Case Study:Interoperable

Ticketing in the UK

But first…Who are we?Advanced Smartcard Technology company

Based near Glasgow, Scotland

Founded in 2000, Profitable by 2003, Floated on LSE in 2005

World Leaders in Standards based Interoperable Ticketing

Acquired in July 2007 by

• UK’s largest Internet Ticketing Retailer with revenues ~ $1.4B

Interoperable Ticketing: Stakeholders’ Considerations and

PerspectivesThe TravellerThe Transport OperatorThe RetailerThe MarketerThe RegulatorThe GovernmentThe System Designer

The Traveller

Convenience & ValueMinimum hassle Best prices & widest choiceRecognition/reward for advanced/special purchase or loyaltyAnonymity (sometimes…) Smooth and seamless experience

The Transport Operator, Retailer & Marketer

Wide range of products, flexible & adaptable to market needsRevenues collected and apportioned...

Precisely, promptly, regardless of source or methodWith minimum losses or costs

Satisfied CustomersContented Regulator

The RegulatorThe Government

Well regulated products and environment

Full Accountability and AuditabilityRobust against FraudSustainably TrustworthyEase of Manageability and MaintenanceOpen Standards basedInteroperable & Integrated

Smooth Running Infrastructure

The Systems Designer

Provide Solutions and Technologies that satisfy all Stakeholders’requirements i.e.Convenience, Performance, Security, Flexibility, Interoperability.

InteroperabilityBusiness Case Recap

GenericScheme Operator’s Perspective

– enables multiple sources of supply

End Customer’s Perspective

– enables ubiquity of service

Application Specific: Transport Ticketing

Government Subsidised Concessionary Fares

– enables precision accounting

UK Smart Ticketing: Origins

1990’s: UK Transport Industry was deregulatedHeavy Rail and Bus services were privatised.Public/Private Funding initiatives appearedConcessionary funding distribution impacted!

Lack of precision accounting for concessionary fares subsidies became a serious problem!~$40M annual budget for one UK conurbation alone~$2B per annum of UK Tax Payer’s money going to

private sector businesses with low confidence of receiving ““value for moneyvalue for money””

Problem Statement

UK Smart Ticketing: Origins..

Develop and deliver a fully accounted, highly scalable, and dynamically manageable, electronic ticketing environment supporting multiple schemes, products, and services, interoperating across any mix of commercial and/or regional entitiesFormat as an Open Standard=> “ITSO”

Solution

ITSO System Overview

POS Terminal(POST)

Back Office(HOPS)

ITSO Security App Module(ISAM)

ITSO HOPS Security Module(HSAM)

Back Office(HOPS)

ITSO HOPS Security Module(HSAM)

Customer Media, containingITSO InteroperableProduct Entity (IPE)

ISMSPlatform independent data structure containing secured eTickets within a secured e-wallet Secured

Batches of Transaction Records

Verified and sortedTransaction Records

SecuredManagement Frames

Lossless and secured messaging

ITSO SAM

Policeman of the ITSO schemeFirst multi-megabyte smartcard in volume production

4 or 8Megabyte>50K built to date.First produced 2003

An Application of Multefile™

Multi-application cards in an ITSO context

Card or CM

Application

Platform(s)

ShellOther

Data IPE’sOther

Multefile™

Any Card O/S including Javacard, MULTOS and others

Messaging

HOPS Functions/Interfaces

Asset Management System

Collection & Forwarding

ServicesAuditing Backup Archive Security

HSAMAccountsITSO Shell AccountsITSO Product AccountsHotlist ManagementActionlist ManagementIPE Embodiment Setup

ISMS

HOPS belonging to other ITSO Licensed Members

POSTS

Supported Terminal Management Systems

ISAMs

XML Messaging over HTTP

Adapters

Other Accounts and Transaction Systems

External ERP and CRM Systems

ITSO Conformance to Standards

Media: ISO/IEC 7816 and 14443Architecture: EN ISO 24014-1 (IFM)Applications: prEN 15320 (IOPTA)Data Elements: EN 1545 ISAM Security: ISO 15408 (CC PP9911 @ EAL4+)

Security System: ISO 27001

Our history with ITSO1998: ITSO specifications’ development commenced2002: Ecebs was awarded the ITSO-SAM development and supply contract2003: Ecebs were awarded the ITSO Security Management Service (ISMS) development 2004: Ecebs developed first ITSO compliant Back Office systems (HOPS) development2006: Ecebs developed secure Over the Air & Over the Internet ticket delivery systems2007: Ecebs developed first and most secure e-Wallet application for open CPU platforms

“E-Wallet” application of Multefile runs on JavaCard, MULTOS, NFC, or Native O/S, uniquely “fit for purpose” to deliver tickets Over The Air and Over The Internet

ITSO: Deployment UpdateStatistics to date:

> 1.4 Million Cards issued across Scotland and North England in 2007, with a further 11 Million rolled out in rest of England and Wales as of end April 2008 > 5000 ISAMs commissioned with plans for > 50,000 in 2008/9> 50 Million transactions processed nationally including 20 Million journeys and ~3 Million management messages~ 2 Million new transactions/month and still growing

Other Significant Events:NFC support demonstrated in 2007London Oyster migration plans announcedMandated for all UK Heavy RailConsiderable and growing interest overseas.

smartcard

paper

Smartcard phone

Print@home barcode

Mobile phone barcode

UK Rail Ticket Fulfilment Trends 2007-2015

BIBO

"Reproduced by kind permission of PRIVATE EYE magazine, > www.private-eye.co.uk"

PROBLEM: Ubiquity of Access

Ubiquitous Access to Smart Ticketing

PC’s

KiosksOfficesRetailers

Internet/Intranet

Internet/IntranetNFC Phones Other

Networks

SOLUTION

Smart Ticketing: Future Outlook

London/Oyster will migrate to ITSO by 2010All UK Heavy Rail TOC’s mandated to migrateConvergence with Payment and multiple ID Schemes will appear:

National and Local Gov’t, Health, Corporate…More CM’s will be supported i.e. NFC

Customer Relationship is the “end game”Expand the offering by seamless integration of full service smartTicketing, Payment, ID, and CRM

Demonstrations

Thank you!Barry.Hochfield@Ecebs.com

www.Ecebs.comwww.thetrainline.com