Massachusetts Bay Transportation Authority

Station Management Project Automated Fare Collection

March 7, 2007 Massachusetts Bay Transportation AuthorityAuthority

“The MBTA’s Station Management

Project involves a series of projects

that build on the AFC(1) platform to

revolutionize how the Authority does

business, interacts with its

customers, supervises its employees

and manages its stations.”

(1) AFC: Automated Fare Collection Slide 2 Massachusetts Bay Transportation AuthorityAuthority The Vision: Station Management

Wide Area Automated Fare Network Collection

Secure Station Systemwide Initiative Radio

Station Managemen

Hub Stations Customer Service Agents Redundant Telecommunications Account Management Network Clearinghouse Alarms & Safety Systems Card Management & Credit/Debit Processing

Slide 3 Massachusetts Bay Transportation Authority Automated Fare Collection (AFC) AFC replaced the current fare collection system for: ¾ Subway & Green Line ¾ Bus & Trackless trolley ¾ Silver Line

Customer service focus

Flexible fare policy and greater equipment reliability ¾ New Fare Structure Jan 2007 ¾ LinkPass ¾ Bus/Subway transfers ¾ Surcharge

Fare compliance & fare equity

Slide 4 Massachusetts Bay Transportation Authority AFC – Equipment Fare Vending Machines (FVM) ¾ 500 Full Service & Cashless

Fare Gates Fareboxes – bus and light rail

Retail Sales Program

Other new equipment: ¾ Ticket Office Machines, Validators ¾ Photo ID Systems ¾ Central Computer System ¾ Encoding Equipment ¾ Revenue Transfer System(2) Installation Complete Dec 2006

(2) Includes garage equipment (such as vaults, money containers, wireless data collection, etc.) Slide 5 Massachusetts Bay Transportation Authority AFC – New Fare Media Magnetic tickets ¾ Passes or stored value Smart cards ¾ Mifare® 1K ¾ Passes and stored value ¾ Lowest fare ¾ Bus-subway transfers ¾ Automatically “updated” ¾ Value can be recovered if lost ¾ Smart card ID’s for reduced fare customers and employees ¾ Electronic Fare Media Programs

Slide 6 Massachusetts Bay Transportation Authority MBTA’s New Privacy Policy

The MBTA:

¾ Recognizes the importance of privacy

¾ Has a new privacy policy Constitutes an agreement between our customers and the MBTA with respect to collection, use, storage, and disclosure of information collected through our:

¾ Electronic fare media programs

¾ Website

Slide 7 Massachusetts Bay Transportation AuthorityAuthority “Charlie-ization” Bus Farebox Pilot Began – 17 buses; new design January 2005 Reduced Fare ID Outreach Began Spring 2005 Blue Line Subway Installation May - Sept 2005 Other Subway Lines Installation Began February 2006 Farebox Installation Began Summer 2006 Retail Sales Program – 75 in use by 01/07 Complete Subway & Bus Installation December 2006 CharlieCard Rollout to General Public (1m by 01/07) New Customer Service Center – 6 day/week Conversion of 100k+ Corporate Program January 2007 Conversion of 50k+ High School Program New Fare Structure First $1m Credit/Debit single sales day Electronic Fare Media RFP Current Slide 8 Massachusetts Bay Transportation Authority Smart Cards – Overview Smart Card Reduced-fare Photo IDs

¾ Over 125,000 Seniors and 30,000 Persons with Disabilities ¾ New ID for Blind Patrons ¾ Regional Transit Authorities ¾ ‘Dual’ use: Flash and Stored Value

Employees & Retirees

Corporate & Student Pass Programs

General Public

Slide 9 Massachusetts Bay Transportation Authority Smart Cards – New Fare Structure Approved by MBTA – Nov 2006

¾ Effective January 1, 2007

CharlieCard ¾ Lowest fare for stored value ¾ Bus-Subway Transfers CharlieTicket/Cash ¾ Surcharge (Bus: 25 cents; Subway: 30 cents) ¾ No Bus-Subway Transfers Time-based passes ¾ No media price differential

Slide 10 Massachusetts Bay Transportation Authority Smart Cards – Distribution Over 1.2m CharlieCards distributed ¾ Over 1m since Dec 2006 “Charlie’s Here!” ¾ General Public CharlieCard launch ¾ Third-party smart card encoding Over 575,000 unique cards in use3 Distribution efforts ¾ Intense 6 week campaign ¾ Print, media, web ¾ Hand to hand distribution ¾ 300+ Ambassadors, 65+ locations

(3) Limited data. Smart cards with one use between 12/4/06 and 1/31/07. Slide 11 Massachusetts Bay Transportation Authority Smart Cards – Preliminary Experiences

January 2007 stats ¾ 86% of patrons avoided surcharge4 ¾ Approx $6 average stored value purchase ¾ Over 200k time-based passes, including Corporate employees ¾ Credit/debit – significant % of revenue Charlie Challenges ¾ Art of the “Tap” ¾ What is this card for? ¾ Internal and external learning curve ¾ Customer service/support ¾ So much new all at once ¾ “POP” blend on Light-rail

(4) CharlieCard stored value and all time-based passes do not have a surcharge Slide 12 Massachusetts Bay Transportation Authority Challenges Old stations – no 2 are alike ¾ “Charlie” Station Rehabilitations New network New data ¾ Security ¾ How do we use data? New iterations of equipment, computer system Internal & external habits ¾ Old versus new Resources ¾ Project vs. Daily Operations

Slide 13 Massachusetts Bay Transportation Authority Lessons Learned Dedicate internal project resources Signage, graphics, screen flows are critical Stress customer education Keep front line employees informed and engaged Consider fare media encoding by others Have customer support infrastructure in place Software is, well, software…

Slide 14 Massachusetts Bay Transportation Authority Contactless Payments – Moving Forward

Initial focus on core business – other modes (parking, commuter rail, etc.) “Electronic payments” – not solely CharlieCards ¾ Related transit? ¾ Beyond transit? ¾ Other contactless form factors? ¾ Versatile card readers ¾ Acceptor ¾ Learn from others Future “inter-usability” Standards Privacy policy Data security

Slide 15 Massachusetts Bay Transportation Authority Awareness

www.mbta.com Slide 16