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Building Digital Societies in Asia: Making Transportation Smarter

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Building Digital Societies in Asia: Making Transportation Smarter Building digital societies in Asia: Making transportation smarter Copyright © 2015 GSM Association BUILDING DIGITAL SOCIETIES IN ASIA: MAKING TRANSPORTATION SMARTER The GSMA represents the interests of mobile operators GSMA Intelligence is the definitive source of mobile worldwide, uniting nearly 800 operators with more operator data, analysis and forecasts, delivering the most than 250 companies in the broader mobile ecosystem, accurate and complete set of industry metrics available. including handset and device makers, software companies, equipment providers and Internet companies, Relied on by a customer base of over 800 of the world’s as well as organisations in adjacent industry sectors. The leading mobile operators, device vendors, equipment GSMA also produces industry-leading events such as manufacturers and financial and consultancy firms, the data Mobile World Congress, Mobile World Congress Shanghai set is the most scrutinised in the industry. and the Mobile 360 Series conferences. With over 25 million individual data points (updated For more information, please visit the GSMA corporate daily), the service provides coverage of the performance website at www.gsma.com of all 1,400+ operators and 1,200+ MVNOs across 4,400+ networks, 65 groups and 237 countries worldwide. Follow the GSMA on Twitter: @GSMA www.gsmaintelligence.com [email protected] BUILDING DIGITAL SOCIETIES IN ASIA: MAKING TRANSPORTATION SMARTER Contents 1 EXECUTIVE SUMMARY 2 2 INTRODUCTION 6 3 INTELLIGENT TRANSPORTATION SYSTEms – why, WHAT AND HOW 10 3.1 Efficient and safe transportation is a global challenge 10 3.2 ITS as a solution 11 4 Thailand – addrESSING TRANSPORTATION CHALLENGES 16 4.1 Overview of transportation in Thailand and Bangkok 17 4.2 Developments in Thailand’s ITS landscape 20 4.3 Bangkok – a case for implementing ITS 22 5 CREATING AN ENABLING ENVIRONMENT 24 5.1 Policy enablers – government and regulatory bodies 26 5.2 ITS infrastructure and service providers 28 5.3 End users – commuters 30 6 APPENDIX 32 Appendix 1: ITS benefits assumptions and methodology 32 Appendix 2: Costs of implementing ITS 36 BUILDING DIGITAL SOCIETIES IN ASIA: MAKING TRANSPORTATION SMARTER Executive 1Summary 1. Increasing urbanisation will lead to more stress on the resources that cities have available to meet growing demand for housing, infrastructure, transportation, energy and employment. Transportation that is operationally efficient and safe is an important part of this. There is a growing recognition of the benefits it can have on the environment, and how it can improve productivity, safety and overall quality of life. As the world becomes increasingly connected, advanced applications – known as intelligent transportation systems (ITS) – provide innovative solutions to better manage traffic and enable users to make safer and smarter use of transport networks. Globally, commuters spend eight days each transportation pricing and payment systems, year stuck in traffic, and one person dies every pedestrian and vehicle safety applications and 25 seconds in a car accident. In terms of the travel-based applications that serve the sharing environment, 25% of the world’s CO2 emissions economy. In a typical ITS solution, data collected are as a result of transportation. This problem is from vehicles, infrastructure or users is aggregated, more acute in emerging markets, where emissions analysed and then delivered back in the form of account for 90% of urban pollution. meaningful insights that enable more informed and timely commuting decisions. ITS solutions have been successfully implemented around the world, particularly in developed ITS solutions can be delivered over a range of countries, to address these challenges. As well as wireless and wireline technologies. Due to its near- improving mobility, the environment and safety in ubiquitous coverage and efficiency as a connectivity the short term, ITS can result in long-term positive channel, mobile technology will play an important changes in commuter habits and encourage people role in delivering ITS solutions, particularly in to use safe and environmentally friendly ways emerging markets where fixed-line infrastructure of commuting. ITS applications include traveller is underdeveloped. information and traffic management solutions, 2 | Executive Summary BUILDING DIGITAL SOCIETIES IN ASIA: MAKING TRANSPORTATION SMARTER 2. Among the key emerging markets in Asia, Thailand – and specifically the city of Bangkok – faces many transportation challenges around congestion and safety. On average, commuters in Thailand spend nearly 1.5 hours travelling to work per day. The country features in the bottom 10 countries in Asia in terms of per-capita CO2 emissions from transportation and has the highest road accident death rate in the region. These problems are more acute in Bangkok, which is infamous for particularly high levels of road congestion and poor traffic rule adherence. Making transportation smarter has been on the Thai could lead to a reduction in total travel time of government’s agenda for more than a decade. A between two and four days per commuter per year. key step in this direction was the implementation In addition, CO2 emissions from road traffic could of an electronic vehicle recognition (EVR) system be reduced by 10–20%, or 3–5 million metric tonnes in Bangkok, which has been active since 2011. In per year. This is approximately equivalent to the 2013, the Ministry of Science and Technology also total annual CO2 emissions in neighbouring country announced a plan to equip all cars with sensors that Cambodia. could transmit location-based data to the Ministry The number of road accidents could be reduced of Transport to help manage congestion. Despite by up to 8,000 per year. This could help save up the Thai government’s intention to implement to 100 lives, which is nearly a quarter of the annual scalable ITS solutions, it is still in the early phases of road traffic deaths reported in Bangkok in 2013. conceptualisation and planning. We estimate that reductions in travel time, CO2 GSMA Intelligence has estimated the potential emissions and road accidents through ITS could socio-economic benefits of implementing ITS result in economic benefits worth up to $1 billion per solutions in Bangkok. Implementing the solutions year for Bangkok alone. Executive Summary | 3 BUILDING DIGITAL SOCIETIES IN ASIA: MAKING TRANSPORTATION SMARTER 3. Although there are numerous benefits from implementing ITS solutions, challenges need to be overcome for it to reach its full potential. These include technical and operational challenges, the digital literacy and awareness of end users, project costs, and concerns about privacy and security. In successful deployments of ITS, governments have taken the lead in clearly articulating the vision, setting a national agenda and convening the relevant stakeholders. A successful environment requires collaboration between different stakeholders in the value chain, particularly automotive manufacturers, connectivity providers and governments and their agencies. As noted by Eva Molnar, Director of the Transport This can be done by investing in or co-funding the Division of the United Nations Economic Commission deployment of ITS and by lowering taxation on for Europe (UNECE), “ITS is a technological consumers for using mobile services. Public–private innovation but it goes beyond just being a partnerships (PPPs) have proven to be an effective technology. It is a new culture for doing business way to reduce the cost burden of implementing ITS and a new culture for governments to accomplish solutions in countries such as Japan and the US. their goals. ITS should never be a goal in itself but a The role of other stakeholders is no less important facilitation mechanism.” in enabling ITS implementation. These include Challenges in transportation can be addressed by connectivity providers (particularly mobile either adding new capacity where possible or by operators), automotive and electronics industries, using existing resources smartly with the help of transport authorities, research and academia, and ITS. Governments are often the key stakeholders in commuters. In addition to providing connectivity, ensuring a balance between these two approaches mobile operators can play a role in other areas such and in designing and enforcing the policies that can as data management, service delivery and customer drive ITS implementation. management. This can be achieved by partnering and collaborating with players across the value chain Problems in transportation often vary by country such as governments, solution providers, systems and culture, so it is important for policy-makers integrators, application developers, service providers to prioritise the most critical issues specific to and entrepreneurs. ITS solutions also enable their country and assess the costs and benefits commuters themselves to contribute by exchanging of addressing them through ITS. In doing so, traffic information and being a part of the sharing ensuring interoperability of solutions and promoting economy (the shared creation and consumption of consistency with international standards is goods and services by people and organisations). important. Finally, we believe business models that strike a Governments can facilitate ITS implementation and balance between creating new revenue opportunities adoption by lowering costs for the stakeholders for stakeholders and limiting costs for the end users involved in implementing
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