Yesterday, we had a webinar entitled on "Do's and Don'ts of Collaborative Regulation (G5) in Smart Cities". regarding to VUCA environment of smart cities services world market, we need more focused on collaborative regulation or 5th generation regulation (G5) to improve quality of life (QoL) for all people and businesses. G5 is driven by leadership, incentive and reward rather than by command and control schemes. without G5, governance bodies increase risks of investment and decrease rate of citizen engagement. also potential and promised impact of smart cities will not be realized. maybe for reaching digital transformation, G5 is more important than 5G!

1. Do's and Don'ts of
Collaborative Regulation (G5)
in Smart Cities
Smart Tehran Center
Tehran Municipality ICT Organization
November 2020
Farhad Tavakkol HamedaniSayed Ali Khodam Hoseini
Head of Policymaking
and Monitoring
Digital Transformation
and Smart Cities Consultant
Smart Cities
Collaborative
RIA Verticals SDGs
Regulators
DATAG5
Regulation
DIGITAL
ECONOMY
Partnership
Citizens
Services
Governance
Platforms
Policies
Innovation
Transformation
VUCA
Engagement
Convergence
Public Consultation
UASF

2. 2
Analog Era
IT
Telecom Broadcast
Emerging Convergence
IT
Telecom Broadcast
Internet
Digital Transformation
IT
Telecom Broadcast
Internet Data
Smart Society
IT
Telecom Broadcast
Internet
Data
Health,
Education,
Agriculture
Wearables
Automobiles
1970 203020102000
• Services over the Internet
– Health
– Education
– Agriculture
– Financial (Branchless Banking)
– Media
– Smart Cities (IoT, Big Data Analytics)
– Other (Taxi, Hotel, Job Portals, etc)

3. Engaging all stakeholders in smart city ecosystem
Charities
SMEs
Community
Groups
Universities
Start-ups
Social Entrepreneurs
Citizens

4. Municipality Digital
Transformation
InnoTehran
Smart Mobility
Smart Citizens and
Digital Services
Smart Environment,
Energy and Safety
Smart Tehran Program at a Glance
o Citizenship Services
Platform (MyTehran)
o Neighborhood and
Citizen Engagement
(BAHAM)
o Smart Urban Zones
and Centers
o Urban Innovation
Market Platform
o Smart Mobility
Services
o Clean Transportation
o Smart Waste,
Environment and
Energy Management
o Safety and Urban
Crisis Fast Alarm
o Shared and Open Data
o Smart Urban Services
o Smart Municipal Services
and Solutions
o Smart City Infrastructures
Development

5. 5
5 ITU

6. 6
Generations of regulation in the ICT Regulatory Tracker

7. 7
• Ex-post
• Regulatory reform
• Market-based instruments
• Dispute resolution
• Enforcement
• Regulatory forbearance
• Open consultations
• Regulatory Impact
Assessment (RIA)
• Consumer education
• Sharing Information & best
practices
• Generating a level-playing
field for investment &
growth
• Incentive Regulation
• Monitoring
• Ownership
• Advocacy
• Partnership
• Leadership
• Coordination
With
• Competitive authority
• Media & Broadcast authority
• Consumer protection authority
• Data protection authority
• Central banks
• Other relevant stakeholders
• Co- and self-regulation
industry
• The judicial
G5 Regulation: the regulatory wheel of fire…

8. 8
the evolution of regulatory frameworks from telecom to digital markets
ICT Regulatory Tracker Benchmark for collaborative regulation
Focus Telecom/ICT regulation Regulation for the digital economy and
smart cities
Defines generations of
regulation
G1 through G4 G5
Number of indicators 50 (including 11 composite indicators) 25 individual indicators
Maximum score Goalpost = 100 Goalpost = 50
Score of 35: the G5 qualification threshold
Structures 4 pillars:
- regulatory authority
- regulatory mandates
- regulatory regime
- competition framework
3 tracks:
- collaboration among regulators
- policy design principles
- G5 toolbox
Data series 2007-2018 2018/2019
Data comparable over time Yes Yes
Can be integrated 1) Can be used as a stand-alone metric for
the maturity of regulatory frameworks for
telecom/ICT markets, or
2) be integrated with the Benchmark to view
the full evolution path of regulation from
telecom to digital
1) Can be used as a stand-alone metric for
collaborative regulation, or
2) be integrated with the Tracker to view
the full evolution of regulation from
telecom to digital

9. 9
Track 1: Collaboration Focus:
• Established sector or multi-sector government regulatory agencies for
competition, consumer protection, finance, energy, broadcasting,
spectrum management and Internet issues.
• Degree of regulatory collaboration between the ICT regulator and other
regulatory agencies.
Best-case scenario:
• Combines the greatest number of agencies collaborating with the highest
official status of collaboration.

10. 10
G5 Checklist for ‘Track 1’
❑ Collaboration with competition authority
❑ Collaboration with consumer protection authority
❑ Collaboration with data protection authority
❑ Collaboration with spectrum agency
❑ Collaboration with broadcasting authority
❑ Collaboration with financial regulator
❑ Collaboration with energy regulator
❑ Collaboration with the agency in charge for Internet-related issues
ITU

11. 11
Blockchain, AI, big data, the cloud, and the IoT have in common that they all deal in one
way or the other with data and that they facilitate new business models that may shift
value creation within and between segments of the value chain.
Data Governance needs Collaborative Regulation

12. 12
State of regulatory collaboration between ICT regulators and other authorities in cases
where both exist and are separate entities, worldwide, 2018

13. 13
Example points of collaboration between ICT regulators and other agencies
Telecommunications Management Group

14. 14
Case Study: Singapore government collaborates on artificial intelligence
• The Personal Data Protection Commission (PDPC) and the Infocomm Media Development
Authority (IMDA) jointly published the first edition of the Model Artificial Intelligence
Governance Framework in January 2019, intending to frame discussions around the challenges and
possible solutions to harnessing AI in a responsible manner.
• The model framework seeks to collect a set of principles, organize them around key themes, and
compile them into an easily understandable and applicable structure.
• It provides guidance on measures promoting responsible AI usage that organizations should adopt in
four key areas: internal governance structures and measures, determining an AI decision-making
model, operations management, and customer relationship management.
Source: TMG 2020.

15. 15
Building frameworks for digital regulation Network/service licenses

16. 16
sector-
specific
regulator
multisector
regulator
converged
regulator
tasked solely with
overseeing telecom
sector
typically involve a
utilities-based
regulatory authority
• Afghanistan Telecom
Regulatory Authority
(ATRA)
• Barbados Telecoms
Unit (TU)
• Office of Utilities
Regulation (OUR) in
Jamaica (telecom, power,
water, and transportation)
• Denmark (Danish Energy
Agency),
• Bahamas (Utilities
Regulation and
Competition Authority),
• Belize (Public Utilities
Commission).
By 2017, over 70 per cent
of regulators worldwide
were converged.
• Singapore: converged
regulator for broadcasting
and telecom (MCI 2016).
• Botswana Communications
Regulatory Authority
(BOCRA): Telecomm +
Broadcasting + ICT +
Internet + postal services
(Botswana 2012).

17. 17
Traditional areas of responsibilities
(G1-G3), and somewhat in G4
➢ Rules to protect competition
and consumers as countries
transition from monopoly
telecom markets.
➢ Licensing, often involving
extensive application processes
to ensure that new entrants
possess the needed technical and
financial capacity.
➢ Obligations: Tariff-filing
requirements, Interconnection
obligations and termination rates
➢ spectrum management and
broadcasting
Shifting
mandate/roles
of regulators
and policy-
makers
Digital era
traditional areas of responsibilities and
institutional design are expected to
largely continue in the digital
environment
➢ implementation of regulation should
become less rigid and more flexible.
➢ focus on online services, such as
VoIP or online video, and other
digital platforms, as well as
navigating the IoT, AI, data privacy,
competition, cybersecurity, and other
technological challenges.
➢ These new areas are not always
clearly incorporated into existing
regulatory frameworks.

18. 18
Track 2: Policy design
principles
Focus:
Policy design principles lay the foundation of collaborative regulation and
define a new approach to market regulation, taking into account the broad
economic and policy context.
Best-case scenario:
The goalpost here is to have all high-level policy design principles enshrined
in laws and regulatory decision through concrete tools that are:
• Forward-looking
• Holistic
• Evidence-based
• Market-proof
• Incentive-based
• Innovation-based
• Inclusive
• Technology-neutral

19. 19
G5 Checklist for ‘Track 2’
❑ Is there a digital strategy in place?
❑ Is the digital strategy SDG-oriented
❑ Does the digital strategy include multiple sectors of the economy?
❑ Is there a formal requirement for Regulatory Impact Assessment (RIA) before
regulatory decisions are made
❑ Are there mechanisms for regulatory experimentation?
❑ Are there regulatory incentives targeted at network operators
❑ Is there an innovation policy for the ICT sector?
❑ Does the regulator uses public consultations to guide regulatory decision-
making?
❑ Are spectrum licenses technology neutral?
ITU

20. 20
Countries with/without overall national development strategy
ITU, 2020

21. 21
Availability
• Limited sources of
financing
• Limited
infrastructure
Affordability
• Low purchasing
power
• high prices for
services and devices
Accessibility
• Ability to use digital
services & techs
regardless of
education, disability,
age, and gender
Skills
• Lack of necessary
digital skills and
literacy
Relevance
• Limited awareness
of opportunities and
benefits of ICTs
• Limited availability
of relevant content
Key universal access challenges

22. 22
Creative mechanisms
to facilitate universal access
Germany:
winning bidders of 5G auction held
in 2019 must comply with
extensive coverage obligations,
including a requirement to set up
500 base stations in unserved rural
areas, called white spots.
Licensees must build out the base
stations to white spot areas by the
end of 2022.
Kenya & Rwanda:
a Kenyan start-up, BRCK,
successfully launched Moja WiFi,
which offers free service to end-
users and is funded via
sponsorships and advertising.
Users “pay” with their time,
attention, or engagement rather
than with money. Moja WiFi has
deployed 1 300 hotspots in rural
and urban areas and provides free
Internet access to about 2 million
users

23. 23
Evidence-based
decision-making
Regulatory
Impact Analysis
(RIA)
open
consultations
Decision-making in
a multistakeholder
environment

24. 24
Case Study: Examples of decision-making processes in Brazil, Colombia, Qatar, and Singapore

25. 25
City as a Platform Manifesto, TM Forum

26. 26
Degrees of Integration and Innovation in smart cities

27. 27
?reforming the existing regulators establish a new digital regulator
European Union: European Electronic Communications Code (EECC)

28. 28
Case Study: Jurisdictional challenges for OTT video in India
In India, various courts have been examining whether online video is subject to the Cinematograph
Act and therefore within the regulatory purview of the Ministry of Information and Broadcasting
(MIB), particularly for certification/licensing requirements. In August 2019, the High Court of
Karnataka dismissed a case against several over-the-top (OTT) video providers on the grounds that OTT
video is not subject to the Cinematograph Act. Rather than adopt a regulatory framework, the MIB
stated in March 2020 that the OTT video industry should create a code of conduct and an adjudicatory
authority by mid-2020 (see section on “Self-regulatory models”).
Source: Dutta 2020, Oka 2019.

29. 29
Case Study: Review of digital regulators in Australia, Ireland, and the United Kingdom
Australia. In 2018, the Australian Competition and Consumer Commission (ACCC) launched a
digital platforms inquiry in 2018 that consulted on market power issues of digital platforms, including
social media, search engines, and other online content platforms (ACCC 2018). In the final report issued
in July 2019, the ACCC tasked itself with addressing competition issues in the context of digital
platforms while entrusting the Australian Communications and Media Authority (ACMA) with
numerous key roles (ACCC 2019).
Ireland. In January 2020, the Irish government tabled the draft Online Safety and Media Regulation Bill
in the legislature (DCCAE 2020). Rather than create a new regulator to oversee digital content, one of
the bill’s key proposals was to replace the existing Broadcasting Authority of Ireland (BAI) with a new
Media Commission. The Media Commission would regulate broadcasting and take on the additional role
of regulating the audiovisual media sector, including online video.
United Kingdom. In April 2019, the United Kingdom’s Department for Digital, Culture, Media and
Sport (DCMS) launched a consultation that called for an independent regulator to implement, oversee,
and enforce a proposed new regulatory framework to address illegal or harmful content online (DCMS
2019). In February 2020, the DCMS responded to the consultation comments, finding that the existing
ICT regulator, Ofcom, was the only regulator referenced as a possible candidate for the online harms
regulator. The DCMS reasoned that expanding Ofcom’s authority – rather than create a new agency –
would enable Ofcom to leverage its expertise, avoid fragmentation of the regulatory landscape, and
enable quick progress on the issues (DCMS 2020).

30. 30
Creative licensing to spur deployment of emerging technologies
• new licensing models to encourage market players, including from outside telecom operators, to test
and develop technologies.
• Evolved from the fintech industry, regulatory sandboxes in the telecom sector enable technologies
and business models to be tested for a specified period.
• Sandbox licensees are generally not subject to the full regulatory regime but may receive more
regulatory guidance than standard licensees.
• Regulators may also reduce or eliminate fees to further encourage players.

31. 31
Track 3: G5 toolbox Focus:
New market realities and the challenges they bring about require a new
perspective and new tools. Policies that used to be ‘nice to have’ and
formerly associated with developed countries have become a stepping-stone
in leading the digital transformation.
Best-case scenario:
The more these tools have been adopted and become functional, the greater
the chances to create a safe place for digital experimentation and a safe
experience for consumers.

32. 32
G5 Checklist for ‘Track 3’
❑ Is there a forward-looking competition policy applied to digital markets?
❑ Are there data protection rules?
❑ Is there cybersecurity legislation or regulation?
❑ Are there policies and regulations for e-commerce/e-transactions?
❑ Are there policies and regulations for digital financial services/electronic
money?
❑ Have you established a regulatory framework to ensure ICT accessibility for
persons with disabilities?
❑ Are there specific taxes on Internet services?
❑ Does an official register or a mapping exist in your country of all
telecommunication/ICT infrastructure?
ITU

33. 33
City as a system of systems
City as a
political
system
City as an
economic
system
City as a
technological
system
City as a
social system

34. 34

35. 35
Reg4Covid initiative
• BEREC and the EC stated that Internet service providers are
authorized to take necessary measures to mitigate traffic
congestion – representing a shift toward a more collaborative
regulatory approach (BEREC 2020, European Commission 2020)
• Simultaneously, digital service providers, such as Netflix, Facebook,
Microsoft, and Google, have taken steps to reduce the amount of
bandwidth consumed by their services both of their own accord
and at the request of regulators.
• Notably, the ITU has begun curating other examples of these
actions and facilitating collaborative discussions through its
Reg4Covid initiative

36. 36

37. 37
G5 Benchmark design

38. 38
Canvas for assessing countries’ readiness to leapfrog to the fifth generation of regulation
Track 1: Degree of collaboration
between the ICT regulator and:
•Competition authority
•Consumer protection commission
•Data protection commission
•Spectrum agency
•Broadcasting regulator
•Financial regulator
•Energy regulator
•Internet agency
Track 2: Policy design principles
•Forward-looking
•Digital strategy exists
•Holistic
•Digital strategy spreads over
multiple sectors
•SDG-oriented (or development in
general)
•Digital strategy SDG-oriented
•Evidence-based
•Regulatory Impact Assessment (RIA)
•Market-proof
•Regulatory space for digital
experimentation such as sandboxes,
pilots, new focus of regulation (AI,
IoT, fintech)
•Incentive-based
•Incentives for network operators
•Innovation-based
•ICT Innovation policy
•Inclusive
•Stakeholder input & engagement
•Technology-neutral
•Spectrum licensing
Track 3: G5 toolbox: policies &
regulations
•Competition
•Data protection
•Cybersecurity
•e-Commerce/e-Transactions
•Digital financial services
•Accessibility
•Taxation of Internet services
•Infrastructure mapping
max. score = 16 points max. score = 18 points max. score = 16 points

39. 39
Generations of regulation
ITU, 2020

40. 40
Generations of regulation, breakdown, world, 2019

41. 41
G5 countries, by score, rank and compared to the ICT Regulatory Tracker

42. 42

43. 43
Holistic and harmonized approach
can deliver greater impact

44. 44
No action policies increase risks of investment

45. 45
Positioning is more important than Ownership

46. 46
The new digital world needs a new take on regulation

47. 47
Pro investment regulation instead of interventions

48. 48
focus on a multisector, collaborative approach to tackle
the Universal access and service (UAS)

49. Thanks for your kind attention