400
300

60
50
40
30

IoT revenues 2015-20 CAGR:

10% (IDC)
20% (Machina)

20

200

10

100
0

0
2015

2016

IDC

2017

2018

Machina Research

2019

2020

2015

2016
IDC

2017

2018

2019

Machina Research

IoT in LATAM could be worth 70 billion USD in 2020

7

2020

Delivering significant socio and economic impact

Selected data on potential socio-economic benefits in Latin America

IoT expected to reduce healthcare

costs in Mexico by USD8.4 billion
- PwC

Healthcare services could reach an

additional 28.4 million people in Brazil
and 15.5 million people in Mexico
- PwC

The implementation of an integrated

security hub as part of a smart city
initiative in the city of Sao Jose dos
Campos helped reduce local murder
rate by 19%
In Compliance

IoT will reduce the time to respond to

traffic accidents by 25%
- Rio de Janeiro municipality

Smart meters expected to reduce losses

due to energy fraud by 20%
- AMPLA

Through supportive policy and regulatory frameworks

A growing Internet of Things provides a huge range of socio-economic benefits. Governments
and regulators can unlock these benefits by implementing policies that promote innovation and
investment, plus introducing regulatory frameworks that build trust and that are technology
neutral. This will give confidence to consumers and the industry, which will help to drive
adoption of the IoT.

Policies that enable growth

Regulation that builds trust

Create a pro-investment environment

Maintain commercial flexibility

Adopt IoT for government services

Enable global platforms and services

Promote interoperability

Ensure technology and service neutrality

Harmonise spectrum use

Apply data protection frameworks consistently

CITEL recommendation to American Member States

(July 2016)
1.
2.
3.
4.
5.

6.
7.
8.

Develop flexible regulations through government and industry collaboration

Ensure that regulations in key adjacent industries, e.g., public utilities, healthcare,
and transportation, enables the development and adoption of IoT/M2M services
Establish the principle of technological neutrality with regard to IoT/M2M services
Allow for the extra-territorial use of numbering resources
Foster collaboration with industry to encourage the adoption of appropriate
security measures
Foster their data protection frameworks to enable cross-border data flows
Review equipment certification requirements to facilitate the adoption of IoT/M2M
services, where warranted
Consider the implementation of tax exemptions or incentives to promote
investment and research and development in IoT/M2M services

10

GSMA has recently launched new IoT global resources

The IoT Knowledgebase (www.gsma.com/IoTKB)
Established GSMA positions on policy and regulation
Research papers and case studies
Insight of best practices and market trends
Statistics on IoT growth and its socio-economic impact
Key policy themes discussed by regulatory agencies
Examples of deployments in verticals such as Automotive, Health and Smart Cities

New paper examining how mobile operators can provide a vital part of the
communications infrastructure that enables a city to become smart.
Operators can offer:
advanced secure networks
management platforms
a high quality of service and intrinsic knowledge of how to build a
successful smart cities strategy
Download the report: www.gsma.com/smartcities

Further information

Jeanine Vos
Executive Director, Connected Living Programme
jvos@gsma.com

Additional Information and Resources:

www.gsma.com/connectedliving