4 Interoperability in the digital ecosystem Author: Urs Gasser, Professor of Practice, Harvard Law School; Executive Director, Berkman Center for Internet & Society at Harvard University 4.1 Introduction Large parts of the world are now interconnected as never before. People stay in touch with far-away family and friends for little cost. They learn about news instantly, access knowledge remotely, collaborate more efficiently, and conduct every manner of business online. The most complex systems—government agencies, financial institutions, transportation infrastructures, health care and energy systems—are linked by new, ubiquitous information media, which are essential components of today’s global economy. But as interconnected as things currently are, they will grow dramatically more so with the emergence of the Internet of Things (IoT).The IoT is the term for how anything that can be connected to the Internet will be. Interconnectedness through the Internet means not only new forms of interactions with end users, but also new forms of interactions with other devices. This is a world in which the car of a driver who is running late automatically will send a text message to the driver’s next appointment in order to let them know she’s running late. Or, a jet engine can inform the ground crew that it needs maintenance before the plane takes off. City parking meters can help drivers find open spots in order to reduce pollution and congestion. A pill bottle can remind a patient to take the next dose. The possibilities for new forms of interconnectedness are staggering and endless.Some experts believe that the market for IoT devices will grow exponentially over the coming years, resulting in over USD 1.7 trillion in value added to the global economy by 2019.1 This explosion of new, connected devices will require new infrastructure and technologies. Some analysts expect that new infrastructure models will be deployed within two years, and many existing networks will become overwhelmed with IoT traffic within just three years.2 This explosion of new IoT technologies, however, is built primarily on a single concept: interoperability. In order for a car, a jet engine, a parking meter, or a pill bottle to send and receive important data, it needs to be able to connect seamlessly to other systems and networks in ways that are meaningful and secure. That ability to secure the necessary interconnection of systems is interoperability (or “interop”). This capacity for connection has the ability to make daily life more convenient or efficient. But the growing level of interconnectedness may come at a high price if it is designed or implemented poorly. Society must make trade-offs as people and devices become digitally connected everywhere and anytime. As individuals struggle to keep up with news and information, they become vulnerable, in ways that are not obvious and are often misunderstood. The same infrastructure that enables people to create, store, and share information can put their privacy and security at risk. Society’s most advanced systems and infrastructures have become so complex that they are hard to manage effectively. And while many parts of daily life become more connected, some remain woefully under-connected.For that reason, it is important to define the optimal level of interconnectedness and to understand how technology, markets, law, and regulation can shape the outcomes. As a first step, this chapter looks at a framework for assessing how complex systems, components, and applications are connected—or sometimes, inexplicably, still separate. Then the chapter evaluates some of the promises and the drawbacks that come with increased connectivity. Finally, the chapter looks at approaches to enabling interop, and the role that governments, regulators, and organizations such as the ITU can play in that process.Trends in Telecommunication Reform 2016 99