End user

Home

Corporate

Operator

Creating Value through Innovation - Mobile e-Business

Johan Bergquist, Ph.D. Senior Research Engineer Nokia Research Centre, Tokyo
Nokia Mobile E-business.PPT/ 27.10.2000 / Johan Bergquist

Industry

Authorities
1 NOKIA

What is Mobile E-business?

Mobile E-business

Mobile Commerce
Facilitating transactions on the move

Mobile Productivity
Enabling mobile business processes

NOKIA

Nokia Mobile E-business.PPT/ 27.10.2000 / Johan Bergquist

Mobile phone centric future

1,400 1,200 1,000 800 600 400 200 0
Projected PCs connected to the Internet

Millions More handsets than PCs connected to the Internet by the end of 2003 !
Projected cellular subscribers
(Nokia 2000)

Projected Web handsets

(Nokia 2000)

(Dataquest 02/2000)

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

NOKIA

Nokia Mobile E-business.PPT/ 27.10.2000 / Johan Bergquist

End user
120,000

Internet User Forecast

100,000

In Japan market, sometime in 2001, browser phone user will be larger than standard (PC base) internet user.
Home
Internet User (Land line) Browser Phone user
60% penetration 82% of Total Internet User 90% of Cellular User 66%of Total Internet User 80%of Cellular User

80,000

Corporate
50% penetration

60,000
40% penetration

Operator
40,000

20,000

Industry
70% of Total Internet User 7% of Cellular User

58% of Total Internet User 40% of Cellular User

0 Authorities 1996
4 NOKIA

1997

1998

1999

2000

2001

2002

Nokia Mobile E-business.PPT/ 27.10.2000 / Johan Bergquist

Evolution

Mobile phone is the core device within the evolving Mobile Information Society Mobile commerce will be a key area within the expanding functionality of the mobile phone Common transaction framework and shared solutions roadmap is a prerequisite for rapid mass market take-off of mobile commerce Mobile phone is rapidly evolving into drastically more than a wireless phone - it is transforming into a Personal Trusted Device
5 NOKIA Nokia Mobile E-business.PPT/ 27.10.2000 / Johan Bergquist

Mobile phone as the ultimate digital wallet

Mobile phones can handle all transaction related functions Utilization in both virtual and physical worlds Banking and trading Payment alternatives Loyalty and bonus programs Security and ID functionality
Restaurants! Ticketing! Banking! Travel! Fun! Institutions!

Cartoons!

NOKIA

Nokia Mobile E-business.PPT/ 27.10.2000 / Johan Bergquist

The Mobile E-business development path

Consumer Value-add

Context -sensitivity Guaranteed Payments Secure Identity

Secured Identity Guaranteed Payments Secured Identity

Mobile Extension
7 NOKIA

Mobile Extension

Mobile Extension

Mobile Extension

Time
Nokia Mobile E-business.PPT/ 27.10.2000 / Johan Bergquist

Secure Identity is My Identity Guaranteed payments

My money My assets

Personalization
My services My interests SECURE IDENTITY

Context-sensitivity
My location My time

Consumer convenience Ease-of-Use for me! Security My privacy

8 NOKIA Nokia Mobile E-business.PPT/ 27.10.2000 / Johan Bergquist

NOKIA

Nokia Mobile E-business.PPT/ 27.10.2000 / Johan Bergquist

Digital signature

Application level procedure needed to fulfill the criterion of non-repudiation WMLScript Crypto Library, WML SignText and WIM Separate key only for signing and Persona Identification Number asked every time Replaces the need for visual check of ID cards, handwritten signatures and paper receipts Legislation developing favorably in many leading markets e.g. Europe via European Union Directive

10

NOKIA

Nokia Mobile E-business.PPT/ 27.10.2000 / Johan Bergquist

Enablers of Mobile Information Society

Transactions
MeT

Internet

Mobile Information Society

WAP

Connectivity

Bluetooth GPRS, 3G Symbian SyncML

Multimedia

Applications

Synchronization

11 NOKIA Nokia Mobile E-business.PPT/ 27.10.2000 / Johan Bergquist

12

NOKIA

Nokia Mobile E-business.PPT/ 27.10.2000 / Johan Bergquist

What is MeT?

Create a Framework for how secure Mobile electronic Transactions can be handled by a mobile device Ensuring a consistent user experience independent of device, service and network.

To

13

NOKIA

Nokia Mobile E-business.PPT/ 27.10.2000 / Johan Bergquist

The Mobile Electronic Transactions Initiative (MeT)

An initiative by Nokia, Ericsson, Motorola, and Siemens Core MeT technologies

WAP specifies the global Mobile Internet WIM specifies the security element utilised Bluetooth for local communication Mobile Public Key Infrastructure as the security framework

All open, globally accepted industry standards

14

NOKIA

Nokia Mobile E-business.PPT/ 27.10.2000 / Johan Bergquist

PKI infrastructure

Based on asymmetric cryptography (public and private keys) PKI is a system to manage the keys, certificates on the Internet Created for the Internet but has not been widely successful because of easy substitutes WAP PKI Document draft in the WAP Forum Addresses certificate enrollment etc.

15

NOKIA

Nokia Mobile E-business.PPT/ 27.10.2000 / Johan Bergquist

WAP + PKI = Total Security Architecture for Mobile E-business

Now WAP 1.2 Certification Authority

Publishing Directory Certificate Access

WTLS Encryption WAP Server WIM WAP Terminal

16 NOKIA

SSL

Origin Server

WMLScript Digital Signature

Nokia Mobile E-business.PPT/ 27.10.2000 / Johan Bergquist

Chip card semipermanently inside the phone

GSM - SIM

For payments,access to net bank etc

17 NOKIA Nokia Mobile E-business.PPT/ 27.10.2000 / Johan Bergquist

Mobey Forum

Customer value by aggregating the requirements of the financial industry on the mobile financial services development path

18

NOKIA

Nokia Mobile E-business.PPT/ 27.10.2000 / Johan Bergquist

Categories of mobile payments

Payments via financial service system

Credit/Debit card, electronic fund transfers Strong potential through wide consumer adoption, global reach and strong back-end infrastructure

Intermediated payments
Operator billing, loyalty points Suitable especially for small payments

Direct payments
E-cash and electronic purses yet to show popularity Peer-to-peer payments e.g. over Bluetooth possible

19

NOKIA

Nokia Mobile E-business.PPT/ 27.10.2000 / Johan Bergquist

The impact of virtual presence

A fundamental change in the relationship between buyer, seller and a 3rd party handling the payments

A non-face-to-face transaction that fulfills the authentication and non-repudiation criteria of a face-to-face transaction

Re-engineering the shopping experience by combining local area connectivity and global network resources

Bluetooth-based instant connection with local devices such as vending machines but still access to network resources such as payment methods

20

NOKIA

Nokia Mobile E-business.PPT/ 27.10.2000 / Johan Bergquist

Secure Access Device

Applications, Data Transaction

Thin Client Security Module? Identification Consumer

21 NOKIA Nokia Mobile E-business.PPT/ 27.10.2000 / Johan Bergquist

Secure Signing Device

Applications, Data Digitally Signed Transaction

Thin Client WIM Identification Consumer

22 NOKIA Nokia Mobile E-business.PPT/ 27.10.2000 / Johan Bergquist

Secure Payment Device

Issuer Acquirer

Payment Transaction

Merchant

Identification Consumer
23 NOKIA

Payment Application or Server-assisted Payment(SW or HW) Application

Nokia Mobile E-business.PPT/ 27.10.2000 / Johan Bergquist

End user

Home

Corporate

Thank You!
Operator Industry

Authorities
24 NOKIA Nokia Mobile E-business.PPT/ 27.10.2000 / Johan Bergquist