Spectrum Allocation and Licensing of Internet of Things (IoT) in Thailand

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1 Spectrum Allocation and Licensing of Internet of Things (IoT) in Thailand Settapong Malisuwan 1, Wassana Kaewphanuekrungsi 2, Office of National Broadcasting and Telecommunications Commission, Thailand 1 settapong.m@nbtc.go.th 2 wassana.k@nbtc.go.th and David William 3 Rangsit University, Thailand 3 davidsteven844@gmail.com Abstract - This research is about the Internet of Things (IoT) which involves people, businesses, and society, especially the issues involving telecommunications and the required regulation of the IoT system which is currently widespread in various countries around the world and will enhance the communication capacity of various devices. In the future, around several billions IoT devices will be used personally, in business sector, and in manufacturing industry. Such devices will be able to share data directly through internet protocols around the world. Nowadays, every sector is giving importance to IoT research and development. This research refers to the importance of IoT, especially in terms of spectrum allocation and issuance of the IoT business license in Thailand; changes that occurred from IoT growth, challenges and opportunities which affect consumers, businesses, the government, and society as a whole; and regulations concerning issuance of a license and management of spectrum, competition, protection of IoT security and privacy which is partly required to be imposed by regulators. Keywords - Allocation, Internet of Things, IoT, License, Spectrum, Thailand I. INTRODUCTION The data-driven economy or a trillionsensor economy have already been mentioned in many countries because it is obvious that our world is going to be interconnected through around many smartphones and IoT devices in the near future, resulting in Big Data on the Internet. If a country has the tools and human resources with adequate capabilities, they will be able to create new high-value opportunities. Recently, many organizations focus on telecommunications investment so as to support IoT expansion. There are several billions records of sensor and network systems connected each day allowing us to share and exchange information remotely more easily. In the future, it is hoped that there are going to be several billions IoT devices used by technology companies exerting economic effects which are worth nearly several trillions US dollars a year [1-3]. The companies which produce IoT devices are part of the ecosystem of IoT development. The information generated from communication devices can be shared and exchanged through communication networks, platforms, and accessed and controlled by applications [4]. 15

2 Spectrum Allocation and Licensing of Internet of Things (IoT) in Thailand II. WHAT IS THE INTERNET OF THINGS? The International Telecommunication Union (ITU) has defined the Internet of Things (IoT) as a universal information society s infrastructure which has given rise to advanced services through connections among communication devices, electric appliances, vehicles, facilities, etc. IoT will enable various devices or objects to store or exchange data. This will increase the communication capability of devices. The GSMA forecasted that there will be 1-2 billion connected devices by 2020 [5], causing various effects on related regulation. The most obvious IoT technologies include utilization of the Radio Frequency Identification (RFID) in the retailer system and shipment control, the utilization of Near Field Communication (NFC) in modern smartphones, the utilization of sensor systems in smartphones, watches, bracelets, and clothes to facilitate personal data storing, processing, and sharing. Both the RFID and NFC can work at a short distance while M2M is able to transmit data via mobile networks. Since there are nearly a hundred million M2M connections, it is required that the licensing process and spectrum management must be regulated. III. CHALLENGES AND OPPORTUNITIES Every sector places importance on researching and developing IoT in terms of the issues relating to utilization standards, reliability, flexibility, durability, and precision. However, IoT comes along with the foundational capabilities which are essential to applications [7] and can be used on smartphones and standards of other platforms. Furthermore, IoT technical standards have evolved from the diversity of applications, utilization patterns, and people from various sectors with different utilization purposes and needs. Besides, more action relating to this requires integration of different standard frameworks. The golden opportunities are to be benefited from open data, platforms, and Application Programming Interfaces (APIs) which can be used at a higher level of the innovations in the IoT system. A. IoT Utilization Costs, Expenses, and Reliability The IoT will become a truly extensivelyused technology. Though the costs of tags, sensors, and communication systems are small, it is important to take them into consideration. Degrees of reliability are important to the large systems with sensors, devices, and code reading devices. Moreover, the tags which require energy from batteries will be improved to consume less energy through promotion of additional research and development concerning energy radiation and the process and procedures for energy reduction [8] such as Bluetooth Low Energy which is used among modern smartphones. B. Connections There are options of the IoT technology between the cloud-based centralized function and the distributed applications of which some data are stored and processed at or near the sensor. The centralized system will enable many powerful computers to handle a large number of devices. They will have the advantage when processing large amounts of sensor data. As for the most distributed system, it is mostly used by the devices which send data to smartphones or other devices nearby. The advantage of the distributed system is that it increases the responsiveness of users to the system and can provide more privacy. This is enormously useful when it comes to important data, such as those on health [9], and other applications related to smart cities, such as street lighting, CCTV, or environmental monitoring, etc. IoT applications are available on mobile networks. So, Increasing the coverage of 4G networks (or 5G networks, which is expected to be available in the early 2020) will allow for faster data transfers and adds value to them and provide greater benefits for IoT applications. By using smart radios and 16

3 Settapong Malisuwan, Wassana Kaewphanuekrungsi, and David William spectrum sharing, the use of spectrum will be up to 1,000 times more effective enabling lowpower sensors to communicate at a longer distance while reducing the interference between communication devices. This is a special feature of M2M communications, such as traffic data transmission [6]. C. Standards Nowadays, IoT technology has evolved from a variety of applications and stakeholders with different goals and needs. Good technical standards will reduce the barriers of entry into the IoT market and will also help in the economies of scale. However, IoT systems and applications are diverse causing limitations to driving standard setting [10]. Some standards may cause difficulties in driving innovation because there may be problems in coordination within the industry and distributed technology choices [11]. In an effort to tackle this problem, ITU-T has set Global Standards Initiative on Internet of Things (IoT GSI) for developing technical standards to be the same throughout the world [12]. The Institute of Electrical and Electronics Engineers (IEEE) has considered the issues of IoT communication standards such as (Wi-Fi), (Wireless Personal Area Networks), (broadband wireless), (Ethernet) (power line networks), as well as applications related to smart grid, power industry, manufacturing, agriculture and mining by setting the standard for IoT's architectural framework to develop internet communication standards. Moreover, the OneM2M Group also assembles manufacturers, service providers, end users, and regional standards organizations from North America, Europe and East Asia [13]. It has developed standards for M2M and other related IoT applications. The Industrial Internet Consortium consisting of large companies that are developing IoT technologies such as AT & T Inc., Cisco Systems Inc., General Electric, IBM and Intel will develop a use case, architecture, and operational framework with the aim to control the international standardization process. In addition, there are also European standards organizations established under the European Commission's specific mandate to define technical specifications for European specifications and standards. The main bodies are European Committee (CENELEC) for Electro-technical Standardization, European Telecommunication Standards Institute (ETSI) and European Standards Organization (CEN) [14]. However, the government supports the development of standards and products through funding for research and development, and prioritizing government funded projects. If there is no incentive, large companies may try to create their own proprietary standards which will be an obstacle to the entry of competitors [9]. D. Open Platforms and Data The mechanism for greater support of IoT's analysis and integration of data for individuals and organizations to share various nonproprietary data makes it possible to utilize the data using new applications more openly, such as sensor data that monitors and shares data on pollution, noise and lighting in the city. Encouraging the emergence of an open IoT ecosystem that aims to improve collaboration, reduce costs with economies of scale and be responsive to changing environmental conditions can reduce development costs and marketing time as well as support the collaboration between businesses [15]. E. Policy and Regulatory Deployment of the IoT system and impacts on individuals and businesses has caused regulatory problems. Some of them are related to telecommunications regulators with issues such as licensing, spectrum allocation, standards and competition and the issues related to regulatory authorities in other areas, such as data protection, privacy, and security. IoT supervision is needed to build public confidence and ensure that the market is competitive. At the same time, a report by the Federal Trade Commission (FTC) states that 17

4 Spectrum Allocation and Licensing of Internet of Things (IoT) in Thailand the specific law of IoT has not yet taken place. Here, the FTC has pushed the regulations and safety requirements for manufacturers and organizations as well as provided continuous education and training for the business sector. However, it has encountered problems arising from technology that is changing quite fast causing these regulations to change over time. Therefore, self-regulatory actions support for the IoT industry to improve data security guidelines as well as the use of strict, flexible, and technology-neutral laws. At the same time, it will be able to strengthen the ability to enforce data security standards. Besides, consumer warnings must be posted after a security breach is in place with the enforcement of personal data protection laws [16]. Operations of regulatory bodies which will help develop and implement the IoT system most effectively are as follows: Spectrum allocation and licensing Switching and roaming Addressing and numbering Competition Privacy and security IV. SPECTRUM ALLOCATION AND LICENSING Spectrum allocation and licensing are important for IoT services and communications capabilities. IoT devices communicate with different protocol boundaries based on their connection characteristics and resource constraints. IoT devices may send data through the gateway, to the internet or the global network [4]. The devices that communicate at the distance of over one kilometer need to be operated in the 300 MHz - 3 GHz spectrum band, while contactless communications at a short distance may NFC in the 13 MHz or EHF band. Some IoT applications may use the AM/FM band in the VHF range. Here, telecommunication companies are testing the white space spectrum for use to make use of non-frequently-used spectrum. IoT technology will increase the burden on existing services. This will make the regulatory authorities in many countries pay attention to the use of spectrum to support IoT by continually focusing on the availability of spectrum for communications of IoT devices at short distances. In addition, there is a review concerning the use of spectrum in the band of higher than 25 GHz for 5G and IoT networks; for example, the Korean government planned to increase the spectrum to at least 1 GHz by 2023 and to ensure that 5G will be commercially utilized by 2020 in order to support the exponential growth of IoT [17]. A study by the European Commission has suggested that licensing exemptions are most effective for developing IoT, because it doesn t require contract negotiation before the device is manufactured and used thus resulting in the manufacturing of cheap devices in bulk [18]. Nowadays, the unlicensed spectrum is mostly used in the Industrial, Scientific, and Medical Radio (ISM) Bands, including subkhz for controlling and accessing videos, Medical Implant Communications Services (MICS) in the 400 MHz range, such as a pacemaker and the 900 MHz range for the standard of Electronic Product Code (EPC) which is used in conjunction with the RFID technology that will replace the existing bar code system [19]. One example of an IoT communication network is Sigfox which is operated in the 868MHz band for Europe and 902MHz for the United States. This is a frequency that does not require permission. A. Spectrum Usage for IoT Technology RFID devices are used for identifying and transmitting identity information, that has an operation distance from meters with a transmission power of not above 4W (a license is required in case the transmission power is above 500 mw), SRD (Short Range Devices) requires a small working area, has a short operation distance, low transmission power and can reuse the same spectrum band at a distance, and LPWAN (Low Wide Area Network) has wide coverage, low transmission 18

5 Settapong Malisuwan, Wassana Kaewphanuekrungsi, and David William power, a high sensitivity receiver, and can support a large number of client devices, but there is less data transmission. In response to such utilization, new technology and IoT application has been increased with the aim of facilitating and enhancing the performance of various missions in all sections of the country for public utilities management. This will help support economic development and improve the quality of life for people in the country. Therefore, it is necessary to allocate spectrum in the MHz range to support the demand for both RFID and non-rfid radio communications. B. Application of Spectrum for IOT in Thailand When IoT technology began to be widely used around the world, there was a higher demand for using the spectrum to support such technology. As for Thailand, it is found that the MHz spectrum band currently supports only applications of RFID. Therefore, it is a challenge for regulators such as NBTC to take actions, like amending relevant regulations by opening for the deployment of new technology including the devices that support the IoT network. The spectrum bands with license exemptions in Thailand are shown in Fig. 1. Fig. 1 Thailand s Unlicensed Spectrum for IoT For Thailand, NBTC has agreed to use the MHz spectrum band to support the Internet of Things technology and agreed to adopt 3 issues of the Notification of NBTC regarding the use of the spectrum in the MHz band [20-22]. This includes the Telecommunications Licensing Guidelines for supporting Internet of Things (IoT) applications. The essence of the Notification of NBTC regarding the criteria for MHz Spectrum Permission [20] includes: Revoking the Notification of the National Telecommunications Commission regarding the use of RFID dated January 20, 2006, and includes the essences of that notification in this particular notification to reduce duplication and facilitate the relevant parties. Use of the MHz spectrum band only for non-voice communications. The classification of the criteria for MHz spectrum permission is dived into 2 cases: 1) RFID and 2) Non-RFID. The radio communication devices shall have an Equivalent Isotropically Radiated (e.i.r.p) of not above 4 watts. The radio-communication equipment with the Equivalent Isotropically Radiated (e.i.r.p) of above 500 milliwatts will require a radio-communications license, as the case may be. As for the radio-communication equipment with the Equivalent Isotropically Radiated (e.i.r.p) of above 50 milliwatts but lower than 500 milliwatts, it is exempted from the license for generating, importing and exporting radio-communication equipment because there is less chance of interference in case its technical characteristics meet the required standards. As for the radio-communication equipment with the Equivalent Isotropically Radiated (e.i.r.p) of lower than 50 milliwatts, it is exempted from the license for generating, importing, and exporting radiocommunication equipment, but it is not exempt from a license to trade radio-communication equipment. 19

6 Generate Occupy Utilize Import Export Trade Set up Spectrum Allocation and Licensing of Internet of Things (IoT) in Thailand TABLE I LICENSE TERMS AND TECHNICAL FEATURES Transmission of Radio Data Communication Equipment (E.I.R.P) Radio-communications Licenses Technical Consistency Display Not above 50 mw SDoC Above 50 mw but lower than 500 mw Above 500 mw but lower than 4 W Pass a standard certification check. Pass a standard certification check. RFID radio-communication Equipment Transponder/Tag - Transponder/Reader with the transmission power of lower than 50 mw SDoC Transponder/Reader with the transmission power of above 50 mw but lower than 500 mw Transponder/Reader with the transmission power of above 500 mw but lower than 4 W Pass a standard certification check. Pass a standard certification check. The use of such devices will not be entitled to interference protection because the spectrum is permitted to be generally used or shared. However, if there is severe interference with the use of other communications networks in any areas, users are required to immediately suspend the use of such radio frequency in such areas. There are also some precautions for using the device; for example, some devices may be required to be used in the MHz (Region 2) band. Such use is not in accordance with the details specified in Thailand s National Table of Frequency Allocation, so there is a high chance of interference (Fig. 2). Fig. 2 Application of Equipment in the MHz Band The essence of the (Draft) NBTC s Notification regarding Technical Standards for RFID Equipment is shown in Table II. TABLE II (DRAFT) NBTC S NOTIFICATION REGARDING TECHNICAL STANDARDS FOR RADIO-COMMUNICATION EQUIPMENT AND RFID EQUIPMENT (REVISED) Ranges The spectrum in the band of lower than 135 khz Radio Spectrum Technical Standards Highest Transmission 150 mw (e.i.r.p.) or The license for generating, occupying, importing, and H-Field 55dBμA/m exporting radio-communication equipment and setting at the distance of 10 meters up radio-communication stations is exempted. >150 mw 7.5 W (e.i.r.p.) or H-Field > dbμa/m at the distance of 10 meters ETSI EN Require related radio-communications licenses. 20

7 Settapong Malisuwan, Wassana Kaewphanuekrungsi, and David William The spectrum in the range of MHz Highest Transmission 10 mw(e.i.r.p.) 1 W(e.i.r.p.) ETSI EN ETSI EN FCC Part The spectrum in the range of Highest Transmission MHz 10 mw(e.i.r.p.) The spectrum in the range of MHz The spectrum in the range of GHz The spectrum in the 5GHz band ETSI EN Highest Transmission 0.5 mw (e.i.r.p.) 4 W (e.i.r.p.) FCC Part FCC Part ETSI EN Highest Transmission 100 mw (e.i.r.p.) FCC Part FCC Part ETSI EN Spectrum Ranges The license for generating, occupying, importing, and exporting radio-communication equipment and setting up radio-communication stations is exempted. Require related radio-communications licenses. The license for generating, occupying, importing, and exporting radio-communication equipment and setting up radio-communication stations is exempted. The license for generating, occupying, importing, and exporting radio-communication equipment and setting up radio-communication stations is exempted. Require related radio-communications licenses. The license for generating, occupying, importing, and exporting radio-communication equipment and setting up radio-communication stations is exempted. Highest Transmission GHz 0.2 W (e.i.r.p.) GHz GHz FCC Part FCC Part ETSI EN W (e.i.r.p.) The license for generating, occupying, importing, and exporting radiocommunication equipment and setting up radio-communication stations is exempted. V. IOT APPLICATION IN THAILAND As for IoT applications in Thailand, operators of IoT services in Thailand will need to apply for the Type III Telecommunications Operation License to provide IoT services for general users. This can be carried out through building up the MHz band network to provide IoT services and to provide a central data service center for the business and industry sectors. Currently, the IoT technology market in Thailand is still in its early stage which is the further development of the system. The investment cost of this technology is quite high because of it being relatively new. Therefore, those who plan to invest or build up a network in this IoT market will need to make an investment and plans as well as develop a network with extensive coverage. Also, it is important to find partners or electronics manufacturers to help do marketing together to be able to occupy the market share. However, it is expected that there could be major operators of this technology with high levels of experience in IoT technology from abroad coming to do marketing in Thailand such as SIGFOX, LoRa, Telensa, and PTC. The MHz network architecture consists of connected devices and access stations, which interconnect the communication 21

8 Spectrum Allocation and Licensing of Internet of Things (IoT) in Thailand between the devices and base stations. It connects the communication in each base station, a central information center; and can connect to cellular networks. According to international standards of the European Telecommunications Standards Institute (ETSI) and the Federal Communications Commission (FCC), the MHz band will use the equipment developed for remote communications, will require low transmission power, and will transmit a small quantity of data through Frequency Hopping or Duty Cycle access. A. Characteristics of Connections and Access to Telecommunications Networks The MHz spectrum network is an IoT network which communicates data from connected devices to a cloud datacenter via the access station. Therefore, connections among users are conducted via the access station in each area as can be seen in Fig. 3. Fig. 3 Connections and Access to Networks B. Network Security and Reliability Plans 1) Network Security Plan Security features covering the entire network includes cryptography with the Advanced Encryption Standard (AES) in the creation of communication channels between the base station to the data center services through a Virtual Private Network (VPN) connection and the use of an authentaication key for every access. Good security design is very important for the communication system. The providers should have a system that provides security, detection and filtering of unauthorized or unsafe connections, and all of which should be reviewed regularly to ensure that the system is secure and safe. 2) Reliability Plan The MHz band network and central data center should be designed to have high security, be able to work in place of one another and to support large systems for a lot of IoT devices. The operator should establish business partners and carry out operations under the safety standards with appropriate physical security controls, including supporting emergency and emergency plans. VI. CONCLUSIONS There will be billions items of IoT equipment that are utilized and will create a massive impact. They are expected to be worth more than one trillion US dollars a year within the next decade. The next step of IoT is based on the inevitable challenges regarding developing a system that is cheap, reliable, and has good network connectivity. Here, the use of network sharing, technical standards, system components, infrastructure as well as strong cooperation among public - private partnerships can reduce the cost of the IoT system. Open data and platforms can help new systems to be more easily developed, especially small entrepreneurs, startup businesses, and SMEs. Telecommunications regulatory agencies are required to take part in supporting continuous development and deployment of telecommunications networks, and to specifically monitor the need for IoT spectrum utilization, especially licensing decisions and spectrum allocation. This is to ensure that the IoT system is well-developed and has the bandwidth required for communication. In some countries, the IoT regulations are designed to support economic growth and innovation. In Thailand, determining the criteria and conditions for the shared use of radiocommunication equipment in the MHz band supports the IoT usage to meet the needs of new technology application which relies on SRD, RFID, and other communications equipment plays an important role in data communication networks application as a tool for supporting, facilitating and enhancing the extensive utilization efficiency in many industries such as agriculture, transportation, and utilities. 22

9 Settapong Malisuwan, Wassana Kaewphanuekrungsi, and David William The fact that Thailand has set regulations, conditions and strategies related to IoT application will result in the creation of the IoT platform of the country. This will lead to creation of an IoT ecosystem that can strengthen new entrepreneurs. Big data, AI, and IoT are considered a global megatrend because they are going to be important tools that encourage the stakeholders to collaborate to create economic value in the era of Industry 4.0 and promote a better quality of life for people in the country. IoT technology will give rise to new kinds of jobs that are in line with global demands, improve production quality and promote efficiency in the work of all sectors. REFERENCES (Arranged in the order of citation in the same fashion as the case of Footnotes.) [1] Gartner. (2013). Forecast: The Internet of Things. Worldwide. [2] Manyika, J., Chui, M., Bughin, J., Dobbs, R., Bisson, P., and Marrs, A. (2013). Disruptive technologies: Advances that will transform life, business, and the global economy. McKinsey Global Institute, p. 51. [3] Bradley, J., Loucks, J., Macaulay, J., and Noronha, A. (2013). Internet of Everything (IoE) Value Index. Cisco White Paper. [4] International Telecommunication Union Telecommunications Standardization Sector. (2012). Overview of the Internet of things. Recommendation, ITU T, Y [5] GSMA. (2014). Understanding 5G: Perspectives on future technological advancements in mobile. [6] Tarkoma, S. (2014). Evolution of Internet based applications: Internet of Things, 5G, and smart devices. Helsinki public lecture. [7] European Commission. (2008). Internet of Things in 2020: Roadmap for the future. p. 13. [8] Vermesan, O. and Friess, P. (2014). Internet of Things From Research and Innovation to Market Deployment. Aalborg: River Publishers, p. 45. [9] Want, R., Schilit, B.N., and Jenson, S. (2015). Enabling the Internet of Things. IEEE Computer. [10] Fidler, M. (2013). Ubiquity, Interrupted?: A Comparison of European, Chinese, and U.S.. Governance of the Internet of Things as an Emerging Technology, First Annual Conference on Governance of Emerging Technologies, Phoenix, AZ. [11] Tassey, G. (2000). Standardization in technology based markets. Research Policy, Vol. 29(4) 29(5), p [12] ITU. Internet of Things Global Standards Initiative. < T/gsi/ iot/pages/default.aspx>. [13] Wachtel, T. (2012). 10 th Meeting of the Internet of Things Expert Group. Brussels. [14] Vermesan, O. and Friess, P. (2014). Internet of Things From Research and Innovation to Market Deployment. Aalborg: River Publishers. [15] Larson, S. (2015). Inside Amsterdam s efforts to become a smart city. The Kernel. [16] FTC Staff Report. (2015). Internet of Things: Privacy & Security in a Connected World. [17] Republic of Korea Ministry of Science. (2014). ICT and Future Planning, Master Plan for Building the Internet of Things (IoT) that leads the hyper connected, digital revolution. [18] Schindler, H.R., Cave, J., Robinson, N., Horvath, V., Hackett, P.J., Gunashekar, S., Botterman, M., Forge, S., and Graux, H. (2013). Europe s policy options for a dynamic and trustworthy development of the Internet of Things. RAND Corporation. [19] Barbagallo, P. (2014). As Internet of Things' Evolves. FCC's Spectrum Strategy Will Be Put to the Test, Bloomberg BNA. [20] NBTC. (Draft) Notification of NBTC: Criteria and Procedure for the Licensing of Spectrum for Telecommunications Service in the Frequency Band of MHz. [21] NBTC. (Draft) Notification of NBTC regarding Technical Standards for Radio- 23

10 Spectrum Allocation and Licensing of Internet of Things (IoT) in Thailand communication Equipment and Radio Frequency Identification: RFID Equipment. [22] NBTC. (Draft) Notification of NBTC regarding Technical Standards for Radio-communication Equipment and Non Radio Frequency Identification (RFID) Equipment which uses the spectrum in the MHz band. [23] Park, J.H. (2014). Government to Ease Up on Regulations on Financial Technology. Internet of Things, Business Korea. 24

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