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New solutions for a more efficient and coherent mobility network

Posted: 30 June 2010 | Marc Bertin, Chairman, Eurosmart | No comments yet

The deployment of smart and secure technologies for public transport systems today represents a growing market for the smart security industry represented by Eurosmart. The transportation economy is becoming a more-and-more converging area for most of the new smart security technologies. This sector requires interoperability of various standards, including payment schemes and usage of new fare media, like mobile phones or USB devices, in addition to traditional paper tickets and cards.

The deployment of smart and secure technologies for public transport systems today represents a growing market for the smart security industry represented by Eurosmart. The transportation economy is becoming a more-and-more converging area for most of the new smart security technologies. This sector requires interoperability of various standards, including payment schemes and usage of new fare media, like mobile phones or USB devices, in addition to traditional paper tickets and cards.

The deployment of smart and secure technologies for public transport systems today represents a growing market for the smart security industry represented by Eurosmart. The transportation economy is becoming a more-and-more converging area for most of the new smart security technologies. This sector requires interoperability of various standards, including payment schemes and usage of new fare media, like mobile phones or USB devices, in addition to traditional paper tickets and cards.

Eurosmart is also considering intelligent transport systems as a whole, which are today creating new benefits for the end users and opening opportunities of R&D innovation for our industry. In a Eurosmart market analysis of the transport sector, a steady growth and a clear migration from memory cards to micro – processor cards was shown. The global shipment worldwide of secure contactless microprocessors in the transport sector reached 40 million units in 2009 and should increase to 50 million units in 2010. Besides, mass transit is the second major driver of NFC infrastructure deployment.

The Eurosmart vision: hands-free…

The doors slide open and a passenger boards without buying or carrying a ticket. An electronic reader picks up the microprocessor on their personalised ID and recognises them. Their travel account is opened. They transfer to another line (bus or train) and their fare is automatically debited to the new carrier.

From fare to data collection, the use of mass transit systems becomes natural and con – venient for all travelers.

It is indeed a dream – not from a technical standpoint – but more because the infra – structures are not homogenous and flat fare or control at exits still exists.

But this dream might become a reality if we implement inter-modal and interoperable smart season passes, responding to the regular passengers’ needs, together with a ‘global’ prepaid stored value, issued by a trusted authority and accepted by all the transport operators, permitting the simplicity and mobility required for non-regular passengers.

We often forget that we already use such facilities in the world of bank cards (debit and credit cards), accepted worldwide at POS and ATMs, and also in the telecom world (anonymous prepaid cards & identified subscribers), that is today operational worldwide.

Our challenge is to bring these facilities to the transportation market as well, and, like in smart card history, Europe may now have a breakthrough role in this transportation domain.

No future without interoperability of systems

Today, more than 50 major municipalities worldwide have already deployed contactless microprocessor cards for mass transit services.

The first high volume ticketing solution was implemented in Seoul, South Korea in the mid-90s and was immediately taken up by other cities like Moscow, Sao Paulo, Shanghai and Rio.

Central Europe followed with major cities like London, Stockholm, Paris and Rome, while Asia drove the market further with implementation in Tokyo, Hong-Kong, Bangkok, Brisbane and many others.

Most of these projects were started with contactless memory cards, and they are now migrating to microprocessor cards in order to increase the security and the flexibility with the possibility to add many applications after issuance.

In Europe, the two most significant deployments are the Oyster in London and Navigo in Paris. We can also mention the MOBIB system in Brussels. Since January 2009, the Paris Mass Transit Authority (STIF) has definitively switched to contactless cards and is no longer issuing paper tickets for weekly and monthly subscribers.

However, we notice that public transport operators have to cope with a cost-effective problem for non-regular passengers. This has brought most of them to maintain magnetic based tickets when the trip is inside their own network and to only use paper-based smart tickets when the trip involves more than one operator to permit a requested interoperability between the operators.

With increasing demand for mobility, including cross-border journeys, the inter – operability between operators, and the technical standards which sustain the various transportation systems, it is becoming more crucial for the business model of this sector.

The European context is certainly the right ground for defining this necessary inter – operability, and validating the various traveler scenarios, including city services.

Typically, the T-Money system, operated by the South Korean company KSSC, is a very successful and a good example of transportation systems providing a multi-service platform. T-Money is a rechargeable MCU based card used for paying transportation fares in the city of Seoul and other areas of South Korea. T-Money can also be used as cash or credit cards in convenience stores, vending machines, fast food restaurants and museum. Prior to the introduction of NFC, T-Money has been integrated in mobile phones which can be conveniently used by tapping the phones on terminals in subways and buses. Its usage is well supported by a large variety of accessories containing T-Money, which make small cash payments and reloading very easy such as mini cards, USB keys, watches, dolls, bands and rings.

This example shows what our transportation services in Europe could be like in the coming years.

The Mobile NFC wave

In addition to contactless cards for mass transit systems, there are multiple pilots testing Mobile NFC mass transit solutions. The NFC standards are now ready for post-issuance provisioning of the mass transit applet in the SIM card or in the handset. We anticipate that NFC deployment will start from 2011 in several countries and cities will turn those pilots into concrete applications for all users.

Contactless cards and Mobile NFC-ready phones with mass transit applications can be reloaded either at Point-of-Sale terminals available in railway stations or via the Internet on a mass transit operator portal using secure online payment schemes.

In addition to its core function, i.e. giving citizens access to the city-wide transportation network, we already observed some markets were multiple applications are being installed on the user’s smart card. In Paris for example, the Navigo card primarily designed for mass transit usage has already expanded its use to three additional applications. Parisian citizens can now use their Navigo card to use the city-wide bicycle renting network ‘Velib’ by installing their yearly subscription to that service on their card, via the Velib Web Portal. The second application is using the Calypso card to pay parking at on-street Pay & Display machines. Navigo in Paris is now also used as an e-Ticket to take the Thalys train network between France, Belgium and the Netherlands.

Mass transit systems always associate a mass transit credentials title (paper ticket, contactless card or Mobile NFC phone) and a reader (physical access to the mass transit system). The main issue concerning legal and liability issues is the traceability of the mass transit user by the mass transit operator.

NFC will enable commuters to pay for tickets using their mobile phone with a transport network’s existing card-based farecollection infrastructure. For transit operators, NFC could help resolve the issue of inter – operable ticketing and provide greater commuter flexibility.

A key question for the future will be the creation of convergent eco-system that integrates e-ticketing systems with new banking or mobile schemes.

The USB devices bridge Internet and transportation infrastructures

Recently, the migration of transportation smart cards from paper to memory cards and microprocessor cards was the main technology evolution for transport operators and end users. All services for fare purchase or reloading were provided in different stations, kiosks and vehicles.

Today, with the combination of smart USB devices, embarking a smart card similar in the smart card format, and NFC technology, our industry has bridge, in an absolute convenient way, the Internet services to the physical world of transportation.

By plugging your USB device into an Internet terminal or through a transport operator or city portals, the traveler can easily purchase fares, subscriptions, and eventually associated services, with on-line regular payment tools. The USB device is also a contactless or NFC device with the same user experience as today with fare tickets or cards.

This new platform offers huge opportunities of transportation service distribution, interoperability and accessible for everywhere.

The European eCall initiative

Amongst transportation leading projects, the European in-car emergency call service, eCall, has demonstrated the ability of European authorities to set up a platform for cross border infrastructure interoperability in intelligent transport services. eCall is a combination of an in-vehicle system and a corresponding infrastructure of Public Safety Answering Points (PSAP). When the device detects accidents, it calls the nearest PSAP, transmits the vehicle location and other vital data and opens a voice connection to the cars involved in the accident.

We are addressing a different problematic – basically saving lives – but the technologies implemented are the same and participate to the transport services platform in each vehicle based on smart security (ID, authentication and payment). Smart-secure devices are a core element of the system as it requires strong authentication, confidentiality, integrity and non-repudiation of the data transmitted to be efficient.

Obviously the car is not a mode of public transport, but the shared vision is that the end-user, the citizen, will use the same devices and same applications whatever the transportation mean. The eCall service will be an important opportunity for integration of secure communication module in cars, and then a platform for identification, payment and credentials reloading.

European citizen privacy in transport

An inherent conflict of interests exists between transportation system owners and their users. Modern smart card systems allow elaborate tracking of a traveler’s movements. Based on these movements, transportation system owners can predict use of materials (buses, trains), offer discounts and determine efficient pricing. This might give travelers a feeling of affected privacy, but certain technologies, like random smart card identification, might alleviate these feelings.

A secondary effect occurs due to the more powerful capabilities of smart cards. These capabilities will allow for multiple applications/ virtual cards. This might result in a signature, read by any terminal/application, by which individual travelers are identified. Guidelines on system design level will be given to prevent unauthorised identification of users. Enforcement of guidelines is a trade-off in the complex world of public services, government (anti-terrorism), and the individual, as such.

The necessity to ensure data protection in transport transactions will be taken into account in the coming EU regulation dealing with intelligent transport systems. By 2011, the European Commission will launch a study to assess the security and personal data protection aspects related to the handling of data in ITS applications and services and propose measures in full compliance with Community legislation.

Conclusions

The deployment of intelligent transport systems, and in particular, in urban areas, has been at the top of the agenda of European institutions since 2007. Although these issues are tackled at the national and the regional levels, the debate has raised the necessity to ensure a coherent deployment at the European level, based on harmonised standards and specifications. The results of studies launched by the European Commission on smart cards in public transport, urban mobility and electronic toll services are expected to fuel a more global reflection on how to ensure a more efficient and coherent mobility network.

About the author

Marc Bertin
Marc Bertin is currently the Chairman of Eurosmart and Chief Technology and Strategy Officer of the Group Oberthur Technologies. Since he joined Oberthur, Marc held various positions including General Manager of Digital TV product Line in 2007, VP Corporate Business Development and Innovation in 2003, Director of Product Marketing for Finances and ID in 2002 and General Manager of the eBusiness Division in 2001. In the Smart Card industry since 1996, after a career in Software edition, in particular in US, Marc has a PhD in Business Administration and Computer Sciences.

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