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Enabling the Internet of Things for Australia Measure, Analyse, Connect, Act COMMUNICATIONS ALLIANCE LTD Enabling the Internet of Things for Australia Measure, Analyse, Connect, Act Written by Geof Heydon and Frank Zeichner October 2015 Communications Alliance Internet of Things Think Tank An Industry Report commissioned by the Communications Alliance Internet of Things Think Tank Executive Council First published: October 2015 The Communications Alliance Internet of Things Think Tank was formed in May 2015. The Think Tank’s vision is to be a leading ICT industry initiative under a broad industry framework shaping the regulatory framework to harness for Australian industry the opportunities generated by the internet of Things. The Think Tank aims to define the IoT eco-system, inform and enable Australian companies to exploit the business opportunities afforded by IoT technology and services. Disclaimers 1) Notwithstanding anything contained in this Industry Report, Communications Alliance disclaims responsibility (including where Communications Alliance or any of its officers, employees, agents or contractors has been negligent) for any direct or indirect loss, damage, claim, or liability any person may incur as a result. 2) The above disclaimers will not apply to the extent they are inconsistent with any relevant legislation. Copyright © Communications Alliance Ltd 2015 This document is copyright and must not be used except as permitted below or under the Copyright Act 1968. You may reproduce and publish this document in whole or in part for your or your organisation’s own personal or internal compliance, educational or non-commercial purposes. You must not alter or amend this document in any way. You must not reproduce or publish this document for commercial gain without the prior written consent of Communications Alliance. Organisations wishing to reproduce or publish this document for commercial gain (i.e. for distribution to subscribers to an information service) should apply to Communications Alliance by contacting the Communications Alliance Commercial Manager at [email protected]. i INTRODUCTORY STATEMENT For the Australian economy and society, the rapid emergence of internet of Things (IoT) represents both a significant opportunity and a very real threat, depending on whether and how the nation adapts to and harnesses the power and potential of the IoT phenomenon. At stake is the opportunity for Australia and Australian companies to be early beneficiaries of industry renaissance and the emergence of new business models through IoT and the opportunity for Australia to become a significant exporter of business solutions enabled by IoT – if the policy and regulation setting can be optimised early to support business-led innovation. The scale of IoT growth and the pervasiveness of its influence will mean that elements of our current telecommunications regulatory framework may be overwhelmed and/or might act as inhibitors to Australia’s ability to reap fully the benefits of the changing environment. It will be imperative to address regulatory (and other) inhibitors early and to simultaneously create an environment that allows enablers of IoT services to be brought to its full potential. Special Thanks Undertaking a study of a subject as broad as IoT with the IoT Think Tank remit was exciting and a little daunting. It could only be accomplished with the special help and advice from many sources. We would like to particularly thank: John Stanton and Christiane Gillespie-Jones, the IoT Think Tank Executive Council, our many interviewees and a few that went just a little further, including Mike Briers, Reg Coutts, Michael Cox, Warren Lemmens, Chris McLaren Helen Owens, Paul Paterson and Malcolm Shore. Enabling the Internet of Things for Australia COPYRIGHT October 2015 ii TABLE OF CONTENTS 1 EXECUTIVE SUMMARY 1 2 THE INTERNET OF THINGS OPPORTUNITY 6 2.1 What is the IoT? 6 2.2 Drivers of the IoT 7 2.3 IoT Economic Potential 8 2.4 IoT Market Impact 9 2.5 A Model for Identifying IoT Opportunity and Challenge 15 3 THE GLOBAL CONTEXT 17 3.1 European Commission 17 3.2 United Kingdom 17 3.3 Germany 18 3.4 Singapore 18 3.5 China 18 3.6 South Korea 19 3.7 USA 19 3.8 Netherlands 20 3.9 India 21 3.10 Spain 21 3.10.1 GROWTH IN SPAIN’S AGRO-TECHNOLOGY 22 3.11 Ranking Country IoT Capability 22 4 ENABLING TECHNOLOGIES AND THE CONFUSION OF CHOICE 25 4.1 IoT Open Systems and Interoperability 25 4.2 Many Open Architectures and Standards for IoT 26 4.3 Low-Cost Devices – Device Technologies, LANs, PANs 27 4.3.1 WHICH TECHNOLOGY, THE OPTIMUM COST MODEL 28 4.3.2 GATEWAY ARCHITECTURES – INTELLIGENCE AT THE EDGE 30 4.3.3 GOOGLE’S ONHUB 30 4.4 Short Range and Home Networks 31 4.4.1 THREAD GROUP 35 4.5 Wide Area Connectivity 36 4.5.1 LONG-RANGE AND MOBILE NETWORKS 36 4.5.2 LTE-M OR LTE FOR M2M 39 4.5.3 COAP OR MQTT 41 4.5.4 CONSTRAINED APPLICATION PROTOCOL (COAP) 41 4.5.5 MESSAGE QUEUE TELEMETRY TRANSPORT (MQTT) 42 4.5.6 WIRELESS TECHNOLOGY CHOICE – SPECTRUM AND LICENCE LIMITED 42 4.5.7 MASSIVE IOT NUMBERING – IPV6 AND THE IOT 43 4.6 Massive Data Storage 45 4.6.1 CLOUD AND LOCAL STORAGE 45 4.7 Advanced Data Analytics 47 4.7.1 THE JASPER EXAMPLE 49 4.8 Collaboration Through Data Visualisation and APIs 49 4.9 Security 50 4.9.1 PRIVACY BY DESIGN 51 4.9.2 DATA PROTECTION 51 Enabling the Internet of Things for Australia COPYRIGHT October 2015 iii 4.9.3 WORK ON IOT SECURITY 52 4.10 Industry Platforms –Vertical and Horizontal 53 4.10.1 GENERAL ELECTRIC'S INDUSTRIAL INTERNET AND PREDIX PLATFORM 53 4.10.2 IBM BLUEMIX 54 4.10.3 GOOGLE 55 4.10.4 APPLE 55 4.10.5 SAMSUNG 56 5 OPEN DATA AND DATA SHARING 57 5.1 The Value of Data 57 5.2 Sectoral Advances in Data Sharing 60 6 REGULATORY AND POLICY 62 7 AUSTRALIAN POLICY AND REGULATION CHALLENGES 67 7.1 Potential Economic Impact of IoT in Australia 67 7.2 Industry View – Key Australian IoT Themes and Challenges 68 7.3 Australian Capability and Potential IoT Eco-System Players 68 7.4 Sectoral Activity and Focus 70 7.5 Alignment between Government and Industry in Key Sectors 73 7.5.1 AUSTRALIAN INDUSTRY GROWTH CENTRES 73 7.5.2 THE NATIONAL INFRASTRUCTURE 74 7.6 Support for Innovation – Start-Ups 76 7.7 Open Data/Principles for Data Sharing 77 7.8 Technical Challenges 78 7.8.1 COMPLEXITY OF TECHNOLOGY CHOICES/ARCHITECTURES & STANDARDS INVOLVEMENT 79 7.8.2 THE NEED FOR WIDER BROADBAND NETWORK ACCESS VIA THE NBN AND OTHERS 79 7.8.3 OPPORTUNITY FOR LOWER COST NARROWBAND WIRELESS IOT CONNECTIVITY 79 7.8.4 IPV6 TO BECOME THE IOT DEFAULT 79 7.8.5 SPECTRUM MANAGEMENT 80 7.8.6 NETWORK NEUTRALITY 81 7.9 Trust and Security 81 7.10 Skill Shortages 83 7.10.1 100,000 ICT WORKERS SHORTFALL BY 2020 83 7.10.2 DEVELOP AN APPROPRIATELY EDUCATED WORKFORCE 85 8 RECOMMENDATIONS 87 8.1 Observations 87 8.2 The Key Enablers and Inhibitors 92 8.3 Industry Recommendations 92 8.4 Proposed Workstreams 93 APPENDIX 95 A THE IOT THINK TANK 95 B METHODOLOGY OF STUDY 96 C BIBLIOGRAPHY 100 Enabling the Internet of Things for Australia COPYRIGHT October 2015 iv D ECONOMY-WIDE QUANTITATIVE IOT IMPACT ESTIMATES 103 E AUSTRALIAN COLLABORATION/INDUSTRY INITIATIVES 107 F IOT STANDARDS BODIES 116 Enabling the Internet of Things for Australia COPYRIGHT October 2015 v Table of Figures Figure 1: CA IoT Industry Report outcomes .................................................................................... 1 Figure 2: Key inhibitors and enablers ............................................................................................... 3 Figure 3: M2M towards IoT ................................................................................................................. 6 Figure 4: IoT key enablers ................................................................................................................... 7 Figure 5: Predicting device performance ...................................................................................... 8 Figure 6: IoT Economic Impact ......................................................................................................... 8 Figure 7: Predicted internet connected devices, billion ............................................................. 9 Figure 8: IoT digital services impact ............................................................................................... 10 Figure 9: IoT has economy wide implications .............................................................................. 10 Figure 10: IoT impacts every segment ........................................................................................... 11 Figure 11: Ofcom IoT growth predictions ...................................................................................... 12 Figure 12: IoT reference model ....................................................................................................... 15 Figure 13: IoT considered dimensions ............................................................................................ 15 Figure 14: The Amsterdam ‘Things Network’ ................................................................................ 21 Figure 15: IoT country rankings ........................................................................................................ 24 Figure 16: IoT technology enablers ................................................................................................ 25 Figure 17: IoT business model examples from ITU ........................................................................ 27 Figure 18: Yole development's view of IoT technology volumes ............................................. 28 Figure 19: Gartner's
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