Future Trends In Railway Ticketing
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1 Eleventh UIC ebusiness Conference Paris, October 2007 Future Trends In Railway Ticketing Where can technology take the mobile generation? Jeremy Acklam Business Development Director thetrainline.com
2 Innovating for the mobile generation Riding the change wave Who are the Mobile Generation? What s the Mobile Generation transport mix? Phones, Smartcards, Smartphones and just being there A journey into the future of transport Conclusions
3 Riding the change wave The adoption timescale for each wave of innovation has been decreasing since 1785 We are now at the peak of the 5 th wave, its innovations are due to become fully diffused into the economy by about 2015 The 5 th wave was triggered by the adoption of fixed digital networks. Now the pace of innovation in this wave is peaking with mobile digital networks driving innovation in a mobile generation The Mobile Generation is the second iteration of the digital network wave adoption will be fast because it s a secondary wave built on existing digital networks and on mobile devices What s the outlook for transport in the 5 th Schumpeter Wave? can transport drive innovation or do we just ride the wave and hope?
4 Key Features Liberal views Cosmopolitan tastes Well educated Full time students Professionals Cultural variety Open-minded Few children Young singles Who are the Mobile Generation? Age 25-34, professionals working in the private-sector, frequent house movers Heavy reliance on public transport to travel to work, with some having no access to a car
5 What issues drive the Mobile Generation? Convenience Ease of fulfilment Ease of access to data Control Hassle free transaction Freedom Innovation Information Times Price Independent choice of tickets Tickets across all operators
6 Mobile Generation Transport Mix more personal interaction more innovation Simplicity is key Ease-of-use must be an end in itself Customer-centric design wins every time (eg Apple ipod)
7 100million text messages per month in the UK 2,600 phones sold worldwide since I started this presentation 60% of 78% of mobiles are left on UK mobiles are taken to bed! of the UK population have mobiles of text messages are delivered in 10 seconds
8 The Mobile Phone has become essential billion by 2008 There are more mobile phones on the planet than cars, credit cards or televisions! billion by end of e Source: Nokia (Dec 01, 2005)
9 Text and bar-code on existing phones Text-message and bar-code ticketing together with WAP/internet information & retail is about the best that can be achieved with current mobile phone technology These offer important market opportunities, but existing phones have poor security, a lack of standards and complex user processes. It s relatively easy to defraud unless checking is on-line too. These technologies on existing phones will have only a limited impact for The Mobile Generation.
10 Market Estimates for Contactless Cards
11 Contactless cards & media Two breakthrough specifications will have the most effect on the mobile generation ITSO / Calypso and worldwide emulations (for transport) Contactless EMV (for payment) Contactless media can deliver the factors desired by the mobile generation (eg London Oyster scheme 10m customers) convenience, freedom; and innovation But very few contactless card implementations have successfully combined retail payment and transport, let alone multiple transport smartcard standards Multi-application is the key to unlock the Mobile Generation tidal wave of conversion to smartcards and media.
12 ITSO ITSO was created to solve the challenge of implementing multi-player smartcard scenarios, focused initially in transport ITSO has completed an available, open specification built on recognised international Standards Other business and system activities need to exist around ITSO to enable schemes to operate Careful decisions need to be taken by scheme planners wishing to implement transport and citizen card facilities.
13 ITSO s Interoperable Architecture ITSO Shell Owners Product Owners Core Services Product Retailers ITSO Shell Retailers Collection & Forwarding Operators Service Operators Security Manager Compliance Manager Certification / Test Registrar
14 ITSO delivers Trust between its licensed members
15 by implementing loss-less security
16 across inherently insecure communications paths
17 and through inherently insecure existing systems Transactions are securely passed from one part of the ITSO process to the next minimising impact on existing systems.
18 ITSO Product Entities (IPEs) can model just about anything through fixed and variable data
19 and the ITSO directory presents the Smart Products independently & interoperably with each owner s key used to seal
20 ..onto a range of media types
21 Objectives for Secure Smart Media for Railways Interoperability Hardware and supplier independent interface description Functionally neutral to specific transport organisation structures Recognise and prevent internal and external fraud attacks (Security) Integrity of data Easy and Fair Settlement, independent of commercial agreements Flexibility to cover existing and new tariff systems (products) Compliance with data protection and financial services laws Multi application customer media
22 Smartcard phones could offer tomorrow s Contactless Wallet Credit/Debit Cards Tickets Cash Building Entry Loyalty
23 Smartcard Phones are part of the RFID innovation path Contactless cards RFID Technology NFC (Near Field Communication) phones Biometry
24 What can an NFC Device do? Act as a contactless smart card Key Ticket Act as a contactless card reader/writer Information Credit card Communicate with other NFC devices via peer-to-peer communication Enabler Loyalty Biz card Source: Philips Semiconductors
25 What is NFC? NFC: Technology allowing a contactless reader communicate as a reader with a card or as a card when communicating with another reader Reader Communication Card emulation Communication ISO A Sony (Type C) ISO A Sony (Type C) NFC (ECMA340) NFC-2 (ECMA 352) ISO B ISO ISO B ISO The original NFC standard integrates only ISO 14443A and Felica on card emulation side.
26 What difference with enfc? enfc (enhanced NFC): NFC technology enhanced by ISO 14443B and ISO standards on chip emulation side enfc is compatible with all existing and future application using contactless technology Reader Communication ISO A Sony (Type C) ISO B ISO Chip emulation Communication ISO A Sony (Type C) ISO B ISO NFC (ECMA340) NFC-2 (ECMA 352) enfc
27 Existing standards NFC integrates contactless smart card & RFID standards via 13.56MHz RFID Smart cards Non standardized but in use EPC ISO ISO (Vicinity) ISO (Proximity) Felica (SONY) > Class 1 Gen 2 > -1 :Definitions > -2 :125 KHz > -3 : 13.56MHz > -4 : 2.45GHz > -5 : 5.8GHz > -6 : MHz > Type A > Type B
28 Integration in mobiles SIM card Communication link between the SIM card and the RF Chip. Preferably Single Wire Protocol to reduce integration cost. RF antenna MicroRead Application Processor (base band) RF chip to communicate with enfc = NFC + ISO14443 B + ISO Communication link between the Application processor and the RF chip
29 Interfacing SIM with enfc SHORT CONNECTOR VCC RST CLK C1 C2 C3 C4 GND SWP I/O C5 C6 C7 C8 Power Legacy enfc contactless interface TS Legacy FULL CONNECTOR C4 C8 Other uses (USB, S2C)
30 Single Wire Protocol Full duplex digital communication with high noise immunity High speed connection up to 1.5Mbits/s RF configuration which allow battery off operations Independent from RF protocol SWP C6 Proposed to ISO standard Patent free
31 NFC delivers a contactless environment Convenient for user Ease of integration Multi-standard Secured Contactless Reader Small footprint Contactless Card Low cost
32 Will NFC become essential? NFC may be compatible with most contactless standards, but: Does NFC bring significant benefits to transport operators and consumers? Cost reduction on ticket issuance? Yes when compared to paper tickets No when compared to smartcards Ability to reduce cash transactions? No when compared to smartcards Ability to top-up tickets, anytime, anywhere? No different to a smartcard and mobile-phone java application Ability to view your balance and trips? No different to a smartcard and mobile-phone java application For NFC to disrupt the current value chains for transport ticketing it has to have a complete value package ticketing is not enough!
33 How can Smartcard Phones ignite the Rail market? Smartcard Phone ticketing: A pilot is required to show convenience, control and freedom The mobile operator business case needs to be completed to show that a package of functions has net worth to the mobile operator Demonstrate ITSO/Calypso working over-the-air on smartcard NFC phones Smartcard Phone payment: Should be at an equal or lower cost to merchants than current card rates Must be backed by a bank or payment authority Mobile operators should take a holistic view of smartcard phone NFC transactions
34 An attractive Smartcard Phone Proposition for the Mobile Generation EMV with on-phone management ITSO/Calypso with over-the-air download and on-phone ticket wallet Location-based promotional offers
35 Technical Conclusions Mobile phones will integrate contactless payment & near-field communication capabilities in time enfc is claimed as a universal technology compatible with all contactless ISO standards and with NFC Single Wire Protocol satisfies all mobile-phone technical requirements and is compatible with the market at a technical level.
36 Be-in Be-out Smartcards have been applied in Public Transport ticketing for about 15 years. Contact cards have already been replaced by proximity cards 10 years ago enabling seamless travel However, in integrated transport networks and in non-gated environments solutions that do not require user actions while boarding or alighting are required. In the next 5 years it may no longer be necessary for the transport customer to take any action at all to use a transport network No ticket No swipe Just Be (in and out) BIBO technology offers the ultimate in simplicity for the customer and relationship for the transport operator.
37 Passenger activities - As simple as possible - 1. Registration (only once) 2. Simply hop on and go 3. Check trips and invoice, payment Convenient with minimal passenger activities
38 User device: active smart card or mobile phone It s up to the user to choose
39 Automatic detection a 2-step approach Step 1: Wake up Activation and stamp at the entrance (ticket receives time, stop, vehicle number) Step 2: detection Secured transaction during the ride (only tickets waked up by the vehicle before)
40 Active Chip card BeIn BeOut in Motion with 7MHz and 868 MHz radio Wakeup field DetectionStay awake Telegrams Telegrams Activate & stamp tickets while boarding withing 3m distance Detect tickets during the ride Long Range
41 Detection equipment onboard GPS GPRS data communication Wake-up antennas Back-office System - system monitoring -farecalculation - billing 72 Luga BIBO: no visible components no vandalism onboard computer Detection antenna and BIBO reader
42 DVB Vehicle types Standardized pictogram for all ALLFA vehicles RVD VSS Articulated bus Mercedes DVB Regional bus Setra DB Regio Low floor light rail Total number of vehicles: 54 Double-decker train
43 Installation in the vehicle easy and fast On-board computer + BIBO reader Antennas
44 Car park installation Technology also suitable for Check In
45 BIBO advantages attractiveness and ease-of-use for a broad range of passengers including children, elderly and disabled people and occasional users new possibilities for implementation of flexible and innovative fare models and customer loyalty schemes based on automatic fare calculation and the individual travel history reduction of costly ticket vending machines precise and comprehensive measurement of public transport usage as a basis for the adjustment and improvement of public transport services For the mobile generation, BIBO is totally hassle-free!
46 Rail Ticket Fulfilment Trends smartcard BIBO paper Smartcard phone barcode Mobile phone barcode
47 A journey into the future of transport
48 Conclusions Technology: BIBO is where we are heading after 2012 Contactless smart media from 2008 and Smartcard (NFC) phones from 2010, both with multiple smart applications, are the stepping stones Customer: Relationship is the end-game Information, payment, ticketing and relationship-building through the mobile generation technologies are the steps The time for vision and action is now!
49
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