CROSS BORDER DATA RESTRICTIONS - ? · Slide title 44 pt. Text and bullet level 1 minimum 24 pt. Bullets…

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  • Slide title

    70 pt

    CAPITALS

    Slide subtitle

    minimum 30 pt

    BUSINESS IMPACT RESTRICTIONS ON CROSS BORDER DATA FLOWS

    Director Government & Industry Relations Rene Summer

    mailto:rene.summer@ericsson.com

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    44 pt.

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    text in the footer area CROSS BORDER DATA RESTRICTIONS | Public | Ericsson AB 2013 | 2013-09-16 | Page 2

    Ict shaping the SOCIETY

    FUNDAMENTAL TECHNOLOGY DRIVERS

    MOBILITY BROADBAND CLOUD DIGITIZATION

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    Sources: Chalmers Institute of Technology, Arthur D Little,

    OECD Broadband and the Economy, Future of Internet 2008

    Significance of ICT

    Increased global market reach

    expanding trade but also

    intensified competition,

    General increase in economic

    efficiency and labor productivity,

    Increased pace of knowledge

    diffusion and increased positive

    spill-over effects,

    Revised view of the role of

    innovation (innovation-led growth)

    Economic Impact of ICT Changing Economic Thinking > ICT

    Source: Jati Sengupta, Understanding Economic Growth, Springer 2011

    DIRECT INDIRECT INDUCED

  • Slide title

    44 pt.

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    minimum 24 pt.

    Bullets level 2-5

    minimum 20 pt.

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    A two-way relationship: technology drives trade and trade

    drives technology innovation

    Equalizing effect on countries trade composition, causing

    more economic integration

    Increased participation of developing countries in trade

    Regional tech-capability cohesion effect, technology

    spillovers, resulting in regional convergence in capabilities

    ICT impact on trade

    Source: WTO , World Trade Report 2013

    Driving globalization and a key source of productivity growth

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    The Data factor in ICT

    Growth of connectivity IP traffic

    Growth in stored data

    Advances in Processing: Automation, (IT -1960s)

    Scope (new uses as existing services go digital) Social Networking

    Insight (analytics driven services/models) Attention Economics, (advertising)

    Virtualization (efficiency): BYOD Cloud SDN

    Business Process Outsourcing (specialization)

    Global data flows (economies of scale)

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    The common interest

    Continued digitization of the society

    Data processing is the backbone of a knowledge based society

    Non-ICT and ICT industries growth

    End users trust is a must

    It falls upon the industry and policy makers to provide adequate protective measures

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    Drivers of restrictions to cross border data flows

    SOCIETY PEOPLE BUSINESS culture

    http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=2w7bm_jaD6H27M&tbnid=Fb_pTnTo_Gd1fM:&ved=0CAgQjRwwAA&url=http%3A%2F%2Fwww.american.com%2Farchive%2F2008%2Fdecember-12-08%2Fbeware-of-investment-protectionism&ei=Ra8dUsi4KqOw7QaL9YDYAw&psig=AFQjCNEj4pyjSx4d6KjeFFtqUdHQRcopiQ&ust=1377763525762943http://www.google.com/url?sa=i&rct=j&q=picture+of+cultural+diversity&source=images&cd=&cad=rja&docid=6oQQJ1wUqTEOhM&tbnid=wYThHrJZ6wd4xM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.ymcacambridgekw.ca%2Fen%2Fculturaldiversity%2FCDwhoweare.asp&ei=CrEdUvaWDeWM0AXxpoHwAw&bvm=bv.51156542,d.ZGU&psig=AFQjCNEpkSYHFSp6KTiGZh57Uet9qv-mWQ&ust=1377763974405905http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=YVpHtC3JmC6SCM&tbnid=O8vM82kyN8GoyM:&ved=0CAgQjRwwAA&url=http%3A%2F%2Fwww.cliffkule.com%2F2010_10_10_archive.html&ei=0bYdUrS5K-ar7AaHn4GABw&psig=AFQjCNEtKEE9uN9-n2aUw7wQ9ptCTCIeXQ&ust=1377765457855252http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=lHu0sV5Bk8PsSM&tbnid=cGiBYCJH5Os2pM:&ved=0CAgQjRwwAA&url=http%3A%2F%2Fwww.lateralthinking.biz%2Ftag%2Fprotectionism&ei=BLgdUo6kIafE7AbFn4CwBg&psig=AFQjCNHYkWrASNVsmP7seiKFNRRyVzm4SQ&ust=1377765764617578

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    TYPE OF RESTRCTIONS to CROSS BORDER DATA FLOWS

    ABSOLUTE BARRIERS

    ECONOMIC

    DISINCENTIVES

    TC*

    *TC = TRANSACTION COSTS

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    Forced localization of IT/Server infrastructure.

    Prohibitions to transfer customer personal data to third

    country.

    Restrictions to transfer employee personal data to third

    country.

    Extra-territorial regulatory dilemmas, compliance in one

    jurisdiction causes non-compliance in another.

    Lengthy and burdensome transfer agreement approval

    process by DPA.

    IPR-enforcement mechanism, insufficient immunities for

    caching and hosting data in third country.

    Examples of cross border data flow restrictions

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    Revenues

    Service

    Adaptation

    New Services

    Agile innovation

    TTM

    Business impact of cross border data flow restrictions

    Cost of Service

    Efficiency

    Scalability

    Complexity

    Compliance Costs

    Direct compliance

    costs not significant

    for Large companies,

    but very significant for

    specific projects or

    SME.

    Indirect impact on

    revenues and cost of

    service, significant

    NEGATIVE IMPACT ON REVEUES AND COST OF SERVICE

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    minimum 24 pt.

    Bullets level 2-5

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    Lessening restrictions

    Allow cross-border flows facilitating commercial data processing

    Eliminate requirements on locally based servers / IT infrastructure

    Clear roles, responsibilities and non-transferable statutory liabilities

    Efficient cross border transfer regime

    Promote CBR/Safe Harbor like instruments

    Minimize restrictions on employee data cross-border flows

    Where CBR/Safe Harbor ARE available additional approvals of DPA should

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