Apr 18, 2016The National Telecommunications and Information Administration (NTIA), an agency within the U.S. Department of Commerce that advises the President on telecommunications policies, recently released a Request for Public Comment (RPC), seeking input from all interested stakeholders regarding how to facilitate rapid and reliable implementation of the Internet of Things. Acknowledging that the U.S. government must work with private-sector stakeholders to develop industry-driven solutions to the myriad of challenges confronting the IoT, the NTIA is requesting comment on the benefits, challenges and potential roles for the government and private sectors in fostering the advancement of the IoT. Comments are due no later than 5:00 pm Eastern time on May 23, 2016.
EDITOR'S NOTE: THE NTIA HAS EXTENDED THE DEADLINE FOR COMMENTS UNTIL JUNE 2, 2016.
IoT stakeholders are strongly encouraged to submit comments in this proceeding. The NTIA will review and analyze the submitted comments and compile them into a report called a green paper that will be shared among various federal agencies. Those agencies, in turn, will use the green paper as a basis to create IoT implementation regulations and policies on both national and international levels. Those stakeholders who do not participate in this proceeding will miss a valuable opportunity to make their voices heard on many critical issues.
In order to further its mission to "craft an approach to IoT that will best foster innovation and growth," the agency seeks comments on the following topics:
General Challenges and Opportunities
How should the IoT be defined? The NTIA states that "Internet of Things" is often designated as a broad term that "seeks to describe the connection of physical objects, infrastructure, and environments to various identifiers, sensors, networks, and/or computing capability." But there is no truly authoritative definition. The agency solicits comments on how specifically the IoT should be defined for regulatory and policy-setting purposes. The explicit wording of an IoT definition in this context is absolutely critical concerning how the IoT will be taxed and regulated. If, for example, the Internet of Things is defined as a product, it will be taxed and regulated much differently than if it is defined as a service. If it is defined as a service, should it be considered a telecommunications or a lightly regulated information service? Other classifications include industrial vs. residential, public vs. private, and machine-to-machine (M2M) vs. human interfacing. All of these distinctions raise important issues concerning costs and other barriers to entry for various IoT stakeholders.
Laws, Regulations and Polices. The NTIA seeks comments on current or planned laws, regulations or policies that foster IoT development. Which of them unnecessarily inhibit IoT implementation? Should any of these laws, regulations or polices be modified or improved? If so, how? The NTIA invites information on any relevant initiatives and research that will help it to understand the current and future IoT landscape, and how to ensure seamless IoT implementation.
Technological Issues
Interoperability. The current fragmented IoT technical environment can inhibit value for the industry and its customers. Issues such as integration inflexibility and ownership complexity are on the minds of many stakeholders. The NTIA seeks comment on specific interoperability issues that are of concern, and details as to how they might best be remedied.
Standards. The NTIA is concerned about the problem of insufficient, contradictory proprietary standards and platforms. Accordingly, the agency requests information on appropriate standards and best practices that could alleviate this critical issue.
Spectrum Availability and Potential Congestion/Interference. The IoT makes substantial demands on available wireless spectrum. As more and more IoT devices and services enter the marketplace, the potential for interference with other service increases exponentially. The NTIA seeks comments on spectrum usage and allocation (licensed or unlicensed spectrum), equipment authorization, and related issues that could help mitigate spectrum scarcity and interference problems.
Infrastructure
The NTIA cites concerns about how the IoT might impact the existing industrial infrastructure. Comments are sought on matters pertaining to the IoT's effects on infrastructure architecture, business models and stability; how to minimize the IoT's disruptions to the infrastructure; and the government's role with respect to alleviating infrastructure disruptions caused by IoT implementations.
Economy
The NTIA acknowledges that the IoT is already altering the economy by enabling the development of innovative consumer products and new economic sectors. In order to enhance the positive economic developments of IoT implementation, the NTIA seeks comments on these topics:
Should the Government Quantify or Measure the IoT Sector? If so, should the metrics include the value or volume of devices manufactured or sold; industrial or manufacturing components; the IoT as part of the digital economy (in the commerce of digital goods and services); the enabling of more advanced manufacturing and supply chains; or other useful metrics or data collection tools?
Impact of the IoT's Proliferation on Industrial Practices. The NTIA solicits information on the benefits and challenges of the IoT on advanced manufacturing, supply chains and agriculture. Such issues include roles or actions the federal government take in response to such challenges, positive or negative impacts tgar the IoT's growth have on the U.S. workforce, and what the U.S. government should do to address any such impacts.
Policy Issues
The NITA seeks comments on critical policy issues related to IoT implementation:
Cybersecurity. IoT implementation presents many new and unique security challenges. Users need to trust that IoT devices and related services are secure from vulnerabilities. Poorly secured IoT devices and services can serve as potential entry points for cyberattack and exposure for data theft. Consequently, the NTIA wants stakeholders to provide information concerning their most important IoT cybersecurity issues, how they may differ from other cybersecurity issues, and what actions the federal government should take regarding policies and/or standards in regard to IoT cybersecurity.
Privacy. The IoT raises concerns about increased surveillance, as well as the ways in which personal data is collected, analyzed, used and protected. The NTIA seeks comments on privacy concerns specifically raised by the IoT, how they are different from other privacy concerns, and what policies the federal government should take in response to specific privacy issues.
Economic Equity. The NTIA requests information on how the IoT could potentially help disadvantaged communities or groups. Examples include how rural communities could benefit from the IoT; IoT implementation challenges and economic obstacles for disadvantaged communities; and what role the federal government should play in ensuring that the positive elements of the IoT reach all Americans, while protecting disadvantaged communities from being disproportionately impacted by negative impacts.
International Engagement
In the RPC, the NTIA acknowledges that other nations' IoT implementation policies could cause problems for the United States: "[C]ountry specific strategies threaten the possibility of a global patchwork of approaches to IoT, which would increase costs and delay the launch of new products, dampening investment." With the goal of working with stakeholders to take a "holistic, ecosystem-wide view that identifies opportunities and assesses risks across the digital economy," the agency seeks comments on factors it should consider in international engagement, such as standards and specific organizations, bilateral and multilateral engagements, and industry alliances; Internet governance issues; factors that could impede the growth of the IoT outside the United States, such as data or service localization or other barriers to trade; and how the U.S. government should address these matters.
Additional Issues
The NTIA invites stakeholders to address important IoT issues that are not specifically teed up in the RPC. These include, but are not limited to appropriate areas for multi-stakeholder engagement, the agency's overall role with respect to the IoT within the federal government, and private-sector and government collaboration on IoT implementation.
Make Your Voice Heard to Shape IoT Policy
The NTIA candidly acknowledges that there is no consensus as to how the Internet of Things should be defined or implemented. The green paper that will result from the comments received in this proceeding will be instrumental in the federal government's identification of key issues impacting the IoT, highlighting of benefits and challenges, and setting of regulations and policies. In summary, this proceeding offers private-sector stakeholders a unique opportunity to shape public policy in a major emerging economic sector.
Consequently, any stakeholder interested in influencing how the IoT will be implemented should participate in this proceeding. The CommLaw Group has been following this proceeding very closely. We have IoT specialists available to answer any questions you may have. Please contact Ronald E. Quirk, Jr., at req@commlawgroup.com or (703) 714-1305 for additional information.
Ronald E. Quirk, Jr., head of The CommLaw Group's Internet of Things Practice Group, focuses his practice on federal, state and international telecommunications regulation and policy, with a particular expertise in assisting clients in navigating the complex labyrinths of radio frequency equipment authorization, licensed and unlicensed spectrum allocation, and enforcement processes in the United States and around the world.
