Josef Noll, “Who owns the SIM?”, 5 June 2007

Who owns the SIM card?-

The Trusted Third Party Control of the Secure Element

5 June 2007

Josef Noll Senior Advisor, Movation ASjosef.noll@movation.no, +47 9083 8066

Prof. stip., UniK/University of Oslojosef.noll@unik.no

MOVATION – A competitive advantage for ALL invited companies and for Norwegian Innovation1

Josef Noll, “Who owns the SIM?”, 5 June 2007

“Innovation by Design”

"Movation is a very exciting initiative where some of the best

companies in Norway commit themselves to build the Norwegian

national team in wireless technology innovation”

– Paul Chaffey, Abelia

2

Josef Noll, “Who owns the SIM?”, 5 June 2007

Movation’s Open Innovation Arena

coreresearch

partnership research

innovator

mentor

innovator

Mobile Services Arena

mentor

Innovation in an open network, supported by mentors and innovators3

Josef Noll, “Who owns the SIM?”, 5 June 2007

Movation owners

4

Josef Noll, “Who owns the SIM?”, 5 June 2007

Our owners

- SmartConnect – Seamless connectivity

- Web miner, Music Search

- (Mobile) Search Platform

- Mobile browser, desktop, Opera Mini

- Indoor location, Wireless equipment

- Worldwide operator > 120 Mio customers

- Satellite phones and communications at sea and on land.

Mobile services with an international perspective5

Josef Noll, “Who owns the SIM?”, 5 June 2007

Movation focus areas

• Mobile Landing Pads– Mobile Semantic Web: Service world on the mobile

• Personalised Mobile– personalised services on the mobile – learning and adaptation

• Mobile Marketing– personalised and context related services

• Mobile Security– Security platform for Internet banking, service access, mobile

content handling -> Attila.no

• Convenience• using Domain Names instead of numbers

Innovative services for the mobile world – from Movation and Partners6

Josef Noll, “Who owns the SIM?”, 5 June 2007

Content• NFC market actors

– Telecom Operators, SIM card provider, Equipment manufacturers

– Bank, Mastercard, Visa,

– Regulatory bodies, customers

• I-centric vision - customer view– management, trust

– new roles in NFC business

• Business solution– third party business model

– role of secure element

• Challenges and benefits

7

Josef Noll, “Who owns the SIM?”, 5 June 2007

Mobile Market• Mobile workforce:

40-70 % of a group in different locations

• 90 % of the employees away from HQ

• 2006:• 1020 million mobiles

• 209 million PCs

• 4 Billion people with mobile in 2009

• Q4/2006: > 30 % smartphones in Norway• 20-30 % smartphones by 2009.Nordic European

0

16.25

32.50

48.75

65.00

2006 2008 2010

Smartphone penetration [%] in Europe and the Nordic

0

22.5

45.0

67.5

90.0

2006 2008 2010

Opera Desktop Adobe Flash J2ME (Opera Mini)

Handset functionality in market share [%] for the Nordic market

[“Mobile Phone Evolution”, Movation White paper, May 2007] 8

Josef Noll, “Who owns the SIM?”, 5 June 2007

Mobile Services, incl. NFC• Focus in 2008 on

mobile web

• Push content upcoming

• NFC needs next generation phones

• S60, UIQ, ...

• Common Application development

• Integrated development

[“Mobile Phone Evolution”, Movation White paper, May 2007]

Expected customer usage [%] “have tried” of mobile services in the Nordic Market

0

15

30

45

60

2006 2008 2010

SMS authentication Mobile WebPush context NFC payment

9

Josef Noll, “Who owns the SIM?”, 5 June 2007

One natural NFC player?• Telecom Operators

✓ have established customer and content provider relation

✓ current business (content provider access) gets less important

✓ NFC is opportunity for new business

– inhomogenous infrastructure at operators

• Bank, Mastercard, Visa,...✓ natural choice for payment solutions

– micro-payment and small transactions not successful

– integration of content providers is new area, mobile is Telecom

• SIM card provider: Gemalto, G&D✓ harmonised infrastructure

– unknown for the customer, no trust relationship

• Handset manufacturers– global market players

No obvious NFC player, need Innovation partnership10

Josef Noll, “Who owns the SIM?”, 5 June 2007

Content• NFC market actors

• I-centric vision - customer view– management– trust

• Business solution– Third party solution business model

– Role of security element

• Challenges and benefits

11

Josef Noll, “Who owns the SIM?”, 5 June 2007

Customer view• Regulatory bodies

– Following national laws

– Customer protection (privacy)

• Customer preferences– Trust relation

– Clear value proposition (convenience)

– Information/advertisement overload

• Main duties for NFC players– Customer relation (paying the bill)

– Service integration

– New business concepts

– Customer protection (information overload)

Convenient user services, covering trust, privacy, providing personalisation

Customer care provider

Contentprovider Content

providerContentprovider

Contentaggregator

Trust providerPrivacyPersonalisation

12

Josef Noll, “Who owns the SIM?”, 5 June 2007

Identity handling• Identity is attributes of your persona

– Social, Corporate and Private IDs

• Internet was built without an identity layer– Identity 2.0 stems from Web 2.0

– People, information and software

– More user-oriented (wikis, comments, tags)

– More seamless web services (AJAX)

• Service related security– Provide just the information which is necessary

• Mobile challenges– Traceability

– 24/7 availability

Josef Noll, “Who owns the SIM?”, 5 June 2007

Customer care through Identity management

• User centric ID management– More like real life ID’s (passport, license)

– Multiple ID’s (PID, SID, CID)

– Certificates and preferences

– Choose attributes~more privacy

• ID providers– Multiple providers

– Own certificates

• Mobile, and de-centralised

Personal(PID)

Corporate(CID)Social

(SID)

Identity

Customer care provider

Trust providerPrivacyPersonalisation

Josef Noll, “Who owns the SIM?”, 5 June 2007

Content• NFC market actors

• I-centric vision - customer view

• Business solution– Third party solution business model– Role of security element

• Challenges and benefits

15

Josef Noll, “Who owns the SIM?”, 5 June 2007

Authentication provider

Auth. provider

Seamless authentication

Physical access VPN

Content access, .mp3,

.jpg

Service access

Josef Noll, “Who owns the SIM?”, 5 June 2007

ID, trust and personalisation provider

CertificateRemote services

Proximity services

Who provides?– ID provider

Where to store?– Network– Phone

How to store/backup?– long term, short term

Josef Noll, “Who owns the SIM?”, 5 June 2007

Third party business model• Media,

• Banks, Service providers

• Telecom, Corporate, Home

Identity and personalisation

provider

Customer care

Serviceaggregator

Authentication and Access

provider

Paymentprovider

Content provider

• Service aggregator• Convenient interfaces

• Ease of use

• Identity and personalisation provider• Convenience

• Trust

18

Josef Noll, “Who owns the SIM?”, 5 June 2007

The secure element:

SIM card

Send service to phone

Send info to recipient

Smartcard interfacesISO/IEC 7816

NFCcommunication

unit

SIM

NFC2SIM

Identity and personalisation

providerAuthentication

and Accessprovider

Serviceaggregator

• SIM is secure element

• controlled environment• over-the-air update• open for applications

• SIM will be owned by user

• managed by trusted third party

Send key and credentials

Josef Noll, “Who owns the SIM?”, 5 June 2007

Challenges and Benefits

How insecure is the Internet?

Will the phone be the only secure element?

Dynamic service environment? On-the-fly creation of services?

Are facebook and flickr more trusted than telecom operators?

Visa and Mastercard enable convenient small amount

purchases

0

50

100

150

200

2006 2008 2010Telco favourite Third party favourite

Convenience of usage

20

Josef Noll, “Who owns the SIM?”, 5 June 2007

Conclusions• The user is always connected to services using

multiple networks

• Service related information– privacy (just what is needed)

– application security

• Personalisation is based on Identity management– Identity provision from public authorities, banks, mobile operators, …

– using preferences, keys and certificates

• Operators have to face a dynamic service landscape– Content provider access (CPA) becomes less important

– Convenience and user focus are key issues

– Open co-operation (SIM, handset, operator, content provider) is key to success

Movation - Open Innovation Arena