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MEMORANDUM
2nd Annual QED Conference on
IoT on the Move
Attila BenedekTransport Policy Adviser to MEP István Ujhelyi, European Parliament
Nikolaos IsarisDeputy Head of Unit E4 – Internet of Things, DG CONNECT, European Commission
Irena BednarichDirector Corporate Affairs, Continental Europe, Middle East and Africa, Hewlett Packard Enterprise
Prof Mischa DohlerChair Professor, Department of Informatics, King’s College London
MODERATOR
SPEAKERS
Mary CrassHead of Institutional Relations and Summit, ITF – International Transport Forum
This is increasing the need for
dialogue between all parties to
fully understand what the
implications of this innovation
and transformation are for the
sector and to come up with new
governance frameworks that are
fit for purpose.
Ms Crass said that the transport sector has been undergoing profound change over the
last 10-15 years at an increasing speed, with a lot of innovation and new thinking amongst
and between enterprises of all sizes. On the other hand, regulatory, institutional, fiscal and
funding frameworks are often and in general no longer adapted to these new
circumstances. “This is increasing the need for dialogue between all parties to fully
understand what the implications of this innovation and transformation are for the
sector and to come up with new governance frameworks that are fit for purpose.”
She said that legal and regulatory frameworks need to provide the right “scaffolding”,
including rules to ensure open and equitable access to markets, and protection of citizens
while not limiting opportunities for market actors to provide new solutions for evolving
demand. Key issues surround current regulatory and other barriers that are preventing the
development of innovative digital technologies; interoperability issues surrounding
infrastructure, data, services, applications and networks; the availability and optimisation of
data while respecting protection and privacy of data; liability issues pertaining to the use of
ITS applications; and safety and security issues, particularly cybersecurity.
Mary Crass
Head of Institutional Relations and Summit, ITF – International Transport Forum (moderator)
Mr Benedek said that when the draft report on a European strategy on Cooperative
Intelligent Transport Systems (C-ITS) was recently introduced in Parliament, no political
group was against it or raised serious issues with it, and the amendment period has just
come to an end. He said that the Parliament welcomes the Commission Communication
on a European strategy on C-ITS and the intensive work it has done with experts from both
the public and private sectors. He highlighted the potential of digital technologies and
related business models in road transport and recognises that the Commission’s strategy
is an important milestone towards the development of C-ITS and, ultimately, automated
mobility. Mr Benedek remarked that to implement C-ITS throughout Europe using different
technologies is a major challenge, particularly with the differing internet coverage in
Member States, which should be addressed as it is important to make this technology
accessible to all citizens. He pointed out that “it is vital for all industrial sectors to join
forces – the telecommunication, car manufacturing, energy and transport sectors –
so that the results of digital advances can be properly put in place and applied.”
Equally important is the cooperation of the European institutions and involvement of the
Member States. He also stressed the importance of clarity, especially regarding hybrid
communication and technological neutrality, and in the nomenclature used.
Attila Benedek
Transport Policy Adviser to MEP István Ujhelyi, European Parliament
It is vital for all industrial sectors
to join forces – the
telecommunication, car
manufacturing, energy and
transport sectors – so that the
results of digital advances can be
properly put in place and
applied.
There are a number of
challenges for IoT take-up,
mainly security, privacy and trust
in IoT, and the role of
policymakers and regulators in
tackling them.
Nikolaos Isaris
Deputy Head of Unit E4 – Internet of Things, DG CONNECT, European Commission
Mr Isaris said that the Commission has identified IoT as a key growth area and opportunity
for Europe. He presented the three pillars of the IoT Action Plan (a single market for IoT; a
thriving IoT ecosystem; a human-centred IoT) and the Commission’s implementation
strategy. This includes regulatory conditions to facilitate an IoT single market; adapting the
current liability framework; fostering an interoperable environment for IoT; ensuring
sufficient spectrum for IoT; an Alliance for Internet of Things Innovation (AIOTI); supporting
international collaboration on IoT; and funding IoT Large Scale Pilots (LSPs). He stressed
the need for funding large-scale IoT pilot implementations and other research & innovation
actions in the area of IoT, notably in the area of Connected and Automated Driving (CAD).
Mr Isaris said that “there are a number of challenges for IoT take-up, mainly security,
privacy and trust in IoT, and the role of policymakers and regulators in tackling them.”
Cybersecurity is a major challenge, hence the actions taken by the European Commission
in this regard, notably the Cybersecurity Act proposal of 13.09, the two data
packages in January and September 2017, and ongoing work such as addressing the
liability question for IoT and other emerging technologies. Mr Isaris spoke about the privacy
element being addressed with a new and very important data protection framework
(GDPR) to strengthen citizens’ fundamental rights in the digital age, to facilitate business
by simplifying and harmonising rules, and to avoid the current fragmentation and costly
administration burden. Finally, he touched on liability issues and whether the current
liability rules are fit for purpose in the context of emerging technologies.
Ms Bednarich is pleased that the Commission picked autonomous driving as an IoT
vertical as it represents a massive growth opportunity for the region. There is a string
parallel between intelligent transport and Industry 4.0 in the EU. In both areas, Europe has
a very strong manufacturing base that needs to go digital to be really competitive. “Unless
the European car industry gets digital at the outset and digital as default, it will be
wiped out of the automotive ecosystem quite rapidly.” She said the opportunity is
huge, with demand for connected vehicles estimated to increase four times by 2020. This
will in turn change consumer expectations for cars. She also mentioned that global
revenues from digital content connected to cars will go up by 300% by 2021; the business
is estimated to be worth $138 billion. However, she gave two areas in which she
questioned whether enough is being done to grasp the opportunities so that Europe can
fully benefit from connectiveness in cars. Firstly, while Ms Bednarich believes the
Irena Bednarich
Director Corporate Affairs, Continental Europe, Middle East and Africa,Hewlett Packard Enterprise
Unless the European
car industry gets digital
at the outset and digital
as default, it will be
wiped out of the
automotive ecosystem
quite rapidly.
Commission has done a very good job in tackling a lot of different issues from different
perspectives, she would welcome a greater focus on the missing connectivity infrastructure
on roads. Second, she would like to see a much broader view in terms of an ecosystem
and how Europe can benefit from vehicles as digital hubs. Her recommendation would be
to look at connected cars from a Smart City perspective. This means thinking of a data
management platform that will get all the data (car, weather, parking, etc.) to enable the
next stage services to be offered and triggered.
Prof Mischa Dohler
Chair Professor, Department of Informatics, King’s College London
Prof Dohler described four major propositions to unlock the potential of the IoT. First is to
work much more strongly on policies for the cross-utilisation of digital assets, because
there are huge numbers of parallel internets not talking to each other (e.g. mobile internets
from different providers, fibre infrastructures of rail and road networks). Much of this
extensive fibre infrastructure is not fully utilised throughout the day. A policy is needed to
introduce deregulatory frameworks across different silos. Second, he said that while a lot
of data is being collected, unless it’s used, it’s useless. “A much bolder transformation is
therefore needed to convert Big Data into Big Action.” So, whenever a project is dealing
with big data, there should be a component urging for action. Third, in regard to
automation, AI and autonomy: “When self-driving cars arrive, no-one is going to use
them. Planes have been flying on auto pilot for 20 years, but if there’s no pilot in the
cabin, no-one will board that plane.” He said that humans trust humans, so bolder and
When self-driving cars arrive,
no-one is going to use them.
Planes have been flying on auto
pilot for 20 years, but if there’s
no pilot in the cabin, no-one will
board that plane.
cleverer policies are needed that put the human back into the loop: “It should not be
Industry 4.0 but Human 4.0. We have to use the capabilities that we have to empower
people, not machines.” Prof Dohler added that the self-driving car will work, but only if
there is a human who can take over when needed (possibly remotely using 5G). Fourth,
privacy by design doesn’t work, it should be privacy by engineering design. Privacy is
based on best practice and trust. Systems need to be built – and can be – in which privacy
is hot engineered in the same way as cryptography is built into routers.
Ms Crass asked what legal and other barriers are hindering the development of digital
technologies, for example to reduce the gap between artificial and human intelligence: Ms
Bednarich suggested that one could be the approach of the public to these technologies.
Autonomous driving for example comes with a fear of driverless cars crashing; automation
of industry is coupled to a fear of losing jobs. The answer lies in embracing technologies
and governing them. Prof Dohler said that with the IoT, a lot of data is being produced, but
there is a barrier in its use, due to a lack of knowledge as what to do with it. Mr Isaris
believes that public-private partnerships (3Ps) need to become 4Ps – people-public-private
partnerships – where citizens participate, although this requires a certain shift of mentality
and education. He also pointed out that the Commission has identified certain asymmetries
in the market, with citizens not at the same level of information and knowledge as
manufacturers or service providers. In Mr Benedek’s opinion, a new vision and narrative is
required, to show the way forward clearly, particularly when it comes to Smart Cities, while
not forgetting people living in rural areas.
Ms Crass asked about post-pilot funding and whether it is sufficient. Prof Dohler suggested
that cities could take a stronger role, because almost none of the smart technologies make it
into cities, and suggested that the city of Brussels would make a great playing field for IoT.
Open discussion
A delegate asked for clarity around voluntary or mandatory insurance schemes for
autonomous driving. Mr Isaris remarked that this is an ongoing discussion, looking at
whether a risk-based or risk management approach would solve part of the equation. He is
aware this is a thorny problem, probably requiring a number of combinations to develop
insurance schemes between all the actors in the value chain to cover certain parts of the
liability.
Turning to interoperability, Ms Crass wondered about the extent to which it remains a
problem. Ms Bednarich said that interoperability is both technical and regulatory, and
thinks the latter is where work still needs to be done, for example to make different data
work well together. She gave the example of a major city that is very digital that developed
new services by the crossing of different databases: parking, buses, metros, traffic
analytics etc. Mr Benedek remarked that projects are clearly happening throughout
Europe, and best practices are being developed, but the Parliament does not always get
the results, far less the citizens. This kind of information is vital to develop a strong vision
going forward.