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Position Paper: Meeting the increasing regulatory challenge in IoT

  • Internet of Things
  • IoT
  • regulation
  • law
  • device certification
  • permanent roaming
  • privacy
  • data sovereignty
  • national resilience
  • security
  • cybersecurity
  • Matt Hatton
This report, sponsored by floLIVE, examines the regulatory environment for the Internet of Things. The main focus is on those regulations with which a company deploying IoT will need to comply. This spans topics as diverse as device certification, permanent roaming, privacy, data sovereignty, national resilience, and security. Regulation affecting IoT has been growing considerably in recent years, meaning that IoT adopters need to be increasingly aware of the rules that apply to their deployment.

This report examines the regulatory environment for the Internet of Things. The main focus is on those regulations with which a company deploying IoT will need to comply. This spans topics as diverse as device certification, permanent roaming, privacy, data sovereignty, national resilience, and security. Regulation affecting IoT has been growing considerably in recent years, meaning that IoT adopters need to be increasingly aware of the rules that apply to their deployment.

Transforma Insights has identified regulation as the single most significant of its dozen ‘IoT Transition Topics’ (i.e. trends that will have the most impact in the IoT space) for 2024. While some regulations, for instance relating to device certification or product safety standards, have always been part of the fabric of IoT product and solution development, many are becoming dramatically more significant. Particularly, we note requirements related to security, procurement and national resilience have become increasingly strict, reflecting the growing importance of IoT for connecting critical national infrastructure. Regulations relating to the management of data, such as the new EU Data Act, have also become much more significant and will demand consideration from any organisation deploying IoT.

In this report we examine four key areas of regulation:

  • Device certification and related issues – There are a number of regulations and other obligations with which companies providing IoT services will need to comply that are related to IoT hardware and how devices access telecommunications networks. The most prominent of these is device certification.
  • Licensing and Permanent Roaming – Every country in the world has a regulatory framework governing which companies can provide IoT connectivity services. One particularly relevant set of regulations for supporting IoT relates to extra-territorial use of E.164 number (which is generally referred to as ‘permanent roaming’).
  • Privacy, data sovereignty and national resilience – There is an increasing amount of regulation related to how data can be stored, transferred and shared. In some cases, this relates to issues of personal data privacy, while in others it relates to national data sovereignty. There is also an increasing amount of consideration of national resilience, which is also related to IoT.
  • Security – The last few years have seen a major expansion in the amount of legislation related to cybersecurity in general and IoT device security particularly. There are also numerous examples of codes of practice or guidelines for minimum levels of security on consumer IoT devices. In some countries, these voluntary guidelines have been replaced by mandatory requirements and this trend is likely to continue.

While these four areas do not represent the entire extent of regulations that are relevant to IoT, they do account for the most challenging and dynamic. As such, they are the main regulatory areas that both enterprises and vendors need to consider, whether they are deploying IoT themselves, or developing compliant solutions.

Additionally, in the first section of this report we give consideration to vertical-specific regulations, which typically act as drivers of IoT adoption.

The content of this report represents only a fraction of the information that Transforma Insights holds on regulations relating to IoT and other technologies around the world. For more information, see our ‘Regulatory Database’.

About IoT ‘Transition Topics’

Transforma Insights has identified a series of aspects of the Internet of Things that are going through a period of fundamental transformation. These IoT ‘Transition Topics’ are the subject of Position Paper reports and Virtual Briefings identifying the key aspects of change and how organisations should position themselves to be best placed to realise the opportunities generated.

About our sponsors, floLIVE

This report is made available courtesy of our sponsors floLIVE.

floLIVE designed and developed an elastic, robust core cellular infrastructure that is the largest in the world. Through this powerful infrastructure, the company offers numerous services to mobile operators, IoT MVNOs and Global Enterprises seeking seamless, compliant, high performance, and regulatory compliant connectivity, anywhere in the world.

With a global carrier library that is based on interconnected local core mobile networks, floLIVE ensures low latency, high performance, and full compliance with privacy acts, data regulations, and roaming restrictions. As of today, more than 20 mobile operators are on board the platform, giving companies multi-tier connectivity access.

Through direct access to our network, customers can monitor their devices, access real-time network events and usage, switch operators remotely, and troubleshoot failures ahead of time, providing a seamless experience that keeps devices connected at all times. Through one integration, one SKU and one platform, customers have a world of connectivity and endless possibilities.

  • floLIVE
  • Internet of Things
  • Hyperconnectivity