Keynote from John Kwant - 20/20 CCAT Global Symposium

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Thank. You Henry, for. That wonderful, introduction, and I don't, want to say thank you to Calvin Tuttle. And Francine, Roman I know it's been a lot of work trying to get this moved. To webinar format I think you guys have done a great job and I hope it's a great day thank. You for the invitation to join you all here and. Deliver. This keynote I know that Diana forgot Roth from. D-o-t was scheduled, to do this Diana. And I know each other well we've, worked a lot of these issues together, I've. Attempted to provide a very what, I hope is a balanced, of you what. The challenges, are a couple areas of happier. But. Honored. To have, been asked, to to take her place and. Look forward to sharing. This information with you next, slide please cover. The. Areas that I'm going to cover today are, primarily, centered around autonomous. And connected vehicles. The. Graphic. That you see here is is just kind of a, insight. Into how Ford. Looks at a smart, mobility writ. Large. Certainly. We, are. Probably associated mouths, most, with, the. Vehicle side of these, circles, but. When we look at smart mobility it encompasses not, only autonomous. And connected vehicles, and within. Connected vehicles are conventional, vehicles of, course but. It also encompasses. The data that. Those vehicles generate, as, well as what we would call smart mobility and, this is a very large circle that. Speaks. To not. Only things like micro. Mobility which we've invested, in but. Helping cities the. The items, that I used to work on in my prior. Role in. Terms of trying to connect vehicles, to their larger, mobility, ecosystem, and how do we help cities. Municipalities States. Do. That better utilize, the data that the vehicles are generating, so, that we make vehicles safer and that we make transportation. More fluid and. Efficient. Within an environment so. Today. To talk. About the regulatory environment around, connected. And autonomous, vehicles those.

Are My two primary responsibilities. Now for Ford in Washington, DC next, slide. So. What. We're going to talk about in, terms of the outlook, for abs is. The. Work that's been done on, getting to a federal, legislative, framework. In. The process of doing that what, else has the, Department of Transportation as, well as Nitsa doing. To help facilitate the, introduction. Of ATVs and a, little. Bit on what states are doing on. Connectivity. I'm going to dwell a lot on spectrum, and there's. Probably most, people on this call, are. Aware. Of this. There's. Probably not a lot new. You're, going to learn from this but what I'm going to offer is kind. Of an opinion as to how things could play out, depending. On how, the FCC, rules on, this. There's. A clip in here you, know what's all the fuss about doesn't, everyone want safe for cars and hire. Deaf cat videos there's just a little bit of a battle for the 5/9 spectrum, between the. Unlicensed. Proponents. As well as those that want to retain all, of that banned for safety uses, we'll talk about that next. Slide. So. From. An autonomous vehicle standpoint. We'll kick off and just look at the facts well currently there. Is no regulatory, framework, in place to, certify, a large volumes of AVS. There. Is an exemption, process that, Nitsa has that you can apply for that. Is roughly. 2,500, vehicles per year for a two-year period a. Couple of of allianz. And. AV. Technology companies, have applied for these most recently. Neuro. Was. Granted, one, of these exceptions. But. It's it is a. Process. That takes. Some. Time and again. It's only 5,000. Units, the. Last. What. I would call serious, legislative, efforts to. Establish this regulatory regulatory, framework. For a B's at least at a federal level occurred. In the last Congress, so. You. Might recall that in the house there. Was a bill that went through that. Was, had overwhelming. Bipartisan, support. It. Then languished, in the Senate and, lady team and. What. Happened is. After. The Congress changed, and, Democrats. Assumed, the, majority in the house. What, they did was form a bicameral. Bipartisan. Working. Group of staff to. Try and take elements. Of what, there. Was agreement on and in the past efforts, and work. Toward trying to draft a Navy bill and I'll talk about that as well. The, the concerning thing I think for automakers. And technology companies is that without this federal framework, every. State is also attempting. To regulate AV use and that, can create a patchwork of rules and regulations, there.

Are Certainly things that, are. Under the purview of the states in, terms of vehicle registration. And licensing, but you know all those things he said states typically do with conventional vehicles. But. What we would not. Want to see estates, start. To venture into areas at the federal government typically, plays a role in next. Slide. So. What. Does industry want from from, a Navy regulatory. Standpoint, it's, kind of captured in the title and to. A large extent is to allow the, people that are operating, in this space both OEM to technology, companies to, both test and deploy a v's in ever-increasing. Numbers. To. That end you know one of the things that we're certainly engaged, in is trying to ensure that nodes of grants exemption, requests, when. They're applying for as expeditiously, as possible because, again that's the only process that exists right now and, then. A lot of effort is, toward creating. This regulatory. Framework, through statute. And what. We want to do is expand, it's as a bee authority you know those of you who are familiar with insa know that all, of their vehicle, regulations. Deal, with conventional, vehicles, that require, brakes and steering wheels all the things that with. ABS, might. Not be required so, as. I mentioned there's this bipartisan. Bicameral process. Of way, last. August. In September, there was a lot of outreach to the various stakeholders. Om. Safety, groups. Technology. Companies to. Talk. About what. Has worked what hasn't worked in. Terms of the language, they. Circulated. Draft language to, these stakeholders, which, was commented, on and sent back this. Happened, over, the course of roughly. Five months the. Last batch. Just got sent back earlier. Part of this year. I'd, have to say that they had a standalone, bill, like we had before it's, probably not likely this year given. The very short legislative, calendar that we have not only because of the election, but obviously. The. Virus, is, probably, going to impact greatly. The legislative, caliber this year and. Then there's a lot to say a focus on stimulus, trying, to get the country back. We. Also have a variety, of trade, associations working. With. Us advocating, for a federal bill the. New automotive alliance for. Automotive. Innovation I. TFSA. The, coal of the self-driving coalition. These. Are the organizations CTA. That. Help us try. And move this forward next. Slide please. So. To give you a sense of what. Could, potentially be in a Navy bill each of these. Columns. Represents, the three rounds, of text that were circulated. Earlier. Late, last year than earlier this year in. The first round we, looked at, exemptions. How. Many would be required, or, how, many would be allowed per year while. Rulemaking. Was going on. In. Some, expanding. Testing, the. Role of advisory. Committees with, Congress's. D-o-t in. The second round rulemaking. As I mentioned, this. Notion of what are the federal and state roles in this space this is very important, and. Then there was a section of course defining, all the terms that would be used in the legislation, and. In the last round we just completed there, was. A. Section. On cyber security, one. On consumer, education dual. Use vehicles. How. We would collect and use. Scratch data, section. On an inoperative controls, how. To deal with vehicles. Over 2,000, pounds and. Then staffing, requirements, that would be needed at d-o-t there's. A lot obviously that goes into a piece of legislation, like this the. Ones that are most important, to us I believe to most OEMs, are the ones that are highlighted yellow as. I mentioned what we're trying to achieve is, a, greater. Number of exemptions to deploy these vehicles to start. The rulemaking process it's, a centered, around abs and. To clarify, federal. And state rules, thank, slide please Calvin. So. This. Notion of could we get an AED bill, as I said I don't think this. Year I don't think we're being able to do it on a standalone, basis, but we. Are looking at opportunities to introduce it potentially. You. Know as it rides on a transportation bill of some sort or infrastructure, bill, some. Of the encouraging, signs we've seen has been House. Energy and Commerce Committee held. That they subcommittee, hearing them on the 11th of February, on a, DS I think overall, it was a net positive for, people who are advocating, for, abs in this space.

There. Were obviously several increases, and references, to accessibility. Of the safety aspects, there, was a large contingent, from, the Coalition, for the blind there, were. Remarking, on how enabling. These vehicles could be for, their constituents and there, was a lot of talk about us, competitiveness, in. This space and the need to maintain. That and. And create, the environment. That is supportive of. Development, of the technology, of deployment, of Technology. Again. As I mentioned I think the things that are playing, against. Legislation. This. Year would, be the, election calendar as, well as coronavirus, this, is going to impact how many days Congress, gets to be and talk. About things that are. Unrelated. To, that that. Was. Completely, unexpected and it's going to impact it. And. Then over. The past couple. Months you've, seen the, National Transportation Safety Board. Comment. On some. Of the accidents that, accidents. That happen with Tesla vehicles, we. Think this actually makes park an urgency for legislation. I will. Have to see they certainly call to that in, some of their remarks so. That. Could be also an, impetus to get something done this year. Next, slide please. So. The other things that are going on in, this space, do. Te did, release their, AV, 4.0. Document. As, follows, the three previous versions, they've, made refinements. Updates. To it but, those of you who have looked at it. Can. See where they've essentially. Tried to mesh. This into, the president's, broader agenda on, artificial, intelligence and, they. Tried to group and categorize, things and talk, about the many initiatives that, are underway there, to. Encourage AV development. They. Did grant Neuros potential, the exemption. Requests as I mentioned. And. Then most recently they've initiated review. Of, protection. Regulations. The series 200, so. Those are underway. The. States also, continue, to legislate, in the space and the areas that they. Seem to be most focus on are. On testing, employment. Requirements that. Occur in H 2 H 3 as. An industry trying to make sure that those are linked because. If you're going to test in a state it's, ultimately under the attention that at some point you were deploy so we always want. To see testing, and deployment, legislation. And linked, together. There's, obviously a great deal, of concern with liability, insurance at, what's the appropriate level that. AAV providers, should be carrying in the state. There's. A lot of discussion, around data sharing. And. A, notification, of. Accidents. Or incidents. When they occur what. Should be the frequency how much data should be shared and. Of course cybersecurity which is always a concern with. Both. State and federal officials. Next slide. Please. So. That, was, pretty much the kind, of encapsulated, everything, that's going on in the baby, space what. I want to talk about now is spectrum. You. Many, of you I know are aware, that it was over. 20 years ago when the FCC set. Aside a portion of, the 5.9. Gigahertz band, to. Be completely dedicated for, automotive, safety, communications. It. Took some, time to get to a standards, level I think. The real work in, the band probably began in earnest. More. Long a tenure ago, timeframe, a lot. Of the the focus has been utilized in technology, known, as the SRC. And. That has been deployed in, the band and, limited amounts both vehicles, as. Well as an infrastructure. Around. The country in its States I think. If you've looked at the total. Number of radios, that are in operation today. There's. Roughly anywhere, from from, 15, to 16,000, that are infrastructure, related and, I think there may be as high as 30 to 40,000, vehicles. Or, where the technology's, been deployed. The. The, issue has, been that over those these last 10 years that because, you've got that kind of limited deployment and seventy-five. Megahertz of spectrum here. In the five nine band the. FCC, has looked at it in Krita. Society it's the industry, for. Not. Having, deployed more and. I guess part. Of that is maybe, criticizing. State. And local deities was as well as the federal do t-took not happy fully utilized the ban and. Because of that it's always been. Looked. At as an opportunity, to. Open. It for additional, use primarily, in the Wi-Fi. Space and unlicensed. Use so. The. Cable and Wi-Fi industry, would like a portion, of us the. That's occurred really. Over the last let's, say five three to five years has been the. Emergence of an, alternative technology, to do succeed, and that, cellular, d2x received a text, in.

We've, Evaluated this afford, at. The Consumer, Electronics, Show last, year in January, we, made a declaration, that we plan to deploy it in our vehicles starting, in 2022, and ultimately, have it in all of our vehicles and then. The, five key automotive, alliance which we're a part of as well as a number of other OEMs, chip. Makers and technology companies when. They filed a later in. March of last year, petitioning. The FCC. To operate. CV FX in the 5.9, carriers, man what, we actually asked for was a. Waiver, to utilize, the top two channels and. The top 20 megahertz for. Sigue Dex next. Slide please come. So. The, the. Fuss that that's, emerging, here is. That. The d-o-t. As. I mentioned wants to preserve all of the seventy-five megahertz for, automotive safety use, they've. Made a strong case for the, fact, that federal and state do TDS, have invested, for nearly. Twenty years both in terms of setting up the standards, as, well as putting an infrastructure. Luckily, hundreds of billions of dollars you, know across the country that we invested. The. FCC, wants to open that spectrum, for shared use, but. They also don't want to ignore auto safety they understand, that's important, they, see other, countries and, other regions. Utilizing. The same spectrum, for, automotive, safety and so there's a benchmark, out there to that extent. But. The auto industry, is kind of split between, the SSRC and c2x, proponents, and. We. Too would want to preserve all seventy-five, megahertz. For. Automotive, safety because, we feel that one. Of these technologies, will prevail it will grow it. Will need in the future all seventy-five, megahertz because, of a future abuse cases whether, those are abs, or, broader. Mobility. Connection, purposes. As well as my creation, to 5qi. And. So because of that neither, of us in. Terms of proponents, of these technologies, want to share it with unlicensed, juice or Wi-Fi either. Next. Like. So. Where, we're at here and I, don't mean, to be politically, correct or, politically, insensitive, but the term Mexican, standoff, is one that is, a defined, term and the definition, is there at the bottom of your stream, it's.

Essentially Where we're at with. Both, the FCC, the de ot and then what I would broadly call users, of the spectrum, and in. Fact the. Users their IDs are CCB, ex wife, I could. Also assume the positions of each of these gunmen, and. His big picture. Neither. Wants. To give. Something up because. They feel, they have a right. Or a case to it and. Others. You don't want to enter, this ban so. There's, no good or bad actors, here in fact everyone's wearing black you know this picture but, where we're at this point where, how. Do we get through this process so. The. Next slide please Collin. What. Happened was. That at, the FCC late. Last year. Initiated. An NPRM. Where. If, you look at today's delegation. For for the seventy-five, megahertz as. I said it's currently all dedicated to I TS, from. Channels 170, through 184, I also. Show over here and it's it's broken because it's actually a much larger band the six give you greater expand because. There, is a, proceeding. That will, be. Discussed. At the FCC's, monthly meeting later this month in fact, next week as. To whether or not to open, 1.2. Gigahertz. Or, roughly. 26. Times the amount they may be seeking in the, five nine band open. All of that up to unlicensed, use just. Just, to the east of, this. This five nine name what. The FCC then proposed and this was what you see on a lower part was. To take that seventy-five. Megahertz that's, dedicated, for I TS and to. Offer, up the bottom forty five to. Unlicensed, or Wi-Fi use, the. Middle portion which, was basically ten, megahertz for. I TS they didn't specify, whether, this was the SRC, you're seated X but. Said that they would leave that there or potentially, a guard channel but, they did specify was, they, would grant the top twenty two, CV two acts which was essentially, our waiver request. Then. Of course we still have this proceeding, and going on in the in the sixth gigahertz. Band, so. The, NPRM, basically. Asked for comments, on the five nine band said what. Do you what people think of this so, if we go to the next slide. Some, of the issues that, I think those. Are the transportation space, have with. What the FCC is proposed, is, that if. You give. Up the, lower forty five one, of the issues is, there. Will be no spectrum. Remaining. The. Transition, either the SRC or c2x, or any other technology, to 5g. This. Is concerning, because we know. Connectivity. Is growing, we. Know that, there's. Ways to connect, not, only vehicles, to infrastructure. Pedestrians. And bikers and. And and, scooters, and you know a broad array of uses. Within, that mobility ecosystem. And. Then ultimately there's a use for autonomous, vehicles, as well and. Connectivity. Becoming, what. I like to call the fifth sense on a be a. V's today operate. Uniquely. Independently. In. Their environment, and they, used, radar. Or lidar photo. Telemetry. To. Guide those vehicles and, and once you add, connectivity. Especially, in a 5g, perspective, it. Really becomes a redundant, and confirming, sense for. Those previous, four so we, believe it will, have an application babies. One. Of the big concerns. And. You saw this in a lot of the comments that came in initially on. This proceeding, is that there's likely interference. With. Or. From unlicensed, views in the lower forty five megahertz, with. Any I TS use and in the upper 30 and of course this would be really. Bad because if. You're relying on the upper, thirty megahertz for, critical, safety messages, and, someone's. Cat video is interfering, with that it. Could result in a crash court or, they. Could have helped avoid you know an accident or. Collision. I. Made. The point that the the five nine band and the portion, that we're talking about here is something that's actually internationally. Harmonized. He. The, you asked Cu China they, all use, this same. Section of the five nine spectrum, and. If we were able, preserve it and use. It for Aitu yes, this obviously provides economies, of scale for the, industry. As. Well as in terms of deploying it in, infrastructure. In these markets and, that will help deployment. OMS. Are obviously, reluctant. To deploy, new technologies if. There aren't assurances, of stigma. Clearly as I just talked about as, well as spectrum of abilities, so one of the criticisms. Is kind of comes full circle is, that you haven't utilized the band over. The last 10, or 20 years and. Some. Of the critics will charge well. You haven't given us clarity or assurances, that the band will be available, there, seems to be a recurring look at it one. Of the reasons that we, at Ford declared, was to provide some impetus for deployment to show that, there is industry, commitment, you know that ultimately. You. Know assuming that we continue, to sell as the many vehicles, that. We do annually into, the future you're, looking at over 2 million vehicles, a year that could, ultimately be equipped with this technology.

And. In addition LEM both federal and state deities, are also reluctant to. Further, invest, you know a 90s, without regulatory, certainty why spend, money on something if you don't think there's a future. In it so it's important, to get that certainty in place so that we can deploy, next. Slide please. So. Where, we currently. You know on the proceeding there. Are two rounds of comments, that, were being sought the, first round was due last month. In March and the second, round was actually due last. Week but was extended. Due, to the virus and they're due by, the end of the month. What, we saw in the first round were, over. 200. Institutions. Organizations. Filed comments and the, majority, of those actually. Were very supportive of. Maintaining, all seventy-five, megahertz for, ITX you kind of have the, unlicensed. Proponents. Wi-Fi. Companies. Or people that would utilize that, bandwidth. Against. A broader. Transportation. Base you, know from OMS, highway. Users, safety. Groups there's, a whole bunch of people that are advocating for maintaining all seven five megahertz. When. You look at the USDOT fire, lane as well as the state deities, given. The investment that they've made in the SRC, there's obviously a bias, or a tendency. Toward, favoring. That technology. But. One of the things that the USDOT did, recommend their fire lane was, that the FCC, and do te. Kind. Of settle all of this by entering into a negotiated. Rulemaking process. In, order to allocate the spectrum, this. Is something that they've, they've done in the past it. Involves. Bringing. Together. Industry. Experts, you could see panels, being convened, with, folks. From Michigan, University. Of Michigan and folks from SAE. Safety. Groups that all of the stakeholders, are in the space would get together and. Over was probably, likely some extended, period of time decide. You know what is the best technology what, is the best way to migrate and what, is the best way to allocate, and the spam. The. Concern there is that, this. Still doesn't necessarily, lead to certainty, you certainly thought while that is going on and it. Could. Take a very, long time whereas, we, feel that the industry, and. Drivers. And users. Could. Actually benefit, from having this technology sooner, rather than later later. To, other developments, that, I've. Noted that could impact this proceeding, one, was, with. With, the virus putting. A lot of people, at. Home working, from home they, wanted, to. And the FCC wanted to ensure that there was enough spectrum, available, especially in rural areas so. They temporarily, opened. The, bottom bottom, about forty five megahertz and various locations. Around the country to. Wireless, internet, service providers, this was just most recently died. We. Don't really have any reports from the field yet in terms of you know his interference, occurred, how, well is this working, I don't think it's it's too, widely deployed yet at this point, but. It does create incumbency. In, the lower 45, in. Terms of the way the NPRM, was written, and. FCC. Chairman PI also. Indicated. That with regards to the six gigahertz proceeding, and them looking at opening. All of, that twelve hundred megahertz for. Unlicensed. Use that. He, felt that most of the commissioners, were supportive, of that and. That next, week when they vote at April 23rd they could have a large chunk of that so one might argue if.

Unlicensed. Is getting all of that spectrum do they really, still need the lower 45. That. They're seeking in this NPRM. So. Lastly. One. Of the issues with with, that NPRM. I'm. Sorry I think we went backwards. One. More. Okay, so this is my last slide on what, could happen. So. If the FCC implements. The NPRM has written there's still probably more questions, than answers because, we. Feel they'll be interference. We did some testing actually four did in Ann Arbor this was part of our our our. First-round. Comments, we, found interference, to occur from, Wi-Fi devices, in. You. Use them in the lower 45, combined, with our, C to X in. The upper 20. There. Still remains a question about, how you transition. Technologies. To things like 5g, and AV use cases as well as how, do you take incumbents, that are in the band and deploy. Them to other channels because right now the, SRC, is essentially deployed, across. All, of the channels in that band and. This. Question of if. You if, they implement it as written, will do T's and OEMs, commit further deployments, of. I TS and so it, could be to death now for. I TS growing. If. There isn't enough spectrum, to actually deploy it and if there's interference. The. Second outcome, would be that the, five nine spectrums, retained. All seventy-five, megahertz for i TS. That. They allow, unlicensed, and the six gigahertz and if, that happens, how. Do you then allocate, the spectrum, between, you. Know sir C&C DX. You. Still have this notion of. Incumbency. And how to move, existing. Deployments. Around and, then. You'd. Have to to. Wonder how long is it going to take for one technology to emerge you know as a preferred one as. A colleague, of mine and another, girl you said. Recently, you're. Either you, either drive on the right or the left hand side of the road but we don't have both this country for a very good reason so. It's, best to pick one you know and move forward so they'll. Take some time for that to shake out and. Then of course we still have this question about a spectrum. For, either technology, to transition, and apply G and, AV use cases. Timing, some. Commissioners that thought this proceeding, could get done by June I, think, that was very hopeful, I think, it's going to take the better portion of a year you know it's not longer, one. Of the things that is likely to. Move. This proceeding along as, the Chairman's. Tenure. As, chairman ends in December and, I think he would like to have this, done before, he. Leaves. That post so. We'll. Have to wait and see so. That's really I think that's the last line Calvin, wanted. To thank, you for that half hour and. Giving. You an overview of both of spaces here and with, that I'll turn it back over to either. Henry or Kelly.

2020-04-25

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