Connected Cars? What challenges do they face in Regulated Markets

Connected cars in the automotive sector look to scale their operations and car sales abroad into regulated markets, such as China, Egypt, Turkey, Brazil, India, Saudi Arabia, Singapore, and UAE. They face major issues with the ‘Permanent Roaming restrictions’ faced by Mobile Network Operators.

Countries with Permanent Roaming Restrictions:

• Roaming is Prohibited: China, Egypt, India, Saudi Arabia, Singapore, and the UAE effectively prohibit large-scale permanent roaming.
  
• Roaming is Banned: Brazil, Turkey, and Nigeria have outright banned permanent roaming.
  
• Roaming Restrictions: Mobile operators in the US, Canada, and Australia have imposed restrictions on permanent roaming within their networks, effectively banning this practice in those countries.

Permanent roaming refers to connecting a device to a country that is not its “home” territory after a designated period, such as three months. Traditionally, roaming has been used for mobile phones by business travellers or holidaymakers who are not expected to stay in a country for more than a few weeks. However, permanent roaming can pose challenges for global deployments in the context of the Internet of Things (IoT) or Connected cars.

Cars have become software-defined networks and data hubs that deliver information, telematics, and safety measures to the next generation of vehicles. OEMs need Internet connectivity to the cars to send the data back to the IoT cloud platform for data analysis.

This is a great idea, as the Telematics box retrieves data the car generates on fuel efficiency, GPS location, and faults. It prioritises road safety and, with clever IoT technology, reduces the impact of fatal crashes and incidents on the road. So, the Connected Car must have continuous Global Internet Connectivity from a Single SIM and a high-performance network with low latency.

The problem with having your Vehicle in a Regulated Market for over 90 days in a Roaming restricted country is that the Mobile Network Operators (MNO) will cut you off, plain and simple. This leaves the Software-Defined vehicle without connectivity, and the Connected Car won’t be able to send data back to its IoT Cloud applications. While this duration is long enough for successful deployment, more is needed for devices that must operate in a country for years. IoT projects heavily rely on connectivity. If permanent roaming restrictions are enforced, it can hinder scalability and impact service delivery.

So what are the implications, and how do these Roaming restrictions impact the service of a Connected Car or Global IoT Deployments?

Permanent roaming restrictions typically refer to policies implemented by mobile network operators to prevent or limit the use of their services by IoT Devices that engage in continuous roaming for an extended period. Here are some common reasons and examples of permanent roaming restrictions:

1. Cost Control: Mobile operators may implement permanent roaming restrictions to control costs associated with providing services to customers who primarily use roaming instead of their home network. Continuous roaming can increase operators’ expenses due to inter-operator fees and wholesale roaming charges.
   
2. Fair Usage Policies: To ensure fair usage of their networks and prevent abuse, mobile operators may impose permanent roaming restrictions on customers who excessively use roaming services compared to their usage on the home network. This helps maintain network capacity and performance for all customers.
   
3. Regulatory Compliance: Some countries or regulatory bodies may impose restrictions on permanent roaming to protect the interests of domestic operators and promote fair competition. Operators may need to comply with regulatory requirements regarding roaming usage and pricing.
   
4. Network Management: Permanent roaming restrictions can also be implemented as part of network management strategies to prioritise resources and ensure better service for customers using the home network. This may involve deprioritising or limiting access to roaming services for customers who frequently roam.
   
5. Contractual Agreements: Mobile operators may include clauses in their terms of service or contracts that prohibit or restrict permanent roaming to protect their business interests and prevent customers from abusing roaming services at the operator’s expense.

Using a single Mobile Network operator will likely not provide the flexibility and force you to use their roaming partners on their network. OEMs won’t have a choice of what operators you will need to roam on, and the data consumption costs might become expensive.

Other Examples of permanent roaming restrictions that can cause complications may include:

• Limiting the duration of continuous roaming usage before additional charges or restrictions are applied.
  
• Notifying customers about excessive roaming usage and providing options to switch to a local SIM card or adjust their usage behaviour.
  
• It is implementing fair usage policies that cap the amount of data, minutes, or messages available for roaming usage within a specific billing cycle.
  
• Suspending or terminating service for customers who consistently violate roaming usage policies or engage in fraudulent activities related to roaming.

OEMs must review their IoT Connectivity contract with their MNO and terms of service to understand any permanent roaming restrictions that may apply and to ensure compliance with usage policies set by their mobile operators. Otherwise, they risk being cut off, and their IoT Application won’t work.

So what is the solution, and how do you avoid Permanent Roaming restrictions?

Using an eSIM Localisation Solution, Consider using an eSIM/eUICC SIM to avoid permanent roaming. This allows devices to connect to local networks without incurring roaming charges or the risk of being cut off. I have provided an overview of an eSIM here.

There is a new bread of MVNOs called Global IoT Connectivity Providers set up for B2B IoT Applications, which have a Multi-Network SIMs or Multi-IMSI SIMs and can switch to a local Mobile Network Operator on the same SIM. These MVNOs use Remote SIM Provisioning (RSP) or an eSIM solution to connect to a local Operator and switch between a Global Roaming Profiles and a Local Profile on the same SIM. OEMs can now easily comply with the ‘connectivity regulations’ with a single SIM SKU(Stock Control Unit). Most of these Global IoT Connectivity Providers have their own Core Network to ensure the Internet connectivity has a local breakout, to help reduce latency and packet loss, and provide the best connectivity to the Connected Car in that Country. With Local Networks, they can provide, local rates, better Global coverage and a flexible offering with the ability to switch to Mobile Operators in the same country.

It also means that you’re not locked into one Mobile Network Operator and have the flexibility to move and switch to another operator in the country as a backup. Flexibility is key to building a solution that works for you and helps reduce your overall Data consumption costs.

These are the different types of connectivity that need to be considered.

1. IP Localisation: This involves routing internet traffic through a local data centre and packet gateway to ensure that traffic and signalling data don’t traverse international borders unnecessarily. This can enhance security, reduce latency, and comply with specific regulations related to data sovereignty.
   
2. Soft Localisation: In this scenario, users obtain a local International Mobile Subscriber Identity (IMSI) from a local carrier to access cellular services permanently. However, this local IMSI can be managed on a foreign carrier’s Home Subscriber Server (HSS) or Core Network, meaning users don’t necessarily need to switch to a local carrier’s SIM card.
   
3. Full Localisation: This entails loading a local profile onto either a foreign embedded Universal Integrated Circuit Card (eUICC) or a local carrier’s SIM card. The connectivity services are then provided and managed by a local carrier, ensuring compliance with local regulations and possibly offering additional benefits or services.
   
4. eCall: This is a system installed in vehicles that automatically contacts emergency services in the event of a serious accident. Depending on the location and regulations, it may require a local profile to be loaded onto a foreign eUICC to ensure proper connectivity with the nearest emergency response network.

These distinctions highlight the importance of complying with local regulations, optimising network performance, and ensuring seamless connectivity for users, particularly in critical situations like emergencies.

Having a local Network Provider is essential, as it’s a work around for Roaming Restrictions and provides a better cost control for your overall spend strategy and full compliance in Regulated Markets.

Connected cars in regulated markets face several other complexities:

1. Data Privacy and Security: Connected cars collect vast amounts of data about driving behaviour, vehicle performance, and location. Regulated markets often have strict data privacy and security regulations, such as the GDPR in the EU or similar rules in other regions. Manufacturers and service providers must implement robust security measures to protect sensitive data from unauthorised access or misuse.
   
2. Safety Regulations: Regulated markets have safety standards and regulations that connected cars must comply with. This includes requirements for vehicle communication protocols, crash avoidance systems, and cybersecurity measures to prevent hacking or tampering with critical vehicle functions.
   
3. Interoperability and Standardisation: Connected cars often rely on various communication technologies and protocols for vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication. Ensuring interoperability between different manufacturers and service providers is crucial for widely adopting connected car technologies in regulated markets.
   
4. Legal Liability: The introduction of connected car technologies raises questions about legal liability in accidents or malfunctions. Regulated markets may need to establish clear frameworks for determining liability and insurance requirements for connected cars, considering factors such as autonomous driving features and data-driven decision-making.
   
5. Regulatory Approval and Certification: Manufacturers of connected car technologies must obtain regulatory approval and certification for their products before being deployed in regulated markets. This process often involves rigorous testing to ensure compliance with regulatory authorities’ safety, emissions, and performance standards.
   
6. Data Ownership and Access: Regulated markets may have regulations governing data ownership and access rights in connected cars. Manufacturers and service providers must clarify how data collected from connected cars will be used, shared, and accessed by various stakeholders, including consumers, government agencies, and third-party service providers.
   
7. Infrastructure Requirements: Deploying connected car technologies often requires investments in infrastructure, such as roadside sensors, communication networks, and data centres. Regulated markets may need to develop policies and funding mechanisms to support infrastructure deployment for connected car connectivity and functionality.

Navigating these complexities requires collaboration between automotive manufacturers, technology providers, regulatory agencies, and other stakeholders to ensure that connected car technologies meet regulatory requirements while delivering value to consumers and society.

It’s important to note that permanent roaming restrictions vary by country, so it’s essential to tailor your IoT deployment strategy accordingly. The key is to understand the regulations and stay informed about regulations in specific countries to ensure compliance and plan accordingly. Understanding these restrictions is crucial for success in designing a global IoT project.

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