4 Big Data - Opportunity or Threat?4.1 The opening Google can predict the spread of the seasonal flu from Internet search queries it receives. Airplane engine manufacturers can predict when an engine part will break before it actually does, allowing that part to be changed at a convenient time and place, rather than when the airplane is in mid-flight. A startup company, Inrix offers a smartphone app that helps about one hundred million users every day to drive from home to work and back; providing real time information that allows them to avoid heavy traffic. And a Dutch mobile phone operator discovered that changes in the signal strength of cell towers could be translated into local weather data, thus giving the operator a potentially lucrative and very comprehensive network of thousands of weather stations capturing real-time data.All these are examples of Big Data; our ability to gain insights from large amounts of data that would not be attainable from much smaller amounts; and that in turn leads not only to higher efficiency, but also to innovative new products and services. Much like in other instances, an increase in quantity results in a change in quality. We have seen this in the past. If one takes a photo of a horse galloping across the field every minute, then they are just a group of still photos. But if one takes a photo every sixteenth of a second, and shows the resulting images in fast succession, the vast increase in the quantity of captured information translates into a new quality: motion,; and the film industry was born. Something similar is now happening with Big Data.In essence, Big Data offers a new perspective on reality, and therefore will affect and shape all sectors of the economy, especially those that play a role in the capturing and/or relaying of data and information. But Big Data’s likely impact will be felt beyond the economy; it affects how societies make sense of the world, decide important policy challenges, and as you will read, it is having a profound impact on innovation. This chapter is divided into four main parts: the chapter will begin by defining the concept, next, the contributions that Big Data offers to society and individuals will be explained; attention will then be drawn to some of the inherent risks of this powerful new technological tool; and finally, the chapter will conclude with regulatory and policy considerations that should be accounted for when crafting future policy.4.2 Setting the stage Over the past few years, the world of Big Data has rapidly evolved; both in the marketplace and in the research community. What we thought we knew just a few years back is now either changed or refined. Further, as in many other areas, the rules governing Big Data have been slow to adapt. The intent of this chapter is to offer a foundation; showing what Big Data is, explaining its recent history, and looking at where ICT regulators, policy makers and other authorities, such as competition authorities or data protection authorities (collectively known as Regulatory Authorities) have set or should set some boundaries. The chapter aims to provide a stronger appreciation both nationally and globally of what the term Big Data means and the various perspectives that are shaping current discussions. More specifically, this is a chapter about Big Data, and its characteristics, its history, its future and most importantly what Regulatory Authorities can and should do to meet the challenges it poses without dampening the opportunities and benefits it can provide. It utilizes the diversity in the practicalities and uses of Big Data to increase awareness of the benefits and the risks; placing it in a context that allows for understanding of where the industry has been and where it could be going. For regulators, the question is: what can, or should, be done to carry out their responsibilities? Recognizing that no two Authors: Andrew J Haire, Chairman, AJH Communications & Dr. Viktor Mayer-Schönberger, Professor, Oxford Internet Institute Trends in Telecommunicaiton Reform 2015 89