The Internet of Things Frequently Asked Questions Updated October 13 2015 Congressional Research Service https crsreports congress gov R44227 The Internet of Things Frequently Asked Questions Summary “Internet of Things” IoT refers to networks of objects that communicate with other objects and with computers through the Internet “Things” may include virtually any object for which remote communication data collection or control might be useful such as vehicles appliances medical devices electric grids transportation infrastructure manufacturing equipment or building systems In other words the IoT potentially includes huge numbers and kinds of interconnected objects It is often considered the next major stage in the evolution of cyberspace Some observers believe it might even lead to a world where cyberspace and human space would seem to effectively merge with unpredictable but potentially momentous societal and cultural impacts Two features make objects part of the IoT—a unique identifier and Internet connectivity Such “smart” objects each have a unique Internet Protocol IP address to identify the object sending and receiving information Smart objects can form systems that communicate among themselves usually in concert with computers allowing automated and remote control of many independent processes and potentially transforming them into integrated systems Those systems can potentially impact homes and communities factories and cities and every sector of the economy both domestically and globally Although the full extent and nature of the IoT’s impacts remain uncertain economic analyses predict that it will contribute trillions of dollars to economic growth over the next decade Sectors that may be particularly affected include agriculture energy government health care manufacturing and transportation The IoT can contribute to more integrated and functional infrastructure especially in “smart cities ” with projected improvements in transportation utilities and other municipal services The Obama Administration announced a smart-cities initiative in September 2015 There is no single federal agency that has overall responsibility for the IoT Agencies may find IoT applications useful in helping them fulfill their missions Each is responsible for the functioning and security of its own IoT although some technologies such as drones may fall under the jurisdiction of other agencies as well Various agencies also have relevant regulatory sector-specific and other mission-related responsibilities such as the Departments of Commerce Energy and Transportation the Federal Communications Commission and the Federal Trade Commission Security and privacy are often cited as major issues for the IoT given the perceived difficulties of providing adequate cybersecurity for it the increasing role of smart objects in controlling components of infrastructure and the enormous increase in potential points of attack posed by the proliferation of such objects The IoT may also pose increased risks to privacy with cyberattacks potentially resulting in exfiltration of identifying or other sensitive information about an individual With an increasing number of IoT objects in use privacy concerns also include questions about the ownership processing and use of the data they generate Several other issues might affect the continued development and implementation of the IoT Among them are   the lack of consensus standards for the IoT especially with respect to connectivity the transition to a new Internet Protocol IPv6 that can handle the exponential increase in the number of IP addresses that the IoT will require Congressional Research Service The Internet of Things Frequently Asked Questions    methods for updating the software used by IoT objects in response to security and other needs energy management for IoT objects especially those not connected to the electric grid and the role of the federal government including investment regulation of applications access to wireless communications and the impact of federal rules regarding “net neutrality ” No bills specifically on the IoT have been introduced in the 114th Congress although S Res 110 was agreed to in March 2015 and H Res 195 was introduced in April Both call for a U S IoT strategy a focus on a consensus-based approach to IoT development commitment to federal use of the IoT and its application in addressing challenging societal issues House and Senate hearings have been held on the IoT and several congressional caucuses may consider associated issues Moreover bills affecting privacy cybersecurity and other aspects of communication could affect IoT applications Congressional Research Service The Internet of Things Frequently Asked Questions Contents What Is the Internet of Things IoT 1 How Does the IoT Work 2 What Impacts Will the IoT Have 4 Economic Growth 4 Economic Sectors 4 Agriculture 4 Energy 5 Health Care 6 Manufacturing 6 Transportation 6 Infrastructure and Smart Cities 7 Social and Cultural Impacts 8 What Is the Current Federal Role 8 What Issues Might Affect the Development and Implementation of the IoT 11 Technical Issues 11 Internet Addresses 11 High-Speed Internet 13 Wireless Communications 13 Standards 13 Other Technical Issues 14 Cybersecurity 14 Safety 15 Privacy 16 Other Policy Issues 17 Federal Role 17 Spectrum Access 18 Net Neutrality 18 What Actions Has Congress Taken 19 Legislation 19 Bills 19 Resolutions 19 Hearings 19 Caucuses 20 Where Can I Find Additional Resources on This Topic 20 Contacts Author Information 20 Acknowledgments 20 Congressional Research Service The Internet of Things Frequently Asked Questions he Internet of Things IoT is a complex often poorly understood phenomenon The term is more than a decade old but interest has grown considerably over the last few years as applications have increased 1 The impacts of the IoT on the economy and society more generally are expected by many to grow substantially This report was developed to assist Congress in responding to some commonly asked questions about it T        “What Is the Internet of Things IoT ” “How Does the IoT Work ” “What Impacts Will the IoT Have ” “What Is the Current Federal Role ” “What Issues Might Affect the Development and Implementation of the IoT ” “What Actions Has Congress Taken ” “Where Can I Find Additional Resources on This Topic ” What Is the Internet of Things IoT When people talk about the Internet they are usually referring to the electronic network that permits computers around the world to communicate with each other What then is the IoT There is no universally agreed-upon definition 2 but generally the term is used to describe networks of objects that are not themselves computers but that have embedded components that connect to the Internet “Things” may include for example smart meters fitness trackers personal vehicles home appliances medical devices and even clothing used by individual consumers They may also include embedded devices in roadways and in other components of infrastructure such as electric grids manufacturing plants and other buildings farms and virtually any other object element or system for which remote communications control or data collection and processing might be useful While fixed and mobile computing devices such as desktop computers smartphones and tablets are generally not considered to be IoT objects smartphones in particular have features such as motion and position sensors that blur the distinctions 3 Some smartphone applications for example enable them to be used in fitness tracking and other health monitoring In other words the IoT potentially includes huge numbers and kinds of interconnected objects In practice IoT refers not to a simple or uniform network of objects but rather to a complex collection of objects and networks Specific dimensions of the IoT may be referred to by terms such as smart grid connected cities and Industrial Internet 4 Other terms may also be used in the Postscapes “A Brief History of the Internet of Things ” 2015 http postscapes com internet-of-things-history See for example Roberto Minerva Abyi Biru and Domenico Rotondi “Towards a Definition of the Internet of Things IoT ” IEEE Internet Initiative May 27 2015 http iot ieee org images files pdf IEEE_IoT_Towards_Definition_Internet_of_Things_Revision1_27MAY15 pdf 3 Adam Thierer “The Internet of Things and Wearable Technology Addressing Privacy and Security Concerns without Derailing Innovation” Mercatus Center George Mason University November 19 2014 http mercatus org publication internet-things-and-wearable-technology-addressing-privacy-and-security-concerns-without 4 See for example Goldman Sachs Global Investment Research “Our Thinking—What Is the Internet of Things ” Goldman Sachs September 2014 http www goldmansachs com our-thinking pages iot-infographic html Some observers even use Industrial Internet as a synonym for the IoT although it more commonly applies to manufacturing and other industrial activities See for example World Economic Forum “Industrial Internet of Things Unleashing the Potential of Connected Products and Services” World Economic Forum January 2015 http www weforum org reports industrial-internet-things-unleashing-potential-connected-products-and-services Industrial Internet Consortium 1 2 Congressional Research Service 1 The Internet of Things Frequently Asked Questions context of IoT to denote related concepts such as cyber-physical systems5 and the Internet of Everything 6 The IoT is often considered the next major stage in the evolution of cyberspace 7 The first electronic computers were developed in the 1940s but 40 years passed before connecting computers through wired devices began to spread in the 1980s The first decade of the 21st century saw the next stage marked by the rapid spread of smartphones and other mobile devices that use wireless communications 8 as well as social media big-data analytics and cloud computing 9 Building on those advances connections between two or more machines M2M and between machines and people are expected by many observers to lead to huge growth in the IoT by 2020 10 How Does the IoT Work The IoT is not separate from the Internet but rather a potentially huge extension and expansion of it The “things” that form the basis of the IoT are objects They could be virtually anything— streetlights thermostats electric meters 11 fitness trackers factory equipment automobiles unmanned aircraft systems UASs or drones 12 or even cows or sheep in a field 13 What makes an “Home ” 2015 http www industrialinternetconsortium org index htm 5 National Institute of Standards and Technology “Cyber-Physical Systems ” May 22 2015 http www nist gov cps index cfm NIST defines cyber-physical systems as “co-engineered interacting networks of physical and computational components ” It is a somewhat broader concept than the IoT in that such systems need not be connected to the Internet to function 6 Cisco “The Internet of Everything ” 2013 http perma cc Y4LQ-633J type live This concept is similar to that of the IoT but emphasizes its ubiquity leading some observers to argue that it is more comprehensive Dorothy Shamonsky “Internet of Things vs Internet of Everything Does the Distinction Matter to User Experience Designers ” ICS Insight Blog July 13 2015 http www ics com blog internet-things-vs-internet-everything-doesdistinction-matter-user-experience-designers For purposes of this report they are treated as synonymous 7 The term cyberspace usually refers to the worldwide collection of connected ICT components the information that is stored in and flows through those components and the ways that information is structured and processed Its evolution has been characterized in many different ways but IoT’s emergence is a common theme See for example Janna Anderson and Lee Rainie “The Internet of Things Will Thrive by 2025 ” Pew Research Center May 14 2014 http www pewinternet org 2014 05 14 internet-of-things Simona Jankowski et al “The Internet of Things Making Sense of the Next Mega-Trend” Goldman Sachs Global Investment Research September 3 2014 http www goldmansachs com our-thinking pages internet-of-things iot-report pdf The White House “Cyberspace Policy Review ” May 29 2009 http www whitehouse gov assets documents Cyberspace_Policy_Review_final pdf 8 Pew Research Internet Project “Device Ownership over Time ” January 2014 http www pewinternet org data-trend mobile device-ownership 9 Nicholas D Evans “SMAC and the Evolution of IT ” Computerworld December 9 2013 http www computerworld com article 2475696 it-transformation smac-and-the-evolution-of-it html SMAC stands for social media mobile devices analytics big data and cloud computing 10 Gartner Inc “Gartner Says 4 9 Billion Connected ‘Things’ Will Be in Use in 2015” press release November 11 2014 http www gartner com newsroom id 2905717 Leon Spencer “Internet of Things Market to Hit $7 1 Trillion by 2020 IDC ” June 5 2014 http www zdnet com article internet-of-things-market-to-hit-7-1-trillion-by-2020-idc 11 See CRS Report R42338 Smart Meter Data Privacy and Cybersecurity by Brandon J Murrill Edward C Liu and Richard M Thompson II 12 See CRS Report R44192 Unmanned Aircraft Systems UAS Commercial Outlook for a New Industry by Bill Canis 13 Tove B Danovich “Internet-Connected Sheep and the New Roaming Wireless ” The Atlantic February 9 2015 http www theatlantic com technology archive 2015 02 internet-connected-sheep-and-the-new-roaming-wireless 385274 David Evans “Introducing the Wireless Cow ” The Agenda July 2015 http www politico com agenda story 2015 06 internet-of-things-growth-challenges-000098 Congressional Research Service 2 The Internet of Things Frequently Asked Questions object part of the IoT is embedded or attached computer chips or similar components that give the object both a unique identifier and Internet connectivity Objects with such components are often called “smart”—such as smart meters and smart cars Internet connectivity allows a smart object to communicate with computers and with other smart objects Connections of smart objects to the Internet can be wired such as through Ethernet cables or wireless such as via a Wi-Fi or cellular network To enable precise communications each IoT object must be uniquely identifiable That is accomplished through an Internet Protocol IP address a number assigned to each Internetconnected device whether a desktop computer a mobile phone a printer or an IoT object 14 Those IP addresses ensure that the device or object sending or receiving information is correctly identified What kinds of information do IoT objects communicate The answer depends on the nature of the object and it can be simple or complex For example a smart thermometer might have only one sensor used to communicate ambient temperature to a remote weather-monitoring center A wireless medical device might in contrast use various sensors to communicate a person’s body temperature pulse blood pressure and other variables to a medical service provider via a computer or mobile phone Smart objects can also be involved in command networks For example industrial control systems can adjust manufacturing processes based on input from both other IoT objects and human operators Network connectivity can permit such operations to be performed in “real time”—that is almost instantaneously Smart objects can form systems that communicate information and commands among themselves usually in concert with computers they connect to This kind of communication enables the use of smart systems in homes vehicles factories and even entire cities Smart systems allow for automated and remote control of many processes A smart home can permit remote control of lighting security HVAC heating ventilating and air conditioning and appliances In a smart city an intelligent transportation system ITS may permit vehicles to communicate with other vehicles and roadways to determine the fastest route to a destination avoiding traffic jams and traffic signals can be adjusted based on congestion information received from cameras and other sensors 15 Buildings might automatically adjust electric usage based on information sent from remote thermometers and other sensors 16 An Industrial Internet application can permit companies to monitor production systems and adjust processes remotely control and synchronize machinery operations track inventory and supply chains and perform other tasks 17 IoT connections and communications can be created across a broad range of objects and networks and can transform previously independent processes into integrated systems These integrated Internet Assigned Numbers Authority IANA “Number Resources ” 2015 https www iana org numbers Department of Transportation “Intelligent Transportation Systems ITS ” 2015 http www its dot gov index htm Bruce Katz “Why the U S Government Should Embrace Smart Cities” Brookings Institution July 26 2011 http www brookings edu research opinions 2011 07 26-cities-katz 16 Richard Barker and Amy Liu “Smart Buildings the Next Step for Seattle ” Brookings Institution July 28 2014 http www brookings edu blogs the-avenue posts 2014 07 28-smart-buildings-seattle-barker-liu Bob Violino “Smart Cities Are Here Today—and Getting Smarter ” Computerworld February 12 2014 http www computerworld com article 2487526 emerging-technology-smart-cities-are-here-today-and-getting-smarter html 17 See for example Industrial Internet Consortium “Home ” 14 15 Congressional Research Service 3 The Internet of Things Frequently Asked Questions systems can potentially have substantial effects on homes and communities factories and cities and every sector of the economy both domestically and globally What Impacts Will the IoT Have The IoT may significantly affect many aspects of the economy and society although the full extent and nature of its eventual impacts remains uncertain Many observers predict that the growth of the IoT will bring positive benefits through enhanced integration efficiency and productivity across many sectors of the U S and global economies 18 Among those commonly mentioned are agriculture energy health care manufacturing and transportation Significant impacts may also be felt more broadly on economic growth infrastructure and cities and individual consumers However both policy and technical challenges including security and privacy issues might inhibit the growth and impact of IoT innovations Economic Growth Several economic analyses have predicted that the IoT will contribute significantly to economic growth over the next decade but the predictions vary substantially in magnitude The current global IoT market has been valued at about $2 trillion with estimates of its predicted value over the next 5 to 10 years varying from $4 trillion to $11 trillion 19 Such variability demonstrates the difficulty of making economic forecasts in the face of various uncertainties including a lack of consensus among researchers about exactly what the IoT is and how it will develop 20 Economic Sectors Agriculture The IoT can be leveraged by the agriculture industry through precision agriculture with the goal of optimizing production and efficiency while reducing costs and environmental impacts For farming operations it involves analysis of detailed often real-time data on weather soil and air quality water supply pest populations crop maturity and other factors such as the cost and availability of equipment and labor 21 Field sensors test soil moisture and chemical balance which See for example National Security Telecommunications Advisory Committee “NSTAC Report to the President on the Internet of Things ” November 19 2014 http www dhs gov sites default files publications NSTAC%20Report%20to%20the%20President%20on%20the%20Internet%20of%20Things%20Nov%202014%20%2 8updat%20%20%20 pdf 19 Denise Lund et al “Worldwide and Regional Internet of Things IoT 2014–2020 Forecast A Virtuous Circle of Proven Value and Demand ” May 2014 Gartner Inc “Gartner Says the Internet of Things Installed Base Will Grow to 26 Billion Units By 2020” December 12 2013 http www gartner com newsroom id 2636073 James Manyika et al “The Internet of Things Mapping the Value Beyond the Hype” McKinsey Global Institute June 2015 http www mckinsey com media McKinsey dotcom Insights Business Technology Unlocking the potential of the Internet of Things Unlocking_the_potential_of_the_Internet_of_Things_Full_report ashx Verizon “State of the Market The Internet of Things 2015 ” February 20 2015 http www verizonenterprise com resources reports rp_state-of-market-the-market-the-internet-of-things-2015_en_xg pdf 20 Anderson and Rainie “The Internet of Things Will Thrive by 2025 ” 21 Jasper Janangir Mohammed “Surprise Agriculture Is Doing More with IoT Innovation than Most Other Industries ” VentureBeat December 7 2014 http venturebeat com 2014 12 07 surprise-agriculture-is-doing-more-with-iotinnovation-than-most-other-industries IBM Research “Precision Agriculture ” 2015 http www research ibm com articles precision_agriculture shtml 18 Congressional Research Service 4 The Internet of Things Frequently Asked Questions can be coupled with location technologies to enable precise irrigation and fertilization 22 Drones and satellites can be used to take detailed images of fields giving farmers information about crop yield nutrient deficiencies and weed locations 23 For ranching and animal operations radio frequency identification RFID chips and electronic identification readers EID help monitor animal movements feeding patterns and breeding capabilities while maintaining detailed records on individual animals 24 Energy Within the energy sector the IoT may impact both production and delivery for example through facilitating monitoring of oil wellheads and pipelines 25 When IoT components are embedded into parts of the electrical grid the resulting infrastructure is commonly referred to as the “smart grid ”26 This use of IoT enables greater control by utilities over the flow of electricity and can enhance the efficiency of grid operations 27 It can also expedite the integration of microgenerators into the grid 28 Smart-grid technology can also provide consumers with greater knowledge and control of their energy usage through the use of smart meters in the home or office 29 Connection of smart meters to a building’s HVAC lighting and other systems can result in “smart buildings” that integrate the operation of those systems 30 Smart buildings use sensors and other data to automatically adjust room temperatures lighting and overall energy usage resulting in greater efficiency and lower energy cost 31 Information from adjacent buildings may be further integrated to provide additional efficiencies in a neighborhood or larger division in a city Agnes Szolnoki and Andras Nabradi “Economic Practical Impacts of Precision Farming—With Especial Regard to Harvesting ” Applied Studies in Agribusiness and Commerce 8 no 2–3 2014 141–46 http ageconsearch umn edu handle 202892 23 Matthew J Grassi “Imagery Which Way Is Right for Me ” PrecisionAg August 6 2015 http www precisionag com data imagery imagery-which-way-is-right-for-me 24 See for example Adrianne Jeffries “Internet of Cows Technology Could Help Track Disease but Ranchers Are Resistant ” The Verge May 13 2013 http www theverge com 2013 5 10 4316658 internet-of-cows-technologyoffers-ways-to-track-livestock-but The State of Victoria “On-Farm Benefits of Sheep Electronic Identification EID ” Agriculture 2015 http agriculture vic gov au agriculture farm-management national-livestock-identification-system nlis-sheep-and-goats on-farm-benefits-of-sheep-electronic-identification 25 Verizon “State of the Market The Internet of Things 2015 ” 26 Department of Energy “The Smart Grid ” 2015 http www smartgrid gov the_smart_grid#smart_grid 27 CRS Report R41886 The Smart Grid and Cybersecurity—Regulatory Policy and Issues by Richard J Campbell 28 Jean Kumagai “The Rise of the Personal Power Plant ” IEEE Spectrum May 28 2014 http spectrum ieee org energy the-smarter-grid the-rise-of-the-personal-power-plant 29 CRS Report R42338 Smart Meter Data Privacy and Cybersecurity by Brandon J Murrill Edward C Liu and Richard M Thompson II 30 Institute for Building Efficiency “What Is a Smart Building ” April 2011 http www institutebe com smart-gridsmart-building What-is-a-Smart-Building aspx 31 IBM “Smarter Buildings ” 2015 http www ibm com smarterplanet us en green_buildings overview 22 Congressional Research Service 5 The Internet of Things Frequently Asked Questions Health Care The IoT has many applications in the health care field 32 in both health monitoring and treatment including telemedicine and telehealth 33 Applications may involve the use of medical technology and the Internet to provide long-distance health care and education 34 Medical devices—which can be wearable or nonwearable or even implantable injectable or ingestible35—can permit remote tracking of a patient’s vital signs chronic conditions or other indicators of health and wellness 36 Wireless medical devices may be used not only in hospital settings but also in remote monitoring and care freeing patients from sustained or recurring hospital visits 37 Some experts have stated that advances in healthcare IoT applications will be important for providing affordable quality care to the aging U S population 38 Manufacturing Integration of IoT technologies into manufacturing and supply chain logistics is predicted to have a transformative effect on the sector 39 The biggest impact may be realized in optimization of operations making manufacturing processes more efficient 40 Efficiencies can be achieved by connecting components of factories to optimize production but also by connecting components of inventory and shipping for supply chain optimization 41 Another application is predictive maintenance which uses sensors to monitor machinery and factory infrastructure for damage Resulting data can enable maintenance crews to replace parts before potentially dangerous and or costly malfunctions occur 42 Transportation Transportation systems are becoming increasingly connected New motor vehicles are equipped with features such as global positioning systems GPS and in-vehicle entertainment as well as The use of IoT in medicine is sometimes referred to as “connected” or “digital” health See for example Food and Drug Administration “Digital Health ” September 22 2015 http www fda gov ForConsumers ConsumerUpdates ucm20035974 htm 33 American Telemedicine Association “What Is Telemedicine ” 2015 http www americantelemed org abouttelemedicine what-is-telemedicine 34 Health Resources and Services Administration “Telehealth ” Department of Health and Human Services 2015 http www hrsa gov ruralhealth about telehealth telehealth html 35 Manyika et al “The Internet of Things Mapping the Value Beyond the Hype ” 36 Jerome Couturier et al “How Can the Internet of Things Help to Overcome Current Healthcare Challenges ” Digiworld Economic Journal no 87 Q 2012 67–81 http papers ssrn com sol3 papers cfm abstract_id 2304133 37 See for example Food and Drug Administration “Wireless Medical Devices ” September 22 2015 http www fda gov MedicalDevices DigitalHealth WirelessMedicalDevices default htm 38 See testimony from Senate Special Committee on Aging Roundtable Harnessing the Power of Telehealth Promises and Challenges 2014 http www aging senate gov hearings roundtable-harnessing-the-power-of-telehealthpromises-and-challenges House Committee on the Judiciary Subcommittee on Courts Intellectual Property and the Internet Internet of Things 2015 http judiciary house gov index cfm 2015 7 hearing-internet-of-things 39 Lopez Research “Building Smarter Manufacturing with the Internet of Things IoT ” January 2014 http www cisco com web solutions trends iot iot_in_manufacturing_january pdf James Macaulay Lauren Buckalew and Gina Chung “Internet of Things in Logistics” DHL Trend Research and Cisco Consulting Services 2015 http www dhl com content dam Local_Images g0 New_aboutus innovation DHLTrendReport_Internet_of_things pdf 40 Manyika et al “The Internet of Things Mapping the Value Beyond the Hype ” 41 Macaulay Buckalew and Chung “Internet of Things in Logistics ” 42 Manyika et al “The Internet of Things Mapping the Value Beyond the Hype ” 32 Congressional Research Service 6 The Internet of Things Frequently Asked Questions advanced driver assistance systems ADAS which utilize sensors in the vehicle to assist the driver for example with parking and emergency braking 43 Further connection of vehicle systems enables fully autonomous or self-driving automobiles which are predicted to be commercialized in the next 5-20 years 44 Additionally IoT technologies can allow vehicles within and across modes—including cars buses trains airplanes and unmanned aerial vehicles drones —to “talk” to one another and to components of the IoT infrastructure creating intelligent transportation systems ITS Potential benefits of ITS may include increased safety and collision avoidance optimized traffic flows and energy savings among others 45 Infrastructure and Smart Cities The capabilities of the smart grid smart buildings and ITS combined with IoT components in other public utilities—such as roadways sewage and water transport and treatment public transportation and waste removal—can contribute to more integrated and functional infrastructure especially in cities 46 For example traffic authorities can use cameras and embedded sensors to manage traffic flow and help reduce congestion 47 IoT components embedded in street lights or other infrastructure elements can provide functions such as advanced lighting control environmental monitoring and even assistance for drivers in finding parking spaces 48 Smart garbage cans can signal waste removal teams when they are full streamlining the routes that garbage trucks take 49 This integration of infrastructure and service components is increasingly referred to as smart cities or other terms such as connected digital or intelligent cities or communities A number of cities in the United States and elsewhere have developed smart-city initiatives 50 Intel “Technology and Computing Requirements for Self-Driving Cars ” June 2014 http www intel com content dam www public us en documents white-papers automotive-autonomous-driving-vision-paper pdf 44 James M Anderson et al Autonomous Vehicle Technology A Guide for Policymakers Santa Monica CA Rand Corporation 2014 http www rand org content dam rand pubs research_reports RR400 RR443-1 RAND_RR4431 pdf 45 Intelligent Transportation Systems ITS and Joint Program Office JPO “ITS 2015-2019 Strategic Plan” Department of Transportation February 19 2015 http www its dot gov strategicplan pdf 46 Manyika et al “The Internet of Things Mapping the Value Beyond the Hype” Matthew Cuddy et al “The Smart Connected City and Its Implications for Connected Transportation” Department of Transportation October 14 2014 http www its dot gov itspac Dec2014 Smart_Connected_City_FINAL_111314 pdf 47 Katz “Why the U S Government Should Embrace Smart Cities ” 48 GE Lighting “GE Announces Programs for Intelligent Cities on Both U S Coasts as It Pilots New Connected LED Solution” Press Release April 15 2015 http pressroom gelighting com news ge-announces-programs-forintelligent-cities-on-both-u-s-coasts-as-it-pilots-new-connected-led-solution# VcuyzfnYjnh 49 See Andrea Zanella et al “Internet of Things for Smart Cities ” IEEE Internet of Things Journal 1 no 1 February 2014 22–32 doi 10 1109 JIOT 2014 2306328 50 See for example Brookings Institution “Getting Smarter About Smart Cities ” April 18 2014 http www brookings edu media research files papers 2014 04 smart-cities bmpp_smartcities pdf City of Scottsdale “myScottsdale ” 2015 http www scottsdaleaz gov service-request myScottsdale City of Dubuque “DBQ IQ Water Management ” 2015 http www cityofdubuque org 1786 DBQ-IQ Cleantech San Diego “Smart Cities San Diego ” 2015 http cleantechsandiego org smart-city-san-diego Boyd Cohen “The 10 Smartest Cities In North America ” Fast Company November 14 2013 http www fastcoexist com 3021592 the-10-smartest-cities-in-north-america GE Lighting “GE Announces Programs for Intelligent Cities” Smart Cities Council “Vision ” 2015 http smartcitiescouncil com category-vision Violino “Smart Cities Are Here Today—and Getting Smarter ” 43 Congressional Research Service 7 The Internet of Things Frequently Asked Questions As with IoT and other popular technology terms there is no established consensus definition or set of criteria for characterizing what a smart city is Specific characterizations vary widely but in general they involve the use of IoT and related technologies to improve energy transportation governance and other municipal services for specified goals such as sustainability or improved quality of life 51 The related technologies include     social media such as Facebook and Twitter mobile computing such as smartphones and wearable devices data analytics big data—the processing and use of very large data sets and open data—databases that are publicly accessible and cloud computing the delivery of computing services from a remote location analogous to the way utilities such as electricity are provided 52 Together these are sometimes called SMAC 53 Social and Cultural Impacts The IoT may create webs of connections that will fundamentally transform the way people and things interact with each other The emerging cyberspace platform created by the IoT and SMAC has been described as potentially making cities “like ‘computers’ in open air ” where citizens engage with the city “in a real-time and ongoing loop of information ”54 Some observers have proposed that the growth of IoT will result in a hyperconnected world in which the seamless integration of objects and people will cause the Internet to disappear as a separate phenomenon 55 In such a world cyberspace and human space would seem to effectively merge into a single environment with unpredictable but potentially substantial societal and cultural impacts What Is the Current Federal Role There is no single federal agency that has overall responsibility for the IoT just as there is no one agency with overall responsibility for cyberspace Federal agencies may find the IoT useful in helping them fulfill their missions through a variety of applications such as those discussed in this See for example Brookings Institution “Getting Smarter About Smart Cities” Hafedh Chourabi et al “Understanding Smart Cities An Integrative Framework” 45th Hawaii International Conference on System Sciences IEEE 2012 2289–97 doi 10 1109 HICSS 2012 615 Frost and Sullivan “Strategic Opportunity Analysis of the Global Smart City Market ” August 2013 http twimgs com audiencedevelopment JC LANDINGPAGES GOV YEAR_2014 020314 4Define pdf GSMA and A T Kearney “GSMA Mobile Economy 2013 ” July 19 2013 http www gsmamobileeconomy com GSMA%20Mobile%20Economy%202013 pdf Smart Cities Council “Definitions and Overviews ” 2015 http smartcitiescouncil com smart-cities-information-center definitions-andoverviews 52 See CRS Report R42887 Overview and Issues for Implementation of the Federal Cloud Computing Initiative Implications for Federal Information Technology Reform Management by Patricia Moloney Figliola and Eric A Fischer 53 See for example Evans “SMAC and the Evolution of IT ” 54 Carlo Ratti of the Massachusetts Institute of Technology as quoted in Violino “Smart Cities Are Here Today—and Getting Smarter ” 55 See for example Hayley Tsukayama “What Eric Schmidt Meant When He Said ‘the Internet Will Disappear ’” The Washington Post January 23 2015 https www washingtonpost com blogs the-switch wp 2015 01 23 what-ericschmidt-meant-when-he-said-the-internet-will-disappear 51 Congressional Research Service 8 The Internet of Things Frequently Asked Questions report and elsewhere 56 Each agency is responsible under various laws and regulations for the functioning and security of its own IoT although some technologies such as drones may also fall under some aspects of the jurisdiction of other agencies Various agencies have regulatory sector-specific and other mission-related responsibilities that involve aspects of IoT For example entities that use wireless communications for their IoT devices will be subject to allocation rules for the portions of the electromagnetic spectrum that they use       The Federal Communications Commission FCC allocates and assigns spectrum for nonfederal entities 57 In the Department of Commerce the National Telecommunications and Information Administration NTIA fulfills that function for federal entities 58 and the National Institute of Standards and Technology NIST creates standards develops new technologies and provides best practices for the Internet and Internet-enabled devices 59 The Federal Trade Commission FTC regulates and enforces consumer protection policies including for privacy and security of consumer IoT devices 60 The Department of Homeland Security DHS is responsible for coordinating security for the 16 critical infrastructure sectors 61 Many of those sectors use industrial control systems ICS which are often connected to the Internet and the DHS National Cybersecurity and Communications Integration Center NCCIC has an ICS Cyber Emergency Response Team ICS-CERT to help critical-infrastructure entities address ICS cybersecurity issues 62 The Food and Drug Administration FDA also has responsibilities with respect to the cybersecurity of Internet-connected medical devices 63 The Department of Justice DOJ addresses law-enforcement aspects of IoT including cyberattacks unlawful exfiltration of data from devices and or See for example Joseph Bradley et al “Internet of Everything A $4 6 Trillion Public-Sector Opportunity ” White Paper Cisco 2013 http internetofeverything cisco com sites default files docs en ioe_public_sector_vas_white%20paper_121913final pdf 57 CRS Report RL32589 The Federal Communications Commission Current Structure and Its Role in the Changing Telecommunications Landscape by Patricia Moloney Figliola CRS Report R43256 Spectrum Policy Provisions in the 2012 Spectrum Act by Linda K Moore 58 CRS Report R43866 The National Telecommunications and Information Administration NTIA An Overview of Programs and Funding by Linda K Moore 59 See for example National Institute of Standards and Technology “Cyber-Physical Systems ” 60 See for example FTC Staff “Internet of Things Privacy and Security in a Connected World” Federal Trade Commission January 2015 http www ftc gov system files documents reports federal-trade-commission-staff-reportnovember-2013-workshop-entitled-internet-things-privacy 150127iotrpt pdf 61 For descriptions of these sectors see The White House “Critical Infrastructure Security and Resilience” Presidential Policy Directive 21 February 12 2013 http www whitehouse gov the-press-office 2013 02 12 presidential-policydirective-critical-infrastructure-security-and-resil The directive also identifies sector-specific agencies for each of the identified sectors 62 Department of Homeland Security “About the National Cybersecurity and Communications Integration Center ” April 27 2015 http www dhs gov about-national-cybersecurity-communications-integration-center 63 See for example Food and Drug Administration “Cybersecurity for Medical Devices and Hospital Networks FDA Safety Communication ” June 13 2013 http www fda gov MedicalDevices Safety AlertsandNotices ucm356423 htm 56 Congressional Research Service 9 The Internet of Things Frequently Asked Questions    networks and investigation and prosecution of other computer and intellectual property crimes 64 Relevant activities at the Department of Energy DOE include those associated with developing high-performance and green buildings and other energy-related programs including those related to smart electrical grids 65 The Department of Transportation DOT has established an Intelligent Transportation Systems Joint Program Office ITS JPO to coordinate various programs and activities throughout DOT relating to the development and deployment of connected vehicles and systems involving all modes of surface transportation 66 DOT mode-specific agencies also engage in ITS activities 67 The Federal Aviation Administration FAA is involved in regulation and other activities relating to unmanned aerial vehicles UAVs 68 and commercial systems UAS 69 The Department of Defense was a pioneer in the development of much of the foundational technology for the IoT Most of its IoT deployment has related to its combat mission both directly and for logistical and other support 70 In addition to the activities described above several agencies are engaged in research and development R D related to the IoT   Like NIST the National Science Foundation NSF engages in cyber-physical systems research and other activities that cut across various IoT applications 71 The Networking and Information Technology Research and Development Program NITRD under the Office of Science and Technology Policy OSTP coordinates federal agency R D in networking and information technology The NITRD Cyber Physical Systems Senior Steering Group “coordinates programs budgets and policy recommendations” for IoT R D 72 Other agencies involved See for example Department of Justice “FY 2015 Budget Request Cybersecurity ” February 28 2014 http www justice gov sites default files jmd legacy 2014 08 18 cyber-security pdf 65 See for example CRS Report R40147 Issues in Green Building and the Federal Response An Introduction by Eric A Fischer CRS Report R41886 The Smart Grid and Cybersecurity—Regulatory Policy and Issues by Richard J Campbell 66 See for example Brian Cronin and Kevin Dopart “Connected Vehicles—Improving Safety Mobility and the Environment” U S Department of Transportation April 9 2014 http www its dot gov presentations pdf NASA_Briefingv3 2 pdf Intelligent Transportation Systems ITS and Joint Program Office JPO “ITS 2015-2019 Strategic Plan ” CRS Report R42367 Medicaid and Federal Grant Conditions After NFIB v Sebelius Constitutional Issues and Analysis by Kenneth R Thomas 67 Intelligent Transportation Systems Joint Program Office “About ITS ” Department of Transportation 2015 http www its dot gov its_program about_its htm 68 CRS Report R42718 Pilotless Drones Background and Considerations for Congress Regarding Unmanned Aircraft Operations in the National Airspace System by Bart Elias 69 CRS Report R44192 Unmanned Aircraft Systems UAS Commercial Outlook for a New Industry by Bill Canis 70 Denise E Zheng and William A Carter “Leveraging the Internet of Things for a More Efficient and Effective Military” Center for Strategic and International Studies September 2015 http csis org files publication 150915_Zheng_LeveragingInternet_WEB pdf 71 National Science Foundation “Cyber-Physical Systems CPS ” 2015 http www nsf gov funding pgm_summ jsp pims_id 503286 org CISE sel_org CISE from fund National Science Foundation “Partnerships for Innovation Building Innovation Capacity ” 2015 http nsf gov funding pgm_summ jsp pims_id 504708 72 Subcommittee on Networking and Information Technology Research and Development Committee on Technology “Supplement to the President’s Budget for Fiscal Year 2015 The Networking and Information Technology Research 64 Congressional Research Service 10 The Internet of Things Frequently Asked Questions  in such R D include the Food and Drug Administration FDA the National Aeronautics and Space Administration NASA the National Institutes of Health NIH the Department of Veterans Affairs VA and several DOD agencies The White House has also announced a smart-cities initiative focusing on the development of a research infrastructure demonstration projects and other R D activities 73 What Issues Might Affect the Development and Implementation of the IoT The Internet of Things is often lauded for its potentially revolutionary applications Indeed IoT devices are today being implemented in many different sectors for a vast array of purposes However it is still unclear how IoT will progress due to challenges associated with both technical and policy issues Technical Issues Prominent technical limitations that may affect the growth and use of the IoT include a lack of new Internet addresses under the most widely used protocol the availability of high-speed and wireless communications and lack of consensus on technical standards Internet Addresses A potential barrier to the development of IoT is the technical limitations of the version of the Internet Protocol IP that is used most widely IP is the set of rules that computers use to send and receive information via the Internet including the unique address that each connected device or object must have to communicate Version 4 IPv4 is currently in widest use It can accommodate about 4 billion addresses and it is close to saturation with few new addresses available in many parts of the world 74 Some observers predict that Internet traffic will grow faster for IoT objects than any other kind of device over the next five years 75 with more than 25 billion IoT objects in use by 2020 76 and and Development Program ” February 2015 https www nitrd gov pubs 2016supplement FY2016NITRDSupplement pdf 73 The White House “Fact Sheet Administration Announces New ‘Smart Cities’ Initiative to Help Communities Tackle Local Challenges and Improve City Services” Press Release September 14 2015 https www whitehouse gov the-press-office 2015 09 14 fact-sheet-administration-announces-new-smart-citiesinitiative-help 74 Iljitsch van Beijnum “It’s Official North America Out of New IPv4 Addresses ” Ars Technica July 2 2015 http arstechnica com information-technology 2015 07 us-exhausts-new-ipv4-addresses-waitlist-begins 75 Cisco predicts an annual growth rate of 71% for IoT traffic during that period with mobile devices at about 63% and desktop computers under 10% Cisco “The Zettabyte Era—Trends and Analysis ” May 2015 http www cisco com c en us solutions collateral service-provider visual-networking-index-vni VNI_Hyperconnectivity_WP html 76 Lund et al “Worldwide and Regional Internet of Things IoT 2014–2020 Forecast A Virtuous Circle of Proven Value and Demand” Gartner Inc “Gartner Says the Internet of Things Installed Base Will Grow to 26 Billion Units By 2020 ” Congressional Research Service 11 The Internet of Things Frequently Asked Questions perhaps 50 billion devices altogether 77 IPv4 appears unlikely to meet that growing demand even with the use of workarounds such as methods for sharing IP addresses 78 Version 6 IPv6 allows for a huge increase in the number IP addresses With IPv4 the maximum number of unique addresses 4 2 billion is not enough to provide even one address for each of the 7 3 billion people on Earth IPv6 in contrast will accommodate over 1038 addresses—more than a trillion trillion per person It is highly likely that to accommodate the anticipated growth in the numbers of Internetconnected objects IPv6 will have to be implemented broadly It has been available since 1999 but was not formally launched until 2012 79 In most countries fewer than 10% of IP addresses were in IPv6 as of September 2015 Adoption is highest in some European countries and in the United States 80 where adoption has doubled in the past year to about 20% 81 Globally adoption has doubled annually since 2011 to about 7% of addresses in mid-2015 82 While growth in adoption is expected to continue it is not yet clear whether the rate of growth will be sufficient to accommodate the expected growth in the IoT That will depend on a number of factors including replacement of some older systems and applications that cannot handle IPv6 addresses 83 resolution of security issues associated with the transition and availability of sufficient resources for deployment 84 Efforts to transition federal systems to IPv6 began more than a decade ago 85 According to estimates by NIST adoption for public-facing services has been much greater within the federal government than within industry or academia 86 However adoption varies substantially among Dave Evans “The Internet of Things How the Next Evolution of the Internet Is Changing Everything” Cisco Internet Business Solutions Group IBSG April 2011 http www cisco com web about ac79 docs innov IoT_IBSG_0411FINAL pdf The latter figure also includes computers and mobile devices such as smartphones 78 Matt Ford et al “Address Sharing-Coming to a Network near You ” IETF Journal June 2009 http www internetsociety org articles address-sharing-coming-network-near-you 79 Internet Society “Ipv6 Making Room for the Next 5 Billion People ” March 26 2014 http www internetsociety org deploy360 wp-content uploads 2014 03 gen-ipv6factsheet-201403-en_FA_web pdf The launch was essentially an organized attempt to stimulate adoption 80 The top five were Belgium 34% Switzerland 19% the United States 18% Germany and Peru 17% each Akamai “IPv6 Adoption by Country and Network ” State of the Internet September 16 2015 https www stateoftheinternet com trends-visualizations-ipv6-adoption-ipv4-exhaustion-global-heat-map-networkcountry-growth-data html 81 Ibid Google “IPv6 ” September 23 2015 http www google com intl en ipv6 Google lists the U S adoption rate at 21% 82 Google “IPv6” Internet Society “World IPv6 Launch ” May 27 2014 http www worldipv6launch org infographic 83 IPv6 addresses are four times longer than those in IPv4 and some systems and applications cannot process the longer addresses properly van Beijnum “It’s Official North America Out of New IPv4 Addresses” 84 Sheila Frankel et al “Guidelines for the Secure Deployment of IPv6 ” SP 800-119 National Institute of Standards and Technology December 2010 http csrc nist gov publications nistpubs 800-119 sp800-119 pdf van Beijnum “It’s Official North America Out of New IPv4 Addresses” Panayotis A Yannakogeorgos “The Rise of IPv6 ” Air and Space Power Journal April 2015 103–28 http www au af mil au afri aspj digital pdf articles 2015-Mar-Apr FPano pdf 85 Chief Information Officers Council “Planning Guide Roadmap toward IPv6 Adoption Within the U S Government ” June 2012 https cio gov wp-content uploads downloads 2012 09 2012_IPv6_Roadmap_FINAL_20120712 pdf Yannakogeorgos “The Rise of IPv6 ” 86 National Institute of Standards and Technology “Estimating IPv6 DNSSEC Deployment Status ” September 24 2015 http fedv6-deployment antd nist gov snap-all html 77 Congressional Research Service 12 The Internet of Things Frequently Asked Questions agencies and some data suggest that federal adoption plateaued in 2012 87 Data were not available for this report on domains that are not public-facing and it is not clear whether adoption of IPv6 by federal agencies will affect their deployment of IoT applications High-Speed Internet Use and growth of the IoT can also be limited by the availability of access to high-speed Internet and advanced telecommunications services commonly known as broadband on which it depends While many urban and suburban areas have access that is not the case for many rural areas for which private-sector providers may not find establishment of the required infrastructure profitable and government programs may be limited 88 Wireless Communications Many observers believe that issues relating to access to the electromagnetic spectrum89 will need to be resolved to ensure the functionality and interoperability of IoT devices Access to spectrum both licensed and unlicensed is essential for devices and objects to communicate wirelessly IoT devices are being developed and deployed for new purposes and industries and some argue that the current framework for spectrum allocation may not serve these new industries well 90 Standards Currently there is no single universally recognized set of technical standards for the IoT especially with respect to communications 91 or even a commonly accepted definition among the various organizations that have produced IoT standards or related documents 92 Many observers agree that a common set of standards will be essential for interoperability and scalability of devices and systems 93 However others have expressed pessimism that a universal standard is feasible or even desirable given the diversity of objects that the IoT potentially encompasses 94 Several different sets of de facto standards have been in development and some observers do not Ibid Mohana Ravindranath “Government Outpacing Private Sector in IPv6 Adoption Official Says ” NextGov CIO Briefing May 18 2015 http www nextgov com cio-briefing 2015 05 government-could-be-outpacing-privatesector-ipv6-adoption 113056 88 For more information see CRS Report R44080 Municipal Broadband Background and Policy Debate by Lennard G Kruger and Angele A Gilroy and CRS Report RL30719 Broadband Internet Access and the Digital Divide Federal Assistance Programs by Lennard G Kruger and Angele A Gilroy 89 Electromagnetic spectrum commonly referred to as radio frequency spectrum or wireless spectrum refers to electromagnetic waves that with applied technology can transmit signals to deliver voice text and video communications 90 For more information see CRS Report R43256 Spectrum Policy Provisions in the 2012 Spectrum Act by Linda K Moore 91 Colin Neagle “A Guide to the Confusing Internet of Things Standards World ” Network World July 21 2014 http www networkworld com article 2456421 internet-of-things a-guide-to-the-confusing-internet-of-thingsstandards-world html 92 Minerva Biru and Rotondi “Towards a Definition of the Internet of Things IoT ” 93 See for example World Economic Forum “Industrial Internet of Things Unleashing the Potential of Connected Products and Services ” 94 Christopher Null “The State of IoT Standards Stand by for the Big Shakeout ” TechBeacon September 2 2015 http techbeacon com state-iot-standards-stand-big-shakeout 87 Congressional Research Service 13 The Internet of Things Frequently Asked Questions expect formal standards to appear before 2017 Whether conflicts between standards will affect growth of the sector as they did for some other technologies is not clear 95 Other Technical Issues Several other technical issues might impact the development and adoption of IoT For example if an object’s software cannot be readily updated in a secure manner that could affect both function and security Some observers have therefore recommended that smart objects have remote updating capabilities 96 However such capabilities could have undesirable effects such as increasing power requirements of IoT objects or requiring additional security features to counter the risk of exploitation by hackers of the update features Energy consumption can also be an issue IoT objects need energy for sensing processing and communicating information If objects isolated from the electric grid must rely on batteries replacement can be a problem even if energy consumption is highly efficient That is especially the case for applications using large numbers of objects or placements that are difficult to access Therefore alternative approaches such as energy harvesting whether from solar or other sources are being developed 97 Cybersecurity The security of devices and the data they acquire process and transmit is often cited as a top concern in cyberspace 98 Cyberattacks can result in theft of data and sometimes even physical destruction Some sources estimate losses from cyberattacks in general to be very large—in the hundreds of billions or even trillions of dollars 99 As the number of connected objects in the IoT grows so will the potential risk of successful intrusions and increases in costs from those incidents Cybersecurity involves protecting information systems their components and contents and the networks that connect them from intrusions or attacks involving theft disruption damage or other unauthorized or wrongful actions 100 IoT objects are potentially vulnerable targets for hackers 101 Economic and other factors may reduce the degree to which such objects are designed with adequate cybersecurity capabilities built in IoT devices are small are often built to be disposable and may have limited capacity for software updates to address vulnerabilities that come to light after deployment Lawson “Why Internet of Things ‘Standards’ Got More Confusing in 2014 ” PC World December 24 2014 http www pcworld com article 2863572 iot-groups-are-like-an-orchestra-tuning-up-the-music-starts-in-2016 html 96 See for example Roger Ordman “Efficient Over-the-Air Software and Firmware Updates for the Internet of Things ” Embedded Computing Design April 10 2014 http embedded-computing com articles efficient-softwarefirmware-updates-the-internet-things 97 Keita Sekine “Energy-Harvesting Devices Replace Batteries in IoT Sensors ” Core Code Q3 2014 http core spansion com article energy-harvesting-devices-replace-batteries-in-iot-sensors 98 See for example National Security Telecommunications Advisory Committee “NSTAC Report to the President on the Internet of Things ” 99 Center for Strategic and International Studies “Net Losses Estimating the Global Cost of Cybercrime” McAfee June 2014 http www mcafee com us resources reports rp-economic-impact-cybercrime2 pdf cid BHP028 World Economic Forum “Industrial Internet of Things Unleashing the Potential of Connected Products and Services ” 100 CRS Report R43831 Cybersecurity Issues and Challenges In Brief by Eric A Fischer 101 Scott R Peppet “Regulating the Internet of Things First Steps toward Managing Discrimination Privacy Security Consent ” Texas Law Review Forthcoming March 1 2014 http papers ssrn com abstract 2409074 95 Congressional Research Service 14 The Internet of Things Frequently Asked Questions The interconnectivity of IoT devices may also provide entry points through which hackers can access other parts of a network For example a hacker might gain access first to a building thermostat and subsequently to security cameras or computers connected to the same network permitting access to and exfiltration or modification of surveillance footage or other information 102 Control of a set of smart objects could permit hackers to use their computing power in malicious networks called botnets to perform various kinds of cyberattacks 103 Access could also be used for destruction such as by modifying the operation of industrial control systems as with the Stuxnet malware that caused centrifuges to self-destruct at Iranian nuclear plants 104 Among other things Stuxnet showed that smart objects can be hacked even if they are not connected to the Internet The growth of smart weapons and other connected objects within DOD has led to growing concerns about their vulnerabilities to cyberattack and increasing attempts to prevent and mitigate such attacks including improved design of IoT objects 105 Cybersecurity for the IoT may be complicated by factors such as the complexity of networks and the need to automate many functions that can affect security such as authentication Consequently new approaches to security may be needed for the IoT 106 IoT cybersecurity will also likely vary among economic sectors and subsectors given their different characteristics and requirements Each sector will have a role in developing cybersecurity best practices unique to its needs The federal government has a role in securing federal information systems as well as assisting with security of nonfederal systems especially critical infrastructure 107 Cybersecurity legislation considered in the 114th Congress while not focusing specifically on the IoT would address several issues that are potentially relevant to IoT applications such as information sharing and notification of data breaches 108 Safety Given that smart objects can be used both to monitor conditions and to control machinery the IoT has broad implications for safety with respect to both improvements and risks For example Government Accountability Office “Federal Facility Cybersecurity DHS and GSA Should Address Cyber Risk to Building and Access Control Systems ” December 12 2014 http www gao gov products GAO-15-6 103 See for example Eduard Kovacs “‘Spike’ DDoS Toolkit Targets PCs Servers IoT Devices Akamai ” Security Week September 25 2014 http www securityweek com spike-ddos-toolkit-targets-pcs-servers-iot-devices-akamai 104 CRS Report R41524 The Stuxnet Computer Worm Harbinger of an Emerging Warfare Capability by Paul K Kerr John W Rollins and Catherine A Theohary 105 Sydney J Freedberg Jr “Cybersecurity Now Key Requirement for All Weapons DoD Cyber Chief ” Breaking Defense January 27 2015 http breakingdefense com 2015 01 cybersecurity-now-key-requirement-for-all-weaponsdod-cio Patrick Tucker “For Years the Pentagon Hooked Everything to the Internet Now It’s a ‘Big Big Problem ’” Defense One September 29 2015 http www defenseone com technology 2015 09 years-pentagon-hookedeverything-internet-now-its-big-big-problem 122402 106 Benjamin Jun “Make Way for the Internet of Things ” RSA Conference 2014 San Francisco CA February 27 2014 http www rsaconference com writable presentations file_upload tech-r02-internet-of-things-v2 pdf Benjamin Jun “Endpoints in the New Age Apps Mobility and the Internet of Things” RSA Conference 2015 San Francisco CA April 21 2015 https www rsaconference com writable presentations file_upload eco-t07r-endpoints-in-thenew-age-apps-mobility-and-the-internet-of-things pdf 107 Critical infrastructure was defined by the USA PATRIOT Act as “systems and assets physical or virtual so vital to the United States that the incapacity or destruction of such systems and assets would have a debilitating impact on security national economic security national public health and safety or any combination of those matters” 5 U S C §5195c e 108 For more discussion of congressional and executive-branch actions in cybersecurity see CRS Report R43831 Cybersecurity Issues and Challenges In Brief by Eric A Fischer and related reports 102 Congressional Research Service 15 The Internet of Things Frequently Asked Questions objects embedded in pipelines can monitor both the condition of the equipment and the flow of contents Among other benefits that can help both to expedite shutoffs in the event of leaks and to prevent them through predictive maintenance 109 Connected vehicles can help reduce vehicle collisions through crash avoidance technologies and other applications 110 Wireless medical devices can improve patient safety by permitting remote monitoring and facilitating adjustments in care 111 However given the complexities involved in some applications of IoT malfunctions might in some instances result in catastrophic system failures creating significant safety risks such as flooding from dams or levees 112 In addition hackers could potentially cause malfunctions of devices such as insulin pumps113 or automobiles 114 potentially creating significant safety risks Privacy Cyberattacks may also compromise privacy resulting in access to and exfiltration of identifying or other sensitive information about an individual For example an intrusion into a wearable device might permit exfiltration of information about the location activities or even the health of the wearer In addition to the question of whether security measures are adequate to prevent such intrusions privacy concerns also include questions about the ownership processing and use of such data With an increasing number of IoT objects being deployed large amounts of information about individuals and organizations may be created and stored by both private entities and governments With respect to government data collection the U S Supreme Court has been reticent about making broad pronouncements concerning society’s expectations of privacy under the Fourth Amendment of the Constitution while new technologies are in flux as reflected in opinions over the last five years 115 Congress may also update certain laws such as the Electronic Communications Privacy Act of 1986 given the ways that privacy expectations of the public are evolving in response to IoT and other new technologies 116 IoT applications may also create Adam Lesser “Internet of Things The Influence of M2M Data on the Energy Industry” GigaOm Research March 4 2014 http research gigaom com report internet-of-things-the-influence-of-m2m-data-on-the-energy-industry 110 Cronin and Dopart “Connected Vehicles—Improving Safety Mobility and the Environment ” 111 Couturier et al “How Can the Internet of Things Help to Overcome Current Healthcare Challenges ” 112 AIG “The Internet of Things Evolution or Revolution ” June 10 2015 https www aig com Chartis internet US en AIG%20White%20Paper%20-%20IoT%20English%20DIGITAL_tcm3171-677828 pdf 113 FTC Staff “Internet of Things Privacy and Security in a Connected World ” 114 Ian Foster et al “Fast and Vulnerable A Story of Telematic Failures ” in Proceedings of the 9th USENIX Conference on Offensive Technologies USENIX Association 2015 15–15 https www usenix org system files conference woot15 woot15-paper-foster pdf Andy Greenberg “Hackers Remotely Kill a Jeep on the Highway—With Me in It ” accessed October 6 2015 http www wired com 2015 07 hackers-remotely-kill-jeep-highway 115 In the 2010 case City of Ontario v Quon the Court sidestepped the question whether individuals have a reasonable expectation of privacy in their electronic communications by resolving the case on other grounds City of Ontario v Quon 560 U S 746 2010 “The judiciary risks error by elaborating too fully on the Fourth Amendment implications of emerging technology before its role in society has become clear ” Similarly in the 2012 GPS tracking case United States v Jones the majority avoided the question of whether people should expect privacy in their public movements over a long period of time by instead relying on a hundreds-year-old trespass theory of the Fourth Amendment United States v Jones 132 S Ct 945 954 2012 More recently in the 2015 case California v Riley the Court held that the government must obtain a warrant before accessing the data on a cellphone confiscated upon an arrest however the ruling did not separately opine on the level of protections for data stored in the cloud on which IoT applications will undoubtedly rely California v Riley 134 S Ct 2473 2495 2015 116 See CRS Report R44036 Stored Communications Act Reform of the Electronic Communications Privacy Act 109 Congressional Research Service 16 The Internet of Things Frequently Asked Questions challenges for interpretation of other laws relating to privacy such as the Health Insurance Portability and Accountability Act and various state laws as well as established practices such as those arising from norms such as the Fair Information Practice Principles 117 Other Policy Issues Federal Role As described in the section “What Is the Current Federal Role ” many federal agencies are involved in different aspects of the IoT Some business representatives and others have stressed the role of effective public private partnerships in the development of this technology space 118 However observers have also expressed concerns about the role of government regulations and policy as discussed further in sections below and about the degree and effectiveness of coordination among the involved federal agencies 119 Concerns of some extend beyond the federal role to that of state local and foreign governments 120 Given the eclectic nature of the IoT overall coordination of federal efforts may be challenging with respect to identification of both the goals of coordination and the methods for achieving them Nevertheless several observers have argued in favor of a national strategy for the IoT 121 including in resolutions considered in the 114th Congress see “What Actions Has Congress Taken ” Some interagency initiatives have been established with respect to specific aspects of the IoT For example in addition to the R D coordination activities for cyber-physical systems under the NITRD program 122 a specific framework has been developed for smart cities123 as part of the overall White House initiative involving several federal agencies local governments and the private sector 124 ECPA by Richard M Thompson II and Jared P Cole 117 FTC Staff “Internet of Things Privacy and Security in a Connected World” Thierer “The Internet of Things and Wearable Technology ” 118 See for example Brookings Institution “Getting Smarter About Smart Cities” House Committee on Energy and Commerce The Internet of Things Exploring the Next Technology Frontier 2015 http energycommerce house gov hearing internet-things-exploring-next-technology-frontier House Committee on the Judiciary Subcommittee on Courts Intellectual Property and the Internet Internet of Things 119 See for example Gary Arlen “Internet of Things Caucus Readies House Hearings ” Multichannel News July 8 2015 http www multichannel com blog i-was-saying internet-things-caucus-readies-house-hearings 392024 Darren Samuelson “The Agenda—Internet of Things ” July 2015 http www politico com agenda issue internet-of-thingsjuly-2015 120 See for example Helen Rebecca Schindler et al “Europe’s Policy Options for a Dynamic and Trustworthy Development of the Internet of Things” RAND Europe July 26 2013 http www rand org content dam rand pubs research_reports RR300 RR356 RAND_RR356 pdf Thierer “The Internet of Things and Wearable Technology ” 121 See for example Samuelson “The Agenda—Internet of Things ” 122 See “What Is the Current Federal Role ” above 123 Subcommittee on Networking and Information Technology Research and Development Committee on Technology “Smart Cities and Connected Communities Framework ” September 11 2015 https www nitrd gov sccc 124 The White House “Fact Sheet Administration Announces New ‘Smart Cities’ Initiative ” Congressional Research Service 17 The Internet of Things Frequently Asked Questions Spectrum Access Radio frequency electromagnetic spectrum is widely regarded as a critical link in IoT communications with reliable and affordable access to it required to accommodate the billions of new IoT devices projected to go online over the next decade 125 New technology for mobile communications is predicted to allow devices to operate on any available radio frequency and potentially permit communications technologies and cyber-physical systems to converge further 126 Concerns have been raised that current spectrum policy may favor consumer-oriented mobile services and the wireless industry rather than emerging markets for IoT devices such as transportation and manufacturing 127 Congress may therefore be faced with decisions about whether the current policy needs to be revised Net Neutrality The concept of “net neutrality” includes the two general principles that owners of the networks that comprise and provide access to the Internet should not control how end users lawfully use that network and that they should not be able to discriminate against content provider access to that network 128 The FCC adopted an order in February 2015 that established regulatory guidelines to protect the marketplace from potential abuses that could threaten the net neutrality concept 129 The order bans broadband Internet access providers both fixed and wireless from blocking and throttling lawful content and it prohibits paid prioritization of affiliated or proprietary content 130 The order also creates a general conduct standard that Internet service providers cannot harm consumers or providers of applications content and services These rules went into effect with limited exceptions on June 12 2015 but have been challenged in the U S Court of Appeals for the D C Circuit 131 It remains unclear how the FCC order will affect IoT devices and services Some observers view the implementation of FCC regulations as a positive development They believe that it will ensure openness and nondiscrimination for service providers leading to the growth of new services and consumer demand Others have expressed concerns that the regulations will stifle investment and innovation to the detriment of the expansion and growth of Internet deployment and services Furthermore the rules are subject to “reasonable network management ” as defined by the FCC and a category of “specialized services” defined as those that “do not provide access to the Internet generally” are exempt from the rules established by the order 132 Depending on how individual IoT services and devices are categorized and the degree of network management such specialized services may need the order could also affect IoT applications on a case-by-case basis 125 CRS Report R43256 Spectrum Policy Provisions in the 2012 Spectrum Act by Linda K Moore CRS Insight IN10191 What Is 5G Implications for Spectrum and Technology Policy by Linda K Moore 127 CRS Insight IN10221 The Robot Did It Spectrum Policy and the Internet of Things by Linda K Moore 128 For additional information on the net neutrality issue see CRS Report R40616 Access to Broadband Networks The Net Neutrality Debate by Angele A Gilroy and CRS Report R43971 Net Neutrality Selected Legal Issues Raised by the FCC’s 2015 Open Internet Order by Kathleen Ann Ruane 129 Federal Communications Commission “Protecting and Promoting the Open Internet Final Rule ” Federal Register 80 no 70 April 13 2015 19738–850 http www gpo gov fdsys pkg FR-2015-04-13 pdf 2015-07841 pdf 130 Paid prioritization occurs when a broadband Internet access provider accepts payment monetary or otherwise to manage its network in a way that benefits particular content applications devices or services 131 The challenges were consolidated under U S Telecom Association v FCC D C Cir No 15-1063 April 14 2015 132 The FCC order cited heart monitors and energy consumption sensors as examples of “specialized services ” See Federal Communications Commission “Protecting and Promoting the Open Internet Final Rule” para 35 126 Congressional Research Service 18 The Internet of Things Frequently Asked Questions What Actions Has Congress Taken Legislation Bills No bills have been introduced in the last two Congresses relating specifically to the IoT However many bills have been introduced with provisions related to aspects of the IoT such as connected vehicles cyber-physical systems smart cities and the smart grid None of those bills were enacted as of September 2015 although some bills with provisions on applications and appropriations relating to telehealth and telemedicine were enacted in both the 113th and 114th Congresses Several bills in the 114th Congress would address issues that are potentially relevant to IoT applications such as information sharing in cybersecurity privacy and notification of data breaches 133 Resolutions Two similar resolutions on the IoT have been submitted in the 114th Congress one in the House H Res 195 Lance introduced April 13 2015 and one in the Senate S Res 110 Fischer introduced and passed March 24 Both call for     a U S strategy for development of the IoT to improve social well-being while allowing for innovation and protecting against misuse recognition of the importance of a consensus-based approach and the role of businesses in that development federal government commitment to use the IoT and a U S commitment to use the IoT for developing new technologies to address challenging societal issues The House version also calls for the use of cost-benefit analysis to determine when federal action is needed to address “discrete harms” in the marketplace It also refers explicitly to energy optimization and the need for cybersecurity Hearings Both the House and the Senate have held hearings on the IoT in 2015 In the Senate the Committee on Commerce Science and Transportation held a hearing on February 11 134 In the House one was held by the Energy and Commerce Committee on March 24 135 and another by the Subcommittee on Courts Intellectual Property and the Internet of the Committee on the Judiciary on July 29 136 The hearings featured witnesses from businesses and associations who 133 For more information see CRS Report R43831 Cybersecurity Issues and Challenges In Brief by Eric A Fischer and related reports 134 Senate Committee on Commerce Science and Transportation The Connected World Examining the Internet of Things 2015 http www commerce senate gov public index cfm hearings ID d3e33bde-30fd-4899-b30d906b47e117ca 135 House Committee on Energy and Commerce The Internet of Things Exploring the Next Technology Frontier 136 House Committee on the Judiciary Subcommittee on Courts Intellectual Property and the Internet Internet of Things Congressional Research Service 19 The Internet of Things Frequently Asked Questions discussed the growth uses and economic potential of the IoT as well as some of the issues described in this report such as privacy regulation security spectrum management and standards Caucuses There are several congressional caucuses that may consider issues associated with the IoT Among them are caucuses on cloud computing 137 cybersecurity 138 the Internet 139 and highperformance buildings In addition new caucuses announced in this session included one expressly on the Internet of Things 140 and one on smart transportation 141 Where Can I Find Additional Resources on This Topic For additional assistance on the IoT and related topics see CRS Report R44225 The Internet of Things CRS Experts by Eric A Fischer and Glenn J McLoughlin Congressional offices may also contact CRS by placing a request via telephone or online through the CRS website see http www crs gov AboutCRS Contact-Us Author Information Patricia Moloney Figliola Specialist in Internet and Telecommunications Policy Acknowledgments This report was originally coauthored by Stephanie M Logan while she was a CRS research assistant Stephanie performed most of the research and provided much of the organizational structure and text for the report Her insights and other contributions were invaluable The following CRS staff contributed to sections of this report Angele A Gilroy to “Net Neutrality ” Linda K Moore to “Spectrum Access ” Megan Stubbs to “Agriculture ” and Richard M Thompson II and Jared P Cole to “Privacy ” Cloud Computing Caucus Advisory Group “Home ” 2015 https www cloudcomputingcaucus org Congressional Cybersecurity Caucus “Welcome ” 2015 http cybercaucus langevin house gov 139 Congressional Internet Caucus Advisory Committee “NetCaucus ” 2015 http www netcaucus org 140 The Honorable Suzan DelBene “U S Reps DelBene and Issa Announce Creation of the Congressional Internet of Things Caucus” Press Release January 13 2015 https delbene house gov media-center press-releases us-repsdelbene-and-issa-announce-creation-of-the-congressional-internet 141 Senator Gary Peters “Peters Gardner Announce New Bipartisan Smart Transportation Caucus” press release June 10 2015 http www peters senate gov newsroom press-releases peters-gardner-announce-new-bipartisan-smarttransportation-caucus 137 138 Congressional Research Service 20 The Internet of Things Frequently Asked Questions Disclaimer This document was prepared by the Congressional Research Service CRS CRS serves as nonpartisan shared staff to congressional committees and Members of Congress It operates solely at the behest of and under the direction of Congress Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has been provided by CRS to Members of Congress in connection with CRS’s institutional role CRS Reports as a work of the United States Government are not subject to copyright protection in the United States Any CRS Report may be reproduced and distributed in its entirety without permission from CRS However as a CRS Report may include copyrighted images or material from a third party you may need to obtain the permission of the copyright holder if you wish to copy or otherwise use copyrighted material Congressional Research Service R44227 · VERSION 11 · NEW 21