We’re now involved in a vast process of digitisation that does not differentiate anymore between online or offline dimensions. Distinguishing physical or digital processes in an era characterized by a growing ubiquity of mobile technology and internet-connected devices is likely a worthless effort!

Here are some revealing figures:

• Almost 3 billion people are now connected to the internet – that’s 43% of the world’s population.
• There are over 780 million households connected with fixed broadband and 2.8 billion mobile broadband accesses.

The estimates here are surprising. By 2020 we expect that:

• 90% of the world’s population over 6 years of age will have a mobile phone.
• 90% of mobile subscriptions will be mobile broadband.
• LTE coverage will exceed 70% of the world population.
• Mobile data traffic will multiply by 10.
• There will be 50 billion “connected things”.

It’s obvious then that digital innovation is already changing the way people are in touch, keep up-to-date, buy, share and learn. Accordingly, businesses are also changing to grasp the new opportunities that the digital world provides.

This vital issue for European society is occupying spaces of debate at different levels and is involving all sorts of stakeholders. The last annual Internet of Things European Summit in Brussels gathered more than 200 participants, including key European decision makers and leading industry stakeholders.

The dimensions of the Internet of things are myriad and will change the way we produce, do business and live, given its impact on all sectors. However, the IoT is a driver of the Digital Economy. Hence we should focus on building an appropriate policy framework to achieve the full potential of the Digital Economy in Europe.

In our view, there are different issues to be considered. First and foremost, we urgently need a level playing field along the entire Internet value chain, eliminating the regulatory asymmetries that exist today between Telecom operators and OTTs.

Secondly, we must create an investment-friendly environment by removing cost-orientation from European Telecoms Regulation. And at the same time, we cannot forget the fiscal perspective because Europeans need a fiscal programme in order to attract new ICT initiatives and guarantee tax fairness by agreeing on the proper control of profits generated in Europe by non-European companies.

There are also other dimensions that have to be part of a comprehensive policy programme:

• the allocation of the spectrum needed to foster a true digitisation of the economy;
• supporting the creation of more efficient market structures through the consolidation process of operators;
• the empowerment of society, which implies consistent training and skills programmes and plans for digital entrepreneurship.

Lastly, we have to mention privacy and cyber security. Both are vital for the sustainability of the digital ecosystem. The challenge is enormous. A fast moving technology environment modifies the scenarios in which a framework has to guarantee privacy and security while leaving room for innovation and entrepreneurship.

This post was previously published on our Public Policy blog.