Machine to Machine – Internet of the Things: “More Regulation to success”

Regulators worldwide need to prioritize machine-to-machine (M2M) regulatory frameworks and M2M services in their agendas or optimistic predictions from analyst and vendors will never happen.

Regulation is probably the main driver for M2M general adoption. With worldwide coordinated regulations the roadmap to technologies standardization will be more feasible, the ecosystem will work to build less complex solutions, we will see and increase collaboration and the current market fragmentation will experiment a continuous flow of mergers and acquisitions.

Europe certainly is leading the m2m market. Without the Energy Services Directive and eCall EU directives we will probably not be talking in Europe today about the colossal opportunity that will be generated by m2m technologies.

  • “The Energy Services Directive“:  EU directive on energy end-use efficiency and energy services 2006/32/EC – 80% of European cosumers are expected to have smart energy meters installed in their homes by 2020)
  • “eCall directive”: The European Commission is aiming to have a fully functional eCall service to be in place throughout the EU by 2015. The eCall initiative aims to deploy a device installed in all vehicles that will automatically dial 112 in the event of a serious road accident, and wirelessly send airbag deployment and impact sensor information, as well as GPS coordinates to local emergency agencies
  • “The EU 531/2012 Roaming Regulation” introduces some important changes that could help in the European market, as enabling aggregators as wholesale providers.

I agree with what Robert Madelin, Director-General for the Information Society and Media, European Commission said in  “Shaping Europe´s Digital Future”, that new regulations at EU level are needed to seize the colossal opportunity generated by m2m technologies or these opportunities never materialize.

Regulation must be as dynamic as ICT innovation, these directives need to be refreshed to facilitate new business models and more collaboration among different players. All of them will get more benefits if they do not think in a “wallet garden” business.

If the politicians in each country did not agree to move Europe forward more quickly giving the European Commission more regulatory powers, more incentives and signals sent to the market, then every country should regulate those sectors that are more strategic for them. In Spain for instance water management is critical for rationalize use of agriculture, but other sectors like forest fire prevention, lift management, building energy saving or healthcare will benefit of more M2M regulations.

We do not know how M2M or the ‘the Internet of things’ (IoT) will set to revolutionize the way we live. But this new stage in the evolution of telecommunications, Cloud, Big Data, embedded devices and many other technologies will bring legal and regulatory challenges that will effect industry operators, device manufacturers, and many other industries.

I could not agree more with what Blanca said in this “post: “The success of M2M will be determined by the right approach of regulators and by fair and balanced agreements entered into by telecom operators and M2M users. This sector will only grow if these agreements convey value for both parties”

For additional information please contact: francisco.maroto@oies.es

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  1. Pingback: Machine to Machine – Internet of the Things: “More Regulation to success” | Richards Innovation Blog

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