• Chairman John Thune
  Read statement

  Chairman John Thune

  "We convene to examine what may be the most important trend in technology today: the Internet of Things.
  
  "I want to thank Senators Fischer, Ayotte, Booker, and Schatz for your leadership on this issue and for encouraging this committee to examine IoT [eye-oh-tee].
  
  "By now, all of us are used to having at least one or two electronic items near us that are connected to the Internet – like computers, phones, and TVs. Increasingly, however, we are seeing common, everyday objects being connected online – a literal Internet of Things that will soon be ubiquitous.
  
  "These 'things' unobtrusively gather data and communicate with users, and with other devices, to solve a variety of consumer and business needs.
  
  "Some have argued the Internet of Things is the 'third wave' of the Internet, following the fixed Internet of the 1990s and the mobile Internet of the 2000s.
  
  "The economic impact of IoT promises to be significant and will drive growth in every sector of our economy.
  
  "According to McKinsey & Company, the Internet of Things has the potential to create a global economic impact of up to $6.2 trillion annually by 2025, with 50 billion Internet-connected devices by 2020.
  
  "There are some truly fascinating examples of the Internet of Things. A bed with smart fabric and sensors that tracks your sleep habits and uses the data to make sure your sleeping environment stays comfortable throughout the night.
  
  "Mobile apps that use roadside sensors to inform drivers of empty parking spots.
  
  "An automated sprinkler system that saves money by using real-time weather data to make automatic, water-saving adjustments.
  
  "A web-enabled toothbrush that tracks the user’s brushing habits to improve oral hygiene – one of my staffers actually uses one of these, and swears by it.
  
  "As exciting as those applications sound, we are only at the beginning of this technology trend and there is no telling how far it will go.
  
  "The number of connected things will continue to explode, and they will increasingly interact with each other dynamically, seamlessly, and automatically without human intervention.
  
  "With significant economic and societal impacts, the Internet of Things also brings complex policy questions.
  
  "By their nature, IoT devices require Internet connectivity and we’ll need to be bold in thinking of clever ways to unleash licensed and unlicensed spectrum for the private sector.
  
  "IoT devices can collect sensitive consumer and business data; therefore, privacy considerations should be at the forefront as we consider this great technological wave.
  
  "Security will also be a critical concern of the Internet of Things due to the scope and sensitivity of the data collected and the interconnection of devices and networks.

  "These issues are real, but I encourage policymakers to resist the urge to jump head first into regulating this dynamic marketplace.

  "Let’s tread carefully and thoughtfully before we consider stepping in with a 'government knows best' mentality that could halt innovation and growth. Let’s treat the Internet of Things with the same light touch that has caused the Internet to be such a great American success story.

  "We should let consumers and entrepreneurs decide where IoT goes, rather than setting it on a Washington, D.C.-directed path.

  "If evidence shows there are discrete problems, we should examine ways to solve those problems.

  "But let’s have the humility to recognize that the best solutions are often not government solutions, and let’s not stifle the Internet of Things before we and consumers have a chance to understand its real promise and implications.

  "We have a fantastic panel with us today with diverse experience in the IoT marketplace. I am looking forward to hearing from each of you."

Majority Statement

• Chairman John Thune
  Read statement

  Majority Statement

  Chairman John Thune

  "We convene to examine what may be the most important trend in technology today: the Internet of Things.
  
  "I want to thank Senators Fischer, Ayotte, Booker, and Schatz for your leadership on this issue and for encouraging this committee to examine IoT.
  
  "By now, all of us are used to having at least one or two electronic items near us that are connected to the Internet – like computers, phones, and TVs. Increasingly, however, we are seeing common, everyday objects being connected online – a literal Internet of Things that will soon be ubiquitous.
  
  "These 'things' unobtrusively gather data and communicate with users, and with other devices, to solve a variety of consumer and business needs.
  
  "Some have argued the Internet of Things is the 'third wave' of the Internet, following the fixed Internet of the 1990s and the mobile Internet of the 2000s.
  
  "The economic impact of IoT promises to be significant and will drive growth in every sector of our economy.
  
  "According to McKinsey & Company, the Internet of Things has the potential to create a global economic impact of up to $6.2 trillion annually by 2025, with 50 billion Internet-connected devices by 2020.
  
  "There are some truly fascinating examples of the Internet of Things. A bed with smart fabric and sensors that tracks your sleep habits and uses the data to make sure your sleeping environment stays comfortable throughout the night.
  
  "Mobile apps that use roadside sensors to inform drivers of empty parking spots.
  
  "An automated sprinkler system that saves money by using real-time weather data to make automatic, water-saving adjustments.
  
  "A web-enabled toothbrush that tracks the user’s brushing habits to improve oral hygiene – one of my staffers actually uses one of these, and swears by it.
  
  "As exciting as those applications sound, we are only at the beginning of this technology trend and there is no telling how far it will go.
  
  "The number of connected things will continue to explode, and they will increasingly interact with each other dynamically, seamlessly, and automatically without human intervention.
  
  "With significant economic and societal impacts, the Internet of Things also brings complex policy questions.
  
  "By their nature, IoT devices require Internet connectivity and we’ll need to be bold in thinking of clever ways to unleash licensed and unlicensed spectrum for the private sector.
  
  "IoT devices can collect sensitive consumer and business data; therefore, privacy considerations should be at the forefront as we consider this great technological wave.
  
  "Security will also be a critical concern of the Internet of Things due to the scope and sensitivity of the data collected and the interconnection of devices and networks.
  
  "These issues are real, but I encourage policymakers to resist the urge to jump head first into regulating this dynamic marketplace.
  
  "Let’s tread carefully and thoughtfully before we consider stepping in with a 'government knows best' mentality that could halt innovation and growth. Let’s treat the Internet of Things with the same light touch that has caused the Internet to be such a great American success story.
  
  "We should let consumers and entrepreneurs decide where IoT goes, rather than setting it on a Washington, D.C.-directed path.
  
  "If evidence shows there are discrete problems, we should examine ways to solve those problems.
  
  "But let’s have the humility to recognize that the best solutions are often not government solutions, and let’s not stifle the Internet of Things before we and consumers have a chance to understand its real promise and implications.
  
  "We have a fantastic panel with us today with diverse experience in the IoT marketplace. I am looking forward to hearing from each of you."

Minority Statement

• Ranking Member Bill Nelson
  Read statement

  Minority Statement

  Ranking Member Bill Nelson

  Opening Statement – Ranking Member Bill Nelson

  “The Connected World: Examining the Internet of Things”

  Wednesday, February 11, 2015

   

              Thank you, Chairman Thune, for holding this hearing today.

   

  In just the past couple of weeks, we have been hearing a lot about the proliferation of Internet connected devices.

   

  And the news is not all good.

   

  We have smartphones with web trackers that you can’t delete called supercookies.

   

  We have connected devices in cars out there that are potentially collecting all sorts of information about us – without express consent.

   

  And now, we have news reports about televisions that send household recordings in our homes to third parties.

   

              Make no mistake, the advent of the Internet of Things could result in a sea change in the way we interact with our world, how we go about our lives in our homes, and economic growth and jobs. 

   

  Home automation and integration could mean limitless conveniences and save consumers thousands of dollars each year. 

   

  Wearables and connected healthcare devices could drive down costs and pave the way for a better life for all of us. 

   

  Smart electric grids, traffic monitoring systems, and new industrial processes could revolutionize our country and the economy. 

   

              No one is debating the promise of the Internet of Things, and no one is talking about “overregulating.”  This is a red herring.  But the promise of the Internet of Things must be balanced with real concerns over privacy and the security of our networks. 

   

              As we saw on Sunday night’s episode of 60 Minutes, the Internet of Everything could allow “everything” to be portals to the Internet and, consequently, threats to our cybersecurity. 

   

  Hackers can access your car and take over basic functions, such as acceleration and braking control. 

   

  They can also hack into insulin pumps and cause an overdose or take over a pacemaker and cause a heart attack. 

   

  This is not the stuff of TV drama – these are real threats not only to our nation’s cybersecurity but also to our physical safety.

   

  In fact, this technology is nothing new.  For years, the so-called “Pineapple Mark IV” has been able to hack into Wi-Fi networks and wreak havoc on your laptops and smartphones.

   

              Furthermore, as these interconnected devices collect, amass, and transmit personal information, consumers’ personal privacy is increasingly at risk. 

   

  The FTC just recently settled a case with a company that manufactured household security cameras that, because of faulty software, allowed anyone online to peep into hundreds of households.

   

  Furthermore, some companies may transmit the information they collect to third parties without consumer consent. 

   

  It’s one thing for my refrigerator to inform me that I need more milk; it’s another for my refrigerator to tell that to the local grocery store for marketing purposes.

   

  And, more recently, we learned that Samsung’s privacy policy for its voice-activated “Smart TV” informed consumers that their indoor conversations can be recorded by the television and sent to a third party. 

   

  So, Big Brother may really be listening to us.

   

              The FTC just released a report on this very topic, making some wise recommendations – for best practices – for companies as they design, sell, and service their connected devices.

   

  I hope it’s the start of real conversation and cooperation between the FTC and industry to make sure the promises of the Internet of Things don’t fall victim to a lack of foresight and protections for consumers.

             

              Finally, another important aspect in looking toward the future of the Internet of Things is the platform on which the majority of these new devices connect – wireless spectrum.  Spectrum is the lifeblood of these devices, as well as for so much other innovation in the U.S. economy.  We must engage in a careful consideration to balance competing needs for this finite, yet critical public resource.

   

              I want to thank the witnesses for appearing before the Committee, and I look forward to hearing your testimony.

Testimony

• Mr. Michael Abbott

  General Partner

  Kleiner Perkins Caufield & Byers
  Download Testimony (292.05 KB)

  Download Testimony (74.91 KB)

• Mr. Justin Brookman

  Director, Consumer Privacy Project

  Center for Democracy & Technology
  Download Testimony (328.64 KB)

• Mr. Douglas Davis

  Vice President and General Manager, Internet of Things Group

  Intel
  Download Testimony (725.48 KB)

  Download Testimony (83.13 KB)

• Mr. Lance Donny

  Chief Executive Officer

  OnFarm
  Download Testimony (60.14 KB)

  Download Testimony (74.73 KB)

  Download Testimony (117.94 KB)

• Mr. Adam Thierer

  Senior Research Fellow

  Mercatus Center at George Mason University
  Download Testimony (746.24 KB)

  Download Testimony (73.43 KB)