Hearing of the Senate Commerce, Science, and Transportation Committee - The Connected World: Examining the Internet of Things

Hearing

"We convene to examine what may be the most important trend in technology today: the Internet of Things.

"I want to thank Senators Fischer, Ayotte, Booker, and Schatz for your leadership on this issue and for encouraging this committee to examine IoT.

"By now, all of us are used to having at least one or two electronic items near us that are connected to the Internet -- like computers, phones, and TVs. Increasingly, however, we are seeing common, everyday objects being connected online -- a literal Internet of Things that will soon be ubiquitous.

"These 'things' unobtrusively gather data and communicate with users, and with other devices, to solve a variety of consumer and business needs.

"Some have argued the Internet of Things is the 'third wave' of the Internet, following the fixed Internet of the 1990s and the mobile Internet of the 2000s.

"The economic impact of IoT promises to be significant and will drive growth in every sector of our economy.

"According to McKinsey & Company, the Internet of Things has the potential to create a global economic impact of up to $6.2 trillion annually by 2025, with 50 billion Internet-connected devices by 2020.

"There are some truly fascinating examples of the Internet of Things. A bed with smart fabric and sensors that tracks your sleep habits and uses the data to make sure your sleeping environment stays comfortable throughout the night.

"Mobile apps that use roadside sensors to inform drivers of empty parking spots.

"An automated sprinkler system that saves money by using real-time weather data to make automatic, water-saving adjustments.

"A web-enabled toothbrush that tracks the user's brushing habits to improve oral hygiene -- one of my staffers actually uses one of these, and swears by it.

"As exciting as those applications sound, we are only at the beginning of this technology trend and there is no telling how far it will go.

"The number of connected things will continue to explode, and they will increasingly interact with each other dynamically, seamlessly, and automatically without human intervention.

"With significant economic and societal impacts, the Internet of Things also brings complex policy questions.

"By their nature, IoT devices require Internet connectivity and we'll need to be bold in thinking of clever ways to unleash licensed and unlicensed spectrum for the private sector.

"IoT devices can collect sensitive consumer and business data; therefore, privacy considerations should be at the forefront as we consider this great technological wave.

"Security will also be a critical concern of the Internet of Things due to the scope and sensitivity of the data collected and the interconnection of devices and networks.

"These issues are real, but I encourage policymakers to resist the urge to jump head first into regulating this dynamic marketplace.

"Let's tread carefully and thoughtfully before we consider stepping in with a 'government knows best' mentality that could halt innovation and growth. Let's treat the Internet of Things with the same light touch that has caused the Internet to be such a great American success story.

"We should let consumers and entrepreneurs decide where IoT goes, rather than setting it on a Washington, D.C.-directed path.

"If evidence shows there are discrete problems, we should examine ways to solve those problems.

"But let's have the humility to recognize that the best solutions are often not government solutions, and let's not stifle the Internet of Things before we and consumers have a chance to understand its real promise and implications.

"We have a fantastic panel with us today with diverse experience in the IoT marketplace. I am looking forward to hearing from each of you."

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