The concept of a smart city is laden with numerous expectations. Among these is the aspiration to make our mobility more intelligent. Achieving this goal necessitates access to data – particularly mobility data sourced from the entire transportation ecosystem. The Mobility Data Act is in the process of establishing a new legal framework to facilitate this. We highlight the opportunities and prerequisites for the effective use of mobility data.

The accessibility of traffic data is a fundamental requirement for enhancing the innovation and environmental sustainability of transportation systems. This encompasses elements such as public transportation schedules and the management of parking space usage. In early October 2024, the German government approved a proposal from the Federal Ministry of Transport aimed at assessing the necessity and format in which companies will be required to supply travel and transport infrastructure data in the future. The establishment of a cohesive mobility data law is crucial for facilitating the development of new mobility solutions and data-driven business models.

The implications of data accessibility significantly impact nearly all stakeholders within the smart city ecosystem. We explore the opportunities and challenges presented by this transformation from various viewpoints, while also examining potential use cases along with the associated technological and legal frameworks:  

The availability of mobility data creates opportunities for numerous innovative applications in the mobility sector. For instance, it facilitates intelligent route planning in logistics, enhances the public transport customer experience through real-time updates, and allows for the expansion of traditional automotive businesses via new, data-driven business models. Additionally, insurance companies are reaping benefits in the realm of preventive insurance products.

How mobility data can improve the in-vehicle travel experience:

When individuals utilize a private vehicle for travel, the mode of transportation represents merely one facet of the overall experience. One example: Should the itinerary undergo unexpected changes, it is essential not only to recalculate the vehicle's route but also to ensure that all elements of the journey remain flexible. This encompasses the need to rebook e-charging stations, ferries, car trains, parking facilities, and hotels, for instance. The necessary functionalities must be available in the vehicle throughout the journey. The utilization of AI can enhance route planning by analyzing extensive mobility data, thereby facilitating the identification of alternative transportation options. A primary objective should be to optimize the distribution of travelers, which will help prevent congestion and ensure a favorable travel experience for each individual.

How insurance companies can leverage mobility data to develop telematics-based pricing models:

Insurance companies currently incorporate specific mobility data into their telematics pricing models, particularly concerning braking and acceleration behaviors. Drivers who exhibit low-risk driving habits and share their driving data can benefit from reduced car insurance premiums. Traditionally, insurers have depended on data gathered through smartphone applications or telematics devices. However, by obtaining data directly from the vehicle through a secure telematics platform, a more extensive database can be established in the future. This advancement would enhance telematics services and enable insurance products to focus more on preventive measures. For insurers, improved and precise risk management could result in lower claims costs and an increase in underwriting revenues.

How telecommunication companies benefit from the introduction of innovative mobility services:

Telecommunications companies can no longer rely solely on bandwidth sales as a sustainable business model, given the persistent decline in profit margins within this sector. At the same time, these companies are required to make substantial investments in the enhancement of their network infrastructure. Consequently, it is essential to explore and develop alternative business avenues. The emergence of new mobility services presents promising opportunities in this regard: Real-time traffic applications necessitate rapid and secure data transmission, positioning telecommunication companies as key players in this domain. To successfully establish innovative business models, it is imperative for these companies to collaborate with partners within the mobility ecosystem. Notably, partnerships with municipalities could lead to the creation of appealing solutions, such as advanced intelligent parking systems that surpass existing capabilities. Furthermore, telecommunication companies can leverage their data analysis expertise to provide valuable insights to transportation and logistics partners.

The use of traffic data imposes new requirements on the transmission, storage, and processing of data. Telecommunication companies, municipal authorities, automobile manufacturers, and various stakeholders within the mobility ecosystem must adapt their systems accordingly. This includes, for instance, the enhancement of broadband infrastructure through the installation of additional mobile phone towers and the expansion of the fiber optic network. Furthermore, there is a need to increase mobile phone frequency allocations to provide additional capacity for data transmission. Additionally, the security of networks must be consistently improved, which can be achieved through the implementation of encryption technologies and secure transmission protocols.

How reliable data transmission can be guaranteed:

The technologies essential for dependable data transmission, such as 5G and the widespread availability of mobile communications, are well understood. However, their implementation is not yet universal. To realize the vision of interconnected and intelligent mobility, collaboration between local authorities and telecommunications providers is crucial to advance network expansion and address existing challenges. Prolonged and non-standardized approval processes, limited construction resources, and a shortage of suitable sites for mobile phone infrastructure have frequently hindered the progress of expansion efforts.

What security aspects need to be considered when providing data:

Mobility data encompasses a variety of potentially critical or sensitive information. Consequently, the companies responsible for generating this data face significant challenges in implementing effective information security measures. They are required to maintain both the integrity and availability of the data, particularly concerning traffic safety. Simultaneously, it is imperative to safeguard personal data. Furthermore, operators of critical infrastructures must ensure that proprietary information remains confidential through the newly established interfaces and that no additional vulnerabilities for cyber attacks are introduced.

When mobility data is used within a business framework, essential questions emerge concerning data protection, information security, ownership, and liability. In ecosystems that are centrally organized around a primary company that manages and oversees business operations with the data, there is a tendency for such ecosystems to evolve into monopolistic structures. In any monopolistic environment, there exists a risk of impeding fair competition and neglecting data sovereignty, as well as a potential failure to recognize necessary innovations. Regulatory bodies are becoming increasingly aware of these risks. Consequently, a legally sound framework is a fundamental requirement for the effective use of mobility data within the smart city ecosystem. This framework must address data sovereignty and potential conflicts of interest with both national and international legal standards, including the GDPR and the Data Act.

How data sovereignty remains guaranteed in the ecosystem:

To facilitate a variety of mobility solutions that benefit consumers, it is essential to provide multiple market participants with access to mobility data under clear and transparent conditions. In this context, consumers ought to have the autonomy to determine which data they wish to share with specific market participants – such as vehicle manufacturers, insurance companies, repair shops, or automobile associations – and for what intended purposes.

This approach would foster a more decentralized ecosystem, promoting fair competition and potentially unlocking new growth opportunities for numerous businesses. The proposed national mobility data act, currently in development, could serve as a prudent initial measure toward achieving this goal.