Presentation on developments in the TMT sector given to the "Technology, Media & Telecommunications: Challenges & Opportunities" seminar in March 2017 in Sydney Content: - Software eats the world - global disruption caused by digital platforms - Technology - Big Data - legal issues in data security and sovereignty - Media - disruption to content business models and recent law reforms - Telecoms - the outlook to 5G mobile and the future of next generation networks - Emerging legal issues in particular sectors - fintech, smart grid, transport

1. Developments in the TMT Sector
Current trends & emerging legal issues
Dr Martyn Taylor
Partner
March 2017

2. Overview
• ‘Software eats the world’: global disruption caused by digital platforms
• Technology: ‘Big Data’ - legal issues in data security and sovereignty
• Media: disruption to content business models and recent law reforms
• Telecoms: The outlook to 5G mobile and the future of the NBN
• Emerging issues in particular sectors: fintech, energy, transport
2

3. ‘Software eats the world’: global disruption
caused by digital platforms
3

4. The confluence of enabling technologies
4
Broadband
High-speed
Internet
access
ADVANCED
DEVICES AND
COMMUNICATIONS
Smartphones
Affordable
pocket
supercomputer
Digitalisation
Digital
encoding
algorithms
SOPHISTICATED
OPERATING
SOFTWARE
iOS / Android
Operating
system
software
E-commerce
Transactions
via digital
platforms
SIMPLE AND
USER-
FRIENDLY
INTERFACE
Apps
User-friendly
application
software

5. The ‘digital platform’ as a driver of disruption…
5
Software
Telecoms
Software
Content

6. Software eats the world
6

7. Technology: ‘Big Data’ – legal issues in data
security and sovereignty
7

8. 8
‘Big Data’ is
(i) the capture of information on a large scale,
(ii) the application of powerful analytical computing to that information, then
(iii) the use of that analysis to generate value.
What is ‘Big Data’ ?

9. Big Data as the fuel for innovation
9
"Now we stand facing a new
industrial revolution: a digital one.
With cloud computing its new
engine, big data its new fuel.
Transporting the amazing
innovations of the internet, and the
internet of things. Running on
broadband rails: fast, reliable,
pervasive “
“Take all the information of humanity
from the dawn of civilisation until
2003 - nowadays that is produced in
just two days.”
“That is the magic to find value amid
the mass of data. The right
infrastructure, the right networks, the
right computing capacity and, last
but not least, the right analysis
methods and algorithms help us
break through the mountains of rock
to find the gold within.”

10. Capture of information on a large scale…
10
Data privacy
• Data privacy laws focus on
the collection, storage, use,
disclosure and retention of
personal information.
• Australia’s Privacy Act 1988
(Cth) regulates the handling of
‘personal information’ about
individuals.
• ‘Personal information’ is
information or an opinion
about an identified individual,
or an individual who is
reasonably identifiable.
• Examples: name, signature,
address, phone number, date
of birth, medical records, bank
account details, commentary
or opinion about a person.
• Requires compliance with
Australian Privacy Principles.

11. Storage of that information…
11
Data security
• Ensuring the security of information
is a key legal issue, raising issues of
responsibility and risk allocation.
• Consequences of a data breach can
extend well beyond legal liability to
include reputational damage, cost in
management time, loss of business.
• A new Australian law was enacted in
February 2017, known as the Privacy
Amendment (Notifiable Data
Breaches) Act 2017 (Cth).
• Under the Privacy Act, affected
individuals and the Australian
Information Commissioner must be
notified of a data breach.
• Applies to entities regulated by the
Privacy Act (>$3m turnover).
• Applies to data breaches affecting
personal information that are likely to
result in serious harm to an individual

12. Processing of that information….
12
Data sovereignty
• The export of personal data from one
country to another country can present
unique challenges.
• In an environment of cloud computing,
the export of data to offshore data
processing centres is a reality of 21st
century commerce.
• Integrated telecoms products and
services may have a cloud computing
or data processing component
• Export of data can be affected by
employment laws, healthcare
legislation, banking laws, and laws
specifically passed to block the transfer
of information for certain purposes.
• Location of information is also relevant
to the operation of statutory notices in
regulatory investigations.

13. Generation of value….
13
Information secrecy
• Contract: contractual protections to
maintain confidentiality and prevent
misuse of information.
• Secrecy: IP can be practically protected
by maintaining secrecy
Databases
• Copyright: is a database a literary work
and therefore subject to copyright
protection ?
Software and algorithms
• Copyright: source codes and object
codes; sometimes algorithms
• Patents: software and algorithms
normally cannot be patented
Protecting IP rights

14. Media: disruption to content business models
and recent law reforms
14

15. Disruption - any platform can deliver any content
Device can
accept all
forms of
digital content
and deliver to
consumer
Content
Consumer
Internet historically enabled a decoupling of platforms and content services
The media market has moved from local markets comprising bundled
content, platforms and delivery to a global market for the supply of
unbundled digital content that may be accessed over the Internet

16. Media sector is experiencing dramatic reform…
Historically, advertising supported the delivery of
subsidised media content. Now, a proliferation of
business models exist. The following diagram from
2010 is already well out of date in 2017 (eg Netflix).

17. Media law reforms – addressing cross-ownership
17
Australian media ownership is currently
subject to four key controls:
• Merger rules
• Foreign investment rules
• Media diversity rules
• Suitability rules
The media diversity laws were amended in
2016 to remove two key tests:
• The ’75 percent reach’ rule that
prevents individuals or companies
from controlling a total license area
that exceeds 75% of the Australian
population – capital city networks
already reach much more than 75% of
the population.
• The ‘2 out of 3 rule’ that prevents
mergers that involve more than two of
three regulated media platforms in any
commercial broadcast license area.
The ‘Convergence Review’ under the Labor Government in
2012 had proposed more radical reforms:
• Broadcasting licences replaced by content licensing
• Media diversity based on minimum number of owners
• ACMA replaced by new Communications Regulator
• Refinements to minimum standards for content
• Remove content quotas and instead provide subsidies

18. Telecoms: The outlook for mobile and the future
of the NBN
18

19. M2M and Internet of Things (IoT)
19
Internet of Things
• Moore’s law is unleashing low cost, high
processing, tiny chips that can go in
anything from power outlet to water pipe.
• ‘Things’ can be controlled by an Internet-
activated micro-chip with IP address.
• Wireless technology is lowering the cost
of telecoms to the point where ‘things’
can be connected inexpensively.
• ‘Big data’ enables low cost storage and
rapid processing of large-scale data.
• Now economic to integrate ‘things’ with
processors and connect to the Internet,
enabling real-time data and control.
• Significant potential for innovation
across a diverse range of sectors in the
economy – see next slide.
Machine to Machine (M2M)
• M2M are a range of technologies that
permit information to be exchanged
automatically between machines or
devices, without human intervention.
• M2M has existed for many years (eg
SCADA). However, growth of IoT is driving
innovation and rapid M2M market growth.
Emerging legal issues in telecoms
• Permanent international roaming SIMs
• Embedded/programmable mobile SIMs
• Spectrum management for IoT
• Cross-border device certification
• Anachronistic laws in a dynamic world
(eg sale of a car with integrated telecoms
services – is a telecoms licence required)

20. IOT provides huge potential for innovation
MVNOs and M2M – Mobile telecommunications in 201520

21. Australia’s National Broadband Network
21
Fibre to the
premises (FTTP)
Fibre to the node
(FTTN)
Fibre to the
building (FTTB)
Hybrid Fibre
Coaxial cable
(HFC)
Fixed wireless
services
Sky Muster
satellite services
2016 Statement of
Expectations
“The Government
expects the network
will provide peak
wholesale download
data rates (and
proportionate upload
rates) of at least 25
Mbps to all premises,
and at least 50
Mbps to 90% of fixed
line premises”

22. Increasing speeds driving different applications
500kbit/s to 1Mbit/s
VoIP
SMS
Basic e-mail
Simple web browsing
Low-quality video
1 to 5 Mbit/s
Complex web browsing
Email with attachments
Remote surveillance
IPTV SD (1-3 channels)
Simple telecommuting
Digital broadcast (1 ch)
Streaming music
5 to 10 Mbit/s
Complex telecommuting
Large file-sharing
IPTV SD (many channels)
Switched digital video
Video on demand SD
Broadcast video SD
Video streaming (2-3 ch)
Video download HD
Low-quality telepresence
Gaming
Basic medical file sharing
Basic remote diagnosis
Remote education
Building management
10 to 100Mbit/s
Telemedicine
Educational services
Broadcast video SD/HD
IPTV HD
Complex gaming
Complex telecommuting
Complex telepresence
Surveillance HD
Intelligent buildings
100Mbit/s to 1 Gbit/s
Telemedicine HD
Multiple educational
Broadcast video full HD
Full IPTV channel support
Video on demand HD
Gaming (immersion)
Full telecommuting
1 to 10 Gbit/s
Research applications
HD telepresence
Digital cinema streaming
Complex telemedicine
Scientific remote control
Virtual reality
Terabyte file sharing
Remote supercomputing
BASIC BROADBAND HIGH SPEED BROADBAND SUPERFAST BROADBAND
Australia with the National Broadband
Network

23. Developments in telecoms law due for 2017
23
Competition and access
regulation
Licensing of infrastructure
and services
Social policy obligations
Radiocommunications
and spectrum
management
National Broadband
Network
Telstra Corporation
ACMA
Miscellaneous
• Repeal of Part XIB telecommunications sectoral
competition regulation (including ‘competition notices’
issued by the ACCC).
• Potential regulation of domestic mobile roaming by the
ACCC to deliver mobile network competition to
regional Australia
• Reform of the Australian Communications and Media
Authority (ACMA) in conjunction with progressive
reforms to update the regulatory framework.
• Recommended reforms for the universal service
obligation once NBN rollout is complete.
• Reform of radiocommunications law and spectrum
management to simplify and streamline processes.
• Amendments to the regulatory regime for the NBN to
create ‘provider of last resort’ obligations and establish
a Regional Broadband Scheme to subsidise
uneconomic fixed wireless and satellite services.

24. Emerging issues in particular sectors: fintech,
energy, transport
24

25. Emerging legal issues in ‘fintech’
25
• Regulatory compliance is
fundamentally important.
• Regulators face the
challenge of permitting
innovation while
preserving the stability of
the banking network.
• Cross-border fintech
models face different
forms of regulation in
different jurisdictions.
• Data privacy, data security
and data sovereignty are
all important to fintech.
• Legal protection of IP is
critical, but needs to be
balanced against ‘network
effects’ from widespread
adoption (eg Blockchain).

26. Emerging legal issues in energy
26

27. Emerging legal issues in transport
27

28. 0
Contact us
Dr Martyn Taylor
Partner
Norton Rose Fulbright Australia
+61 2 9330 8056
martyn.taylor@nortonrosefulbright.com
nortonrosefulbright.com
2185357228
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29. Our global footprint
29
New office that will arise from the global merger with Chadbourne & Parke LLP later this year.