GSMA Intelligence

Mobile World Congress 2018 wrap-up

March 2018

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MWC 2018: taking the temperature of the mobile ecosystem

The 2018 edition of Mobile World Congress welcomed more than 1 Future networks...... 4 107,000 visitors to for the biggest event in the mobile industry. While the temperatures outside were unusually chilly, 2 Consumer...... 6 what was hot inside the halls was less surprising, with and AI dominating. There was also lively, sometimes heated, discussion on 3 Emerging tech...... 8 how to ensure mobile can continue to fuel innovation, transform 4 industry and impact people’s lives for the better. Internet of Things...... 10 5 Policy and regulation...12 We present our key messages from MWC over the next few pages, but several broader themes run across much of this analysis and point the way for the industry as it continues to transform:

• Getting real: 5G has been gathering momentum for some time, and we’re now seeing concrete deployment plans alongside more practical demonstrations of use cases. But there was also something of a reality check around the inherent challenges of evolving the network for 5G to meet the needs of vertical industries. Meanwhile, in IoT, there’s recognition that the business case actually revolves around addressing specific needs rather than simply providing connectivity. • Getting together: The need for collaboration ran across several streams this year. Examples included alliances to serve vertical industries; partnerships to bring solutions to the expanding smart home market; and industry-wide collaboration to bring safe and reliable smart-city deployments. Co-operation continues to be key across and beyond the ecosystem. • Getting better: Creating a better future was the theme of MWC18. Industry leaders provided ample inspiration on how connectivity can create new drivers of economic growth, and how the industry can help make communities healthier and stronger. But the debate continues as to how to ensure the right investment climate and regulatory environment to underpin such development going forward.

3 • GSMA Intelligence Mobile World Congress 2018 wrap-up 1 Future networks: 5G early deployment plans

With the first commercial 5G launches scheduled for the end of 2018 Viewpoint: US looks set to be a leading market in the 5G era and into 2019, 5G once again dominated the floors of this year’s MWC. US operators were by far the most vocal on 5G at MWC this year, While some of the same concerns around regulation, investment and with T-Mobile and Sprint taking to the stage to outline their initial use cases were evident, we also saw operators shed light on their plans, detailing the various cities across the US that they will be early deployment plans. This served to reinforce which markets are targeting in early deployments. This follows announcements earlier leading the pack, and those that are following. in the year by both AT&T and Verizon, who both affirmed their desire to be the first to launch 5G services in the market. In FCC Chairman Key points Ajit Pai mobile operators have an advocate. Pai used his keynote to • T-Mobile outlined plans to roll out 5G-ready equipment across announce two high-frequency spectrum auctions at the end of this 30 US cities in 2018, with launch scheduled for 2019. year, and will follow that up over the coming months to propose how • Sprint named the first six cities where it will roll out Massive C-band spectrum will be made available. MIMO during 2018, as a “bridge” to its 5G launch in the first half of 2019. The hyper-competitive nature of the US market at this key juncture • US FCC chairman Ajit Pai announced a desire to hold two high- bodes well for the rapid deployment of 5G services. T-Mobile’s CTO frequency spectrum auctions (in 24 GHz and 28 GHz bands) by Neville Ray indicated that during 2018 it would be deploying 5G in 30 the end of 2018. cities using both low- and high-frequency spectrum, while Sprint’s • Telstra outlined its early 5G roadmap, which included details CTO John Saw revealed that it will be rolling out Massive MIMO of further evolution of its 4G network ahead of its 5G launch in across its 2.5 GHz footprint, reaching tens of thousands of sites in 2019. 2019 – all of which will be software upgradeable to 5G. This reaffirms GSMA Intelligence’s aggressive forecast for the market – that half of • Swisscom announced plans to launch mobile 5G services by the US connections (excluding cellular IoT) will be utilising 5G networks end of 2018. by 2025. • CEO Ken Hu said the company had signed 5G memorandums of understanding with 45 operators in Asia, By contrast, European operators are behind the curve in their 5G Europe and North America, and is already conducting pre- intent. Beyond Swisscom aggressively targeting 2018 for launch, the commercial trials with 30 mobile players. bulk of European operators are still announcing trials – for example, ’s “virtual fibre” (fixed wireless access). CEO Rajeev Suri pulled no punches when he claimed that “while the Nordic countries are also moving quickly, operators in Europe are being the slowest and we don’t expect any real progress here with 5G in the short term.”

4 • GSMA Intelligence Mobile World Congress 2018 wrap-up 1 Future networks: enabling 5G use cases

As the industry ramps up for impending 5G deployments, an elephant Viewpoint: Considerable complexity remains in enabling new 5G in the room remains – the need to enable credible enterprise use use cases cases, to justify incremental 5G investment. A key component of this Around the halls of MWC, there were plenty of 5G demonstrations, is the growing “softwarisation” of the network, with MWC this year but little substance to suggest that use cases over and above those showing growing momentum behind the drive for open network linked to enhanced mobile broadband will hit the mainstream anytime architectures, the need to apply AI and machine learning across the soon. Though there were encouraging developments of practical 5G network, and the imperative to build security into the 5G standard. use cases, a myriad of challenges needs to be overcome before they become a reality. Key points • A group of operators, vendors and vertical industry players announced the formation of the 5G Slicing Association, which The talk this year was of the need to build more intelligent networks will look to address vertical industry requirements, build use to handle not only the growth in traffic that 5G will bring, but also cases and business models, and work with standards bodies. the varying requirements of each packet that hits the network – from those serving connected IoT devices to low latency use cases. This • AT&T, China Mobile, Deutsche Telekom, NTT DoCoMo and incorporates a range of capabilities not specific to 5G but crucial to its Orange announced the creation of the ORAN Alliance, a development, including software-defined networking, virtualisation, combination and extension of the objectives of the C-RAN edge computing, and the ability to implement AI and machine Alliance and xRAN Forum. learning within the network. Nokia’s CTO of Mobile Networks, Henri • A group of UK universities demonstrated the world’s first Tervonen, claimed “AI needs to be in every node of the network” end-to-end 5G network, highlighting the capabilities of the to ensure resilience and to provide vital applications such as self- technology. healing and repair. • Huawei announced the first commercial end-to-end terminal device to meet the 3GPP standard for 5G, signalling ambitious Industry collaboration was also a key theme, both in terms of commercial rollouts of the technology. formulating approaches to serving vertical industries (the 5G Slicing Association) and building open networks to help drive service innovation (the ORAN Alliance). In opening up networks, however, It is not a case of simply flicking operators must be able to address security concerns. Stephen Buck, Product Director of Evolved Intelligence, warned that while a switch in 2019” most things have improved generation to generation, security has “ worsened, is impossible to retrofit within a standard, and therefore must be addressed in the next 5G standard release. Robyn Denholm, Telstra COO

5 • GSMA Intelligence Mobile World Congress 2018 wrap-up 2 Consumer: the experience of tomorrow

With the focus of MWC moving away from hardware this year, attention Viewpoint: Emerging technology ushers in a new consumer shifted to how people will interact with technology. With consumers experience becoming increasingly connected, and with the emergence of Emerging technologies and upcoming digital services are set to increasingly tech-savvy generations, the future consumer experience change the consumer experience and consumption habits. At MWC, will be more immersive, interactive and personalised. operators and other industry players presented solutions that enhance the customer journey by providing ‘real-time’ personalisation and Key points immersive/interactive solutions that tailor content to the specific • HTC Vive and Guardian VR predicted that consumers will soon needs and profile of the user. use AR in all aspects of their lives, from shopping and travel experiences to learning and industry. AR was also described as Entertainment providers showed how they intend to bring knowledge the future interface for AI. to their using AI and immersive technologies (e.g. VR/AR) • AI will play an integral role in the future consumer experience, to create deeper and long-term engagement, while content providers with marketing platform Affise predicting that non-human demonstrated how VR/AR has the potential to move beyond gaming communication will account for the vast majority of interactions and become the new interface for computers, the internet and AI. between consumers and companies by 2020. • Telefónica showcased its On The Spot solution, using With bricks and mortar retail facing growing pressure from technology; this delivers a whole new shopping experience e-commerce, MWC highlighted a growing need to reinvent physical at travel retailer Dufry. As customers move through the shop, shopping by deploying ‘intelligence stores’. Over the next few years we all screens, lights and music are synchronised to focus on one expect to see the blurring of boundaries between physical and digital product/brand, and messaging is tailored to the customers retail through the seamless integration of interactive technology present (e.g. flight information helps determine the language). (including VR/AR and AI) into retail outlets, while consumer • “Generation Z” are born influencers, with inspiration coming choice will be driven by real-time, peer-to-peer recommendations mostly from themselves or their peers. To tap into this, peer- (particularly important for the younger generations). to-peer recommendations engine Yeay is using influencer and affiliate marketing rather than traditional advertising and retail There are currently 5 billion mobile subscribers around the world, channels. around a quarter of whom are ‘Aficionados’ – early adopters who engage the most in the largest array of mobile services (see Evaluating Mobile Engagement). Over the next few years, we expect By 2020, customers will manage 85% these Aficionados to expand the portfolio of services with which they engage to include emerging technology such as VR/AR, 5G and AI. of their relationships with companies These increasingly tech-savvy early adopters generally spend the “ without interacting with a human” most on mobile services; the mobile ecosystem has the opportunity to maximise its revenue by delivering an enhanced experience for the consumers of tomorrow. Affise/Salesforce

6 • GSMA Intelligence Mobile World Congress 2018 wrap-up 2 Consumer: devices

Connected devices featured prominently at this year’s MWC. A Viewpoint: Smart devices become more integrated with intelligent key trend that emerged was the growing integration of connected platforms consumer devices with leading AI-based voice assistants to increase Ecosystem fragmentation has been a major issue for connected accessibility and user engagement. Mobile operators are tapping devices, which often functioned in isolation or, at best, in combination into this trend through collaboration with established players such with a smartphone app via wireless technologies such as Bluetooth. as Amazon and Google – a move that could boost interoperability Consumer device vendors are, however, taking advantage of within the ecosystem. the emergence of AI-based voice assistants to provide greater accessibility and convenience for end users. At MWC, South Korean Key points start-up Livin even presented a connected shower, which can be • Telefónica and Deutsche Telekom showcased their AI-based integrated with Amazon Alexa and Google Assistant for remote voice assistants Aura and Magenta, respectively, enabling voice operation. control of connected devices in the home. • The launch of ’s Galaxy S9 dominated the headlines, Voice assistants have evolved in recent years, from mobile-based despite featuring incremental upgrades. Improved speakers and platforms, such as Siri, Google Assistant and Cortana, with limited camera, and new functionality such as AR emojis and super slo- interaction with external devices, to smart home speakers with the mo were the highlights of Samsung’s new flagship handset. LG potential to interact with multiple connected consumer devices. A and Asus also refreshed existing models with a focus on artificial critical growth factor for leading home voice assistants is the open intelligence. source model, which allows third-party developers to integrate a • announced that the Xperia Ear Duo wireless earbuds, with variety of connected devices into the ecosystem. At the start of 2018, built-in Google Assistant and Siri integration, will start shipping Amazon had a catalogue of more than 30,000 ‘skills’ available to in May 2018. customers, who have now connected tens of millions of smart home devices to Alexa. • HMD Global relaunched the classic Nokia 8810. Although the featurephone is priced below $100, it still offers LTE capability Voice assistant integration will continue in 2018 and beyond as and Google Assistant. intelligent voice platforms add new functionality. Mobile operators are keen to tap into this trend; at MWC, Telefónica announced the launch of its AI-powered Aura voice assistant in new markets, while Deutsche Telekom gave an update on its new smart speaker to launch later in 2018. Orange also launched a voice platform Djingo, in 2017. In 2017, there were 7.5 billion IoT connections, Plans by mobile operators to integrate established platforms from Google, Amazon and Microsoft point to a collaborative approach, 61% of which were in the consumer segment which could spur greater interoperability within the ecosystem. Source: GSMA Intelligence

7 • GSMA Intelligence Mobile World Congress 2018 wrap-up 3 Emerging tech: artificial intelligence

Artificial intelligence was a key focus at this year’s MWC, with a Viewpoint: AI moving to mainstream significant number of developments announced and discussions held. The prominence of AI at MWC reflected the importance of this AI was embedded across the conference – from innovations such as technology to the mobile community and major companies from Huawei’s Ehang 184 ‘drone taxi’ to new personal digital assistants across industries. Telcos around the globe are increasingly embracing and operational solutions for networks. There was widespread AI in two of their core business areas: networks and customer care/ recognition that AI will play a central role in future business and experience (i.e. chatbots and digital assistants). digital transformation. Two areas of opportunity for operators revolve around their strong network infrastructure and data resources. Access to accurate data Key points is crucial for the training and maintenance of effective AI solutions. In • A number of vendors demonstrated the potential of embedding the smart cities market, companies such as Teralytics use source data AI technologies into network infrastructure. For example, from operators to train AI solutions to improve transport networks. Huawei launched its Intent-Driven Network solution, which For instance, AI supported by operator data can be applied to the leverages AI, big data and automation to perform predictive rail network to identify delays and act to mitigate them. A similar analysis and proactively optimise network performance. approach can be taken to disaster response: AI can be applied to Meanwhile, announced a company-wide approach that operator data to map the movement of people, and identify where aims to position AI technologies at the heart of its organisation, to deploy rescue efforts. customer operations and networks. The use of AI will enable networks to self-optimise, improve efficiency and deliver In the future, autonomous driving and wearable cognitive assistants optimal user experiences. will demand high levels of network reliability and low levels of • The integration of AI into vehicle solutions was a recurring latency. Prof. Mahadev Satyanarayanan argued that with their global theme. Daimler presented the new A-Class with its AI-driven presence and established infrastructure capabilities, operators have user experience supported by a voice assistant solution, as the potential to exploit this opportunity and develop the necessary well as the autonomous concept car, Smart Vision EQ ForTwo. edge computing infrastructure, positioning themselves at the centre Meanwhile, Huawei used a self-driving Porsche Cayenne to of the AI revolution. demonstrate the power of its phone’s Kirin 970 chip, which features an AI engine. AI is increasingly becoming a mainstream technology across a number of applications and industries. However, greater ecosystem maturity and integration with other technologies such as IoT (smart homes, cities, enterprises) and next-generation networks is needed “ to fully realise its potential across industries.

8 • GSMA Intelligence Mobile World Congress 2018 wrap-up 3 Emerging tech: blockchain

While many blockchain discussions at MWC remained at a theoretical Viewpoint: Blockchain technology emerges from behind level in terms of use cases and benefits, several companies showcased cryptocurrency hype trials or potential applications for enterprise and consumer MWC served to highlight that blockchain is progressing beyond the solutions. Use cases for blockchain technology are emerging in recent press focus on cryptocurrencies, and is being positioned as a securing IoT, underpinning supply-chain management and storing building block to drive future technology innovations – for example data transactions between devices and the cloud. Tech pioneers in supply-chain management for 5G and IoT, and in AI to increase highlighted clear commercial benefit to stakeholders, providing the assurance in autonomous business processes. basis for more widescale deployment. It is still early days for blockchain technology in terms of use case development, but it is attracting a lot of interest. In conference Key points sessions, many participants were still in the theoretical stage in terms • Telefónica, in collaboration with automotive companies SEAT of working with blockchain technology. Focus areas for discussion and Ficosa, demonstrated the application of blockchain included IoT security, with Cisco also highlighting the potential technology in an automotive supply chain to manufacture application in smart cities to help drive further developments in this and assemble a vehicle and distribute the final product to end area. Only a handful of participants in sessions had moved to getting customers. live blockchain pilots off the ground, however. • Bubbletone, which offers a blockchain-based ecosystem for the telecoms industry, has partnered with Horizon Communication A small number of technology leaders are deploying blockchain to provide affordable connectivity in Central America. solutions in real-world scenarios. Applying blockchain to enterprise Bubbletone will leverage its blockchain platform to connect with a mix of IoT and 5G, Telefónica has leveraged the technology service providers and subscribers in foreign markets. to introduce data insight and control to automotive manufacturing, • Dent Wireless announced the release of the Android version of distribution and sales processes, increasing business transparency its blockchain-based mobile app that allows users to buy, sell and addressing issues around security. In the consumer space, Dent or donate mobile data to other users, using Dents as global Wireless has applied blockchain directly to peer-to-peer trading to currency. The initial target markets are the US and Mexico. enable consumers to trade mobile subscription data, reducing the cost of local and international roaming.

MWC signalled a clear step forward for blockchain technology, with Blockchain is being modified real-world deployments beginning to emerge that have the potential to meet a diverging range of to deliver tangible benefits to a range of sectors and technologies. However, as previous discussions and forums have highlighted, use cases there is a need to increase technical efficiency around blockchain mining to ensure it is a sustainable technology; otherwise, energy consumption and processing may prove costly – economically and environmentally.

9 • GSMA Intelligence Mobile World Congress 2018 wrap-up 4 Internet of Things: smart cities

The industrial Internet of Things was a key theme at MWC this year, Viewpoint: Industry-wide collaboration is key to achieving the smart with key players such as AT&T, Dell, Deutsche Telekom, Ericsson, city vision Huawei, IBM, Intel and Nokia demonstrating a range of applications During the Fourth Industrial Revolution keynote, Glenn Lurie, across various industrial verticals. Smart cities received a lot of Synchronoss, urged operators to “expand, innovate, federate and attention in particular, as real-life examples have shown how big data experience in order to survive and prosper”. He pointed to smart analytics can positively impact the daily lives of citizens. cities as the immediate opportunity to capture. GSMA Intelligence forecasts that smart city connections will increase six-fold to reach 1 Key points billion by 2025, offering a sizeable addressable market. • Cisco and Telenor Group signed a Joint Purpose Agreement to collaborate on IoT, smart city and security solutions, while Operators can address this opportunity via LPWA, using both NB- AT&T announced the integration of the Cisco Kinetic for Cities IoT and LTE-M. Huawei noted that smart city initiatives using NB- platform into various AT&T Smart Cities solutions. IoT are gaining momentum; together with its ecosystem partners it • Nokia launched IoT for Smart Cities, a fully integrated, modular has engaged in facilitating around 50 smart city use cases across and scalable framework to deliver and manage smart city 40 industries, including lighting, street parking, shared bicycles, services, such as lighting, parking and waste management. environment monitoring and waste management. • Intel and its partners provided a range of smart city demonstrations utilising 5G networks. Examples included the The business case for IoT is shifting from just connecting devices Volteo SmartCity Manager and GE CityIQ intelligent nodes. to addressing specific problems or needs with solutions. The pace of IoT deployments is hastening partly due to the emergence • Omantel signed an agreement with Huawei for the provision of of horizontal platforms that collect, process and integrate data smart city solutions. from multiple data sources, and then analyse the data to provide • Deutsche Telekom unveiled City Pass, an open platform based actionable insights. This is of particular importance for smart cities, on blockchain technology that allows users to manage multiple which rely on cross-industry data. There is also a clear understanding memberships via a single account. that multiple ecosystem partners have to come together to build safe • Teralytics demonstrated the use of anonymised cellular and viable solutions. As such, collaboration is key between multiple network information to highlight how people move around stakeholders, including governments, regulators, mobile operators certain locations, providing input into improvements for public and other industry players. transport systems. Throughout the event it was evident that smart city deployments are moving away from trials and proofs of concept to real-life implementations. Some ecosystem players are already building on 1 billion smart city connections open data sources (such as government data); those that do not by move quickly might miss the chance to fully monetise the data 2025 Source: GSMA Intelligence opportunities ahead.

10 • GSMA Intelligence Mobile World Congress 2018 wrap-up 4 Internet of Things: security

IoT security has grown in importance over recent years at MWC. This Viewpoint: IoT security is a collective ecosystem responsibility year, speakers raised a number of fundamental questions regarding Ensuring IoT security poses a substantial challenge for the entire security and privacy in the IoT universe. While IoT undoubtedly offers ecosystem. IoT is built on a massive number of low-powered, simple many opportunities, they will not be realised unless the challenges of devices with limited processing capabilities and memory but long security and privacy are addressed. lifecycles; this creates a challenge for maintenance and firmware upgrades. However, with forecasts of up to 25 billion IoT devices Key points connected by 2025, the opportunity is huge, and the need for security • There is growing concern around the state of IoT security; is paramount to building trust in this market. delegates shared many examples of how the security and privacy of connected devices have been easily compromised Operators have an opportunity to differentiate cellular over other worldwide. connectivity options. Many operators are already making significant • Ecosystem players called for joint industry efforts to deliver inroads into this area. Jaya Baloo, KPN, stressed the importance of standards and solutions for IoT security. GSMA has already security in the design process of devices and raised the option of published the IoT Security Guidelines document, a set of best using teams of ethical hackers to stress test security. Meanwhile, practices for the IoT industry. The IoT Cybersecurity Alliance, Telefónica demonstrated how to provide a digital certificate in an with companies such as Qualcomm, AT&T, Symantec and Nokia, IoT device over the air by identifying SIM card credentials. is a further example of such ecosystem collaboration. Across the ecosystem, industry players are also driving collaborative • Solutions presented include blockchain, SIM card authentication efforts to address the challenges. Examples include ARM (with and hardware-based security. According to Seshu Platform Security Architecture, based on the SIM as secure identity), Madhavapeddy, Qualcomm, the symbiotic integration between Cisco (with a multi-provider blockchain network) and Microsoft/ hardware and software security is key, rather than relying solely Qualcomm (wireless edge services – using both verification of chip on virtual software solutions that could be compromised. attestation and software encryption). • Examples from and Telefónica prove that investment in IoT security could become an opportunity for operators to While multiple security platforms increase the risk of fragmentation, differentiate from competitors. one solution cannot meet all requirements. As IoT connects previously unconnected industries and devices, some security threats will not be realised until devices have been deployed (a good example being “Insecurity of Things” Strava-based fitness devices recently appearing to reveal the exercise routes of US military personnel). In addition to cellular connectivity ”a Wild West with no sheriff” already offering a secure approach, operators and other ecosystem players must continue to collaborate to ensure that flexibility remains a core part of any security solution to react to new and evolving Paul Williamson, ARM, describing IoT threats.

11 • GSMA Intelligence Mobile World Congress 2018 wrap-up 5 Policy and regulation: a framework for the digital ecosystem

Once again, regulation was a hot topic of debate at MWC this year. Viewpoint: With 5G on the horizon, regulators must be agile, In keynote speeches and Ministerial Programme sessions, discussion adaptable and supportive around the appropriate policy framework for delivering a shared Industry leaders convened at MWC 2018 to set out their plans to digital future was prevalent. While some operators bemoaned create a better future for a connected world. Ajit Pai outlined the onerous regulation, others outlined their building blocks for realising US’s three-pillar 5G strategy. On net neutrality, Pai believes reversing the potential of 5G, AI and smart cities. the ‘Title II’ rules on ISPs was the correct decision, noting that the internet has not since ended. In contrast, Andrus Ansip maintained Key points his opposition to an ultrafast data highway for a lucky few and a • Sunil Bharti Mittal, Chairman of Bharti Enterprises and the “digital dirt track” for the rest. Still, the EC may need to look at the GSMA, called on mobile operators to seriously consider the potential for conflict between its rules and the use of network slicing, “NetCo model”, a consortium-like approach to network building. and resolve any issues in a timely manner. • FCC Chairman Ajit Pai revealed plans to hold an mmWave spectrum auction in the US in Q4 2018, provided the Speed is also vital when it comes to spectrum availability. Sufficient government acts in time to resolve an outstanding financial volumes in a range of bands – from low-frequency digital dividend issue. spectrum for coverage to high-frequency capacity bands such as • Andrus Ansip, EC Vice President and Commissioner for the mmWave – must be assigned to operators with the appropriate licence Digital Single Market, vowed to preserve an open internet and terms and durations soon to enable them to fulfil their ambitious 5G defended the region’s net neutrality rules, which he considers to rollouts. Equally critical is an environment that incentivises network be working well. spend and allows cost recovery without leading to disproportionate • Sprint CEO Marcelo Claure stated that enabling efficient regulation. Encouragingly, some regulators and operators agreed rollout of 5G to support the vast number of connected things on the benefits of infrastructure sharing, which could be explored in necessitates a different approach to policy, regulation and certain developing markets to expand connectivity. privacy in the US. Rarely does ‘one size fits all’ work without issue; regulators must carefully consider the dynamics of their domestic markets, and effectively balance infrastructure deployment costs, consumer We need an investment-friendly welfare and sustainable returns on capex. Whether through ex-ante framework. It is not about regulating regulation or by using ex-post competition law, the policy setting must provide certainty and stability, particularly as providers begin “ others; it is about having a level another cycle of substantial investments. As highlighted by Sunil Bharti Mittal, the US and EU often set the policy agenda for the playing field.” rest of the word. Their divergent approaches in important areas will therefore be watched closely by peers as the ecosystem embarks on José Maria Alvarez-Pallete, Telefónica its 5G journey.

12 • GSMA Intelligence Mobile World Congress 2018 wrap-up 5 Policy and regulation: data privacy and protection

Data privacy and protection were at the forefront for many at Mobile Viewpoint: GDPR presents opportunities across the ecosystem World Congress this year. Participants in many sessions were focussed With GDPR coming into effect shortly, industry players are moving at on the General Data Protection Regulation (GDPR), which is due to pace to ensure compliance. Failure to do so risks sanctions, including be implemented across the EU in May 2018. In the main programme, fines of up to 4% of revenue or €20 million (whichever is greater). All IBM, IEEE, Veon and others discussed practical challenges to – but companies need to ensure they have a data protection officer. Jean also opportunities in – implementing data protection measures in the Gonié, VEON, highlighted the significant scale of this task, quoting industry. Discussions continued in the Ministerial Programme on the research by the IEEP that suggests almost 80,000 officers worldwide regulation of cross-border data flows. would need to be hired to ensure compliance. Industry will also have to grapple with new consent rules, which will not be as simple as amending privacy notices. Companies will now need to be able to Key points switch off individual elements of customer data, which could be a • IBM highlighted a survey study estimating that nearly 30% of challenge for blockchain in particular. companies globally are GDPR-compliant today. • Large and small companies are grappling with compliance, but But there is significant opportunity across the ecosystem to explore at Mobile World Congress many participants also identified business opportunities as a result of the regulation. Jessica Douglas, business opportunities arising from the new regulation. IBM, highlighted that companies now have the opportunity to improve • Device manufacturers and operators explained how they are their data management processes, enhance trust with customers developing consumer-friendly approaches to give customers and ultimately earn more data from customers. The market dynamic greater control of their personal data. could also change according to Amba Kak, Mozilla Foundation, who explained that new data portability rules mean data could be migrated more easily to alternative providers, which could improve competition in relevant markets.

Many participants talked about ‘privacy by design’, a concept that involves layering privacy controls into devices and services, so consumers can switch on or off. Companies such as Veon and Telefónica have developed personal data dashboards to give We’ve been through 10 years of data customers direct control. What remains to be seen is whether these hoarding. This is not aligned with the will cause more customers to switch on or switch off. The implications “ best practices of data management.” could be significant for the industry.

Aurélie Pols, OX3 Analytics

13 • GSMA Intelligence Mobile World Congress 2018 wrap-up Authors and contributors

Jasdeep Badyal Senior Analyst Kavi Bains Senior Analyst Mark Giles Lead Analyst Joss Gillet Director Cameron Heka Senior Analyst Pablo Iacopino Senior Manager Henry James Mobile Ecosystem Specialist Sylwia Kechiche Lead Analyst Mark Little Senior Manager Dennisa Nichiforov-Chuang Senior Analyst Kenechi Okeleke Lead Analyst James Robinson Senior Analyst Michael Rogers Senior Analyst Mayuran Sivakumaran Senior Economist Jan Stryjak Lead Analyst Robert Wyrzykowski Mobile Spectrum Analyst