Redefining Privacy in the Era of Connected Vehicles

The future of mobility will look and feel very different.  Want instant access to all your favorite TV shows so you can entertain your children wherever you go?  You got it.  How about access to directions, route changes, and knowledge of the intentions of all the vehicles around you?  Yup, consider it done.

Making this all possible is the world wide web, and the good news is 98% of all new vehicles in 2020 will be connected to the internet, with 100% expected by 2025.  However, along with the advantages of this connectivity, you get a mountain of privacy concerns.

The reality is that companies providing your in-car services – like entertainment and navigation services – will also have access to a slew of additional information about you, including how often you drive over the speed limit, how aggressively you drive generally, and where you go and how long you stay there; and that’s just for starters.  There is even talk of these service companies eavesdropping on your conversations or monitoring your emotions while you drive.

It’s unclear at this point how consumers will be able to keep these vehicles in check, but car companies can learn a great deal from the European Union’s (EU) latest attempts to regulate privacy.

On May 25, 2018, the EU’s General Data Protection Regulation (GDPR) went into effect, ushering in key protections for consumers. For example, a data subject – that’s you enjoying your connected vehicle services – must be able to withdraw consent as easily as you gave it.

GDPR also forces companies to factor in privacy concerns at the outset of product development lifecycles. This forces companies to think early on about what data they need, and for what purposes.  In other words, they shouldn’t just arbitrarily start collecting data, then figure out how to monetize it down the road.

Consumers should be pleased with these developments, but the real question remains: how well are companies implementing these requirements?

According to a January 2019 Cisco Study, there is still room for improvement.  Only 59% of companies reported meeting the GDPR requirements seven months after it went into effect, even though they could see GDPR coming down the regulatory pipeline years ago.

The report also highlights some consequences for not living up to the GDPR. For starters, companies’ sales cycles suffered; those who failed to meet GDPR requirements saw a 60% delay in their average sales cycle.

Another problem companies faced was a jump in costs associated with data breaches – which it turns out were more likely to happen when GDPR standards were not followed. For instance, there was a 27% higher probability of a data breach costing $500k for companies that didn’t meet GDPR requirements.

GDPR aside, perhaps the best example of the costs associated with ignoring customer privacy concerns is Facebook. In the last year alone, Facebook had the biggest single-day loss in stock market history at over $100 billion dollars and was also forced to enter multi-billion dollar negotiations with the FTC over privacy issues.

You definitely don’t want to drive a mile down that road auto companies.

It’s pretty simple, actually: consumer privacy matters and car manufacturers better start taking this issue seriously.  If we’ve learned anything, customers will flock to companies that take their data, and by default their privacy, seriously.

So, consider this fair warning, auto industry: we want our in-car television service, but that’s all.

Nothing more; nothing less.

 

Eric Nutt is the Chief Technology Officer of Mandli Communications, Inc., and an Associate Editor of the SAE International Journal of Connected and Automated Vehicles.

Follow Eric on LinkedIn.

 

The Best Kept – and Dirtiest – Secret About 5G

The Trump administration unveiled a major push Friday to accelerate the rollout of 5G infrastructure.  Under the new plan, the Federal Communications Commission will release the largest trove of U.S. wireless spectrum ever to be auctioned off.  The FCC also proposed a $20 billion fund to expand broadband in rural America, connecting up to 4 million households and small businesses to high-speed internet.

The table is set; the meal, as in the buildout, comes next.  But the reality is we may not want to sit down for this dinner, because one of the best kept – and dirtiest – secrets about 5G is the energy consumption required to support the network.

“A lurking threat behind the promise of 5G delivering up to 1,000 times as much data as today’s networks is that 5G could also consume up to 1,000 times as much energy,” Dexter Johnson recently wrote for the IEEE Spectrum.

The infrastructure required to support 5G is going to be massive – beyond what most people can comprehend, including industry specialists.

Unlike the current 4G networks which rely on signals that transmit for miles by large cell towers, 5G will need small cell sites every few hundred feet to broadcast its short-range signals.

For some perspective, your typical wireless provider – like AT&T, Verizon, and Sprint – have about 70,000 macro cell towers spread across the US.  That’s a huge number, but in return, you get near nationwide coverage.

For a fully built-out 5G network in Dallas, for example, the city will need a whopping 10,000 small cell sites.  That’s right, 10,000 antennas in just one city; keep in mind there are over 19,000 cities in the US.

Gulp.

But it turns out predicting the amount of energy required to power a 5G network is a hard thing to do.

As you deploy more small cells on top of the existing cellular infrastructure, the total energy consumption of the network will grow.  Even though energy consumption of a small cell is lower than a conventional macro cell – which will eventually be phased out – you need many more small cells to provide full coverage.

Exactly how many?  It’s still not clear, so making net 5G energy consumption predictions remains a challenge at this point.

That said, there aren’t a lot of reasons to be optimistic, according to Vetiv and technology analyst firm 451 Research, who recently surveyed over 100 global telecom operators.  More than 90 percent of respondents believe 5G will result in higher energy costs.

This result was also consistent with Vertiv’s internal analysis, which found that 5G could increase total network energy consumption by 150-170 percent by 2026.

It’s not all doom and gloom, however.  Some experts, like Emil Björnso, associate professor at Linkoping University, believe that power consumption should come down on 5G infrastructure over time.

“Just as computer processors become vastly more efficient over time, the analog and digital circuits that are used in base stations will become more efficient,” he recently told the IEEE Spectrum.  “The first generation of 5G hardware will be all about delivering all the new features to the market, but then there will be time to refine the hardware,” he continued.

Bottom line, it’s hard to know who to believe at this point, but let’s be real: this wouldn’t be the first time engineers built a solution to solve one set of problems, only to cause another set of problems.

Mining bitcoin today, for example, consumes more electricity than is generated by all of the world’s solar panels combined.  In other words, as David Wallace-Wells wrote in The Uninhabitable Earth, “In just a few years we’ve assembled, out of distrust of one another and the nations behind the ‘fiat currencies’, a program to wipe out the gains of several long, hard generations of green energy innovations.”

So yes, the 5G table is set, and improvements in speed, coverage, and reliability sound great, in principle.

But if these advances lead to higher energy consumption at precisely the moment in time when the world needs to cut and clean its energy consumption, then maybe this meal isn’t worth sitting for.

 

Rob Fischer is President of GTiMA, a tech and policy advisor to Mandli Communications’ strategy team, and an Associate Editor of the SAE International Journal of Connected and Automated Vehicles.  GTiMA and Mandli Communications are both proud partners of the Wisconsin Autonomous Vehicle Proving Ground .

Follow Rob on Twitter (@Robfischeris) and Linkedin.

2019 Already a Big Year for “Smart City” Development

Smart cities and all their fancy gadgets – like autonomous vehicles –  won’t magically appear. Cities have to plan for them, infrastructure must be built to support them, and regulations surrounding their operations must be set.

In this regard, if 2018 was the year of the smart city skeptic, as CityLab wrote in December, then 2019 may well be the year of a smart city revival.

For starters, there has been an uptick in smart city strategic planning, according to Roland Berger’s second smart city index, released in early March.

Despite “smart cities” being an agenda item in city halls for many years, the reality is that most cities haven’t been taking a strategic approach to their “smart” status.

This trend appears to be shifting, however. The number of cities with a smart city strategy has almost doubled in the past two years, rising from 87 to 153.

While that is a considerable jump, Roland Berger, a global consulting firm, warns that good strategy is only the first step; implementation is what really counts.

Seen that way, there is still plenty of room for improvement, as 90 percent of those cities surveyed still don’t have an integrated plan with a single entity in charge of coordinating work, and clear responsibilities for the different groups involved.

Cities that do have a central decision-making body, like Vienna with its Smart City Agency or London with its Chief Digital Officer, perform well on implementation and lead the rankings as a result.

Planning aside, 2019 is also turning out to be a pivotal year for the rollout of 5G technology—considered to be the connective tissue for the internet of things, smart cities, and even autonomous vehicles.

Unlike the current 4G networks, which rely on signals that transmit for miles by large cell towers, 5G will need small cell sites every few hundred feet to broadcast its short-range signals.

And if you’ve been paying attention to the headlines, the U.S. and China are locked in a heated battle over who will get the chance to build this next generation of telecommunication infrastructure, as all the major contracts to build out 5G networks across Europe and the U.S. will be signed in the next 6-18 months, according New York Times reporting.

Both superpowers realize that whoever controls these 5G networks has the advantage—in times of war and peace. After all, the 5G system is a physical network of switches and routers, and what is good for consumers is also good for intelligence services and cyberattackers.

To curtail Chinese companies from winning these buildout contracts, the Trump administration has pushed for a ban on Huawei technology in UK, Australia, Poland, the European Union, the Philippines, and a slew of other countries.

U.S. Ambassador to Germany Richard Grenell sent a letter to the German government in early March, for instance, threatening to curtail German access to U.S. intelligence if Berlin decides to issue contracts to Huawei, according to a U.S. official familiar with the matter.

While U.S. efforts to ban Huawei 5G technology overseas have stumbled, the US along with Australia, Japan, and Taiwan have all decided to ban and phase out the company’s products.

The Trump administration is doubling down on the Huawei ban by also promoting elements of a leaked memo from the National Security Council to the White House on his 2020 campaign trail, which called for an unprecedented federal takeover of a portion of the nation’s mobile network to pay for and build a nationalized 5G network.

Key to Trump’s domestic strategy is a set of new federal regulations aimed at streamlining 5G infrastructure installation by limiting the authority of US cities.

The FCC in September 2018 passed a controversial set of rules—much of which went into effect on January 15—which limits municipal authorities to charging $270 per cell site per year and also imposes a “shot clock” limiting how long authorities can take to review installation requests.

The FCC argues that the new rules will free up $2 billion in capital for wireless providers to use in underserved areas like rural communities.

The new rules drew immediate protest from cities and counties around the country, and by October over 20 local governments took legal action and filed three separate suits. Each case makes the same basic argument against the FCC, claiming the federal government has overstepped its bounds and undercut local control of infrastructure issues.

Portland’s Mayor Ted Wheeler has called the FCC order a “land grab against local infrastructure.”

Today, more than 80 cities and counties have filed lawsuits against the FCC, and the U.S. Court of Appeals for the 9th Circuit in San Francisco is expected to render a decision in the lead case in April.

So to all the smart city skeptics out there, 2019, while it doesn’t scream smart city revolution, is already showing signs of significant smart city evolution.

Not only are cities cranking on their “smart” plans, but the US-China 5G war is heating up and U.S cities are in the throes of challenging – and by default shaping – the next generation of telecom rules that may, or not, accelerate the rapid deployment of key smart city technologies and services.

Oh yeah, and it’s only April.

 

Rob Fischer is President of GTiMA, a tech and policy advisor to Mandli Communications’ strategy team, and an Associate Editor of the SAE International Journal of Connected and Automated Vehicles.  GTiMA and Mandli Communications are both proud partners of the Wisconsin Autonomous Vehicle Proving Ground .

Follow Rob on Twitter (@Robfischeris) and Linkedin.