Mobile Proximity Services

Table of Contents

List of Figures

Executive summary

1. Introduction

• 1.1 The next step in mobile evolution: local services
  • 1.1.1 Information retrieval
  • 1.1.2 Authentication and access
  • 1.1.3 Payment
  • 1.1.4 Ticketing
  • 1.1.5 Device to device communication
• 1.2 Ecosystem
  • 1.2.1 Value chain
  • 1.2.2 The role of the mobile operator

2. Proximity technologies

• 2.1 Some contact-less technologies
  • 2.1.1 RFID
  • 2.1.2 Contact-less smart cards
  • 2.1.3 Bluetooth and IrDA
• 2.2 Contact-less mobile: NFC
  • 2.2.1 Usage modes
  • 2.2.2 Standardisation
• 2.3 Handset considerations
  • 2.3.1 Handling of authentication data
  • 2.3.2 Design of multi-application chips
  • 2.3.3 Location of the secure element
  • 2.3.4 Download and activation procedure
  • 2.3.5 Cost

3. Payment applications

• 3.1 Introduction
  • 3.1.1 Drivers for change
  • 3.1.2 Transaction types
• 3.2 Mobile payments
  • 3.2.1 OTA versus proximity
  • 3.2.2 The value chain
  • 3.2.3 Device-based vs. server-based accounts
  • 3.2.4 Security versus speed
  • 3.2.5 Success factors
• 3.3 Examples of activities
  • 3.3.1 Globally: Operators unite behind Pay-buy-mobile initiative
  • 3.3.2 Turkey: Bank takes clever low-tech approach to contact-less
  • 3.3.3 Austria: Operator upgrading payment to NFC
  • 3.3.4 Taiwan: Multiple NFC field trials pave way for service launches
  • 3.3.5 South Korea: Card issuer driving service
  • 3.3.6 Japan: Mobile operator becomes financial service provider

4. Ticketing and coupon applications

• 4.1 Introduction
  • 4.1.1 Technical configuration
  • 4.1.2 NFC
  • 4.1.3 Strengths
  • 4.1.4 Critical success factors
• 4.2 Event ticketing
  • 4.2.1 Live events
  • 4.2.2 Cinemas
• 4.3 Air travel ticketing
  • 4.3.1 Electronic tickets
  • 4.3.2 Bar code boarding passes
  • 4.3.3 Mobile tickets and boarding passes
  • 4.3.4 Issues
  • 4.3.5 Examples of activities
• 4.4 Rail transport
• 4.5 Mobile coupons
  • 4.5.1 Technical configuration
  • 4.5.2 Challenges
  • 4.5.3 Critical success factors
  • 4.5.4 Examples of activities

5. Case study: Japan

• 5.1 The manufacturer: The technology FeliCa
• 5.2 The operator: The wallet phone Osaifu ketai
• 5.3 The transport company: The payment card Suica
  • 5.3.1 Mobile Suica
  • 5.3.2 Marketing services
  • 5.3.3 Private transport companies create the Suica-compatible PASMO system

6. Conclusions and strategic advice

• 6.1 Business model
• 6.2 Technical choices
• 6.3 Service design
• 6.4 Applications
  • 6.4.1 Payment
  • 6.4.2 Ticketing
  • 6.4.3 Marketing
  • 6.4.4 Peer-to-peer, access and other services
• 6.5 Addressable markets

Glossary

• Figure 1.1: Evolution of the mobile phone function
• Figure 1.2: Simplified value chain for proximity applications
• Figure 1.3: Rationales for mobile operators to participate in proximity services
• Figure 2.1: Contact-less smart card shipments (World 2007)
• Figure 2.2: Number of contact-less smart cards by system (2007)
• Figure 2.3: Contact-less payment card deployments in Asia and Europe
• Figure 2.4: Bluetooth technical data
• Figure 2.5: NFC usage modes
• Figure 2.6: NFC technical standard overview
• Figure 2.7: NFC handset service architecture
• Figure 2.8: NFC enabled handsets from Nokia
• Figure 2.9: NFC SE chip solution options
• Figure 2.10: Examples of NFC security models
• Figure 3.1: Examples of successful contact-less electronic purse card services
• Figure 3.2: Examples of debit and payment card services
• Figure 3.3: Examples of online payment services
• Figure 3.4: Comparison of OTA and proximity models for mobile payments
• Figure 3.5: Probable usage areas for the different payment types
• Figure 3.6: Comparison of device-based and server-based accounts
• Figure 3.7: Proposed business models for the GSMA Pay-Buy-Mobile initiative
• Figure 3.8: Proximity payment using the Visa Contactless application
• Figure 3.9: Overview of NTT DoCoMo' s DCMX credit card service
• Figure 3.10: Usage data for electronic cash-enabled mobile phones
• Figure 4.1: Advantages of mobile ticketing
• Figure 4.2: Examples of how ToruCa dedicated information can be pulled by the phone