Cross Border Data Flows: The impact of data localisation on IoT
This industry report seeks to shed new light on the costs of imposing data localization requirements or other restrictions on cross-border data flows with respect to the important economic growth likely to result from the uptake and adoption of IoT in manufacturing, agriculture and other important sectors of the economy. It chooses 3 large emerging markets in order to showcase its model, namely Brazil, Indonesia and South Africa.
This industry report seeks to shed new light on the costs of imposing data localization requirements or other restrictions on cross-border data flows with respect to the important economic growth likely to result from the uptake and adoption of IoT in manufacturing, agriculture and other important sectors of the economy. It chooses 3 large emerging markets in order to showcase its model, namely Brazil, Indonesia and South Africa.
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CROSS-BORDER DATA FLOWS: THE IMPACT OF DATA LOCALISATION ON IOT<br />
<str<strong>on</strong>g>The</str<strong>on</strong>g> Internet <str<strong>on</strong>g>of</str<strong>on</strong>g> Things (<strong>IoT</strong>) is hugely important and rapidly<br />
growing, with the potential to transform the digital ec<strong>on</strong>omy.<br />
Its industrial use is already having a significant <str<strong>on</strong>g>impact</str<strong>on</strong>g> <strong>on</strong> how<br />
businesses operate, and the widespread use <str<strong>on</strong>g>of</str<strong>on</strong>g> 5G will <strong>on</strong>ly further<br />
accelerate this transformati<strong>on</strong>. With <strong>IoT</strong> c<strong>on</strong>necti<strong>on</strong>s currently<br />
growing by almost 15 per cent annually, by 2025 this is set to reach<br />
approximately 25 billi<strong>on</strong> - vastly outnumbering pers<strong>on</strong>al devices<br />
(such as ph<strong>on</strong>es and computers) c<strong>on</strong>nected to wireless networks.<br />
Acknowledging the transformative steps that IOT can have <strong>on</strong><br />
ec<strong>on</strong>omic growth, GSMA’s latest study explores how the adopti<strong>on</strong><br />
<str<strong>on</strong>g>of</str<strong>on</strong>g> <str<strong>on</strong>g>Data</str<strong>on</strong>g> Localisati<strong>on</strong> Requirements (DLRs) could negatively <str<strong>on</strong>g>impact</str<strong>on</strong>g><br />
the many gains generated to date. In does so for three emerging<br />
countries: Brazil; Ind<strong>on</strong>esia; and South Africa.<br />
Whilst the study is hypothetical, it findings do allow us to<br />
c<strong>on</strong>sider the negative c<strong>on</strong>sequences <str<strong>on</strong>g>of</str<strong>on</strong>g> imposing DLRs and similar<br />
restricti<strong>on</strong>s <strong>on</strong> cross-border <str<strong>on</strong>g>data</str<strong>on</strong>g> flows and how to mitigate the<br />
<str<strong>on</strong>g>impact</str<strong>on</strong>g> <str<strong>on</strong>g>of</str<strong>on</strong>g> these measures. Acknowledging that the viability and<br />
<str<strong>on</strong>g>impact</str<strong>on</strong>g> <str<strong>on</strong>g>of</str<strong>on</strong>g> <strong>IoT</strong> is c<strong>on</strong>tingent <strong>on</strong> governments adopting a positive<br />
regulatory framework, the study c<strong>on</strong>cludes by outlining a number<br />
<str<strong>on</strong>g>of</str<strong>on</strong>g> acti<strong>on</strong>s to support growth in this sector and minimise trade<br />
restricti<strong>on</strong>s.<br />
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