Internal Information
REPORT 1 (9)
Uppgjord (även faktaansvarig om annan) - Prepared (also subject responsible if other) Nr - No.
KI/ERA/LG/SB Ulrike Lobergh ERA/LG/S-98:0132
Dokansv/Godk - Doc respons/Approved Kontr - Checked Datum - Date Rev File
LG/SB (Ann-Christin Rosenholm) 1998-05-25 A
Receiver:
ERA/LG/B Mårten Carlsson
ERA/LG/B Stefan Hansson
BI – REPORT, MOBILE ELECTRONIC COMMERCE & MOBILE BANKING
1 COMPETITORS
1.1 NOKIA
See “OPERATORS” chapter 2.1
See “JOINT PROJECTS/TRIALS” chapter 3.1 and 3.4
See “FORA” chapter 4.1
1.2 MOTOROLA
Motorola today outline their vision for the future of value-added services using
GSM mobile phones and networks. This vision will build on Motorola’s
emerging industry alliances. Motorola see advanced services as key to the
continued growth of the GSM phone market, and plans to support services
across all future GSM products. Motorola’s consumer research has
highlighted the need for phone users to be able to make more efficient use of
their time in today’s busy lifestyles and to put the users firmly in control of
their access to communications and information of all types. Among others,
Motorola named mobile banking and the ability to download electronic cash
wirelessly to a smartcard as examples for advanced services.
Further information: See “JOINT PROJECTS/TRIALS” chapter 3.2, 3.6 and
“FORA” chapter 4.1
1.3 NORTHERN TELECOM
Channelware, a business unit of Nortel, has selected IFront ™ to provide
Internet programming and hosting services for the Contract Desk
implementation of software rental transactions. Channelware deem IFront’s
expertise in implementing electronic commerce solutions as ideal for helping
to expand the new Electronic Software Activation virtual sales channel.
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REPORT 2 (9)
Uppgjord (även faktaansvarig om annan) - Prepared (also subject responsible if other) Nr - No.
KI/ERA/LG/SB Ulrike Lobergh ERA/LG/S-98:0132
Dokansv/Godk - Doc respons/Approved Kontr - Checked Datum - Date Rev File
LG/SB (Ann-Christin Rosenholm) 1998-05-25 A
Nortel Channelware is the world’s leader in the new market for Electronic
Software Activation according to Canada Newswire. Channelware operates
within Nortel’s Business Ventures Program. Channelware’s technology has
been developed and rigorously tested at Nortel’s principal research and
development facility in Ottawa, Canada. Channelware is headquartered in
Ottawa, Canada.
Further information: See “FORA” chapter 4.1
1.4 ALCATEL
See “OPERATORS” chapter 2.4
See “JOINT PROJECTS/TRIALS” chapter 3.5, 3.6
See “FORA” chapter 4.1
1.5 PHILIPS / MAAGNUM
Maagnum E-Commerce Services, a global electronic commerce company,
announced a comprehensive outsourcing agreement with Philips Speech
Processing, a business unit of Philips Consumer Electronics. Under the terms
of the agreement, Maagnum will provide to Philips integrated Internet order
management, credit card processing, fraud control, electronic software
distribution, fulfilment, back-office, and physical warehousing for the online
sell of speech processing products. Maagnum offers companies complete
electronic commerce services including among many others, Internet banking
services.
1.6 SIEMENS
Siemens AG, the German electronics group, has signed an agreement with
Sun Microeletronics, a subsidiary of the American Sun Microsystems, giving
Siemens the rights to use Sun’s Java technology in the production of a new
generation of smart card microchips. The chips can be used in cards for a
range of uses, including banking, mobile communication, electronic
commerce and the health sector.
Further information: See “FORA” chapter 4.1
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REPORT 3 (9)
Uppgjord (även faktaansvarig om annan) - Prepared (also subject responsible if other) Nr - No.
KI/ERA/LG/SB Ulrike Lobergh ERA/LG/S-98:0132
Dokansv/Godk - Doc respons/Approved Kontr - Checked Datum - Date Rev File
LG/SB (Ann-Christin Rosenholm) 1998-05-25 A
2 OPERATORS
Some providers are already providing innovative services, albeit on a limited
scale:
2.1 MANNESMANN MOBILFUNK GMBH
Mannesmann Mobilfunk GmbH in Dusseldorf offer a special quick-dial
Internet button for subscribers using Nokia 9000 Communicators.
2.2 TELECOM FINLAND
Telecom Finland have a fast access GSM Internet service, based on the
V.110 protocol.
Finland is also the testing ground for the world’s first remote wireless data
back-up service for smart phones, a concept which will become increasingly
important on their handsets. Telecom Finland is using software provided by
California'’ Geoworks to provide a one touch wireless restoration service that
transfers and updates critical information residing on mobile devices to a
secure, remote storage server.
2.3 VODAFONE
Co-operative Bank, the first UK bank to pilot mobile phone banking, has rolled
out an enhanced service. The new service allows users to access balance
details and details of all recent transactions on any of the bank’s main
Pathfinder accounts. This information is viewed on a mobile phone screen.
Vodafone and Imminus provide the hardware and software, respectively, for
the updated Co-operative mobile phone banking service. Vodafone’s Short
Message System text message facility is added to communicate information
directly to the customer. Remote delivery is an important part of Co-
operative’s strategy. The bank already accesses customers through
telephone banking and through Sky TV, and is one of only two players in the
UK mobile phone banking business.
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REPORT 4 (9)
Uppgjord (även faktaansvarig om annan) - Prepared (also subject responsible if other) Nr - No.
KI/ERA/LG/SB Ulrike Lobergh ERA/LG/S-98:0132
Dokansv/Godk - Doc respons/Approved Kontr - Checked Datum - Date Rev File
LG/SB (Ann-Christin Rosenholm) 1998-05-25 A
2.4 CELLNET
Since Co-operative launched its mobile phone banking pilot in June 1996,
Barclays Bank has created an advanced service, with 150,000 customers
currently using its Cellnet phone system. The bank wooed customers by
offering subscribers to the service 20 percent discount on standard Cellnet
call rates. Cellnet, together with Barclaycard, allow customers to download
credit card account details and check their accounts on an Alcatel GSM
handset screen. The operator also offer Genie, a service that repackages Net
content and pushes it to GSM phones.
Barclays also plans to provide access to its Barclaycall service through its
mobile phones in the near future. This will enhance the mobile phone service
to include bill payment, transfers and foreign currency orders. The ability to
use the phone to download electronic cash onto a smart card is also being
developed.
Leading retail banks such NatWest, Midland, Citibank and Lloyds-TSB have
yet to introduce mobile phone banking. Lloyds-TSB, however, working on a
different form of mobile banking, recently developing a pilot system for
banking via a telephone link to Psion personal organisers. A similar service is
already offered by Citibank. (Comment: According to our understanding, the
difference with Lloyds‘ system is that it is supposed to work via a telephone
link to personal organisers instead of a mobile phone.)
3 JOINT PROJECTS/TRIALS
3.1 NOKIA / APPLE
Apple Computer Inc and Nokia are participating in an electronic commerce
trial using Mondex smart-cards which has gained the financial backing of the
Unisource NV joint venture between PTT Telecom Netherlands, Telia, Swiss
Telecom and AT&T. The pilot is designed to enable mobile telephone users to
perform electronic banking, and credit card type transactions using Nokia
9000 Communicators and Apple’s 2000 MessagePads. Trials are currently
(Sept 1997) taking place in the UK and the Netherlands.
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REPORT 5 (9)
Uppgjord (även faktaansvarig om annan) - Prepared (also subject responsible if other) Nr - No.
KI/ERA/LG/SB Ulrike Lobergh ERA/LG/S-98:0132
Dokansv/Godk - Doc respons/Approved Kontr - Checked Datum - Date Rev File
LG/SB (Ann-Christin Rosenholm) 1998-05-25 A
3.2 MOTOROLA / POWERTEL
Motorola and network operator Powertel participated in a four-months trial
(since Oct. 1997) at Florida State University together with smart card
manufacturers Gemplus and CyberMark. The trial enabling 50 students to
make wireless calls in addition to the existing student ID, vending, copier,
laundry and in-store purchase functions via CyberMark’s existing FSU card is
seen as an important first step towards creating portable electronic
commerce. The trial will also help guide the future of GSM development,
particularly in delivering real-time information, according to the participating
companies.
3.3 MOTOROLA / INTELISYS
Motorola’s Information Security Division (ISD) has entered into a business
alliance (Sept. 1997) with Intelisys Electronic Commerce LC, a jointly owned
company of Chase Manhattan Bank and BVR LLC, to provide security
software for Intelisys’ electronic commerce application, Intelipro.
3.4 SMART ACCESS
Since September, more than one hundred users have been participating in a
trial of mobile online banking and e-commerce services via the Internet using
the Nokia 9000 Communicator. The experiment is part of the Smart Access
initiative masterminded by AT&T Uni-source and the user base is drawn from
participating companies, incuding Telia, Swiss Telecom, PTT Netherlands,
NatWest and Mondex UK. Transactions are combined over the Nokia 9000
Communicator using a smart card reader to send and spend Mondex
electronic cash.
3.5 MOBILSMART, SWEDEN
A remote banking application has been launched in Sweden by Postgirot
Bank under the name MobilSmart. It has been developed as a joint project
between Postgirot Bank, Swedish GSM operator – Telia and smart card
manufacturer Gemplus. It mirrors a similar service offered by the UK’s
Barclays Bank and handset supplier Alcatel. The latest GSM handsets from
Ericsson and Alcatel have been selected for the MobilSmart application.
Swedish GSM subscribers are now offered a user friendly but secure facility
to generate bank transactions, such as bill payments, directly from their
handsets using GSM’s SMS capability. The transfer of money from one
account to another is secured by the SIM card, which ensures the security of
the wireless transaction by computing an electronic signature which is sent to
Postgirot.
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REPORT 6 (9)
Uppgjord (även faktaansvarig om annan) - Prepared (also subject responsible if other) Nr - No.
KI/ERA/LG/SB Ulrike Lobergh ERA/LG/S-98:0132
Dokansv/Godk - Doc respons/Approved Kontr - Checked Datum - Date Rev File
LG/SB (Ann-Christin Rosenholm) 1998-05-25 A
3.6 COLLABORATION BETWEEN ERICSSON AND SENDIT
Sendit, headquartered in Stockholm, with offices in London and Seattle, is the
leading provider of open Wireless Internet client/server solutions to cellular
operators. Its Internet Cellular Smart Access (ICSAtm) enables these
operators to offer their subscribers a range of value added services such as
Wireless e-mail, secure Internet and Intranet access and content delivery
from a single server.
Optimised wireless e-mail and content delivery applications from SIM Toolkit
phones, Smart phones, Personal Digital Assistants and laptops are an
integral part of the ICSAtm solution. These applications have already been
endorsed and licensed by Ericsson, Motorola, Alcatel, Schlumberger and De
La Rue.
4 FORA
4.1 WIRELESS ACCESS PROTOCOL (WAP) FORUM
Earlier this year, the Wireless Access Protocol (WAP) Forum was launched
by a consortium of manufacturers, including Ericsson AB, Nokia Oy,
Motorola Inc., and IP software developer Unwired Planed Inc.. At the heart of
the group’s work is the development of the so-called wireless markup
language (WML) protocol, which essentially compresses content and
arranges it for small-screen displays. It will substitue the HTML standard,
used for Web browsers in a PC environment. Two of the existing protocols on
the market – Motorola’s proprietary flag text markup language (FTML) and
Unwired Planet’s hand-held device markup language (HDML) - are to be
migrated to WML. Applications foreseen include those that will deliver flight
schedules, stock news and currency rates. Nokia’s general manager of
mobile phones and wireless data, Illkka Raiskinen, views the Internet „as the
de facto service platform“ for these and other services, including e-mail, home
banking and electronic commerce. Nokia, Ericsson and Northern Telecom
Ltd. are among several vendors working on IP-based mobile data
applications.
Alcatel, Ericsson, Nokia and Siemens are also developing phones to run
Java applications. Alcatel’s OneTouch Com is one of the first true
screenphones, incorporating a full e-mail system and browser designed by
Unwired Planet. Siemens mobile handset division indicated that they are
„doing something in this area“. Siemens are also in talks with Microsoft Corp.
about using its Windows CE as the operating system for its third-generation
devices.
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REPORT 7 (9)
Uppgjord (även faktaansvarig om annan) - Prepared (also subject responsible if other) Nr - No.
KI/ERA/LG/SB Ulrike Lobergh ERA/LG/S-98:0132
Dokansv/Godk - Doc respons/Approved Kontr - Checked Datum - Date Rev File
LG/SB (Ann-Christin Rosenholm) 1998-05-25 A
4.2 GLOBAL MOBILE COMMERCE FORUM
Collaborative partnerships will be the key to the successful development of
the mobile commerce market. Hence the formation of the Global Mobile
Commerce Forum, a loose affiliation of some 70 companies drawn together
by Logica and UK phone operator Cellnet, to encourage partnerships across
industries to develop e-commerce services for mobile phones. The
companies involved cover the entire spectrum of interest, from card
manufacturers to GSM operators, bank retailers and consultants.
5 OTHER COMPANIES
5.1 MICROSOFT
Microsoft intend to test automation, mobile access, and electronic-commerce
features.
5.2 LOGICA
London-based consultancy Logica Ltd. has coined the term mobile commerce
to explain the phenomenon, which it describes as ‚the delivery of electronic
commerce capabilities directly into the hands of the user, via wireless
technology‘. According to Logica’s managing consultant for mobile innovation,
Kevin Duffey, retailers and banks will use the mobile phones as a retail outlet
in customers‘ pockets. Mobile phone operators will enjoy increased customer
loyalty, as customers come to value the mobile phone as much as they do
their wallets today.
By the end of last year almost a dozen GSM operators around the world had
announced or begun trials that include at least some elements of mobile
commerce. They are collaborating with banks and retailers to offer: third
generation prepay services using electronic cash on the SIM card for pay-as-
you-go billing; content services that push personalised information to the
handset in return for a micro-payment; and ATM capabilites on the handset,
to let customers pay bills or buy shares at the touch of a button. By the end of
1998, several terminal manufacturers will have launched handsets optimised
for mobile commerce, forecasts Logica.
Logica Ltd. predicts that European mobile electronic commerce transactions
will be worth $4.05 billion a year by 2000.
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REPORT 8 (9)
Uppgjord (även faktaansvarig om annan) - Prepared (also subject responsible if other) Nr - No.
KI/ERA/LG/SB Ulrike Lobergh ERA/LG/S-98:0132
Dokansv/Godk - Doc respons/Approved Kontr - Checked Datum - Date Rev File
LG/SB (Ann-Christin Rosenholm) 1998-05-25 A
5.3 LIFESTYLE COMMUNICATIONS
European Telecom, the UK’s leading distributors of mobile phones, and
National Westminster Bank PLC (NatWest) have joined forces; to form a new
company to provide a new generation of mobile telephony and mobile
banking services. The new company, Lifestyle Communications will launch
the first of these new services, which includes prepayment, this summer.
NatWest is at the forefront of card-based technology and services and is
committed to satisfying the increasing demand for people to carry out
cashless financial transactions whilst on the move.
New partnerships
Lifestyle Communications will seek and develop affinity partnerships to create
and promote the new services for different customer groups (already several
areas of direct sale and affinity opportunities have been identified). Lifestyle
Communications will be seeking alliances with mobile network operators,
services and information providers, operators of value-added service
platforms and mobile equipment manufacturers.
Notes: Lifestyle Communications will be owned 50% by European Telecom
and 50% by NatWest. It aims to become one of the leaders in the rapidly
expanding market for pre-pay mobile phone services.
5.4 TELSTRA
The Australian telecommunications firm Telstra are trialing smartcard
operated payphones, South Australian firm Newcom Technologies are
seeking to market a smartcard reader for GSM mobile phones. The smartcard
reader clips onto the back of mobile phones and Newcom have patents
pending on the device in 85 countries. European banks are already backing
the systems, which executive vice president of Newcom, Leon Vandenberg,
says will also support VisaCash and Mondex smartcards.
5.5 ORGA
Smart Card industry founder ORGA has announced the formal signing of a
Java™ Card licensing agreement with Sun Microsystems, Inc.. ORGA will be
considering usage of Java technology in relation to several areas of its
business. It remains the dominant global company in SIM supply to the GSM
mobile communications market. ORGA is seeing closer relationships between
mobile and the banking sectors and Java may play a significant part in
realizing the potential of these alliances to provide innovative solutions within
each individual sector.
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REPORT 9 (9)
Uppgjord (även faktaansvarig om annan) - Prepared (also subject responsible if other) Nr - No.
KI/ERA/LG/SB Ulrike Lobergh ERA/LG/S-98:0132
Dokansv/Godk - Doc respons/Approved Kontr - Checked Datum - Date Rev File
LG/SB (Ann-Christin Rosenholm) 1998-05-25 A
ORGA Kartensysteme GmbH Germany is one of the world’s leading
developers of microprocessor-based smart card technology, with more than
680 employees worldwide. A pioneer in the industry, ORGA offers turnkey
solutions for health care, banking, telelcommunications and other emerging
markets.
5.6 CMG FINANCE
CMG Finance, the leading provider of IT services to the Dutch finance
industry, has joined OrbixWise, the IONA partner program. CMG was founded
in 1964 and currently active in over 40 countries from offices in the UK, the
Netherlands, Germany, France and the United States. CMG provides services
in the area of system development, management consultancy and advanced
technology to the financial world, transport, trade, industry, energy,
telecommunications and public sector. CMG Finance’s membership of
OrbixWise complements the company’s current strategy of delivering
integrated architecture and application solutions to leading firms within the
finance industry. There has already been widespread acceptance by leading
financial institutions as the best means of managing the growing diversity of
applications used for multiple service channels including call centres, self
service kiosks and mobile banking.
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