decreased interoperability in some ways, because credit card fees pushed CurrentC to adopt its less-interoperable approach to payment processing.17 The mobile payments example also highlights how interop is not a binary concept. There are degrees and types of interop, which fall along a multidimensional spectrum (explored in more detail in Section 4.5 of this chapter). Although all of the mobile payment systems involve various levels of interop, some take a more unilateral approach, while others rely upon collaboration. Because Google does not build smart phone hardware, it relies on cooperation from partners in order to deploy Google Wallet on compatible handsets. By contrast, because Apple controls its device ecosystem, it can deploy Apple Pay with less reliance on others. The same interoperability diversity can be observed in regulatory approaches. As part of its Cloud Computing Strategy, for example, the U.S. Government variously and simultaneously mandates interop standards, influences interop through procurement strategies, and helps support the development of multi-stakeholder processes to develop additional standards and approaches. The benefits and costs of interoperability are most apparent when technologies mesh seamlessly. Consumers consistently prefer systems that work together without asking them to work, making their lives simpler in the process. The data layer, a close cousin of the technology layer, turns out to be just as important as the technological layer. It is critical for data to be interoperable across systems; it must be readable and understandable. Without interoperability at the technological and data layers, interoperability at the higher layers in the model—the human and institutional layers—is often impossible. But the challenge of getting the basics of interoperability right, even at the fundamental technology and data layers, can be deceptively hard. 4.3 Benefits of higher levels of interop Interoperability is not an end in itself. Instead, optimizing interop has societal value as a means to other ends. Innovation is one policy goal that often benefits from increased interop, but it can also have a positive impact on consumer choice, ease of use, access to content, and diversity, among other things. This section highlights some of the key ways that higher levels of interop can be beneficial. 4.3.1 Innovation Perhaps the strongest example of how interop can foster innovation is the Internet itself. It possesses the ultimate interoperable design, allowing the convergence of multiple, previously non-interoperable networks and systems. It is on this open, interoperable infrastructure that the Internet of Things is being built. Every IoT device -- from a jet engine “requesting” service to a thermostat checking the weather -- relies on the fact that the protocols that enable devices to connect across the network are agnostic to the data transmitted using those protocols. In other words, high degrees of interoperability enable and foster innovation over the Internet, including deploying networked devices.Companies with a strong interest in the IoT are currently hoping to replicate the success of the Internet by spurring innovation at the IoT layer, which itself runs on top of the Internet. For example, one consortium of tech companies has created Thread, an open protocol to help connect low-power devices. Another consortium of tech companies is creating a protocol to enable faster and easier device discovery and interconnection.18 Outside of the commercial context, ITU also has been a leader in advancing standardization in the IoT space.19 In all cases, the hope is that building protocols to enable interconnection will support increased innovation on top of an IoT platform.In addition to economic innovation, interop also enables science and research. The European Commission recently released a report outlining the need for a “Digital Single Market” in the European Union and announcing 16 initiatives designed to spur its creation.20 In that report, the Commission noted that a lack of interoperability in the “European data ecosystem” was hampering innovation, because “neither the scientific community nor industry can systematically access and re-use the research data that is generated by public budgets, despite strong demand.”21 It is worth remembering that although innovation is generally positive, it can include risks. Just as Trends in Telecommunication Reform 2016 105 Chapter 4