01,126 Netsize 2015 - COVER_final v2 02/06/2015 15:42 Page 2
Connected World The Gemalto Netsize Guide 2015
featuring wearables, watches, cars, smart meters, SMS, locks, secure products, NFC, smart cities, mobile ID...and bees 06-07 Netsize 2015 section INTRO_final 02/06/2015 16:06 Page 1 06-07 Netsize 2015 section INTRO_final 02/06/2015 16:06 Page 2 04 Netsize 2015 - Contents_final v2 02/06/2015 16:01 Page 1
The Gemalto Netsize Guide /// Contents
INTRODUCTION Introducing our connected world...... 08 IoT technologies and platforms ...... 12
ON THE COMMUTE The connected car ...... 20 Towards new motoring models...... 24 Q&A with Jaguar...... 26 Connected insurance claims...... 30 SMS is just the ticket...... 34 NFC is OK for TfL...... 38 Singapore goes smart ...... 42
AT WORK A SIM for the industrial world ...... 48 Keeping M2M secure...... 52 Connected machines...... 56 A SIM to save the honey bee ...... 58 SMS in the enterprise...... 60
AT LEISURE Next gen locks and access...... 66 Q&A with Misfit wearables...... 70 Spending e-money...... 74 Time for the smart watch...... 76 Keeping up with contactless ...... 82 Tap to pay from the phone bill...... 84 Mobile ID ...... 86 A Spotify for reading ...... 88
THE FUTURE The view from Fjord...... 92 A perspective by CCS...... 96
DATA Smartphone data...... 102 Mobile OEM market shares...... 103 Smartphone OEM market shares ...... 107 Smartphone OS market shares ...... 112 IoT forecasts ...... 114
04 www.netsize.com 05 Netsize 2015 - Preface_final 02/06/2015 16:00 Page 1
Preface /// The Gemalto Netsize Guide
Welcome to the Gemalto Netsize Guide
Philippe Vallee, Chief Operating Officer, Gemalto
Welcome to the 2015 edition of the Gemalto Netsize Guide. This one’s a bit different. How? Well, for the first time, it’s not exclusively about the mobile phone. Instead, we’re taking a deep dive into the next big phase of mobility – the world of connected things. Most readers will recognise this shift from their own business dealings. Visit any mobile trade event and, in addition to the many impressive new smartphones on display, there will invariably be connected cars, smart watches and intelligent home appliances. It’s amazing to see luxury goods firms and even toothbrush makers engaging with our business. So the Internet of Things is well and truly launched. But important questions remain. What are the best user interfaces for smart devices? How can they be protected from hackers? Which connection technology should they use? In this guide, you can find out all these topics and more. You’ll see how smart devices might affect life at home, at work, on the commute and at leisure. You can also catch up on related mobility topics such as mobile payment, NFC, and messaging. Meanwhile, as ever, you’ll find the comprehensive market information and statistics we know you appreciate. Enjoy!
www.gemalto.com 05 06-07 Netsize 2015 section INTRO_final 02/06/2015 16:00 Page 1 06-07 Netsize 2015 section INTRO_final 02/06/2015 16:00 Page 2
For over a decade the Gemalto Netsize Guide has explored the impact of mobile on people and companies.
In that time, we’ve seen the technology move from feature phone beginnings to smartphone maturity.
Now, mobile is taking its place amid a broader revolution. The phone is merely one ‘thing’ in a huge network of connected things.
That’s why we’ve broadened the focus of this 2015 edition to investigate the impact of IoT on our commute, our work life and how we spend our leisure time. 08-11 Netsize 2015 Intro feature_final 02/06/2015 15:59 Page 1
The Gemalto Netsize Guide /// Introduction 08-11 Netsize 2015 Intro feature_final 02/06/2015 15:59 Page 2
Introduction /// The Gemalto Netsize Guide Network effect A world of connected devices lies just around the corner. Rémi de Fouchier, VP of marketing communication at Gemalto, ponders the possibilities of this exciting new future. In this edition of the Gemalto Netsize health and agriculture. It will reach Guide, Fjord’s Mark Curtis heralds into very facet of human activity.” the dawn of a new wave of digital. He The market watchers agree that the calls it the era of ‘living services’. IoT is set to skyrocket. ABI Research After the desktop and mobile eras, says the installed base of active he argues, we’re now entering a wireless connected devices phase in which sensors will be exceeded 16 billion in 2014 but will embedded into wearables, hit 40.9 billion by 2020. Meanwhile appliances and industrial objects. As Gartner estimates that IoT product a result, these devices will change in suppliers will generate $300 billion response to context. In a sense, what by the same time. was previously dumb will become Of course, all these products will alive. give rise to a vast new market for IoT solutions – one which IDC forecasts In virtually every area of will grow from $1.9 trillion in 2013 to industry, makers of simple $7.1 trillion in 2020. The impact will be everywhere. In ‘dumb’ devices will have to the consumer space, people are just adjust to the challenge of starting to become aware of the managing ‘living’ goods. potential of connected devices (beyond phones and PCs). Till now, the spotlight has been The pace of change in digital is taken by wearables – largely fitness staggering. Around a decade ago, trackers and to a lesser extent when the Gemalto Netsize Guide smart watches. It’s all been quite was first launched, the focus was inward-looking and geeky: these very much on the impact mobile devices mostly track a user’s activity would have on our lives. Today, that or display notifications. fascinating story is still being played However, experts think the eventual out. But there impact of the so- purpose of the wearable will be as a called Internet of Things could be remote control for the world. These even more profound. devices will sync to sensors inside Why? As Curtis says: “the connected other objects to save time and effort. future will not just be about ‘me’. It Thus, the watch will open your front will extend into industry, transport, door, start your car, tap to pay in 08-11 Netsize 2015 Intro feature_final 02/06/2015 15:59 Page 3
The Gemalto Netsize Guide /// Introduction
stores or pulse to give you will not wear utilitarian products. directions. This explains why fashion companies Clearly, both Apple and Google are like GUESS (interviewed in this driving towards this future. Apple publication) have entered the smart created HomeKit as a platform to watch space. And why some startups put IoS in control of the smart home, proclaim design to be the most while Google spent $3 billion on critical factor in a wearable. Sony Vu, Rémi de Fouchier, Nest, maker of a smart thermostat. founder of Misfit (also interviewed), VP of marketing Insiders expect Google to build out a sums up his approach as follows: communication, smart home strategy from this “We started with what people would Gemalto acquisition. It is even rumoured to be wear, and then we worked launching a dedicated IoT OS called backwards.” Brillo. Alongside smart home and wearables is the connected car. The design factor According to IHS Automotive, the It’s logical that these tech giants number of cars connected to the should eye appliances and Internet worldwide will hit 152 wearables. They’re huge markets. million by 2020. This process is But these spaces require a different already under way with most new approach from traditional tech. In models allowing drivers to connect wearables, for example, the design their phones to the in-car systems. factor is paramount. Simply, people At present the main drivers of in-car
10 www.netsize.com 08-11 Netsize 2015 Intro feature_final 02/06/2015 15:59 Page 4
Introduction /// The Gemalto Netsize Guide
connectivity are entertainment, an embedded SIM that can be traffic, communications and soldered in to withstand heat, cold mapping. Further ahead car makers and vibration. It reckons mobile plan to connect cars to a wider handsets will constitute only 72 per ‘smart city’ network. cent of cellular connections (it’s This will help to soothe congestion currently 92 per cent) by 2020. and save energy. It could even lead Another consideration is security. A to self-learning or autonomous world of connected devices is, sadly, vehicles, and yield new business a world of opportunity for criminals models. Car makers may evolve and mischief-makers. Are from sellers of goods to providers of manufacturers ready for this? In this a more holistic transport service. publication, James Lyne of security specialist Sophos, suggests not. His From dumb to smart own tests reveal a generally poor They won’t be alone in having to level of protection. But the good change their approach. In virtually news is that strong solutions do every area of industry, makers of exist and that, to date, attacks are simple ‘dumb’ devices will have to rare. So there’s still time to act. adjust to the challenge of managing Of course, all this talk of the future ‘living’ goods. overlooks the impact today’s These new markets require a different technologies are still having on our connected world. approach from traditional tech. In wearables, the design factor is Contactless at last NFC is finally making an impact, for paramount. Simply, people will not example. Most phones now support wear utilitarian products. it. And consumers are being eased into tap-and-pay by the decision of Selling a mechanical front door lock Transport For London and others to is not the same as maintaining one embrace NFC. that is permanently connected to the Merchants and service providers are Internet and approved users. even finding new ways to use SMS. It There are connectivity issues to be may be 20 years old, but text still has considered. What’s the best protocol a vital role to play. For example, in a to ensure a reliable connection? Wifi world of digital services and and Bluetooth may work at home, documentation, a simple text pass but what works best for the smart code sent to your mobile could your meter in a remote location? Or a securest form of authentication. So- turbine in a power station? called Mobile ID is already being Cellular is probably the answer here. rolled out. But not with the traditional SIM card There’s so much to be excited about. we know from phones. It’s why the We hope the Gemalto Netsize Guide GSMA developed a specification for 2015 whets your appetite.
www.gemalto.com 11 12-17 Netsize 2015 loT technologies_final v2 02/06/2015 15:58 Page 1
The Gemalto Netsize Guide /// Introduction
The Internet of Things is home to mulitiple devices, connection types and software standards. It’s a bit of a mess.
One platform would be just the Thing… The history of tech is littered with platform wars, from VHS v Betamax to IoS v Android. So has the vast complexity of the Internet of Things taught all participants to sit down and agree on standards? Not so far, writes Tim Green.
Imagine you’re going to throw a If you think about it, the IoT is like a party, and you invite hundreds of grand industrial equivalent of the people who speak different party. It involves potentially millions languages. Then throw in some of machines talking to each other in guests who have lost their voices. order to make human lives better. Confusion would reign. It wouldn’t These devices will be necessarily be a great deal of fun. It’s unlikely diverse. The connected car will tell any new business partnerships or the smart heating system to warm a romantic alliances would be formed. room to 20 degrees. The smart But this same scenario threatens to washing machine will tell the slow down the progress of the manufacturer it needs a new part. Internet of Things (IoT). The smoke alarm could warn the
12 www.netsize.com 12-17 Netsize 2015 loT technologies_final v2 02/06/2015 15:58 Page 2
Introduction /// The Gemalto Netsize Guide
park ranger about forest fire. Instead, a range of standards are Of course, all these different competing to define the future of IoT. appliances will command different It’s one reason why the ‘party’ has levels of power consumption and yet to really kick off. connection bandwidth. Some will be There are essentially two areas that always-on, others will transmit only need to be straightened out. intermittently. The first is the transport layer. This But it’s imperative that, regardless of describes how the IoT device their quirks, they can all ’speak’ to connects with other IoT objects. each other. Sy Choudhury, senior Options include Bluetooth, wifi, director of product management for cellular and more. They each vary in the Allseen Alliance (see below) range, power consumption and says: “We need to make devices that bandwidth, but obviously they need are truly interoperable. In the smart to interoperate in some way. home for example, our TVs and other The second consideration is the screens should be voices for our application layer. This relates to the appliances.” codebase built into applications so Unfortunately, this universal that they know how to interpret language is far from established. information received from other
www.gemalto.com 13 12-17 Netsize 2015 loT technologies_final v2 02/06/2015 15:58 Page 3
The Gemalto Netsize Guide /// Introduction
devices. There are two main options Bluetooth leapfrog across devices to Sy Choudhury, of here: Qualcomm’s Alljoyn and connect to thousands of things the Allseen Samsung/Intel’s Open Internet across long distances. Alliance. “We need Consortium. The tech’s cause is helped by the to make devices that are truly It’s also worth mentioning a third, fact that it is already a feature on interoperable.” the mobile platform, given that the smartphones, which will likely act as smartphone will likely be the remote the management hub for connected control for much IoT activity. homes. So let’s look at the options: Then there are Bluetooth Beacons. These are the small wireless THE TRANSPORT LAYER sensors placed inside any physical Bluetooth Smart space that transmit data to a phone. Bluetooth Smart (previously known In a shop, for example, they can as Bluetooth Low Energy or BLE) trigger offers as a consumer passes extends the short range of Bluetooth a certain product display or simply and also consumes far less battery walks through the door. power. It was originally aimed at Finally, Bluetooth Smart is regarded wearable technology, and should as very secure. It uses powerful become prevalent in the smart encryption to ensure no one can home. However, progress in mesh intercept or unscramble comms networking technology could see between smart devices.
14 www.netsize.com 12-17 Netsize 2015 loT technologies_final v2 02/06/2015 15:58 Page 4
Introduction /// The Gemalto Netsize Guide
Wifi ZigBee-enabled devices account for Everyone knows wifi. Parents with 74 percent of the market, and will hit children will recognise its centrality more than 350 million in annual to a home life dominated by iPads, shipments by 2019. But Zigbee faces laptops and portable games players. competition from Thread… Wifi is good for short distance, high energy connections like music Thread streaming and film viewing. Thread is a relatively new standard But wifi’s ability to handle high- developed by Google's Nest Labs, bandwidth makes it power-intensive ARM and Samsung, It is a low-power — watch your laptop battery die if mesh network built on existing you use it for streaming. standards, which means that devices This is why many smart home using ZigBee et al can easily migrate products reject wifi: you don’t want to it. Existing Thread specifications your smoke alarm running out of will be able to support a network of battery every two days. up to 250 devices. Thread’s key advantage is that Nest ZigBee Alliance already uses it, and Nest is the big Zigbee is a low power spin off of wifi gorilla of the smart home space. based on the IEEE 802.15.4 Nest (now owned by Google) is one standard. It’s over a decade old and of the few firms to have achieved the Zigbee Alliance comprises more some genuine consumer adoption. than 300 companies including giant Thread-compatible products won’t corporations like Philips, Mitsubishi hit the market until a certification Electric, Epson and more. program is launched next year, but Where ZigBee scores is in distance developers can start building and power consumption. Devices are products now. usually powered by batteries that have a life lasting months or even Cellular/GSMA Embedded SIM years. And they can communicate Specification across long distances because of The mobile operators are mesh networking. understandably very keen to Mesh networks link up multiple embrace the IoT. Now they are close devices so that a signal can hop to connecting every individual in the across them. ZigBee supports up to world, they are licking their 65,000 nodes on one network. This metaphorical lips at the prospect of not only supports long range comms connecting billions of devices. They but it also makes the connections started this process years ago, more robust (if one device fails, the calling it Machine to Machine (M2M). single still gets through). Demand could be huge. Many For this reason Zigbee is better connected devices are in remote established in industrial sectors locations and have simple functions, than the smart home. Analysts say so they would not be suited to wifi or
www.gemalto.com 15 12-17 Netsize 2015 loT technologies_final v2 02/06/2015 15:58 Page 5
The Gemalto Netsize Guide /// Introduction
Bluetooth. Indeed, they may only such as Linux and Linux-based need a 2G connection. Android, iOS, and Windows. So in 2013, the operators’ trade body, After a bright start, there was the GSMA, launched its Embedded growing suspicion of Qualcomm’s SIM initiative. The idea behind the motives for launching AllSeen. specification is to allow secure over- Observers wondered if a for-profit the-air operator management of company should be running a free M2M services. open source project. Qualcomm Thus, Embedded SIMs are generally issued a public post saying it more hardy than regular SIMs. They wouldn’t make a profit from AllJoyn, can be hermetically sealed but it couldn’t prevent the creation of (especially where devices are placed a rival consortium: the Open in wet or hot environments - like Interconnect Consortium. smart meters), which means the card can’t be swapped. For this Open Interconnect Consortium reason, users can manage the SIM The OIC’s main supporters are Intel remotely. They can even switch and Samsung. Like Alljoyn/AllSeen it operators this way. exists to manage an open source The world’s biggest network code base that lets developers build operators (América Móvil, China devices that can ‘talk’ to each other. Mobile, KDDI and many more) have It was launched out of concern that all committed to launch services Qualcomm might seek to make a based on the GSMA specification. profit from its open-sourced protocol – or restrict access to some of the THE APPLICATION LAYER IP. AllSeen For all its opposition to Qualcomm’s alliance of over 50 Alljoyn/AllSeen, OIC does address a includes big names like Microsoft, slightly different market. It’s more LG, Sharp, Panasonic and Cisco. It is focused on the industrial sector than dedicated to evangelising and the Qualcomm protocol, which has exploring the use of the AllJoyn open more resonance in the smart home. source project (created by This is why the OIC announced a Qualcomm, now run by Linux). strategic liaison agreement Alljoyn is a codebase developers can with the Industrial use to make apps that can Internet Consortium communicate over any transport (IIC) in February. The layer without the need for Internet deal will see the two access. groups share This software enables functions information that will such as discovery of adjacent help fashion an devices, pairing, message routing industrial grade IoT and security. It runs on platforms architecture.
16 www.netsize.com 12-17 Netsize 2015 loT technologies_final v2 02/06/2015 15:58 Page 6
Introduction /// The Gemalto Netsize Guide
The IoT involves potentially millions of manufacturers to badge their products as 'Made for Apple machines talking to each other in order HomeKit’. At time of writing to make human lives better. confirmed Homekit partners These appliances will command different included Philips, Osram Sylvania, Texas Instruments and more. levels of power consumption and connection bandwidth. Some will be Android™ Google has not yet launched an always-on, while others will transmit equivalent of iOS Homekit (though only intermittently. rumours abound), but it does have various initiatives focused at different IoT segments. There is Android Wear, for example, which SMARTPHONE PLATFORMS tailors the OS for watches and Apple HomeKit wristbands. Meanwhile the Android Smartphones are already used as Auto platform does the same for the the ‘remote control’ for some connected car. elements of the Internet of Things And don’t forget, Google also owns such as the smart home. Though it’s the smart thermostat firm Nest unlikely they will have a central role (which surely has plans to expand in factories or cities, smartphones into other product areas) and has are still a critical factor in the experimented with its own wearable evolution of IoT. devices – most notably Google Glass. Apple knows this, which is why it announced a software platform Samsung Tizen called Homekit to allow devices, It’s not easy being Samsung. You such as web security cameras, might sell millions of smartphones, smart plugs, thermostats, lights and but you don’t control the software locks to be unilaterally controlled inside them. So Samsung is from one app. It’s part of the iOS 8 desperate to do things differently in operating system and it works with the IoT space. Siri too. Hence Tizen. This is Samsung’s OS The platform will in theory save for the new world of connected The smart home users from having to access a smart devices. In its favour, the is just one different app for every smart device modest part of platform requires less processing the over IoT. But in the home. Instead,they can do it power and memory than most other the mobile phone all from HomeKit. mobile phone OSs. makers are all So when you tell Siri to “turn on the But Samsung will face an almighty over it. kitchen lighting,” it will do so, battle to establish the platform in regardless of the make or model of such a competitive space. the lights. Naturally, Apple wants
www.gemalto.com 17 18-19 Netsize 2015 - commute Intro_final 02/06/2015 15:59 Page 1 18-19 Netsize 2015 - commute Intro_final 02/06/2015 15:59 Page 2
A study by TomTom found drivers spend an average of eight working days a year in traffic.
No wonder motorists are embracing connected in-car entertainment, while manufacturers race to build networked transport systems that can ease congestion.
In this section we look at how connected tech can improve the way we travel.
From Singapore’s effort to create a ‘smart city’ to Italy’s experiments with SMS travel tickets. 20-23 Netsize 2015 connected car_final 02/06/2015 15:58 Page 1
The Gemalto Netsize Guide /// On The Commute
Where next for cars? In-car tech is now the number one factor when people buy automobiles. No wonder car makers are racing to provide the best systems and connections. Something strange has been mobility company and not only a car happening at CES, the giant and truck company. We want to be convention for gadget freaks. Also at viewed as being part of this Mobile World Congress, the expo community.” where 90,000 people come to see the Ford was one of ten car makers latest phones. Both these huge exhibiting their latest in-car events are suddenly full of technology at the event. And why automobiles. Not in the car parks. wouldn’t they, when research by On the show floor. Accenture says 39 per cent of the Mark Fields, CEO Without doubt, cars are the hot new world’s consumers value it higher of Ford, says car connected devices. It’s taken a while, than anything else when buying a makers should think of themselves but motor manufacturers are new car. The same survey said just as ‘mobility’ realising it too. In a sense, cars are 14 per cent care most about power providers. they are becoming something like and handling. smartphones on wheels. Mark In an age when even the cheapest Fields, CEO of Ford, said at CES: cars are comfortable and reliable, “We’re thinking of ourselves as a in-car connectivity is the new
20 www.netsize.com 20-23 Netsize 2015 connected car_final 02/06/2015 15:58 Page 2
On The Commute /// The Gemalto Netsize Guide
Research by Accenture says 39 per cent nearby restaurants/fuel stations/parking etc of the world’s consumers value in-car > Connectivity – built in LTE/4G technology higher than anything else offering wifi for passengers
when buying a new vehicle Needless to say, they have a variety differentiator for auto makers. And of ways to meet these needs. Some, there’s serious money in it. like Audi with its Audi Connect According to a report by Allied product, have built their own Market Research, the connected car proprietary in-car systems. market is forecast to reach $141billion by 2020. Car v phone Some of the impetus for car makers These in-built communications to invest comes from government. In systems are necessary for Europe, for example, the EC has diagnostics and calling emergency introduced a 112-based eCall system services. But entertainment? that automatically alerts the nearest Phonecalls? Don’t drivers have help service in case of an smartphones for that? emergency. It passed a law that says This is the big quandary facing auto eCall (according to European manufacturers. They don’t want to Norms) will be declared mandatory cede control of their in-car systems, effective with all new vehicle type but neither do they want to ignore approvals by March 2018. their customers’ preferences. But they will have to face up to the The dash to the dashboard challenge. Why? Because both Apple But mostly, car makers are racing to and Google are pushing hard into the win over consumers. The car space through, respectively, battleground covers these features: Apple CarPlay and Android Auto.
> Entertainment – music, podcasts, Waiting on the platform radio These systems give developers a > Navigation – including street-view standard platform for updating their level navigation and up-to-date smartphone apps so they work points of interest safely and fluently inside the car. So, > Automotive diagnosis – oil levels, when the driver plugs in a phone to type pressure, engine diagnostics the car, the display will reveal all > Communications – phones and supported apps and let the driver texts made via Bluetooth control them by voice or touch. > Road side assistance – direct links Developers are working on these to emergency services for break- updates, and many car makers are down calls supporting the two platforms. > Contextual help/offers – displaying However, it seems unlikely they will
www.gemalto.com 21 20-23 Netsize 2015 connected car_final 02/06/2015 15:58 Page 3
The Gemalto Netsize Guide /// On The Commute
THE CONNECTED CAR. YOUR MOBILE PAYMENT DEVICE?
Visa’s new pilot project lets drivers order and pay for pizza and fuel from the dashboard.
By some estimates, half of all with a picture of their Visa card Visa’s director of innovation and digital transactions now take and a ‘Place Order’ button. strategic partnerships, said the place on a phone or tablet. After hitting the button, the project is all about finding new People simply love to shop ‘on software reveals a map with ways to migrate consumers from the go’. So why not shop and pay turn-by-turn directions to the cash to digital. in that other great mobile device: restaurant and a confirmation He said: “The Internet of Things the car? message stating when the order is going to bring a lot of new Well, a handful of drivers in will be ready. opportunities for e-commerce. California already can. When the car arrives, Bluetooth We’re looking for partners who Early in 2015, card company Visa beacons recognise the driver can help us make these ideas kickstarted a pilot to let drivers and transmit his or her location happen faster.” order ahead for various items to the POS, which prepares the Enriquez accepts that the direct from the in-car display. order and takes the payment via emerging IoT is messy and One of the partners is Pizza Hut. Visa Checkout. fragmented. However, he Here’s how it works: motorists Visa hired Accenture to build the believes Visa is in a good assign their Visa card details to app and enable the partnerships. position to marshall various the display and then touch the It’s also working with a parking partners into mutually beneficial display to order pizza. The driver group and a fuel station. standards. “We’ve done it with chooses a menu item and is then At a demo during Mobile World tokenization in the payment transported to a shopping cart Congress 2015, Martin Enriquez, space,” he says. “We worked
22 www.netsize.com 20-23 Netsize 2015 connected car_final 02/06/2015 15:58 Page 4
On The Commute /// The Gemalto Netsize Guide
Next up – a give up on their own internal mainstream vehicles like the wearable to open systems. Consumers will just have Chevrolet Silverado. your car door? to get used to having two options. After all, there’s money in it. Car Market boom makers could conceivably get a cut Analysts say the trend is from purchases made in a car. In accelerating. Half the cars sold in fact, Visa is working on a pilot for 2017 will have some kind of mobile ordering food, fuel and parking from connection and by 2022 there will be the car dashboard (see box). over a billion connected cars on the road, says Analysys Mason. Internet inside Naturally, this is not entirely due to Of course, all of this depends on motorists wanting access to cars connecting dependably to the Pandora while they drive. Internet. Till recently, this has been The bigger vision is of the intelligent through the phone, though upmarket car sitting within a world in which manufacturers such as Tesla, BMW smart cities and homes all talk to and Audi offer built-in wifi and 4G each other – a world in which connections to their cars. This is airports tell cars when flights are beginning to hit the mass market: delayed and drivers set thermostats Chevrolet is installing 4G LTE in on the commute home.
with our competitors to make that change and it’s working. I think we can help here too. Visa is not a car company, but I do think we can work with different companies to make them aware of the opportunity.” Enriquez gives the example of fuel ordering. “For this to happen, the station would need to integrate Beacons and then request information from the car about the kind of fuel needed, how much fuel the car has left and what it would cost to fill it. “Now, the car firm may not want to give all this information, but if we can have an open conversation we can work out what can be shared so that everyone benefits. “And once one company does this and it works, all the others might pay attention and think: we should do this too.”
www.gemalto.com 23 24-25 Netsize 2015_ connected car feature 2_final v2 02/06/2015 15:58 Page 1
The Gemalto Netsize Guide /// On The Commute
Next year’s model Connected tech could do more than improve in-car entertainment. It could replace car ownership with car sharing. Or turn vehicle makers into ‘mobility providers’. The Gemalto Netsize Guide looks ahead to a dramatic new era on the road.
Earlier this year, Audi unveiled its easy to assign and revoke car keys, Audi Key app. As expected from a why should everyone need their own high-end automobile maker, the app car? is a state-of-the-art demonstration There’s no doubt that technological of what is now possible in the progress is encouraging car makers, connected car space. government and - of course - Thus, drivers can use it to see how citizens to re-consider society’s much gas is in the tank, how many relationship with the car. miles to the next service, even where Some previously unthinkable ideas the car is. But the most notable are already here. Car sharing feature of Audi Key may be this: it companies such as Zipcar and lets drivers register other people’s Car2go have helped to establish an phones for use with the car. entirely new market sector, one that Thus, at a press of a button, Frost & Sullivan says 26 million someone other than the owner can people will use by 2020. walk up to the vehicle and open it It seems that a vast swathe of people with an NFC-enabled handset. are already happy not to own a car. That sounds cool. But think about They certainly have financial the long term implications. If it’s that incentives for sharing. Frost &
24 www.netsize.com 24-25 Netsize 2015_ connected car feature 2_final v2 02/06/2015 15:58 Page 2
On The Commute /// The Gemalto Netsize Guide
Sullivan says it’s is around $3,000 year contract with a car maker to per year cheaper than buying. guarantee mobility,” he says. “They And there’s an infrastructural payoff deliver a car to your house, you use too. It’s been reported that the it and then drop it wherever you go average car is idle 96 per cent of the ready for next driver. But it needn’t time. Sharing is clearly far more even be just about cars. Your efficient. Indeed, Frost & Sullivan contract could cover trains, buses says that for every car that goes into and bikes too.” Jean-Claude a car sharing club, up to nine are Enabling all of this change is, of Deturche, Senior removed from the streets. course, connected technology. Vice President of At the center is the evolution of the Mobile Financial Responding to change SIM to suit industrial applications Services at Gemalto. Car makers know they have to and remote provisioning. There’s respond to this shift. BMW launched also the fast roll-out of 3G, 4G/LTE, a venture with car rental firm Sixt with 5G on the horizon. And even the called DriveNow, which lets users emergence of ‘mesh’ networks that find, unlock and start cars using a turn every car into its own node on mobile app, then drive them on a the network to enable vehicle-to- charge per minute basis. There’s no vehicle and vehicle-to-infrastructure central collect and return point so communication. users can drive where they like and leave the car nearby. The new driver for hackers Sixt managing director Alexander These developments are propelling Sixt proclaimed the scheme to be the industry towards a momentous the start of a revolution that could endpoint: the autonomous car. “make mobility so cheap that only It’s exciting. But the path is paved the rich will buy cars”. with hurdles: If cars get connected, The transformative potential of they will almost certainly be hacked, sharing is why Avis bought Zipcar for with criminals using phone malware $500 million in 2013. The purchase to exploit holes. could see Avis re-invent its hire While this will be a nuisance if it business, replacing brick and mortar affects in-car entertainment, it could units and fixed parking with a virtual be life-threatening should a hacker model based around the app. gain control of the steering wheel or gas pedal. Mobility subscriptions? It’s another area Gemalto is working Jean-Claude Deturche, senior VP of on. Deturche says: “The automotive Mobile Financial Services at companies are investing a lot in the Gemalto, has been working with space, and obviously the mobile is major car companies on connectivity where they want to put the keys. But ideas. He believes they are all these systems have to be highly considering dramatic new models. secure if they are to open a car “In future you might sign a three worth $50,000.”
www.gemalto.com 25 26-29 Netsize 2015 jaguar_final 02/06/2015 15:57 Page 1
The Gemalto Netsize Guide /// On The Commute
Auto focus Will your smartphone control your in-car systems? Can an automobile ever be a thing in the Internet of Things? The Gemalto Netsize guide chatted to Mike Bell, global director of Connected Car at Jaguar Land Rover. The automobile industry has come a navigation, communication. long way since Henry Ford told With the arrival of connected customers they could have a new technologies, an exciting new era for Model T Ford in any colour "so long drivers awaits. Mike Bell, global as it is black." For manufacturers? Well, it’s director of Today, the car market is all about complicated. Connected Car, Jaguar Land Rover choice – dozens of colours, and any Auto makers have to decide whether combination of features from power to build their own in-car systems for steering to heated seats. connecting drivers to smart services Of course, the ultimate form of – or to simply let drivers plug in their personalisation for drivers is less smartphones. Should they embed a about the specs of the car itself than SIM? Connect by wifi? And what kind the experience they have when of interface should they design to they’re on a journey: entertainment, give motorists plenty of utility and
26 www.netsize.com 26-29 Netsize 2015 jaguar_final 02/06/2015 15:57 Page 2
On The Commute /// The Gemalto Netsize Guide
“Our strategy is based around having Another option inside the app is justDrive. This bundles programs both built-in connectivity and allowing like Spotify, Twitter, and Yelp. When the car to communicate with the phone you download these and you plug as well. We don’t see them as separate.” your phone into the car, they will come up on the touchscreen and be fun without causing them to crash tailored to work with the car UI. They into trees? go into landscape mode, and can be The high-end car maker Jaguar controlled from steering wheel or by Land Rover thinks hard about these voice activation so you don’t need to questions. So the Gemalto Netsize look at the touchscreen. Guide asked Mike Bell, global For passengers, we provide wifi director of the firm’s Connected Car hotspots too using an antenna on division, to share his thoughts. the roof.
In the past some car makers have How are these apps adapted to built their own systems even though work inside the car? drivers seem to want to use their We have an SDK. Developers use it phones. How does JLR handle this? to enable their apps for the systems. Our strategy is based around having We tend to work with apps that are both built-in connectivity and useful for driving such as apps for allowing the car to communicate parking locations, music streaming with the phone as well. We don’t see and so on. We have around 40 in them as separate. production. It varies by territory, but The truth is our customers will bring we aim to support the top 10 driver- the devices they want into the centric apps in every country. vehicle. We know that people place a higher How does this fit alongside Apple priority on their choice of phone than and Google’s own in-car platforms on their choice of vehicle. Lots of (Apple Car and Android Auto)? surveys have shown that. They have Like I said, we have to support an expectation that their phones will everything. People just expect just work, and we support that. choice, so we will work with Apple and Google. At the moment though, I So how does the car sync with the think developers find them a bit phone? restrictive, and anyway there just We have an app called InControl aren’t many apps available for them. Touch, which lets people connect their nomadic devices to the vehicle. What about in-car systems that We have a number of apps – Stitcher don’t involve the phone? and Parkopedia and others – that We use an embedded SIM. We need have been optimised for our vehicles something that’s automotive grade and they sit inside InControl. so it’s soldered in, and it can
www.gemalto.com 27 26-29 Netsize 2015 jaguar_final 02/06/2015 15:57 Page 3
The Gemalto Netsize Guide /// On The Commute
withstand high temperatures and tyre pressure. It will even give Jaguar Land vibration. It’s what we call walking directions to the car from Rover’s self- learning intelligent telematics, and it’s primarily about any distance. car will recognise driver safety and security really. In I think we have to have some drivers before the event of a crash, the telematics internal systems purely because of they’ve even system can notify emergency life cycles. Phones are almost opened the door. services, for example. disposable, whereas our vehicles But it’s also for convenience. If have to stay on road for 10 years. You you’re away from the vehicle you can just won’t expect your phone to work control the in-car system from the in 10 years. Android or iOS InControl Remote That means the M2M platform app. You can see the location, fuel should work for ten years too. The levels, diagnostics. You can open the challenge comes from factors like doors of the car, pre-heat it, keep the sunsetting of certain journey records for expenses, check technologies. So if, for example, the
AFTER THE LEARNER DRIVER, HERE COMES THE LEARNER CAR Jaguar Land Rover is already planning for a future in which a car adapts itself to its owner. Deep inside a lab in the middle of intelligent car project. This car can do all the heavy lifting so England, engineers are creating comprises an algorithm that the driver can concentrate on the a living car. recognises who is in the car and road. OK, not living exactly. But learns their preferences and The intelligent car will recognise intelligent enough to pick up on driving style. drivers by their smartphones. As a driver’s choices and journeys, The software then applies this to they sit down, the mirrors, and adapt itself accordingly. factors like calendar, time of day, steering wheel, temperature and In 2014, Jaguar Land Rover traffic conditions and the seat settings will all be set to the started work on its self-learning weather. The big idea is that the individual's preferences and
28 www.netsize.com 26-29 Netsize 2015 jaguar_final 02/06/2015 15:57 Page 4
On The Commute /// The Gemalto Netsize Guide
networks turn off 3G, we’d have to the Internet of Things uses lots of look at making our in-car systems different standards. They’re not upgradable. That is something car joined up, so we will have to choose makers don’t generally do. our partnerships carefully, and wait It’s a challenge. Some things can be to see which platforms get done over the air. But when it comes established. Some car makers down to the hardware level, it’s have tried to build something we can’t change easily. Assume these standards emerge, their own in-car what scenarios could play out? entertainment How are car makers like JLR I think smart cities will definitely systems. Truth is, preparing for connecting cars to the emerge. Things like anticipating drivers want to use Internet of Things? traffic, automated parking and their phones. You can argue the vehicle is one of integrating into other transports the biggest things in the Internet of scenarios to make journeys easier. Things. So it will play its part. After all, most car journeys also However, you have to ask what are involve a journey by foot or train or the use cases: just because I can bus and so on. connect my car to a fridge, would I want to? What helps me on my And what about the smart home? journey? What makes sense? We’re certainly thinking about it. As We’re looking at the concept of the for use cases, I honestly don’t know self-learning car. yet. Sometimes you just have to take When the car knows the intent of the the ‘build it and they will come’ driver, it all becomes more useful. If approach. You can’t always ask the car knows I am approaching my people what they want. local supermarket, for example, it I remember when Nokia asked their could tell me what I need. customers whether they wanted The car has to learn this, because cameras in phones, most of them you generally don’t set the route for said no. The truth is people often journeys you take all the time. It’s don’t know what they want until they some way off though. As it stands, try it.
external conditions. detect passengers and offer driving the vehicle. Other features include: them preferred infotainment Dr Wolfgang Epple, Director of > Destination Prediction - settings Research and Technology for automatic destination based on > Intelligent Notifications - Jaguar Land Rover, is optimistic historical usage. based on traffic situation, the car about this techno motoring > Fuel Assist - suggests fuel can alert people that the driver future. He says: “It is technology stations which have the driver's will be late or provide relevant concepts like the self-learning preferred brand and location. contextual updates such as flight car that will ensure any future > Predictive Phone Call - delays. intelligent car remains fun and predicts who drivers are likely to > Auto Adaptive Cruise Control - rewarding to drive as we move call in a certain situation. the car applies the preferences it closer to more autonomous > Passenger Awareness - will has learned when the driver is driving over the next 10 years.”
www.gemalto.com 29 30-33 Netsize 2015 - insurance_final 02/06/2015 15:56 Page 1
The Gemalto Netsize Guide /// On The Commute
Pic: Rachel @Flickr
As smart as you claim? Imagine if your car could tell your insurance company how you’d been driving – and set your payment accordingly. It already can. But this kind of smart monitoring is just the start, says Matt Owen, MD of M2M Intelligence.
Motor Insurance may not be usage based insurance, cost per- renowned for its technology mile, and pay as you drive. And all of innovation, but when it comes to the it enabled by the emergence of Internet of Things, it’s right out in smart devices and connections. front. Over the last few years, the It goes without saying that cost business has been experimenting savings and new revenue are with new business models such as powering these new ideas. In
30 www.netsize.com 30-33 Netsize 2015 - insurance_final 02/06/2015 15:56 Page 2
On The Commute /// The Gemalto Netsize Guide
essence, new technology lets moderate majority, but it left insurance companies monitor driver the door open for niche competitors performance more accurately. And to pick off lucrative segments like that means it can reward good the over 50s. driving and punish bad habits. That skewed the demographics and This innovation emerges from the reduced the value of the middle ability to gather data inside a car, market. and to transmit this data over the air Regulation made the problem back to the insurer. Usually this worse. In Europe anti-discrimination is done by embedding a SIM card in legislation meant that since 2012, the car’s telematics systems, which insurers could no longer use gender to set premiums. So even though New technology lets insurance companies young women are on average safer monitor driver performance more drivers than young men, you can’t accurately. And that means it can reward create a policy only for females. This move alone took two per cent off the good driving and punish bad habits industry’s margins. Clearly the industry needed more sends information via the cellular sophisticated tools to sort the good network. It can even be 2G. from the bad. Then it came up with Pay As You Drive, the original the idea of Pay How You Drive. telematics model, began in the US in The challenge was how to enact it. A the mid 2000s. For the first time it few insurers tried smartphone apps. gave insurers data about a They monitored the phone’s in-built customer’s actual car use. It is a accelerometer and GPS to measure simple concept: if you don’t do many acceleration, braking and cornering. miles, you don’t pay so much. But the idea was easily sidestepped by boy racers who would leave their Pay how you drive iPhones at home or in Grandma’s But measuring miles driven is only car, then go street racing with no part of the insurance story. How effect on the policy. those miles have been driven is what really provides a Smarter data deeper understanding of risk. So the insurance industry began to Historically insurers have only been settle on either hard-wired SIMs or able to calculate premiums on broad self-installed plug-ins which use the stereotypical driver profiles, using car’s built-in “OBD” diagnostics port proxies such as gender, age to gather further intelligence. and neighbourhood to put them into These systems have become highly broad buckets. sophisticated. They can use the Spreading this risk across the whole accelerometer to gauge driving base in each category flattened the dynamics, and the odometer to impact of the few bad apples on the assess mileage and time. But the
www.gemalto.com 31 30-33 Netsize 2015 - insurance_final 02/06/2015 15:56 Page 3
The Gemalto Netsize Guide /// On The Commute
cleverest systems now know the eroding the traditional price speed limit of the road on which cars barriers, and when the benefits are are travelling. weighed against the cost, the value Some, such as the the UK’s RAC proposition is generally clear cut. Advance unit, even incorporate crash detection systems that can tell Not just insurance genuine collisions from potholes, With the permission of the driver kerbs and speed humps. there’s little to limit the potential of
One big benefit of these systems to this technology. Once you have Matt Owen, MD of insurers is that, for the first time, health-monitoring data on M2M Intelligence they can get first notification of thousands of cars, analytics can add incidents in real time, putting them real value to the user. back into the lucrative claims It’s why the big gains made by car management process. insurers are now trickling down to other motoring sectors such as Nudging better behaviour breakdown, repair and maintenance. But it’s not all about detecting The RAC sends the vehicles’ fault accidents and measuring driving codes back to a central database patterns. These systems can also where a big data application can feed back information to motorists in translate them into warnings, advice the hope of nudging them to drive and intelligence on vehicle health. more safely. This too is fed back to the user In large scale roll-outs cloud-based through a smartphone app. data crunching engines assign a How does this help them? Well, it score for every driver journey and means that when they call in with a give back a personalised roadside breakdown the RAC may overall rating. Then this score is already have a good idea where they delivered to the app, triggering are and what’s wrong with the car. It warnings and advice or praise and rewards. It’s especially useful in the The big gains made by car insurers are corporate “grey” fleets where now trickling down to other motoring employers have a duty of care to lone workers clocking up the miles sectors such as breakdown, repair on company business. and maintenance Of course, none of this innovation is of any value unless the connectivity can then send the right engineer is reliable and ubiquitous. It’s why with the right parts. many of the larger groups Similarly, the insurer can also have moved away from single predict with some accuracy when an network contracts to multi-network engine part may need replacing. This SIMs with better geographical opens up a world of new coverage and resistance to outages. revenue opportunities: when you The move to roaming SIMs is can tell 10,000 Ford Focus drivers
32 www.netsize.com 30-33 Netsize 2015 - insurance_final 02/06/2015 15:56 Page 4
On The Commute /// The Gemalto Netsize Guide
Pic: State Farm @Flickr
M2M tools will let that at 30,000 miles there’s a 70 per light' comes on, AutoNation can insurers monitor cent chance they’ll need a new alert the customer and schedule an how people drive. widget, then you have created a appointment. This could reward powerful marketplace. This is just the start of a trend for safer motorists. monetising customer journeys, Real-time maintenence using real time data to highlight It’s already happening in the US opportunities for special offers via where connected car specialist the smartphone app. Zubie recently teamed up with car It could start with obvious retailer AutoNation to power real- suggestions such as insurance time vehicle alerts. extensions for driving overseas These relate to engine performance, based on GPS feedback. But in time battery issues and other it may extend to coffee, restaurants, maintenance items. It means, for hotels or anything that centres example, that when a ‘check engine around the driving experience.
www.gemalto.com 33 34-37 Netsize 2015 sms transportfinal 02/06/2015 15:56 Page 1
The Gemalto Netsize Guide /// On The Commute
Pic: magro_kr @ Flickr 34-37 Netsize 2015 sms transportfinal 02/06/2015 15:56 Page 2
On The Commute /// The Gemalto Netsize Guide Text is just the ticket Efficient, low cost and ubiquitous…even after all these years, SMS remains a compelling medium for ticketing. That’s why bus companies and parking operators across Europe are rolling it out.
For any transport operator one ‘application to person’). consideration overrides all the rest: In fact, analyst Ovum predicts the how to get people on and off a bus or next few years see A2P volumes train as quick as possible. increasing from 1.4 trn in 2013 to Paper tickets leave a lot to be 2.19 trn by 2018. desired. They can be costly and So why is SMS still growing? It’s inefficient. Staff need to sell them, because text remains the most which brings with it risks of robbery immediate, ubiquitous and and embezzlement. Meanwhile, it affordable comms tool money can can be expensive to buy and buy (see box). Simply, it reaches maintain ticket machines to every mobile user in the world and dispense them. extends into virtually every location This is why there’s such hype around (no need for a data connection). e-tickets that use NFC, Beacons and It’s also highly direct: recipients tend smart wristbands. But the truth is to respond instantly to a text. Finally, these technologies are not yet no consumer education is required: mainstream. there’s no enrolment process; Should a transport operator wish to everyone knows how to send and make ticketing more efficient, it will receive a text. need something everyone can use All of which explains why transport today. Something simple. and parking operators have been Something like SMS. exploring the use of text as an Now, some readers might be alternative to ink on paper. thinking: isn't SMS supposed to be SMS tickets combine speedy dead? Wasn’t it killed by IM, purchase with improved safety for SnapChat and Twitter? staff. Passengers can buy from Actually, quite the opposite. While anywhere – no need to queue for the end users have embraced new ticket machine. Or have the correct messaging media, enterprises are change. Plus text is available on any more keen than ever on SMS kind of handset – even the oldest (sometimes called A2P for feature phone. And, to repeat, no data connection is required. With SMS no consumer education is Some intermediaries already offer required: there’s no enrolment process; what they call mobile ticketing. But everyone knows how to send a text. actually they take payment from a credit card. In this scenario, the user
www.gemalto.com 35 34-37 Netsize 2015 sms transportfinal 02/06/2015 15:56 Page 3
The Gemalto Netsize Guide /// On The Commute
must go through a lengthy process are applying for licences to support of assigning their card to the service some ‘charge to bill’ services. via the phone to a website or app. So let’s look at two: However, a much more straightforward form of text ticketing Mobile bus tickets: ATAF Italy lets the user simply pay from the Text-based ticketing has been phone bill. successful for Italian transport This simplifies the payment process. operator ATAF. It launched its All a user has to do is text a service in Florence in March 2012 shortcode and wait for a text to be backed by all four major telcos in returned. That text is their ticket and Italy: TIM, Vodafone, Wind and 3. their phone bill is debited. The passenger buys a ticket by texting a shortcode. The MNO then Regulatory issues deducts the payment from the user's Now, there is a wrinkle here. And it phone bill and sends back a text. comes down to regulation. In the EU This text contains a validation code at least, there are rules restricting which is shown to the driver. the use of the phone bill to pay for ATAF uses this system to sell bus anything that’s not a phone call, text tickets in many regions. It sold over or mobile consumable (like a half a million text tickets in the first ringtone). Any intermediary wishing four months of 2014 and says one in to bill for something like parking ten passengers is a mobile user. may need a financial licence. It is up Andrea Ferrari, operations manager to the member nation to implement at ATAF/BusItalia, says passengers this requirement locally. To date, are delighted with the scheme. only a few countries have required a “They can buy a ticket any time, licence for mobile payments for anywhere. There are no limits. And ticketing. this has enlarged the base and One or two firms, such as reduced fraud,” he says. Gemalto/Netsize, are studying the Ferrari adds that the charge-to-bill reglatory environment, and the element of the process has been emergence of new ecosystems. They crucial to the project’s success.
WHAT’S SO GREAT ABOUT OLD-SCHOOL SMS? HERE ARE NINE REASONS...
1. Ubiquitous – every mobile user can send and receive texts, regardless of device, OS or network 2. Always on - no data connection required 3. Immediate – people respond to texts far quicker than email, for example 4. Easy to create – a message contains up to 160 characters, which demands a concise and clear message 5. Customisable – messages can draw from an opted-in database to include name, location and more 6. Rich – messages can include links to rich content like photos and videos 7. Responsive – texts can include calls to action when you want the recipient to respond 8. Premium – people value texts, so they are more likely to read and respond 9. A channel for payments - consumers can pay with a premium text message
36 www.netsize.com 34-37 Netsize 2015 sms transportfinal 02/06/2015 15:56 Page 4
On The Commute /// The Gemalto Netsize Guide
Pic: LakeWentworth @Flickr
“With a credit card system, one of enter long credit card details. SMS the main barriers is pre-registration. also returns more immediacy and It is time consuming and people flexibility back to motorists, and it don’t feel so secure about it. Phone can help them to avoid fines. credit is so obvious, so simple.” Typically, the customer sends a text This kind of text-based ticketing is specifying the duration of the stay now available in cities across and the vehicle registration. The Belgium, France, Holland and shortcodes vary by location so the Finland. However, in other localities operator can tell where the car is regulation restricts it. and what fee to charge. In Sweden, for example, bus and The cost of the ticket is then train operators switched from a text- deducted from the phone bill, and based system to one that required the driver is sent an SMS that pre-registration of a bank card and displays the duration permitted. an app download. Passengers were However, in some cases, the unimpressed and transactions fell. motorist can send a text, which Yet even here, the underlying starts a meter running. The cost of ordering method was still SMS. the stay will only last until the Developers designed the app to send customer texts ‘stop’. Another option a message to the phone as validation is for the parking operator to send a when the user purchased a ticket. text to remind a driver to buy more time. Pay for parking with a text Companies such as EasyPark are Drivers love SMS ticketing because it rolling out these services in Sweden, frees them from finding the right Denmark, Norway, Finland and change or from taking minutes to Germany.
www.gemalto.com 37 38-41 Netsize 2015_final 02/06/2015 15:55 Page 1
The Gemalto Netsize Guide /// On The Commute 38-41 Netsize 2015_final 02/06/2015 15:55 Page 2
On The Commute /// The Gemalto Netsize Guide Tube journeys on tap There’s a contactless revolution going on underneath London. Every month, passengers on the Underground pay for 60m journeys with the tap of a bank card. Next up, phones and wristbands.
London Underground is famous all over the world. Every day, people make 12m journeys on the ‘tube’. That’s four billion a year. Getting these travellers in and out of the underground’s 270 stations efficiently is a huge challenge. Just a few seconds shaved off each entry/exit can make a huge difference to the comfort of passengers, and the smooth running of the network. Purchasing and using tickets creates unnecessary hassle for travellers. Meanwhile, for Transport for London (TfL) it is costly and inefficient. Which is why TfL has pioneered a contactless revolution. It started in 2003 when TfL launched the Oyster card. Passengers could buy one of these contactless cards, pre-load it with funds, then simply tap to pay at the gate. Oyster was a huge success, By 2007, it accounted for over 60 per cent of all tube trips while fewer than three per cent of journeys were made on single and return tickets. By 2012, Oyster accounted for more than 80 per cent of all journeys, and over 55 million cards had been issued. For all its success, Oyster does have some shortcomings. The system 38-41 Netsize 2015_final 02/06/2015 15:55 Page 3
The Gemalto Netsize Guide /// On The Commute
requires customers to monitor their The London underground is now leading cards’ funds. It’s also quite complex to maintain. So TfL began examining the UK’s transition to contactless: one in alternatives. By 2014 all the major seven ‘tap to pay’ transactions in the UK card companies had begun issuing contactless debit cards. It was now take place on London transport obvious that here was the next pay for their journeys. They could phase of tube ticketing. simply start touching in and out with TfL opted for a phased introduction all cards issued by Visa, MasterCard, to make it easier for customers to Maestro or American Express with adjust to the change. The initial the contactless payment symbol. phase introduced contactless on In the first week, they made more London buses in December 2012, than a million contactless payments. followed by a pilot on the Tube and One of the key benefits of the system the capital’s rail network in April is its simplicity. Visitors don’t need to 2014. understand the ticketing system, get In September 2014, TfL introduced an Oyster card or top it up – they just contactless payments on all forms of need a contactless bank card. public transportation. That includes It’s also easier for tourists. While not just the Underground, but also there are some restrictions on buses, the Docklands Light Railway, international cards, visitors from 57 the London Overground and most countries have so far made use of National Rail services in the capital. the system. Security is another Travellers could now use any benefit. TfL says its system is contactless-enabled bank card to significantly safer than cash.
40 www.netsize.com 38-41 Netsize 2015_final 02/06/2015 15:55 Page 4
On The Commute /// The Gemalto Netsize Guide
This doesn’t seem to have deterred passengers. By February 2015, more than 60m journeys were paid for using contactless fares per month, with the payment method accounting for 14 per cent of all pay as you go journeys. In fact, the underground is now leading the UK’s transition to contactless: one in seven ‘tap to pay’ transactions in the UK now take place on London transport. The Mayor of London Boris Johnson Pilots of contactless Contactless payment cards are says: "London was the first city in wristbands are embedded with multiple layers of the world to offer passengers the already taking place security to protect against fraud, option of getting from A to B with a at rugby stadiums in boasting the same level of protection simple flourish of a contactless the UK as chip and PIN cards. payment card. Needless to say, there have been a "Clearly Londoners and visitors to few glitches. the capital have embraced this TfL had to warn people of ‘card innovative technology - with a million clash’, where the wrong card is card swipes taking place each day as charged because the user holds two people zip around our fine city on TfL cards together at the sensor. services."
CONTACTLESS TUBE JOURNEYS: NOT JUST FOR CARDS The overwhelming majority of the UK. Then there’s the avoid ‘card clash’, where contactless payments made on rumoured Android Pay service readers detect more than one the Tube come from a bank or from Google. If and when this contactless card. Oyster card. But there are arrives, that would bring In most cases the payment on alternatives. contactless mobile payment to wearable technology is via a pre- Users can, of course, pay by virtually any Android device. paid account to which funds are mobile – so long as their phone Another intriguing possibility is either added automatically when is NFC-enabled and supports a wearable payment. A number of the balance runs low or which wallet app. As of 2015, there still organisations are trialling can be done manually online. aren’t many options. EE offers contactless wristbands at In two pilots, Gemalto (with ‘Cash on Tap’ on 18 Android stadiums and events – and could Guinness and the RFU) tested phones. Meanwhile, Vodafone extend the concept to wherever wearables at the Twickenham supports payment through its contactless payment is accepted, and Saracens Allianz rugby SmartPass app. including the London stadiums. The scheme It’s also possible that payments Underground. Wearable supported payment both inside could be made from Apple Pay technology scores here because and outside the two grounds for once the service is launched in it’s fast and helps commuters transport and retail use.
www.gemalto.com 41 42-45 Netsize 2015 singapore smart cities_final 02/06/2015 15:55 Page 1
The Gemalto Netsize Guide /// On The Commute
“We’re not trying to build everything. We’re challenging entrepreneurs by asking ‘how would you solve this?’ and then helping them.”
Steve Leonard, Executive Deputy Chairman, Infocomm Development Authority of Singapore 42-45 Netsize 2015 singapore smart cities_final 02/06/2015 15:55 Page 2
On The Commute /// The Gemalto Netsize Guide
Today’s city of tomorrow Singapore is impatient to find out how smart technologies can transform lives. So impatient it’s set itself the goal of becoming the world’s first ‘smart nation’. The Gemalto Netsize Guide spoke to the man leading the effort, Steve Leonard.
One of the big barriers to creating a responsive public services and more truly connected society is opportunities for citizen fragmentation. At the device level engagement.” there are different OSs and network technologies. More often than not, One data backbone for all they don’t work together. The connectivity infrastructure That’s bad enough. But then you behind the Smart Nation project is move to the infrastructure level, being run by The Infocomm where any effort to establish Development Authority – a connected services requires the combination of telco regulator, tech approval of public sector bodies, strategy board and investment regulators, government and more. vehicle. The IDA’s ambitious mission Optimists believe that time will take aims to connect the whole country care of these hurdles. But one and provide a data backbone that country isn’t prepared to wait: every business and public Singapore. It has already declared department can hook into. its aim to become world’s first Here’s how Steve Leonard, executive ‘Smart Nation’. deputy chairman of the IDA, describes it: “We have this acronym: Support from the top E3A. It stands for ‘Everything, Singapore is uniquely qualified to Everyone, Everywhere connected All will the idea into being. It’s the time’. So let’s say, at some point effectively a city state anyway (it’s in the future, your doctor sends you smaller that greater Los Angeles) home in a smart post-operative vest and, for all the country’s free market to monitor your wellbeing. That’s not success, Singapore’s government going to work if there’s no still wields significant power. connectivity in the elevator or in the Indeed, Singapore’s prime minister underground. Lee Hsien Loong is driving the idea. “So our smart nation thesis is to At launch he said: “We will make start with connectivity and then Singapore a smart nation: enabling explore how we can do cool things in safer, cleaner and greener urban the sharing economy, in transport living, more transport options, better and health and so on.” care for the elderly at home; more The specifics of the project include a
www.gemalto.com 43 42-45 Netsize 2015 singapore smart cities_final 02/06/2015 15:55 Page 3
The Gemalto Netsize Guide /// On The Commute
Smart Nation Platform that will capture and collect data via sensors Getting to trust the smart city placed around Singapore in above- ground ‘aggregation gateway’ boxes. The lasting benefits of a connected, smarter urban Ultimately, the aim is to crunch the life hinge on people trusting the digital world, says data to see how systems can be Gemalto’s VP of Global Marcom Hsin Hau Hanna. made more efficient. People tend to get nervous about new digital services. They have obvious questions about security and privacy, Cars, queues and care And they get annoyed when a great promise only works Trials are already underway. One half of the time or in specific places. These issues involving RF Net, Panasonic, and create barriers for most people thinking about adopting Elixir Technology uses video sensors new ways to pay, travel, receive healthcare or store to assess the length and flow of precious data. Cities are getting smarter, but if new services are to be used by the masses, they need to be queues. This info could be shared accessed easily – anytime and anywhere. Users must back to taxi firms, bus companies also feel protected. Finally, new services should bring and even passengers. It can also genuine additional benefits. That’s the only way to speed the development of driverless incentivize people to change – and to win their trust. vehicles. In fact, Singapore is already testing autonomous cars, opening between various types of wireless up 6km of roads for trials. networks and let users roam with Healthcare is another key focus. This fewer losses of connectivity. is why the Housing and Development Board is working on a Smart Elderly State-sponsored nudges Monitoring Alert System in which Of course, the state can’t do it all. home sensors can notify caregivers Leonard agrees and says the IDA or neighbours when the need arises. wants to nudge the private sector. However, not all the action will be “We’re not trying to build everything. ‘top down’. To encourage citizen We’re challenging entrepreneurs by participation, the government will asking ‘how would you solve this?’ open up 11,000 data sets so the and then helping them.” public can contribute ideas and data. This help takes various forms. The They can participate, for example, in IDA is well-connected, so it could the Virtual Singapore project to connect a medicare startup, for develop an integrated 3D map with example, to the minister of health. layers of data and information about It’s another benefit of Singapore’s buildings, land and the environment. relatively small size. The organisation can also provide People power financial support. Its investment To give people the bandwidth to get subsidiary has invested in several involved, the IDA will launch accelerators. Last year, it began heterogeneous network (HetNet) investing in overseas entrepreneurs trials in lifts, pedestrian walkways, with a $200m European fund based and transit stations later this year. in London. This could help devices switch
44 www.netsize.com 42-45 Netsize 2015 singapore smart cities_final 02/06/2015 15:55 Page 4
On The Commute /// The Gemalto Netsize Guide
This Gemalto infographic presents a gleaming vision of a connected urban future.
www.gemalto.com 45 46-47 Netsize 2015 At work Intro_final 02/06/2015 15:55 Page 1 46-47 Netsize 2015 At work Intro_final 02/06/2015 15:55 Page 2
For all the hype around the consumer IoT, the impact of connected tech may be greatest in industry.
Agriculture, utilities, transport, healthcare – every one will be transformed when dumb devices become smart.
In this section we look at how the SIM is evolving to function in challenging industrial environments. We also examine the security risks posed by a networked world of things.
And we explore how M2M tech is coming to the aid of the honey bee. 48-51 Netsize 2015 embedded SIM_final 02/06/2015 15:54 Page 1
The Gemalto Netsize Guide /// At Work
Hardwired When it comes to connecting remote devices, you can forget about wifi and Bluetooth. Only cellular will do. But these industrial devices can’t always handle a regular phone SIM. Which is why the GSMA created a special Embedded SIM specification. What’s the difference between a network operators. traffic light and a smartphone? No, Until recently, MNOs focused it’s not a joke. It’s a serious question, primarily on phone connections. and a very important one for the Their priority was selling SIM cards future of the Internet of Things. to as much of the human race as Especially for the world’s mobile possible. But as phone penetration
48 www.netsize.com 48-51 Netsize 2015 embedded SIM_final 02/06/2015 15:54 Page 2
At Work /// The Gemalto Netsize Guide
Traditionally, the UICC was printed onto a physical SIM, which made it almost impossible to replace. An eUICC turns this feature into software.
neared 100 per cent, the operators billion by the turn of the decade, with began to consider what else they 652 million in healthcare, 952 million could connect. Lucky for them that in automotive and 7.5 billion in the IoT came along. smart cities. At Mobile World Congress 2015, the The era of M2M IoT loomed large. It was noticeable By 2020, the GSMA (the MNO’s trade that this historic mobile show had body) estimates mobile handsets will become as much about cars, constitute only 72 per cent of all watches, meters, lighting systems cellular connections (it’s currently 92 and doors as it was about phones. per cent). These miscellaneous devices were It also forecasts machine to machine everywhere. And operators want to (M2M) devices will number 14.5 connect them.
www.gemalto.com 49 48-51 Netsize 2015 embedded SIM_final 02/06/2015 15:54 Page 3
The Gemalto Netsize Guide /// At Work
However, watches, doors and – yes – ownership can change frequently traffic lights are very different from between companies with different phones. mobile contractual agreements. So, to repeat, a traditional SIM just Machines are not people won’t do. This is why, in 2013, the First, they’re not personal: no one is GSMA created a specification for the going to painstakingly remove the Embedded SIM. casing of millions of gas meters and fit a SIM card into a special slot The provision thing Dr Martin Reber, inside, then set them up with a The most important new feature of CEO of Limmex subscription. the Embedded SIM is that it can be Second, they are rugged. A traffic remotely provisioned. So a light is outside in all weathers. Its customer can buy thousands of SIM card needs to be resilient to devices and manage subscriptions temperature variation and vibration. from one dashboard. They can What’s more, these industrial re-program them remotely to work objects generally have a much with the network operator they longer life than phones. And their choose. HOW THE LIMMEX WATCH WAS REMOTELY CONNECTED xxxxxxxxxxxxxxxxxxx Switzerland is famous for its with Gemalto to build solution, we canxxxxxxxxxxxxxxxxxxx enjoy more watches, but Limmex does connectivity into the device at efficient manufacturing,xxxxxxxxxxxxxxxxxxx a things a little differently. It the build stage. streamlined supply chain,xxxxxxxxxxxxx and combines Swiss engineering Gemalto’s ODC (On-Demand the freedom to quickly and with a unique service idea: Connectivity) platform provides easily market our product watches that link seamlessly to instant mobile broadband worldwide." emergency services. connectivity to newly connected Benoît Jouffrey, VP of on- The Limmex watch supports devices right out of the box. The demand connectivity for people with particular care or firm has relationships with Gemalto, believes ODC has security needs – children, VIPs, mobile operators all over the applications across the IoT lone workers, the elderly or world, which means that space. He says: “We’re targeting individuals with health Limmex could ship one version manufacturers in the consumer problems. Wearers can call a of its watch. No need to create electronics and M2M space – – relative or emergency response numerous device variants and and in cars. centre at the touch of a button. profiles to enable the cellular “All these firms want to simplify And thanks to built-in GPS, they connection of devices in a the build process. They can can even relay location should specific country after they’ve make the products in a single the caller be disorientated or been deployed to consumers. location, but provide connectivity unable to speak. Instead, just a single product for different territories from just The particular challenge for design across multiple markets. one build.” Limmex when building its "We work with multiple “Our system will recognise product was ensuring the watch operators, producing different where the user is, determine would be permanently and product variants for each which operator the reliably connected. The whole country and region we serve," manufacturer works with and safety proposition fails says Dr. Martin Reber, CEO of then switch on the right otherwise. That’s why it worked Limmex. "With Gemalto's subscription.”
50 www.netsize.com 48-51 Netsize 2015 embedded SIM_final 02/06/2015 15:54 Page 4
At Work /// The Gemalto Netsize Guide
The Limmex watch cent of global M2M connections are comprises an serviced by operators deployed or emergency committed to the GSMA’s solution. services alert. It’s “We believe that our Global SIM only possible solution, combined with the GSMA because of a Embedded SIM Specification will special SIM. drive rapid adoption of M2M communications worldwide,” says Randy Bryson, chairman of the M2M World Alliance. “By integrating the GSMA Embedded SIM Specification, members will provide robust local, flexible and cost effective support for our customers’ diverse M2M and IoT connectivity needs.”
New markets For the operators, this is a challenging development. Yes, they can use the embedded SIM to open up vast new M2M markets for their connections. But they will have to compete hard to win and maintain This means that Embedded SIMs these new customers. can also be embedded in an M2M Of course, the many new device. Manufacturers can solder companies suddenly entering the them in so they can ensure severe market for SIMs are faced with an weather or violent movement. equal challenge: how to transform previously dumb devices into Spec support connected subscription services. Earlier this year the GSMA confirmed that more than 20 of the Specialist help world’s biggest operators such as This is where a specialist firm like China Mobile, KDDI and Tele2 had Gemalto comes in. Its subscription committed to the specification. It and provisioning services help device also revealed that the nearly 65 per makers manage the network operator profiles on the embedded Industrial companies are faced with an SIM. new challenge: how to transform They can also connect devices when they are activated for the first time, previously dumb devices into connected and ensure the right subscription subscription services. according to the choice of the customer. www.gemalto.com 51 52-55 Netsize 2015 security_final 02/06/2015 15:53 Page 1
The Gemalto Netsize Guide /// At Work
Trust no thing? Elevator makers never used to worry about hackers. Their products just went up and down. But connected elevators are different. They could give criminals an opportunity to make serious mischief. Welcome to a very new security threat. The Gemalto Netsize Guide asked James Lyne, global head of security research at Sophos, about the need to secure not just computers, but things. In 2013, an American couple were intercepted this way. It almost horrified to find their baby monitor certainly won’t be the last. screaming obscenities at their infant A world full of connected devices daughter. Their Internet-connected represents a wonderful opportunity device had been hijacked by a to make work and life easier for mischievous hacker. people. And it’s big business too. The incident was widely reported, Gartner says the market will support and was probably the first time most 26 billion devices by 2020, and that people had heard of a ‘thing’ being the sector will generate revenues of
52 www.netsize.com 52-55 Netsize 2015 security_final 02/06/2015 15:54 Page 2
At Work /// The Gemalto Netsize Guide
IoT devices require no user name or explode. I did this in a hotel room and the cleaner ran out screaming.” password and contain no cryptic keys. Lyne observes that nearly all devices There hasn’t been a security model like he analysed had similar vulnerabilities. that in computing for over 10 years. He found CCTV security to be $300 billion by this time. But every ‘legendarily bad’. In a test, he found connected machine gives mischief on Google a 2005 tool – a brute makers and criminals a chance to force password tool that tries attack. Clearly, these devices need to millions of passwords a second – to be secured. However, there’s no attack one camera. doubt that, as of today, most are not. He says: “Most modern computers Last year, HP's security software will lock you out if you do this. But I unit tested the popular Internet of got the password in 30 seconds. Things devices like lawn sprinklers, Now, in this case at least there was alarms and thermostats. It found 70 a password. Most devices use per cent of them contained security ‘password’ or 1234 or nothing.” exposures. On average, each device contained 25 holes. Watching the watchers HP also discovered 80 per cent of Lyne found 540,000 of these cameras devices did not require passwords of online, and accessed hundreds of sufficient complexity and length, them in less than an hour. He looked while nine in ten collected at least at a CCTV for a gas station in one piece of personal information. Malaysia and was able to zoom in on Also, 70 per cent routinely used the chip and PIN reader and till unencrypted network services and code. “It was streaming to the transmitted credentials in plain text. internet for anyone to see.” In another example, Lyne watched a ‘Legendarily bad’ security guard falling asleep while None of this surprises James Lyne, watching CCTV. global head of research at security This lack of protection makes specialist Sophos. He spent many hacking ridiculously easy for any months testing connected devices moderately skilled attacker. Lyne and has been stunned by the results. says: “These devices require no user Take his experience with a wireless name, password or cryptic keys. power plug connected to a light bulb There hasn’t been security like that and controlled by a smartphone. in computing for 10 years. Yet we “I was horrified to find that you could have this model for devices people connect and control it with no user are using in their homes now.” name and password and control it,” Lyne stresses that the security he says. “I wrote a script to turn it on situation may be terrible, but it’s not and off 200 times a second. It turns irredeemable. It’s more about out that if you do this, the light will attitudes than technology. He says:
www.gemalto.com 53 52-55 Netsize 2015 security_final 02/06/2015 15:54 Page 3
The Gemalto Netsize Guide /// At Work
“Users treat these devices like dumb does it. You could cut and paste it boxes when they are computers.” from Google.” So why aren’t there more attacks Much of the protection for M2M similar to the baby monitor scare? devices will come from the companies embedding connectivity The path to security inside them. Gemalto, for example, Needless to say, it comes down to makes a tamper-proof SIM card with money. Lyne says: “The simple secure element that sits inside explanation is that attackers can’t connected devices from cars to James Lyne, global head of security make money from IoT hacks, or it smart meters. The firm also offers research at doesn’t meet their political goals. software-based security that Sophos, says IoT They want to go to the computer or protects and encrypts data sent over device makers mobile where there is money. the air by these devices. need to change the “But in a week, or a month or year, Laetitia Jay, Gemalto’s vice president way they think that might change. So security must of M2M solutions and services, says about their be a key focus before it’s too late. It it’s crucial to make an honest products. must learn the lessons Microsoft assessment of the security priorities learned 10 years ago.” – and that all parties in the chain Thankfully, simple fixes would collaborate. instantly provide excellent She says: “Security can be difficult protection. “Take the light switch. It and costly, especially if it hasn’t been would be trivial to exchange a crypto a factor before, and when your key with the mobile the first time you priority is just to get your product connect to it. The user wouldn’t need out. So the priority is to assess the to know it was happening. And you security need and then secure what could block users without physical matters. And it’s important for access to the device. people to work together: if only one “Password brute force protection is side is thinking about trust, then you one line of code. It’s easy. Everyone cannot secure the full ecosystem.”
ONE SIZE DOESN’T FIT ALL The security needs of a lawn sprinkler are not the same as a wristband that contains credit card details… > Authentication. Does the device only allow access to A world of product for example, does not approved users? manufacturers are suddenly necessarily need to keep Confidentiality. Is the waking up to the need to protect information about its usage > their devices for the first time. confidential. But it does need to information gathered kept It’s daunting. ensure only authenticated users secret? But the truth is that different can unlock it. > Integrity. It is possible to M2M devices require different Broadly there are four security change any piece of the levels of security. A smart door, factors to consider. information sent by the device?
54 www.netsize.com 52-55 Netsize 2015 security_final 02/06/2015 15:54 Page 4
At Work /// The Gemalto Netsize Guide
Who’s watching the watchers? Connected CCTV cameras could contain obvious security flaws if not properly protected.
“It’s important for people to work together: if only one side is thinking about trust, then you cannot secure the full ecosystem.” Laetitia Jay, Gemalto’s vice president of M2M solutions
> Availability. Can the device be president of M2M solutions and its own offerings even further. prevented from sending services, says: “If you have a SafeNet’s cryptographic information? solution that is safe from attacks technology already protects over Every manufacturer has to you can connect to other 80 per cent of the world's intra- examine these considerations providers in the ecosystem. bank fund transfers. and then take the necessary That’s an opportunity to to build The two companies are now precautions. But this needn’t be new business cases.” working on applying these a burden. Gemalto itself sees IoTand cryptographic keys to Gemalto's In fact, it could be an opportunity machine to machine security as portable secure elements – the to generate business. a priority. In 2015, it formally kind used in connected devices Laetitia Jay, Gemalto’s vice acquired SafeNet to strengthen from phones to ‘things’. 56-57 Netsize 2015 manfred interview_final 02/06/2015 15:53 Page 1
The Gemalto Netsize Guide /// At Work
The rise of the machines What’s the best way to connect a meter in the middle of the forest? Or a sensor in a super-hot factory? The industrial IoT – Pic: Russellstreet@Flickr also known as M2M – has different demands from the consumer world of smart watches and thermostats. So says Manfred Kube, Gemalto’s head of M2M segment marketing.
Beecham Research identified 300 diagnose field issues from one M2M verticals, but it could be much central location. It delivers up-to- more. It’s a vast potential market, the-minute data and reports and it needs well-designed connectivity information such as Cell connectivity solutions. ID, signal strength and jamming.
You don’t want consumer grade Industrial customers are only SIMs in industrial products. In interested in actionable data. So we consumer markets you can change remove complexity in the a SIM every two years. That’s not SensorLogic UI. For example, users possible in enterprise applications. can set up an alarm that’s triggered Also, you can’t be sending engineers when the network signal strength out to fix remote smart meters all goes below a pre-defined level. the time. It’s not practical. Security is essential in IoT. You I believe MIMs could be in every have to trust the device. second or third product in the Manufacturers should think about world. Gemalto developed a special security very early in development SIM platform for the industrial IoT process. It needs to be there by called Machine Identification design not hindsight. Modules. (see box). 80 per cent of security issues are in We recommend a soldered MIM in the software. Gemalto’s Safenet some situations. In harsh tech is a response to this. It can environments with high temperature even secure individual application ranges, extreme vibrations and features by placing a secure mechanical stress, you need wrapper around the software. something much more robust. A connected elevator might connect Any organisation that has lots of to different cells at the bottom and remote M2M devices should be able the top. This means that there can to manage them centrally. We be lots of cell handovers. However, created SensorLogic Module we provide a solution to know when Services to let customers easily the MIM might fail and to address it.
56 www.netsize.com 56-57 Netsize 2015 manfred interview_final 02/06/2015 15:53 Page 2
At Work /// The Gemalto Netsize Guide
“In consumer markets you can change a SIM every two years. That’s not possible in enterprise applications.” Manfred Kube, head of M2M segment marketing, Gemalto
Some M2M services need LTE. But others are perfectly OK with 2G. You need a family of solutions.
Device makers should use one MIM across different countries and MNOs. Our systems let them manage connections over the air. So when someone switches their device on for the first time, it will download the final operator credentials.
Automotive customers are the early adopters. They’re already using high bandwidth LTE to enable in-car entertainment, navigation, breakdown calls and more.
People are using industrial IoT to preserve bees. The applications of M2M are endless (see next page).
WHAT ARE MIMS AND WHY DO WE NEED THEM?
If conventional SIMs are not > Survive extremes of vibration, suited to the vast range of new temperature, and humidity connected machines, what is? > Endure a long life span (around Gemalto’s answer is a new 10 years) platform called Machine > Occupy a small footprint Identification Modules (MIM). > Integrate into industrial The concept builds on Gemalto’s manufacturing processes existing SIM technology. Like a regular SIM, it secures the The MIM platform, which is identity of the machine to the available in several form factors, carrier network, and provides is already enabling successful secure authentication. But then it M2M deployments around the goes further to: world.
57 58-59 Netsize 2015 Bees_final 02/06/2015 15:53 Page 1
The Gemalto Netsize Guide /// At Work Follow the honey Could M2M technology help to tackle the decline in honey bee populations? Eltopia, Gemalto and the University of Minnesota created the ‘MiteNot’ project to find out.
Who would have thought, when the circuit camouflaged to look and act SIM card was first used to connect just like the real thing. people by phone, that the same The frame is embedded with technology might help to save bees? sensors to monitor the temperature Unforeseeable, maybe. of 32 elements that indicate brood But today researchers at the status and different stages of the University of Minnesota are using mite reproductive cycle. The new cellular connectivity to turn information is sent by Gemalto’s back the destruction of this Cinterion Module, which acts as a essential insect. cellular gateway to transmit data In the US alone, bee colonies have over the Internet to Eltopia’s declined by 90 per cent since 1962. One of the problems afflicting bee “The MiteNot project holds more populations is the varroa destructor promise to turn the bee crisis around mite, which breeds and takes over than any other idea that has come hives. But it’s extremely difficult to identify and combat this invader. Bee along in a long time.” keepers can use pesticides. But this Marla Spivak, University of Minnesota is a heavy-handed solution with obvious side-effects. BeeSafe application. The app Another solution is to use heat. By monitors the data and, applying high temperatures at a when thresholds are met, specific time, bee keepers can instructs the M2M sterilize the mites and halt their Module to turn up the breeding cycle. The difficulty is heat. knowing when to do it. Spivak is extremely Marla Spivak, McKnight University hopeful about Professor of Apiculture/Social this radical new Insects at the University of solution. She Minnesota, is now using cellular says: “The MiteNot connectivity to monitor and manage project holds the the temperature of beehives. most promise She worked with Gemalto and to turn the bee agricultural tech firm Eltopia to crisis around than create the MiteNot solution. It any other idea that has centres around a compostable smart come along in a very long bee hive frame – a screen printed time – maybe ever.”
58 www.netsize.com 58-59 Netsize 2015 Bees_final 02/06/2015 15:53 Page 2
At Work /// The Gemalto Netsize Guide 60-63 Netsize 2015 sms enterprise_final 02/06/2015 15:52 Page 1
The Gemalto Netsize Guide /// At Work Text if you want to work better For all the rapid advances in messaging technology, sometimes all you need is something tried and tested. That’s why enterprises are finding new and surprising ways to use SMS. 60-63 Netsize 2015 sms enterprise_final 02/06/2015 15:52 Page 2
At Work /// The Gemalto Netsize Guide
Pic: US Library of Congress
What’s the best way to provide information to a diverse and dispersed fleet of engineers? You could send email or IM to their smartphones. But mobile phones require data connections – which don’t typically extend to remote locations. What’s more, they eat up battery power. OK, voice calls. But hang on, voice demands real time human interaction. That’s expensive and hard to manage. Also, engineers are frequently in situations where they just cannot take calls. This is why, for more and more organisations with remote workers, there’s only one answer: SMS. Only this 23 year old channel is available, affordable and capable of providing the information needed to carry out precise instructions. Contrary to perceived wisdom, SMS is still growing. According to Ovum’s Mobile Messaging Forecast, it hit an all-time high of 7.7 trillion messages sent in 2014. Of course, it's true that person-to- person messaging is changing. Consumers are embracing new chat apps and social media services that promise cheaper and more flexible mobile comms. But in the A2P space, SMS marches on. ‘Application-to-person’, messaging describes the use of SMS by enterprises to send texts to customers, employees, suppliers and partners. This kind of messaging is exploding with new use cases. Let’s look at a few… 60-63 Netsize 2015 sms enterprise_final 02/06/2015 15:52 Page 3
The Gemalto Netsize Guide /// At Work
Bank card PIN codes passwords then abandon the transaction. Sending PINs to bank customers by post is SMS can really help here. Site owners can an expensive and risky way to transmit highly send a one-time passcode to a customer's sensitive information. These PINs are easily phone, which they then enter into a box on stolen. With SMS, banks can send PINs and the page. This process offers better know that the information is guaranteed to protection because of the combination of reach the customer. 'what you know' (the passcode) and what you In fact, they can make the process even safer have (the phone). by experimenting with texts that expire after a given time – or insist that customers confirm SMS appointment reminders receipt by sending a text back. When customers/patients/interviewees don't In France, the retail bank LCL now issues PIN show up for their appointments, the costs can codes and also uses SMS to send temporary be exorbitant. This is why so many numbers to cardholders who have forgotten organisations now send SMS reminders. their PINs when out shopping. Healthcare providers in particular have had great success with text. Indeed, a 2012 US Customer service feedback study revealed that attendance rates for Organisations routinely ask consumers for patients who received text message feedback. But calls can intrusive, while reminders over a four month period were letters go ignored. This is another activity 79.2 per cent compared 35.5 per cent for where the text message wins. those who received no reminder. In the UK, a major TV broadcaster regularly sends texts to opted-in users after an Voice SMS for the visually impaired engineer call-out. It's found that response It's now possible to hear a text message. rates are between five and six times higher Voice SMS uses text-to-speech technology to than other types of feedback. convert an SMS and deliver it as a voice call to the recipient’s mobile. SMS confirmation when buying abroad In an era of online fraud, banks are extra Track your package SMS careful when a card is used overseas. One of the great annoyances of modern life is Typically, they will call a cardholder to check the missed delivery. Thankfully, the text the purchase is legitimate. message is helping to tackle this. However, these calls are expensive to make Many postal services now let customers text and they’re not always answered. the tracking number of the parcel to a A text is quick and cheap because it can sit shortcode, and then receive an SMS with its on the phone and therefore doesn't require location. They can send further updates of its an immediate response. progress. Even better, some companies will text with a delivery window. A text to replace online passwords Online merchants are conflicted – they want Buying a bus ticket to make logins quick, but they must also Paper transport tickets can be costly and make them safe. inefficient. You need staff to sell them – or So they ask for passwords and PINs, which expensive machines to dispense them. SMS slow everything down. Worse, people forget lets customers buy tickets by sending a text 62 www.netsize.com 60-63 Netsize 2015 sms enterprise_final 02/06/2015 15:52 Page 4
At Work /// The Gemalto Netsize Guide
to a shortcode. The returned text is the ticket, which the passenger then shows to Text appeal: nine reasons the driver. Italian company ATAF already why we still love SMS sells tickets this way in many regions. 1. SMS is ubiquitous Emergency services Anyone with a mobile can use SMS – no Can SMS save lives? In Sweden, LEKAB’s matter what handset, telco, OS or country. Mobile LifeSaver service has provided emergency help to thousands of people 2. SMS is always on with suspected cardiac arrest since 2010. Text messages are transmitted over the Volunteers trained in CPR sign up and then telco networks, which for the most part, receive text alerts when there is an reach across every inhabited location. emergency in their location. 3. SMS is immediate Airline crew communications Mobile is the most personal of all media. It’s hard to think of a workforce more So it's no surprise that users open and dispersed than one employed by a major respond to texts so quickly. airline. Keeping track of these important employees is tough. 4. SMS campaigns are easy to create So when there’s a change in schedule, the A text contains just 160 characters. best channel for contacting pilot and crew is SMS. 5. SMS messages can be targeted Text messages don’t require wi-fi or 3G. Opt-in SMS marketing campaigns can be They arrive straight to the phone home targeted at particular customers. screen, so they are usually read at the moment they arrive. 6. SMS is rich Scandinavia’s SAS Airlines uses text to alert A text can display a picture, or even a is pilots and crew teams to changes in video. It can contain a hot link to a schedule. It’s found SMS to be easily the dedicated landing page. most effective channel for direct communication. 7. SMS is responsive Any good promotional campaign has a call Remote field engineers to action. As previously stated, text is emerging as the best way to contact a diverse and dispersed 8. SMS is premium fleet of engineers. The premium cost of SMS actually makes An enterprise may have thousands of it more attractive as a comms channel. operatives from multiple providers - all People are more likely to open, read and needing precise instructions on their daily keep a text. schedules, the equipment needed for a job, time of arrival and so on. 9. SMS can be used for payments Text messages let operatives manage A premium text message reverses the schedules for entire fleets from one charge, so the recipient pays for it. dashboard. www.gemalto.com 63 64-65 Netsize 2015 At leisure Intro_final 02/06/2015 15:52 Page 1 64-65 Netsize 2015 At leisure Intro_final 02/06/2015 15:52 Page 2
The Internet of Things is coming to a home near you. Maybe yours.
In this section we look at the impact of connected technologies on all aspects of our lives away from work.
On the way we shop and bank. Even on the front door key.
We also take a peek at the evolution of the watch into a communication device – and see how the line between jewellery and wearables is blurring. 66-69 Netsize 2015 smart locks_final 02/06/2015 15:51 Page 1
The Gemalto Netsize Guide /// At Leisure
Can technology disrupt this?
Does your door know it’s you? If smart lock technology takes off, it will. The Gemalto Netsize Guide looks at the new breed of startups coming for your keys. 66-69 Netsize 2015 smart locks_final 02/06/2015 15:52 Page 2
At Leisure /// The Gemalto Netsize Guide
Opinions differ on the subject of the smart lock. Some say it’s technology for its own sake – a solution to a problem that doesn’t exist. Others say it is the inevitable next phase of home and workplace access. Indeed market watcher NextMarket Insights says the global smart lock market will grow from $261 million in 2014 to $3.6 billion by 2019. So what does a smart lock do? Fundamentally, it recognises approved users. More accurately, it recognises the smartphones of approved users. This is especially useful in a workplace where there is staff turnover and where different workers have different permissions. Traditionally, someone had to manage the distribution of physical keys and fobs. With smart locks, they can assign or revoke virtual keys with the click of a mouse. The access industry has been edging towards smart doors for years via numerical keypads, fobs and smart cards. But the arrival of the smartphone and short range wireless connectivity (specifically Bluetooth, wi-fi, Zigbee and NFC) has really propelled the market. Traditionally, someone Now, a group of companies is had to manage the working to bring the technology to the consumer market. They believe distribution of physical the phone can hold a person’s keys keys and fobs. With just as it holds their music, photos and maybe money. smart locks, they can Needless to say, big questions assign or revoke remain. Can this technology make a property safer? Or will it make it virtual keys with the drastically more vulnerable? And click of a mouse. will smart keys exist on their own or as part of a wider smart home 66-69 Netsize 2015 smart locks_final 02/06/2015 15:52 Page 3
The Gemalto Netsize Guide /// At Leisure
system that embraces heating, lighting, alarms and more? Here are the start-ups trying to re- boot your keys…
Lockitron Bolt The $99 Bolt lock completely replaces a door’s deadbolt and connects to phones via Bluetooth. It also comes with a separate ‘bridge’ that connects the lock to the internet so owners can configure it remotely. The Bolt actually records every interaction with the lock - even when someone knocks on the door or unlocks it mechanically.
August August’s neat round battery- powered module sits above the old house lock. It connects by Bluetooth and recognises any user that’s been given permission to access the house. The door is unlocked as they approach. The home owner can grant virtual keys to friends or even tradespeople – all from the August dashboard.
CHECK THIS OUT points for the pampered up their room key from the front business traveller. Now, desk when they arrive. However, Hilton Hotels is preparing perhaps, with the advent of in phase two (scheduled for to let guests check in by smart connected technologies, 2016), Hilton will let visitors phone before they arrive… it’s finally on the way out. open their rooms with their If the engine behind tech In 2014, the Hilton hotel group smartphones, so they can bypass innovation is making life easier, unveiled a new service to digitise reception completely. why are we still queuing at the the check-in. Guests can use an Geraldine Calpin, senior vice hotel check-in? Our rooms app to choose their room in president and global head of contain giant flat screen TVs, advance, and then customise digital at Hilton Worldwide, says: remote controlled fireplaces and their stay by purchasing "In a recent study, 84 percent of motion sensitive lighting. But upgrades and selecting room business travellers surveyed when we arrive, there’s still a 20 service items. said they wanted the ability to minute wait to get the key. Since all payment information is choose their own room. We are It’s one of the big remaining pain pre-verified, guests simply pick giving our guests the ability to
68 www.netsize.com 66-69 Netsize 2015 smart locks_final 02/06/2015 15:52 Page 4
At Leisure /// The Gemalto Netsize Guide
Knock knock. Goji any authorised visitor, who touch the Who’s there? It’s This Indiegogo product comprises key to open the door. It also the Kickstarter- an elegant round device that has a recognises fobs for those without a funded Sesame smart lock. visual LED display. It works by phone. The device uses a public-key connecting to the home wifi. What infrastructure system rather than makes it a little different is the in- Bluetooth. built camera that will send a photo to the owner to verify who’s at the Noke door. It also supports the use of a Fuz’s Noke (pronounced No-key) is fob for anyone who doesn’t have a not a front door lock, but a smart phone. It is sold by Staples and padlock. It uses Bluetooth Walmart. connectivity as the unlocking mechanism, activated when the Sesame smartphone is nearby. If the power Kickstarter-funded Sesame’s big dies, Noke has a Quick-Click thing is ease of installation, which is function that lets owners use a done in seconds. Basically, you clip it series of long and short taps to over any existing lock and it turns unlock it. the key as if a human were doing it. The other differentiator is the knock Friday Smart Lock sensor. Users can designate a Friday puts the emphasis on an unique sequence and then either ultra-modern aesthetic style, with knock their phone or their door to the option to buy its pleasingly curvy make it unlock. lock in gunmetal, stainless steel and unglazed porcelain. The device Kwikset Kevo works with Apple HomeKit, and will The Kevo looks like a regular front also connect to Nest so it can door lock. However, it connects to link to the smart connected and recognises the smartphone of thermostat in the home.
select not just their room type, but the exact location in the hotel, all the way down to their room number." Of course, this is something airlines have done for years. What’s tricky for hoteliers – especially at the high end – is the need to retain a human touch. Still, it seems as if efficiency is winning over a smile and a uniform. Reportedly, several hotel chains are also working on automated check-in too.
www.gemalto.com 69 70-73 Netsize 2015 - Misfit_final 02/06/2015 15:51 Page 1
The Gemalto Netsize Guide /// At Leisure The rise of Shine In a world of tech companies that can put features before design, Sonny Vu’s Misfit stands out. The firm’s Shine wearable is elegant and discreet. It features no screen, and its battery lasts for six months. Vu tells the Gemalto Netsize Guide why, in the wearable space, looks matter. 70-73 Netsize 2015 - Misfit_final 02/06/2015 15:51 Page 2
At Leisure /// The Gemalto Netsize Guide
The technology sector is all over wearables. Whether it’s activity trackers or smart watches or goggles, the feeling is that this is a vast market waiting to happen. But because this is technology, a huge proportion of these products are simply ugly. They put features before design. And while design is important in any product category, it’s doubly so in wearables when the item is on public display. So when Silicon Valley entrepreneur Sonny Vu launched his wearables company Misfit in 2011, he did so with a simple design ethos: “We started with what people would wear, and then worked backwards.” In quick time, Vu and his team drew some immutable conclusions. The big one? No screens. “We thought about what people would want on their wrists, and we concluded that a screen was not it. Most wearables come with one because we’re so used to having screens on phones. But that’s not the way to think about it. “If the main purpose of a wearable is to see how well someone is progressing toward their goal, there are other ways to do it that don’t involve a screen.”
Friendly circles and lights Thus, Misfit’s first product, the Shine, is a sleek metal fitness and activity tracker. It is a simple aluminium button with no display or buttons. Instead it has LEDs that light up on tapping. Users set all their goals – running, walking 70-73 Netsize 2015 - Misfit_final 02/06/2015 15:51 Page 3
The Gemalto Netsize Guide /// At Leisure
We thought about what people would want on their wrists, and concluded that a screen was not it. Sonny Vu, founder of Misfit
sleeping and so on – on the Shine the market was dominated by Sonny Vu’s app and then use Bluetooth to sync chunky watches with big screens. wearable products it with the device. But just a few months after launch, now sell in 20,000 stores worldwide It’s very discreet. As stated, the Misfit raised over $0.8 million on the battery lasts six months and the cost back of a Kickstarter campaign. is just $99.99. Later, it raised around $7 million and Vu says: “The design language is then a further $15.2 million from VC based around circles and lights. investors. Circles are friendly and universal. We also wanted the Shine to be 20,000 stores flexible, so we made it clippable. You The company’s revenues went from can wear it on a wristband, but if you zero to $40m in its first 12 months want you can clip it into a necklace.” and its products are now distributed In fact, you can wear it in six ways in over 20,000 stores. including in specially designed As the company has evolved, Vu has socks. ‘When people tell me they put become more convinced that desire it on and forget it's there, that’s my trumps all other factors in the favourite comment that people make design of wearables. This explains about Shine,” says Vu. the decision to team up with luxury This thinking was all pretty brands Swarovski and Victoria’s audacious back in 2012, when Secret on a range of fashionable wearables was still an embryonic Shine variants. market with plenty of doubters – and For all it success so far Misfit is,
72 www.netsize.com 70-73 Netsize 2015 - Misfit_final 02/06/2015 15:51 Page 4
At Leisure /// The Gemalto Netsize Guide
triple tap and long tap to control the bulb.Of course, Misfit doesn’t plan to create its own lightbulbs, door locks and heating systems forever. Instead, it’s teaming up with multiple partners to make Flash a remote control for the home.
Partners at home These alliances include some of the most progressive companies in the smart home space: Logitech Harmony for home media and light controls; August Smart Lock to unlock your door; Nest thermostats and more. The remarkable end point of all this will see Misfit focus as much on data gathering as it does on selling wearable jewellery. Misfit’s stated aim somewhat surprisingly, not fixated Indeed, the firm already provides is to make wearable on activity tracking. Vu believes the motion and sleep tracking algorithms tech so discreet true long term potential of to third parties – including some that that people forget wearables lies with their ability to are competitors to the Shine. It has an it’s there help people interact more app for the Pebble Watch, for productively with the physical world. example. “It’s not all about sensors,” he says. But surely, having given so much “Charts and graphs? Who cares? I thought to its Shine and Flash think people more interested in designs, Vu wouldn’t want to abandon buying products that will actually do the hardware space. Or would he? stuff for them – make their lives “Hardware is important,” he says. “It easier.” helps you pay the rent and it gathers the data. But a Shine app on Pebble Lightbulb moment gathers data too. To explore this, Misfit launched “That said. Different people want Flash. It’s a less expensive version of different things. Some people want Shine that supports connections to Shine and some don’t. We’re OK physical objects. with that. And there are different They include the Misfit Bolt, a sectors too. connected light bulb that lets users “Even if Apple Watch is a massive personalise their home lighting. success, there will be people who Users set their preferences on the want a $50 device, which Apple will app, then use the Flash’s double tap, never make. We will.”
www.gemalto.com 73 74-75 Netsize 2015 e-money_final 02/06/2015 15:50 Page 1
The Gemalto Netsize Guide /// At Leisure Pay for anything… with your phone bill? Consumers love the convenience of buying digital goods from the phone bill. Imagine if they could pay for physical goods this way. In EU countries this may be possible. But it’s complicated. Until the late 90s mobile phone consumables’, operators and their credit paid for two things: calls and partners would not have to apply texts. Then, along came ringtones, for a licence”. Obviously that wallpapers and the like, and new meant no physical goods. items were added to the bill. This presented a challenge for Licence to bill financial regulators. If consumers The trouble with the PSD ruling is could buy ringtones with phone that each EU state interprets the credit, then why not newspapers or exemption in its own way. After food or – hypothetically – cars? Such all, what is a ‘physical good’? activity would turn mobile operators In Italy, for example, into financial institutions. And consumers can pay for bus because many consumers have tickets and bike rentals by ‘post-pay’ subscriptions, it would phone bill thanks to an even make them lenders. extension of the scope of the Suddenly, mobile network operators PSD exemption voted by the (MNOs) had the potential to become Italian Parliament in quasi-banks. And if they were to January 2013. In Germany behave like banks, they would need and France, regulators have to be regulated. endorsed some local But a telco is a telco and already derogations to the PSD in regulated as such. To enter the order to allow pilots for financial services space would mean parking, for example. a huge impact on internal systems, With no common set of which would have to process two references across the EU, it very different lines of business. is difficult to launch charge- to-bill services across Making an exemption multiple member states. So telcos lobbied for an exemption to And there are other the 'Payment Services Directive' that potential issues linked to governed financial institutions. This the telco exemption. For said: “As long as consumers use Instance, could any phone credit to pay only for ‘mobile business set up as a telco
74 www.netsize.com 74-75 Netsize 2015 e-money_final 02/06/2015 15:50 Page 2
At Leisure /// The Gemalto Netsize Guide
and claim an exemption? This would An MNO could apply for a financial be an abuse of the regulations. And what about the payment licence. However, the reality is that intermediaries that work with telcos cannot justify the time and cost of operators: are they exempt or not? To address these questions, acquiring a licence for a niche business. regulators began working on a revised version of PSD (PSD2), which newly created Netsize Payment SAS. will re-visit what can and cannot be “Consumers like to be able to pay on permitted. This is unlikely to pass impulse, and they can’t do this if into law until 2016 at the earliest. they have to sign up for a wallet. This Until this time, there is a way round is why we chose to apply for a the confusion. As previously stated, a Payments Institute licence.” mobile operator could itself apply for Maupain believes a licence will allow a financial licence that would solve Netsize to offer a compliant the problem. However, the reality is framework for a micro-payment that telcos cannot justify the time eco-system while managing and cost of acquiring a licence for payment for all manner of low ticket what is essentially a niche business. items via the phone bill. This is where payment companies like Netsize come in. They recognize With complements the huge potential of impulse micro- As stated, the licence will also let payments. By obtaining a licence, Netsize process credit card they could let merchants and telcos transactions. Traditionally card explore new business opportunities payments and operator billing have within a fully compliant framework. been viewed in opposition to each other. However, Netsize’s experience Passport please of handling card payments showed So this is what Netsize has done. It the two could be highly applied for a ‘Payments Institute’ complementary. licence, which allows it to process This is because card payments can transactions via the phone bill and instantly cover multiple geographies, also via credit card. while operator billing offers a better For Netsize, the best option for a checkout flow and reaches smooth payment experience is to ‘unbanked’ consumers. offer direct operator billing, which Arnaud Dubreuil, Payments removes the need for pre- Marketing Director at Netsize, says: registration on behalf of the “We see very little cannibalization. In consumer. For this, a payment fact, overall revenues are higher intermediary licence is required. when both cards and MNO billing “We’ve seen many times that the are available. Merchants can also need to enrol is a big barrier,” says offer more price points and go Ludovic Maupain, President of the international more quickly.”
www.gemalto.com 75 76-81 Netsize 2015 SmartWatches_final 02/06/2015 15:50 Page 1
The Gemalto Netsize Guide /// At Leisure 76-81 Netsize 2015 SmartWatches_final 02/06/2015 15:50 Page 2
At Leisure /// The Gemalto Netsize Guide
The arrival of the smartwatch feels like a pivotal moment both for the technology business and for Time’s up wristwatch makers. Here’s what Donald Brewer, vice president for Are consumers ready for the smartwatch? technology for Fossil, says. Do they know why they need one? Tim Green “I think its because we are at this ponders the past, present and future of this point of evolutionary leap, where a hot technology sector. watch no longer needs to be limited to simply keeping time. People are ready for watches to become a functional technology element so we can eliminate the need to carry around one of the many devices we now stuff in our pockets.” Sounds about right. But here’s the thing. This quote is from 2003, when Fossil was working with Microsoft on the launch of the latter’s Smart Personal Objects Technology (SPOT) platform. SPOT was conceived to bring a new level of functionality to everyday objects – and the first to get the treatment were watches. As history shows, the launch failed. Microsoft closed down SPOT in 2008. The watches were too clunky, the technology was limited (no Heir to the crown? The Bluetooth or wifi – watches used the Apple Watch finally FM signal to receive info) and launched in 2015. consumers weren’t prepared pay up to $59 in annual subscriptions to get information channels. And so the smartwatch went into hibernation. Was the concept fatally flawed or just waiting for the right timing?
The wisdom of the crowd The answer came when Pebble launched its hugely successful 76-81 Netsize 2015 SmartWatches_final 02/06/2015 15:50 Page 3
The Gemalto Netsize Guide /// At Leisure
Kickstarter crowdfunding campaign fishing out his or her phone. It can in 2012. The unknown startup raised also show the weather, control more than $10 million by pre-selling phone functions like music and even 70,000 smartwatches in a month. switch off lights. Pebble proved yet again the insistent Whether the Pebble was/is pull of the smartwatch concept. successful depends on your terms. There’s something magical about it. The firm claims to have sold over 1m Maybe it goes right back to Dick watches. That’s a lot. But, by Tracey and Star Trek. comparison, 1.1bn smartphones Critics said – and still say – that the were sold in 2014 alone. Pebble watches are clunky and very much a male-orientated ‘geek’ Enter the big boys purchase. But what is behind doubt Nevertheless, Pebble re-ignited the was the excellence of the startup’s interest of consumers and timing. This was the first manufacturers in the smartwatch. In smartwatch of the smartphone era. October 2013, Samsung made the Pebble’s device was designed to first move, stripping down Android to complement the smartphone. More power its Samsung Gear product. Six accurately, the smartphone app. months later, Google unveiled The Pebble can display basic Android Wear as a platform for any notifications – email, text, calls and OEM seeking a quick and clean OS so on – to save the user the hassle of for smartwatches. Android Wear is
78 www.netsize.com 76-81 Netsize 2015 SmartWatches_final 02/06/2015 15:50 Page 4
At Leisure /// The Gemalto Netsize Guide
a line of watches with an embedded SIM card and a subscription to emergency services. Then there was France’s Withings, which launched a range of sleek Activité watches designed around fitness and activity tracking. Other companies experimented with the form factor. Kairos Watches T- band, for example, puts smart notifications and tracking into a removable strap, so users can keep their favourite time piece. 2015 also saw mainstream watch makers confirm plans for the space. AG Heuer started work on product powered by Intel technology and Android Wear, while Swatch also revealed plans to go smart.
Waiting for the mass market essentially a version of Google Now For all the trade interest in (Google’s intuitive personal smartwatches, consumer sales have assistant) design for a tiny wrist- been modest. According to trade based screen. By the end of 2014, body The Smartwatch Group, 89 devices like the Moto 360 were companies sold 6.8 million showing what it could do. smartwatches in 12 months. The Without doubt, 2014 saw the average price of a product was $189 to give the market a collective value For all the trade interest in of $1.291 billion. That was 82 per smartwatches, consumer sales have cent higher than the $711 million earned in 2013. been modest. 89 companies sold 6.8 Pascal Koenig, managing partner of million smartwatches in 12 months Smartwatch Group concedes the mainstream has yet to adopt the emergence of a genuine smartwatch smartwatch. market for the first time. New He says: “While offerings in the entrants piled into the space. There wellness and sports market from were phone makers like LG, companies like Garmin, Fitbit, Samsung and Sony. There were also Withings and Polar are based on newcomers seeking to establish solid use cases, the consumer fresh market niches. market has not yet picked up. So far, Limmex, a Swiss company, released the mobile phone companies around
www.gemalto.com 79 76-81 Netsize 2015 SmartWatches_final 02/06/2015 15:50 Page 5
The Gemalto Netsize Guide /// At Leisure
Google’s operating system Android huge impact on the evolution of the Wear have not been able to deliver smartwatch. Apple has a long track on their promise. record of excellence in physical As so many times before, it comes product design and seamless user down to Apple to reach a experience. breakthrough in the consumer But perhaps its biggest advantage is market.” Ah yes, Apple. its army of willing developers and consumers. Apple, like most Apple time makers, wants the smartwatch to do Kairos Watches T- When the Cupertino company more than tell the time, monitor band puts confirmed it would launch a watch in activity and display notifications. It notifications and tracking into a 2014, the dynamics of the business wants the smartwatch to be a link removable strap changed. Indeed, the Smartwatch between digital services and the rather than the face. Group expects the size of the market physical phone. to grow to $8.7 billion in 2015. That’s That means using the watch to open seven times bigger than 2014. It says the doors to hotel rooms, order an the average price of devices will to Uber car, pay for coffee, adjust increase to $290, again largely due central heating. All of this is not to the Apple Watch. possible without the participation of Needless to say, there are many developers – and Apple can rely on reasons to believe Apple will have a these third parties to launch
FASHION SENSE MEETS TECH SENSIBILITY Tech firms have dominated the smartwatch market to date. But traditional watch makers and fashion firms like GUESS are now making their first moves. The Gemalto Netsize Guide spoke to GUESS’s digital marketing chief Tarra Del Chiaro.
First time visitors to Mobile It was a bold move, one of the World Congress in 2015 might first by a fashion firm into a have wondered whether it was smartwatch space dominated by really a ‘mobile’ show at all. The tech firms. But according to floorspace was full of new Tarra Del Chiaro, GUESS’s global connected devices – and they leader of digital marketing weren’t all phones. They were strategy (pictured), this was itself cars and wristbands and the motivation. smartwatches. “I believe there’s a clamour for Which is why the fashion brand fashion-led smart watches that GUESS was among the are not made by technologists,” exhibitors. In 2014, it teamed up she says. with the watch technology “From what I’ve seen of the specialist Martian to create its devices so far, the build and the have been pretty much ignored own tech-enhanced range: colours are unremarkable. Our so far – even though 30 per cent GUESS Connect. The products customers want something of men’s watches are actually will go on sale later this year. better. Especially women, who bought by females.”
80 www.netsize.com 76-81 Netsize 2015 SmartWatches_final 02/06/2015 15:50 Page 6
At Leisure /// The Gemalto Netsize Guide
services. Why? Because the suggest this could be a hurdle – developers know millions of people especially given compatibility issues. will buy an Apple Watch. The Apple Watch, after all, will not What’s more, Apple knows that it connect to an Android phone. cannot alone unearth creative ideas Another major issue is fashion. for the watch. As history shows, only Smartwatches are worn. They are on talented programmers can do that. public display. The tech companies The reason Android and iPhone are dominating the smartwatch space so successful is not just because the may know about design, but phones look good. It’s because of industrial aesthetics do not Snapchat and Instagram and Angry necessarily make for good jewellery Birds and Shazam. (see box). However the future pans out, the After a fashion sheer amount of effort and Of course, there are major barriers investment moving into the in the way. Battery power is the smartwatch space suggests we are most-cited. Will people be prepared now at the start of a brand new to charge their watches once, even product category. One that could twice, a day? fundamentally change the way And what about the need to tether a people interact. watch to smartphone? Experts How exciting is that?
So the five GUESS Connect models were designed to look identical to a normal timepiece, with the only difference being a small mono screen that shows notifications such as texts. They can also control the phone’s music and camera functions, and they feature a built-in microphone and speaker for hands-free calls and controls. GUESS is gambling on the notion which could make a big GUESS Connect. However, she that fashion-led customers value difference to us,” says Del says that the firm is committed these features but not at the Chiaro. This coverage will also to the concept and will evolve it expense of looks. help GUESS manage customer over time to move beyond pure However, the firm may also have support. That’s important notifications. But what will not other more logistical advantages because launching a tech change is the looks-first ethos. over tech firms. Distribution for product brings with it new issues “Whatever new features and example. for a fashion firm. Jewellery functions we introduce, we will “The tech firms don’t know how doesn’t go wrong. Tech does. not compromise on looks. We to access fashion retailers. We Del Chiaro is honest enough to won’t be changing materials or do. We have local 15,000 admit she doesn’t know how virtualising the whole face. This distributors in 115 countries, customers will respond to is a huge opportunity for us.”
www.gemalto.com 81 82-83 Netsize 2015 NFC_final 02/06/2015 15:50 Page 1
The Gemalto Netsize Guide /// At Leisure NFC contactless: Now Fairly Common? The age of mobile contactless is here after a breakthrough year for NFC technology.
Until fairly recently, many mobile and the Samsung Galaxy S6 have insiders were pretty rude about NFC. helped NFC’s cause no end. They came up with alternative With hindsight it seems obvious that explanations of the acronym. One of NFC would eventually find its place. the more printable of these was: Not In a mobile market so focused on For Consumers. ease-of-use, what could be more Well, how fast things change. Today, simple than performing an action thanks in part to the adoption of the with a mere touch? This is why NFC tech by Apple and Samsung, NFC is particular interesting as a tech is fashionable again. technology to enable payments and The industry analysts agree that secure access. contactless is on a tear. According to Reports And Markets, the global Inflection point NFC will grow at an estimated CAGR Of course, stakeholders need to be of 8.83 per cent from 2014 to 2022 to aligned to make this happen. reach $16.25 billion by 2022. And it Experts believe this is happening. predicts the enabled handset market In its recent tech predictions, will grow at 55.8 per cent CAGR Deloitte said 2015 will be an between 2014 and 2019. inflection point ‘as it will be the first year in which the multiple Device support IHS estimates that 416 million NFC- In a mobile market so focused enabled mobile phones were on ease-of-use, what could be shipped in 2014, and predicts the number will rise to 1.2 billion – or more simple than performing two out of three mobile phones – by an action with a mere touch? 2018. Meanwhile Berg Insight estimates the number of NFC-ready prerequisites for mainstream Point of Sale (POS) terminals adoption – satisfying financial shipped last year at 9.5 million. institutions, merchants, consumers, Needless to say, the launches of technology vendors and carriers – flagship handsets like the iPhone 6 are sufficiently addressed’.
82 www.netsize.com 82-83 Netsize 2015 NFC_final 02/06/2015 15:50 Page 2
At Leisure /// The Gemalto Netsize Guide
Thus, by end 2015, five per cent of It also says the channel could be the 600 to 650 million NFC phones made more secure by using location will be used at least once a month to data as a security check. Deviations make contactless in-store payments from a normal purchasing location at retail outlets. It was 0.5 per cent could trigger a request for further of 500m last year. verification, such as PIN entry. Deloitte points to improved security This serves as a reminder of the via tokenisation and biometric importance of hardare and software authentication as key to the boom. It security in the story of NFC. The reckons fingerprint ID has become truth is, people are still nervous an everyday action for 100 million about keeping their wallets inside individuals. The firm expects their phones. It’s why the The Galaxy S6 contactless payment to be combined combination of tokenization, supports NFC and with other processes at the point of biometrics and a robust ‘secure includes an in-built transaction, such as the redemption element’ (in the OS or the SIM) will Samsung Pay of loyalty points. be so central to its success. feature 84-85 Netsize 2015 Tapit_final 02/06/2015 15:49 Page 1
The Gemalto Netsize Guide /// At Leisure
How NFC can help every brand ‘go direct’ Could a company’s posters, POS material or even packaging connect consumers directly to its digital stores? Yes it could, says Tapit. It’s using NFC tags to create a new hybrid of physical and digital commerce. Since 2008, apps have transformed “Enterprises want to forge direct the way consumers engage with relationships with consumers and their favourite companies. But now there are hundreds of thousands of this is a chance for them to do so via apps – and this has led to a big their own physical assets.” discovery problem. Basically, consumers don’t want to download a Jamie Conyngham, CEO, Tapit new app for every brand they like.
84 www.netsize.com 84-85 Netsize 2015 Tapit_final 02/06/2015 15:49 Page 2
At Leisure /// The Gemalto Netsize Guide
Australian firm Tapit thinks it has a NFC is not the only channel solution. The company started out as associated with this kind of instant a specialist in NFC-enabled mobile transaction. There’s also Bluetooth marketing. It created an NFC BLE (Beacons) and wifi. However, platform so brands could put a tag Conyngham believes NFC is hands- on marketing material. When a down better. “Beacons requires a consumer tapped on the tag, it user to download an app before it would re-route them to more can work. And it’s a push medium product information. that risks interrupting the consumer Tapit worked on campaigns with experience. Or it can be switched off. Paramount, Telstra, Coca Cola, NFC doesn’t require a download. Virgin and many more. But this And it’s ‘pull’. Every engagement is marketing function is just the start started by the consumer.” of a more ambitious plan. The next In the first phase of the project, Tapit step is linking consumers via NFC to will help brands sell digital goods the media owner's mobile e- charged to the operator phone bill. commerce site. Here they can buy It’s worked with Gemalto Netsize to digital content in one click. It’s called create the service, which is ideal for Tapit and Buy. content such as e-books, video, Jamie Conyngham. CEO of Tapit, music and games. Tapit expects believes the concept could present strong interest from entertainment brands with a major new brands in particular. commercial opportunity. Gemalto Netsize has connections to He says: “Enterprises want to forge hundreds of MNOs worldwide, so the direct relationships with consumers potential addressable market is When consumers tap to start the and this is a chance for them to do huge. Of course, there are purchase process, so via their own physical assets. restrictions. In most countries, there brands can control That means they can control the is a limit on the size of individual the message and message and also measure transactions – typically around 30 measure ROI on precisely the return on investment euros. And regulation forbids the campaigns. achieved by their campaigns. It’s sale of physical goods from the very powerful.” phone bill. “You could imagine a toy brand, for However, Tapit is preparing for a example, generating extra revenue second phase of the roll-out in by selling a game with a branded which an NFC tap could route the product. There are so many consumer to a single click credit opportunities for incremental card transaction. revenue like this. These In this scenario, the consumer could opportunities have always existed, buy physical goods of any value. but they’ve been missed because it’s Gemalto Netsize is currently so hard to get people to download an applying for a payments licence that app or visit a website. NFC gets past would enable it to process credit this. All that’s required is a tap.” card transactions.
www.gemalto.com 85 86-87 Netsize 2015 mobile ID_final v2 02/06/2015 15:49 Page 1
The Gemalto Netsize Guide /// At Leisure
Logging out of passwords Our mobile numbers are unique. And our phones are always at hand. So could mobile provide a secure alternative to the password? Jean-Francois Ouillet, vice president of mobile security at Gemalto, outlines the potential of mobile ID.
How many passwords do you have? with Mobile ID’ and type your mobile Are they complicated enough to number. Your phone instantly resist a hacker attack? Can you displays a pop-up screen asking you remember them all? to enter your Mobile ID personal In a world where portable devices code in order to connect to that can connect to millions of sites and website. That’s it: just a few seconds apps, passwords are just not up to to log in. the job. Our research found people Mobile ID is secure because it have an average of 25 user names identifies you not only by what you and password combinations each. know (your Mobile ID personal code), We need a trusted and simple way to but also by what you have (your bypass this unsatisfactory system. phone). In other words: two factor Such a solution does exist. It’s called authentication. This makes it Mobile ID. virtually impossible for any criminal Here’s how it works: when you want to pretend to be you. to log in to a website, you select ‘log It’s a great way to move us away
86 www.netsize.com 86-87 Netsize 2015 mobile ID_final v2 02/06/2015 15:49 Page 2
At Leisure /// The Gemalto Netsize Guide
from using insecure passwords. Of thousands of bank customers use course, it’s not the only form of log- BankID to sign in to services. in available. There’s also Facebook Traditionally, they would use a PIN and Twitter. But there’s no guarantee Pad, which they would often forget to their processes are secure, end to take with them. end. They still depend on Now they sign in securely with login/password combinations. mobiles instead: the BankID is Jean-Francois Ouillet, VP of mobile stored on the SIM card. security at Gemalto One sign-in to rule them all Participating banks include DnB, Another advantage of Mobile ID is its Skandiabanken, Eika, Nordea and ubiquity (or its potential to be). In Sparebank1. Overall, Gemalto 2014, the telco trade body, the GSMA, connects more than 500 service created Mobile Connect to unify all providers to Mobile ID worldwide. MNOs behind one Mobile ID Another great benefit of Mobile ID is standard. Dozens of operators have flexibility. People can use basic pledged to support it. In time, this security for simple access to sites. could make Mobile Connect a But when payment is involved, they universal way to sign in. can use stronger authentication. Marie Austenaa, the GSMA’s head of Mobile ID can even go as far as personal data and mobile identity, providing users with a legally binding says: “You don’t need a user name digital signature, thanks to an and password to make a phone call, enhanced technology of the kind you just click on the green button. currently used in Finland. “In the digital world, you need a user But no matter the level of security name and password for every service behind the scenes, the essential you access. This is a problem and it’s user experience will always remain something that the mobile operators the same. have the assets to resolve, whether it’s through the SIM or mechanisms Speedier form filling like USSD.” Mobile ID is not only used for signing in securely. It could also speed up Building the backbone form-filling. In this scenario, a user MNOs can’t do this alone. They need would store personal data with the partners to furnish service providers mobile operator. with one connection to all telcos. Then, when faced with a complex This is where Gemalto comes in. registration form, he or she could We helped the GSMA draft the specs log in with Mobile ID and grant for Mobile Connect, and we already permission to fill in the missing manage live Mobile ID services in details. individual countries. In time, these This would be excellent for services will sync to Mobile Connect. eGovernment services, such as In Norway, for example, hundreds of applying for a passport.
www.gemalto.com 87 88-89 Netsize 2015 Lekiosk_final 02/06/2015 15:48 Page 1
The Gemalto Netsize Guide /// At Leisure The new news thing In a universally connected world, consumers can subscribe to services rather than own physical products. Movies and music are moving this way. Could magazines be next? France’s LeKiosk thinks so. There are dozens of videos on YouTube featuring toddlers desperately swiping magazines and complaining: this iPad doesn’t work. They all reflect the rapid change that’s hit print media in the past decade. In short, magazines are going digital. According to a mediaIDEAS report, digital revenues made up ten per cent of the total periodical industry in 2009. Last year it was 28 per cent. By 2020 it could be 58 per cent.
Print at the crossroads It seems print is going the way of music and movies. If so, where is print media’s Spotify and Netflix? Step forward LeKiosk. The Paris-based company already has over 150,000 subscribers to its digital magazine service. LeKiosk receives PDFs of print magazines and transforms them into high-resolution, mobile-friendly publications. 88-89 Netsize 2015 Lekiosk_final 02/06/2015 15:48 Page 2
At Leisure /// The Gemalto Netsize Guide
Users can then access the titles through iOS and Android apps, which are currently available in France, the UK and Italy. Its catalogue includes over 1,000 titles including Vogue, GQ, Wired and many more.
Pricing re-think Of course, digitisation does far more than make magazines browsable on a screen. It also changes the nature of distribution. Readers can download an e-magazine wherever and whenever they like. And keep dozens of titles on their devices at any time. This changes the way they want to pay. LeKiosk’s pricing structure reflects the fact that that different titles have different prices, and that readers won’t always want to read the Bouygues Telecom – France’s three same publications each month. biggest mobile operators – to let It’s why LeKiosk gives users the users buy magazine bundles with one option to buy magazines individually click. or to purchase a bundle of credits. The bundle depletes as they select Carrier billing opportunity publications to read. The arrangement also helps LeKiosk reach millions of consumers that do New models, new UI not use a credit or debit card, Ari Assuied, chair of LeKiosk providing them with a convenient (pictured), says: “The best way to build alternative to entering card numbers customer loyalty is to create business and personal details into tiny payment models. We want to simplify access to payment for our customers. People “The best way to build customer are very demanding of new products, loyalty is to create a new kind of and if we want engagement from them, we need to build the perfect business model.” user interface.” Ari Assuied, founder of LeKiosk To make things even more convenient, LeKiosk teamed up with Netsize to forms. No registration is required and give readers the chance to pay from the user's phone number acts as a the phone bill. In 2015, it launched unique identifier, allowing one-click partnerships with SFR, Orange and payment via a 3G or 4G or wi-fi.
www.gemalto.com 89 90-91 Netsize 2015 the future intro_final 02/06/2015 15:48 Page 1 90-91 Netsize 2015 the future intro_final 02/06/2015 15:48 Page 2
Think about the impact of the autonomous car. Sure, it could reduce road accidents and ease traffic congestion.
But could it also raise alcohol consumption? After all – no motorists, no drink driving restrictions.
In this section, two expert analysts ponder some of the more unexpected consequences of our connected future. 92-95 Netsize 2015 curtis_final 02/06/2015 15:47 Page 1
The Gemalto Netsize Guide /// The Future
Time for tomorrow If you think PCs and mobiles have changed your life, get ready for ‘Living Services’. Mark Curtis, chief client officer of digital design agency Fjord from Accenture Interative, looks ahead to a future where uber-connected devices are everywhere. I think the third wave of digital is agriculture. It will reach into all starting now. We’ve had the desktop facets of human activity. age, and then the mobile age – So the services we will see created, which we’re still in the middle of – via sensors embedded into and now we’re entering a new stage, wearables, nearables, PCs, mobiles which we at Fjord call ‘Living and TV, will fundamentally be alive. Services’. They will change in response to We’ve thought carefully about that context. name, because we feel that this is something that goes beyond the Technology that mimics human ‘internet of things’ or even the interaction ‘internet of me’. The digital services we have now Why? Because the connected future don’t change shape in real time. Yes, will not just be about ‘me’. It will we have online newspapers that extend into industry, and health and update every hour or so. And we can
92 www.netsize.com 92-95 Netsize 2015 curtis_final 02/06/2015 15:47 Page 2
The Future /// The Gemalto Netsize Guide
“For me, driverless cars will have more launch. 42! It’s hard to overestimate how this is changing what the cloud impact on society than anything else we and ubiquitous computing can do. can foresee in the era of living services. We’re also seeing the It will affect almost everything. I can industrialisation of sensors. I think it’s also significant that there see huge numbers of people switching are just enough smart services from public transport to cars.” around that people are starting to get comfortable with the concept. get a book delivered in 24 hours. But Take smart doors. Hilton Hotels and none of this is fundamentally life a few others have now launched changing. If they disappeared smart room keys. Today, these doors tomorrow, it would be irritating but aren’t really that smart: you can just no more. open them with smartphone, that’s What’s coming next will materially all. will affect our lives. Live streams of But what we’re seeing here is that data will modify the way machines something extremely dumb is respond in real time, the way human getting a tiny bit smart, and beings do. If you think about a shop hundreds of thousands of visitors assistant, he or she will respond to will be exposed to that. whether you’re smiling, whether you They’ll begin to get comfortable with have children, what your past it. And then the step to smart purchases were and so on. thermostats and lighting and so on isn’t quite such a big deal. The technology will increasingly mimic human behaviour Simple but critical design issues Of course this is deeply challenging There’s a science of movement at a design level; we just don’t know around enabling digital services. how to do it yet. What we do know is Essentially, if you can halve the that technology is moving closer to movement required of a person, you our bodies. will be rewarded with their loyalty. We’ve gone from TVs to desktop PCs I always think of the supermarket to mobiles to wearables. And it may self-checkout as an example of this. be that ultimately we locate People hate them, and this is technology inside of us. because they demand so much cognitive activity from us. In the end, Users are ready it’s just easier to get someone else The reason this is happening now is to do it. really a function of cost as well as There are simple design rules we technology. For example, Amazon have to follow. A useful way to think has reduced the cost of using about this is about the natural Amazon Web Services 42 times since bandwidth of the human body.
www.gemalto.com 93 92-95 Netsize 2015 curtis_final 02/06/2015 15:47 Page 3
The Gemalto Netsize Guide /// The Future
Fundamentally, your speed will determine how much rich information you can consume. If you’re sitting still, you can absorb a lot. But if you’re walking and you try to do too much, you tend to bump into lamp posts. This is why, when you want to communicate something simple and fast, vibration is often the best way
Mark Curtis, chief client officer of digital design and innovation agency Fjord at Accenture Interactive. 92-95 Netsize 2015 curtis_final 02/06/2015 15:47 Page 4
The Future /// The Gemalto Netsize Guide
to do it. We used this basic idea There are some interesting when we worked with Adidas on its alternatives around. fitness tracker. Amazon Dash is a wifi enabled When a runner goes past a pre- device that combines barcode determined goal, the tracker scanning and voice recognition so vibrates. Richer info is better that householders can assemble communicated to the eyes, but still shopping lists on the fly – and then needs to be glance-able. So we proceed to purchase with one button colour-coded it: get a red, and you press. It doesn’t have any slow down. dependence on a phone. Fjord chose For even more complex instructions, vibration over you need more than vibration and The most profound change? visuals when designing the colour. With Adidas we used voice Driverless cars Adidas fitness commands relayed via Bluetooth. For me, driverless cars will have tracker. more impact on society than An end to the ‘solar system’ with a anything else we can foresee in the phone at the centre era of Living Services. It will affect I don’t think it’s sustainable for the almost everything. phone to be the remote control for I can see huge numbers of people everything. switching from public transport to That’s putting such a heavy workload cars, and that will affect train and on a device with a limited screen bus companies. Parking too. real estate, not to mention battery I predict that alcohol consumption issues. might go up. The middle aged and For everyday use cases like your middle class – who will be able to front door, you might assign that afford this first – may well start “Technology is moving closer to our drinking on their journeys home from work or social events. Why bodies...we’ve gone from TVs to wouldn’t they? desktop PCs to mobiles to wearables. Society is facing big moral choices And it may be that ultimately we locate There are huge societal changes technology inside of us.” coming. We need to make choices around data. Should we reward function to your home screen, but people for being healthy and slim, for all the other irregular things I which is also penalising people for struggle to see how you can manage being fat? them from the phone. They’ll be Once we have these data streams harder to navigate. available, we’ll have to grapple with So I think this is why we’ll move from these big questions – and have something less like a solar system ethical conversations we’re still not with the phone at the centre and really having. more like a constellation.
www.gemalto.com 95 96-99 Netsize 2015 ben wood_final 02/06/2015 15:47 Page 1
The Gemalto Netsize Guide /// The Future
The thoughts of a smart watcher
Ben Wood thinks a lot about wearables. He owns dozens of them. The chief of research at CSS Insight mused on the space for the Netsize Guide.
We are currently in the stone age of wearables. Most of the devices shipped today are average or worse. Virtually every product we saw in 2014 was designed by engineers thinking purely about how you get devices on people’s wrists. That’s changing. We’re seeing Guess and Oakley and other fashion brands making products that will have some appeal to the ordinary consumer. They’re not perfect, but they’re not geekware.
Any way you look at Apple Watch, it will be a rising tide. However well it’s received, it will sell millions to its devotees. Apple has the knack of finding use cases of tech that make a device come to life. The physical design is lovely. The software has clever solutions to difficult problems. The tricky bit is the apps. But Apple gave the developer community six months to come up with good ideas. And the best of those will trickle down to other devices, like Android Wear. 96-99 Netsize 2015 ben wood_final 02/06/2015 15:47 Page 2
The Future /// The Gemalto Netsize Guide 96-99 Netsize 2015 ben wood_final 02/06/2015 15:47 Page 3
The Gemalto Netsize Guide /// The Future
We shouldn’t lose sight of the in- built obsolescence of technology. There are watch brands that market their watches as heirlooms you pass on to your grandchildren. Smart watches can never replicate that.
Even my fitness bands require software upgrades. I am not so concerned about the challenge of people having to update software in their wearables.
In subsidised smartphone markets people are used to getting phones for ‘nothing’. So it will be interesting to see if people are prepared to pay a lot of money upfront for these new devices. That said, people bought tablets without really knowing why they needed one. I think the same might be true for wearables. It’s why we think the industry could sell well over 20m watches this year.
A smart watch must be glance- able. You have to decide what information is most useful. I think linear content like sports news and If I were a network operator, I travel information will be the first would give premium subscribers as things to catch on. many SIM cards as they want for free. There’s every chance they’ll Authentication is an interesting use buy more data if you give them SIMs. case for wearables with passwords so hard to remember and the need We may see embedded SIMs for multi-factor authentication. soldered in these devices. That Wellness and payments also have could lead could see quite obvious potential too. spectacular growth in connected wearables. Wearables will be complementary to phones for a long long time. Even I’ve used Bluetooth headsets to devices that can ‘stand alone’ are not make calls from a smart watch. You ready to work by themselves. can also knock out a short message
98 www.netsize.com. 96-99 Netsize 2015 ben wood_final 02/06/2015 15:47 Page 4
The Future /// The Gemalto Netsize Guide
GoPro was the biggest selling wearable of 2013
on a wearable. It’s quite easy. And Wearables for babies and it’s actually OK to speak into them children is very challenging. for very short calls. There are health issues around cellular devices worn One of the most successful by kids. It might not put parents wearable devices in 2014 off, but the distributors may get was a camera: the GoPro. nervous. So maybe devices for It sold 5.2m. old people or even pets might be a better bet. Google Glass has done quite a lot of damage to the category. The use of sensors in wearables But there is obviously a future could let us track things like for eye wear in industrial vertical physical attraction. These devices markets, especially with will gather new types of data we augmented reality. haven’t ever collected before.
www.gemalto.com 99 100-101 Netsize 2015 Data Intro_final 02/06/2015 15:48 Page 1 100-101 Netsize 2015 Data Intro_final 02/06/2015 15:48 Page 2
Which mobile platform do Canadians prefer? How often do the French use sports apps? And what are the US’s top mobile destinations?
The answers are all here - in the Gemalto Netsize Guide’s much- valued data section.
And there’s an IoT flavour to this set of stats too, with numbers on how that giant market will grow by device, vertical and overall value. 102-124 Netsize 2015 Data_final 02/06/2015 15:43 Page 1
The Gemalto Netsize Guide /// Data
The feature phone era is well and SMARTPHONE PENETRATION BY COUNTRY truly over in mature markets Country % except, for the moment, Japan. In most other countries, more than EU5...... 72.4 seven in ten people own a France ...... 72.6 smartphone. Germany...... 71.8 Italy...... 55.9 Spain ...... 86.7 UK...... 78.0 US...... 76.2 Canada ...... 81.2 Japan...... 46.9
* Sample of mobile users over 13 years old, December 2014 ©2015 comScore Inc
The US mobile market in 2015 is a MOBILE OEM MARKET SHARES BY COUNTRY two horse race. Apple and Samsung sell six out of every ten US % handsets sold. Nokia - the dominant force just five years ago - Apple ...... 31.3 languishes with three per cent of the market. Samsung ...... 29.6 LG ...... 14.1 Motorola ...... 6.2 Other ...... 5.5 Nokia ...... 3 HTC ...... 2.9 Kyocera ...... 1.9 BlackBerry ...... 1.6 Pantech ...... 1.2 Google ...... 1 ZTE ...... 0.9 Huawei ...... 0.5 Sony ...... 0.3
102 www.netsize.com 102-124 Netsize 2015 Data_final 02/06/2015 15:43 Page 2
Data /// The Gemalto Netsize Guide
MOBILE OEM MARKET SHARES BY COUNTRY
Canada %
Samsung ...... 33.2 Apple ...... 31.1 BlackBerry ...... 7.2 LG ...... 6.9 Other ...... 5.6 Nokia ...... 4.5 Google ...... 4.3 Motorola ...... 3.2 HTC ...... 3.1 Kyocera ...... 0.5 Sony ...... 0.4
MOBILE OEM MARKET SHARES BY COUNTRY
Japan %
Apple ...... 19.6 Sharp ...... 19.5 Fujitsu ...... 11.5 Panasonic ...... 10.5 Sony ...... 9 Kyocera ...... 8.9 NEC ...... 5.9 Other ...... 3.5 Samsung ...... 3.2 Toshiba ...... 2.6 Casio ...... 1.8 LG ...... 1.3 Pantech ...... 0.9 HTC ...... 0.7 Hitachi ...... 0.6 Sanyo ...... 0.5
www.gemalto.com 103 102-124 Netsize 2015 Data_final 02/06/2015 15:43 Page 3
The Gemalto Netsize Guide /// Data
The fortunes of handset makers MOBILE OEM MARKET SHARES BY COUNTRY differ across the major EU EU5 % countries. Samsung leads the way, but behind it the picture varies Samsung ...... 37.3 wildly. In some markets Nokia Nokia ...... 16 remains a force. In others, Apple comes second - even though it Apple ...... 14.9 doesn’t make feature phones. Sony ...... 7.4 Other ...... 6.5 LG ...... 5 HTC ...... 3.5 Motorola ...... 2.4 Huawei ...... 1.9 Alcatel ...... 1.4 BlackBerry ...... 1.4 Google ...... 1 Acer ...... 0.4 Siemens ...... 0.3 ZTE ...... 0.3 Sagem ...... 0.2
MOBILE OEM MARKET SHARES BY COUNTRY
France %
Samsung ...... 39.2 Nokia ...... 13.4 Apple ...... 15.1 Sony ...... 7.8 Other ...... 8.9 LG ...... 4.5 HTC ...... 2.3 Motorola ...... 1.6 Huawei ...... 0.6 Alcatel ...... 2.4 BlackBerry ...... 1.8 Google ...... 0.7 Acer ...... 0.9 Siemens ...... 0 ZTE ...... 0.2 Sagem ...... 0.5
104 www.netsize.com 102-124 Netsize 2015 Data_final 02/06/2015 15:43 Page 4
Data /// The Gemalto Netsize Guide
MOBILE OEM MARKET SHARES BY COUNTRY
Germany %
Samsung ...... 40 Nokia ...... 14.8 Apple ...... 14.3 Sony ...... 8.3 Other ...... 4.6 LG ...... 4.6 HTC ...... 4.8 Motorola ...... 2.7 Huawei ...... 2.2 Alcatel ...... 0.7 BlackBerry ...... 0.6 Google ...... 0.7 Acer ...... 0.4 Siemens ...... 0.9 ZTE ...... 0.1 Sagem ...... 0.2
MOBILE OEM MARKET SHARES BY COUNTRY
Italy %
Samsung ...... 39.8 Nokia ...... 25.2 Apple ...... 9.3 Sony ...... 2.4 Other ...... 6.5 LG ...... 5.9 HTC ...... 1.4 Motorola ...... 2.6 Huawei ...... 2.6 Alcatel ...... 2 BlackBerry ...... 0.8 Google ...... 1.1 Acer ...... 0.3 Siemens ...... 0.2 ZTE ...... 0.1 Sagem ...... 0.1
www.gemalto.com 105 102-124 Netsize 2015 Data_final 02/06/2015 15:43 Page 5
The Gemalto Netsize Guide /// Data
MOBILE OEM MARKET SHARES BY COUNTRY
Spain %
Samsung ...... 37.1 Nokia ...... 8.6 Apple ...... 9.4 Sony ...... 12.3 Other ...... 10.1 LG ...... 9.4 HTC ...... 2.8 Motorola ...... 2 Huawei ...... 3.6 Alcatel ...... 1.4 BlackBerry ...... 1.1 Google ...... 1.2 Acer ...... 0.2 Siemens ...... 0.1 ZTE ...... 0.8 Sagem ...... 0
MOBILE OEM MARKET SHARES BY COUNTRY
UK %
Samsung ...... 30.3 Nokia ...... 16.7 Apple ...... 24.3 Sony ...... 7 Other ...... 3.9 LG ...... 2.2 HTC ...... 5.6 Motorola ...... 3 Huawei ...... 1 Alcatel ...... 1 BlackBerry ...... 2.9 Google ...... 1.3 Acer ...... 0.2 Siemens ...... 0.1 ZTE ...... 0.3 Sagem ...... 0.2
* Sample of mobile users over 13 years old, December 2014 ©2015 comScore Inc
106 www.netsize.com 102-124 Netsize 2015 Data_final 02/06/2015 15:43 Page 6
Data /// The Gemalto Netsize Guide
Apple dominates its home territory. SMARTPHONE MARKET SHARES BY OEM Four out of every ten smartphones US % sold is an iPhone.
Apple ...... 41.2 Samsung ...... 29.3 LG ...... 8.1 Motorola ...... 5.3 HTC ...... 3.8 Other ...... 3.7 Nokia ...... 2.6 BlackBerry ...... 2.1 ZTE ...... 1.1 Google ...... 1 Kyocera ...... 0.8 Huawei ...... 0.5 Sony ...... 0.2 Pantech ...... 0.2
SMARTPHONE MARKET SHARES BY OEM
Canada %
Apple ...... 38.3 Samsung ...... 32.4 BlackBerry ...... 8.9 Google ...... 5.3 Other ...... 3.9 HTC ...... 3.7 LG ...... 2.7 Nokia ...... 2.3 Motorola ...... 2.3 Sony ...... 0. Kyocera ...... 0
www.gemalto.com 107 102-124 Netsize 2015 Data_final 02/06/2015 15:43 Page 7
The Gemalto Netsize Guide /// Data
SMARTPHONE MARKET SHARES BY OEM
Japan %
Apple ...... 41.8 Sharp ...... 16 Sony ...... 13.8 Fujitsu ...... 8.4 Samsung ...... 5.1 Kyocera ...... 3.9 Other ...... 3.8 NEC ...... 1.9 Panasonic ...... 1.7 HTC ...... 1.4 LG ...... 1.4 Toshiba ...... 0.6 Pantech ...... 0.1
SMARTPHONE MARKET SHARES BY OEM
EU5 %
Samsung...... 39.3 Apple ...... 20.6 Nokia ...... 9.2 Sony ...... 8.5 HTC ...... 4.7 LG ...... 4.7 Other ...... 4.3 Huawei ...... 2.3 BlackBerry ...... 2 Motorola...... 1.7 Google ...... 1.2 Alcatel ...... 0.8 Acer ...... 0.4 ZTE ...... 0.2
108 www.netsize.com 102-124 Netsize 2015 Data_final 02/06/2015 15:43 Page 8
Data /// The Gemalto Netsize Guide
SMARTPHONE MARKET SHARES BY OEM
France %
Samsung...... 37.8 Apple ...... 20.8 Nokia ...... 10.2 Sony ...... 9 HTC ...... 3. LG ...... 3.9 Other ...... 7.6 Huawei ...... 0.7 BlackBerry ...... 2.5 Motorola...... 1.3 Google ...... 0.8 Alcatel ...... 1.1 Acer ...... 1.1 ZTE ...... 0
SMARTPHONE MARKET SHARES BY OEM
Germany %
Samsung...... 43.6 Apple ...... 20 Nokia ...... 7.7 Sony ...... 8.5 HTC ...... 6.5 LG...... 4 Other ...... 2.7 Huawei ...... 2.8 BlackBerry ...... 0.8 Motorola...... 1.5 Google ...... 1 Alcatel ...... 0.5 Acer ...... 0.4 ZTE ...... 0.2
www.gemalto.com 109 102-124 Netsize 2015 Data_final 02/06/2015 15:43 Page 9
The Gemalto Netsize Guide /// Data
SMARTPHONE MARKET SHARES BY OEM
Italy %
Samsung...... 45.3 Apple ...... 16.6 Nokia ...... 14.2 Sony ...... 3.3 HTC ...... 2.32 LG ...... 5.9 Other ...... 3.0 Huawei ...... 3.6 BlackBerry ...... 1.4 Motorola...... 1.0 Google ...... 1.6 Alcatel ...... 1.3 Acer ...... 0.4
SMARTPHONE MARKET SHARES BY OEM
Spain %
Samsung...... 39.5 Apple ...... 10.9 Nokia ...... 5.7 Sony ...... 13.3 HTC ...... 3.1 LG ...... 9.5 Other ...... 7.7 Huawei ...... 4 BlackBerry ...... 1.2 Motorola...... 2 Google ...... 1.4 Alcatel ...... 0.8 Acer ...... 0.1 ZTE ...... 0.7
110 www.netsize.com 102-124 Netsize 2015 Data_final 02/06/2015 15:43 Page 10
Data /// The Gemalto Netsize Guide
SMARTPHONE MARKET SHARES BY OEM
UK %
Samsung...... 31.8 Apple ...... 31.2 Nokia ...... 9.7 Sony ...... 7.5 HTC ...... 7 LG ...... 1.4 Other ...... 1.5 Huawei ...... 1 BlackBerry ...... 3.7 Motorola...... 2.6 Google ...... 1.6 Alcatel ...... 0.4 Acer ...... 0.2 ZTE ...... 0.3 * Sample of mobile users over 13 years old, December 2014 ©2015 comScore Inc
www.gemalto.com 111 102-124 Netsize 2015 Data_final 02/06/2015 15:44 Page 11
The Gemalto Netsize Guide /// Data
SMARTPHONE MARKET SHARES BY OS
2013 2014 US % % Android ...... 50.913...... 53.032 Apple ...... 42.002...... 41.155 Microsoft ...... 3.457 ...... 3.569 BlackBerry ...... 3.362 ...... 2.06 Other Smartphone ...... 0.173 ...... 0.123 Symbian ...... 0.093 ...... 0.061
Canada % % Android ...... 44.135...... 50.073 Apple ...... 36.687...... 38.268 BlackBerry ...... 15.467 ...... 8.916 Microsoft ...... 2.369 ...... 2.349 Symbian ...... 1.175 ...... 0.394 ...... 0.168 ......
Japan % % Android ...... 57.628...... 57.438 Apple ...... 41.096...... 41.842 Microsoft ...... 1.073 ...... 0.538 BlackBerry ...... 0.203 ...... 0.182
EU 5 % % Android ...... 60.911...... 66.377 Apple ...... 19.998...... 20.553 Microsoft ...... 6.9 ...... 7.699 Symbian ...... 6.504 ...... 2.601 BlackBerry ...... 4.04 ...... 1.966 Other Smartphone ...... 1.647 ...... 0.804
France % % Android ...... 56.326...... 63.044 Apple ...... 21.834 ...... 20.78 Microsoft ...... 4.497 ...... 8.923 Symbian ...... 6.91 ...... 2.253 BlackBerry ...... 5.017 ...... 2.518 Other Smartphone ...... 5.415 ...... 2.482
112 www.netsize.com 102-124 Netsize 2015 Data_final 02/06/2015 15:44 Page 12
Data /// The Gemalto Netsize Guide
SMARTPHONE MARKET SHARES BY OS
Germany % % Android ...... 65.396...... 69.385 Apple ...... 19.463...... 19.983 Microsoft ...... 7.541 ...... 5.994 Symbian ...... 5.085 ...... 3.228 BlackBerry ...... 1.334 ...... 0.826 Other Smartp
Italy % % Android ...... 56.276...... 66.206 Apple ...... 16.577...... 16.555 Microsoft ...... 13.344...... 10.779 Symbian ...... 9.591 ...... 4.511 BlackBerry ...... 2.977 ...... 1.425 Other Smartphone ...... 1.235 ...... 0.525
Spain % % Android ...... 75.386...... 81.215 Apple ...... 9.54...... 10.896 Microsoft ...... 6.933 ...... 4.447 Symbian ...... 4.217 ...... 2.021 BlackBerry ...... 3.481 ...... 1.243 Other Smartphone ...... 0.444 ...... 0.177
UK % % Android ...... 52.695...... 54.319 Apple ...... 30.214...... 31.197 Microsoft ...... 2.494 ...... 9.105 Symbian ...... 6.752 ...... 1.418 BlackBerry ...... 7.502 ...... 3.684 Other Smartphone ...... 0.342 ...... 0.278
* Sample of mobile users over 13 years old, December 2014 ©2015 comScore Inc
www.gemalto.com 113 102-124 Netsize 2015 Data_final 02/06/2015 15:44 Page 13
The Gemalto Netsize Guide /// Data
SMARTPHONE ACTIVITY: APPS, SITES AND PAYMENTS
US Target Audience (000) %
Total Audience ...... 181508.189 ...... 100 Ever in month [Email (Work/Personal)]...... 143064.927...... 78.82 Ever in month [Weather] ...... 124662.088 ...... 68.681 Ever in month [Social Networking]...... 120683.551 ...... 66.489 Ever in month [Search] ...... 107686.393 ...... 59.329 Ever in month [Maps/Directions]...... 96828.272 ...... 53.347 Ever in month [Instant Messaging Service]...... 94779.022 ...... 52.217 Ever in month [Local/World News]...... 89887.06 ...... 49.522 Ever in month [Watched TV/Video]...... 83234.794 ...... 45.857 Ever in month [Sports] ...... 73370.732 ...... 40.423 Bank Accounts [Ever in Month] ...... 72095.614...... 39.72 Entertainment News [Ever in Month]...... 71427.586 ...... 39.352 Retail [Ever in Month]...... 64245.588 ...... 35.395 Financial News [Ever in Month]...... 52435.096 ...... 28.889 Electronic Payments/Money Transfer [Ever in Month] ...... 42557.244 ...... 23.446
* Sample of mobile users over 13 years old, December 2014 ©2015 comScore Inc
SMARTPHONE ACTIVITY: APPS, SITES AND PAYMENTS
Canada Target Audience (000) %
Total Audience...... 19748.024 ...... 100 Ever in month [Email (Work/Personal)] ...... 14897.643...... 75.439 Ever in month [Weather]...... 13156.178...... 66.62 Ever in month [Social Networking] ...... 12131.811...... 61.433 Ever in month [Instant Messaging Service] ...... 11755.176...... 59.526 Ever in month [Search]...... 11717.694...... 59.336 Ever in month [Maps/Directions] ...... 9540.673...... 48.312 Ever in month [Watched TV/Video]...... 8537.995...... 43.235 Ever in month [Local/World News] ...... 8537.451...... 43.232 Bank Accounts [Ever in Month]...... 7376.35...... 37.352 Entertainment News [Ever in Month] ...... 6799.132...... 34.429 Ever in month [Sports]...... 6708.328...... 33.97 Financial News [Ever in Month] ...... 4641.277...... 23.502 Retail [Ever in Month]...... 4332.003...... 21.936 Electronic Payments/Money Transfer [Ever in Month]...... 3337.335 ...... 16.9
* Sample of mobile users over 13 years old, December 2014 ©2015 comScore Inc
114 www.netsize.com 102-124 Netsize 2015 Data_final 02/06/2015 15:44 Page 14
Data /// The Gemalto Netsize Guide
SMARTPHONE ACTIVITY: APPS, SITES AND PAYMENTS
Japan Target Audience (000) %
Total Audience...... 48390.746 ...... 100 Ever in month [Email (Work/Personal)] ...... 33795.667...... 69.839 Ever in month [Weather]...... 32098.988...... 66.333 Ever in month [Search]...... 28233.527...... 58.345 Ever in month [Local/World News] ...... 24448.419...... 50.523 Entertainment News [Ever in Month] ...... 21585.077...... 44.606 Ever in month [Maps/Directions] ...... 20535.236...... 42.436 Ever in month [Sports]...... 19001.055...... 39.266 Financial News [Ever in Month] ...... 18034.228...... 37.268 Ever in month [Instant Messaging Service] ...... 16522.088...... 34.143 Ever in month [Social Networking] ...... 16163.582...... 33.402 Retail [Ever in Month] ...... 11841.051...... 24.47 Ever in month [Watched TV/Video]...... 9317.792...... 19.255 Bank Accounts [Ever in Month]...... 6321.785...... 13.064 Electronic Payments/Money Transfer [Ever in Month]...... 5875.052...... 12.141
* Sample of mobile users over 13 years old, December 2014 ©2015 comScore Inc
SMARTPHONE ACTIVITY: APPS, SITES AND PAYMENTS
EU5 Target Audience (000) %
Total Audience...... 175026.345 ...... 100 Ever in month [Email (Work/Personal)] ...... 119438.509...... 68.24 Ever in month [Instant Messaging Service] ...... 107782.18...... 61.581 Ever in month [Weather]...... 103095.13...... 58.903 Ever in month [Social Networking] ...... 98081.791...... 56.038 Ever in month [Search]...... 93196.543...... 53.247 Ever in month [Local/World News] ...... 79315.204...... 45.316 Ever in month [Maps/Directions] ...... 72017.826...... 41.147 Ever in month [Watched TV/Video]...... 70947.33...... 40.535 Entertainment News [Ever in Month] ...... 60131.319...... 34.356 Ever in month [Sports]...... 59821.995...... 34.179 Bank Accounts [Ever in Month]...... 52939.673...... 30.247 Retail [Ever in Month]...... 47616.3...... 27.205 Financial News [Ever in Month] ...... 38397.108...... 21.938 Electronic Payments/Money Transfer [Ever in Month]...... 34246.66...... 19.567
* Sample of mobile users over 13 years old, December 2014 ©2015 comScore Inc
www.gemalto.com 115 102-124 Netsize 2015 Data_final 02/06/2015 15:44 Page 15
The Gemalto Netsize Guide /// Data
SMARTPHONE ACTIVITY: APPS, SITES AND PAYMENTS
France Target Audience (000) %
Total Audience...... 34215.122 ...... 100 Ever in month [Email (Work/Personal)] ...... 20928.061...... 61.166 Ever in month [Weather]...... 16794.883...... 49.086 Ever in month [Search]...... 17341.852...... 50.685 Ever in month [Local/World News] ...... 17285.745...... 50.521 Entertainment News [Ever in Month] ...... 16630.709...... 48.606 Ever in month [Maps/Directions] ...... 12903.251...... 37.712 Ever in month [Sports]...... 11110.184...... 32.472 Financial News [Ever in Month] ...... 10097.486...... 29.512 Ever in month [Instant Messaging Service] ...... 10976.356...... 32.08 Ever in month [Social Networking] ...... 9059.777...... 26.479 Retail [Ever in Month] ...... 10871.523...... 31.774 Ever in month [Watched TV/Video]...... 5719.737...... 16.717 Bank Accounts [Ever in Month]...... 5860.322...... 17.128 Electronic Payments/Money Transfer [Ever in Month] ...... 3967.1...... 11.595
* Sample of mobile users over 13 years old, December 2014 ©2015 comScore Inc
SMARTPHONE ACTIVITY: APPS, SITES AND PAYMENTS
Germany Target Audience (000) %
Total Audience...... 44249.668 ...... 100 Ever in month [Email (Work/Personal)] ...... 29102.601...... 65.769 Ever in month [Weather]...... 25656.689...... 57.982 Ever in month [Search]...... 27232.534...... 61.543 Ever in month [Local/World News] ...... 20918.231...... 47.273 Entertainment News [Ever in Month] ...... 21833.026...... 49.341 Ever in month [Maps/Directions] ...... 18954.314...... 42.835 Ever in month [Sports]...... 17584.198...... 39.739 Financial News [Ever in Month] ...... 17179.013...... 38.823 Ever in month [Instant Messaging Service]...... 13314.87...... 30.09 Ever in month [Social Networking] ...... 14156.743...... 31.993 Retail [Ever in Month] ...... 10581.133...... 23.912 Ever in month [Watched TV/Video]...... 13837.744...... 31.272 Bank Accounts [Ever in Month]...... 8844.76...... 19.988 Electronic Payments/Money Transfer [Ever in Month]...... 8040.149...... 18.17
* Sample of mobile users over 13 years old, December 2014 ©2015 comScore Inc
116 www.netsize.com 102-124 Netsize 2015 Data_final 02/06/2015 15:44 Page 16
Data /// The Gemalto Netsize Guide
SMARTPHONE ACTIVITY: APPS, SITES AND PAYMENTS
Italy Target Audience (000) %
Total Audience...... 25746.638 ...... 100 Ever in month [Email (Work/Personal)] ...... 18955.474...... 73.623 Ever in month [Weather]...... 19873.766...... 77.19 Ever in month [Search]...... 16642.646...... 64.64 Ever in month [Local/World News] ...... 16404.31...... 63.714 Entertainment News [Ever in Month] ...... 13101.176...... 50.885 Ever in month [Maps/Directions] ...... 13519.712...... 52.511 Ever in month [Sports]...... 13068.715...... 50.759 Financial News [Ever in Month] ...... 13843.156...... 53.767 Ever in month [Instant Messaging Service] ...... 10253.067...... 39.823 Ever in month [Social Networking] ...... 10455.931...... 40.611 Retail [Ever in Month]...... 6558.671...... 25.474 Ever in month [Watched TV/Video]...... 8056.503...... 31.291 Bank Accounts [Ever in Month]...... 7257.392...... 28.188 Electronic Payments/Money Transfer [Ever in Month]...... 7140.933...... 27.735
* Sample of mobile users over 13 years old, December 2014 ©2015 comScore Inc
SMARTPHONE ACTIVITY: APPS, SITES AND PAYMENTS
Spain Target Audience (000) %
Total Audience...... 31200.596 ...... 100 Ever in month [Email (Work/Personal)] ...... 21435.616...... 68.703 Ever in month [Weather]...... 22238.704...... 71.277 Ever in month [Search]...... 18375.631...... 58.895 Ever in month [Local/World News] ...... 18869.229...... 60.477 Entertainment News [Ever in Month] ...... 18634.742...... 59.726 Ever in month [Maps/Directions] ...... 14164.549...... 45.398 Ever in month [Sports]...... 14129.454...... 45.286 Financial News [Ever in Month] ...... 14670.952...... 47.021 Ever in month [Instant Messaging Service] ...... 11075.801...... 35.499 Ever in month [Social Networking] ...... 11667.97...... 37.397 Retail [Ever in Month] ...... 11437.195...... 36.657 Ever in month [Watched TV/Video]...... 5677.041...... 18.195 Bank Accounts [Ever in Month]...... 8017.805...... 25.698 Electronic Payments/Money Transfer [Ever in Month]...... 6688.826...... 21.438
* Sample of mobile users over 13 years old, December 2014 ©2015 comScore Inc
www.gemalto.com 117 102-124 Netsize 2015 Data_final 02/06/2015 15:44 Page 17
The Gemalto Netsize Guide /// Data
SMARTPHONE ACTIVITY: APPS, SITES AND PAYMENTS
UK Target Audience (000) %
Total Audience ...... 39614.32 ...... 100 Ever in month [Email (Work/Personal)] ...... 29016.757...... 73.248 Ever in month [Weather]...... 23218.138...... 58.61 Ever in month [Search]...... 23502.466...... 59.328 Ever in month [Local/World News] ...... 24604.276...... 62.11 Entertainment News [Ever in Month] ...... 22996.889...... 58.052 Ever in month [Maps/Directions] ...... 19773.378...... 49.915 Ever in month [Sports]...... 16125.274...... 40.706 Financial News [Ever in Month] ...... 15156.723...... 38.261 Ever in month [Instant Messaging Service] ...... 14511.224...... 36.631 Ever in month [Social Networking] ...... 14481.574...... 36.556 Retail [Ever in Month]...... 13491.15...... 34.056 Ever in month [Watched TV/Video]...... 14325.275...... 36.162 Bank Accounts [Ever in Month]...... 8416.829...... 21.247 Electronic Payments/Money Transfer [Ever in Month]...... 8409.652...... 21.229
©2015 comScore Inc
118 www.netsize.com 102-124 Netsize 2015 Data_final 02/06/2015 15:44 Page 18
Data /// The Gemalto Netsize Guide
TOP 50 MULTI-PLATFORM PROPERTIES (US) - APRIL 2015
Property Unique visitors - desktop and mobile (000s)
Total Audience ...... 257,879
1 Google Sites ...... 243,067 2 Yahoo Sites ...... 213,365 3 Facebook ...... 211,982 4 Amazon Sites ...... 178,318 5 Microsoft Sites ...... 173,421 6 AOL, Inc...... 170,447 7 Mode Media (formerly Glam Media)...... 152,080 8 Apple Inc...... 140,433 9 Comcast NBCUniversal...... 135,298 10 CBS Interactive ...... 134,785 11 eBay...... 125,921 12 Wikimedia Foundation Sites ...... 119,678 13 Gannett Sites...... 115,612 14 Linkedin...... 115,427 15 Turner Digital ...... 115,400 16 Time Inc. Network (U.S)...... 106,632 17 Twitter.com...... 102,013 18 Weather Company, The...... 98,464 19 Hearst Corporation ...... 89,721 20 Pandora.com...... 86,231 21 Yelp ...... 84,994 22 About ...... 84,521 23 Wal-Mart ...... 81,988 24 SheKnows Media...... 80,904 25 WebMD Health ...... 77,387
www.gemalto.com 119 102-124 Netsize 2015 Data_final 02/06/2015 15:44 Page 19
The Gemalto Netsize Guide /// Data
TOP 50 MULTI-PLATFORM PROPERTIES (US) - APRIL 2015 CONTD...
26 BuzzFeed.com...... 76,718 27 Pinterest.com...... 76,640 28 Conde Nast Digital...... 75,951 29 Answers.com Sites ...... 75,598 30 ESPN ...... 75,508 31 WordPress.com* ...... 71,636 32 Mail Online / Daily Mail...... 67,615 33 Zillow Inc. Sites ...... 65,461 34 craigslist, inc...... 63,474 35 Viacom Digital ...... 62,523 36 Meredith Digital ...... 62,251 37 TripAdvisor Inc...... 59,684 38 New York Times Digital...... 59,333 39 Demand Media...... 58,572 40 Scripps Networks Interactive Inc...... 58,511 41 Netflix.com...... 58,222 42 Adobe Sites ...... 57,930 43 Ask Network...... 56,668 44 Vimeo...... 54,825 45 Cox Enterprises Inc...... 53,617 46 Vox Media ...... 53,208 47 iHeartRadio Network ...... 53,056 48 YP Sites...... 52,915 49 Fox News Digital Network ...... 52,001 50 Gawker Media ...... 51,594 ©2015 comScore Inc
120 www.netsize.com 102-124 Netsize 2015 Data_final 02/06/2015 15:44 Page 20
Data /// The Gemalto Netsize Guide
TOP 20 DIGITAL MEDIA PROPERTIES BY UNIQUE VISITORS (UK) - MARCH 2015
Property visitors (000s) % share mobile and PC
Total Internet Audience 47,523 72
1 Google Sites...... 45,988 ...... 66 2 BBC Sites...... 40,608 ...... 33 3 Facebook...... 40,576 ...... 55 4 Microsoft Sites...... 37,119 ...... 36 5 Amazon Sites...... 36,712 ...... 33 6 Yahoo Sites...... 32,421 ...... 38 7 eBay ...... 31,415 ...... 37 8 Mail Online...... 28,121 ...... 21 9 Sky Sites ...... 27,437 ...... 19 10 Apple Inc...... 27,339 ...... 13 11 Wikimedia Foundation Sites ...... 26,449 ...... 26 12 Mode Media ...... 24,272 ...... 16 13 Trinity Mirror Group...... 23,333 ...... 11 14 AOL, Inc...... 22,052 ...... 25 15 Twitter.com ...... 21,612 ...... 18 16 Linkedin ...... 21,379 ...... 18 17 The Guardian ...... 19,200 ...... 20 18 Telegraph Media Group...... 18,830 ...... 17 19 GOV.UK...... 16,449 ...... 15 20 Tesco Stores ...... 14,903 ...... 19 ©2015 comScore Inc
www.gemalto.com 121 102-124 Netsize 2015 Data_final 02/06/2015 15:44 Page 21
The Gemalto Netsize Guide /// Data
THE INTERNET OF THINGS: INSTALLED BASE BY CATEGORY
2014 2015 2020 millions millions millions
Automotive ...... 189.6 ...... 372.3 ...... 3511.1 Consumer ...... 2244.5 ...... 2874.9 ...... 13172.5 Generic Business...... 479.4 ...... 623.9 ...... 5158.6 Vertical Business...... 836.5 ...... 1009.4 ...... 3164.4
Total...... 3750...... 4880...... 25006 source: Gartner
THE INTERNET OF THINGS: % VALUE BY CATEGORY
Total value ...... $1.9trn
Manufacturing ...... 15 Healthcare ...... 15 Insurance ...... 11 Banking and securities...... 10 Retail and wholesale ...... 8 Computing ...... 8 Transport ...... 7 Government ...... 6 Utilities...... 5 Real Estate...... 4 Agriculture...... 4 Other ...... 3 source: Gartner
122 www.netsize.com 102-124 Netsize 2015 Data_final 02/06/2015 15:44 Page 22
Data /// The Gemalto Netsize Guide
MARKET FOR SMARTWATCHES AND HEALTH/FITNESS TRACKERS
Smartwatch Health and Fitness Trackers 2014 2015 2014 2015
units (m) units (m) units (m) units (m)
Western Europe...... 0.8...... 5.4...... 4 ...... 7.1 APAC ...... 0.8...... 5.3...... 2.5 ...... 4.5 N America ...... 1.2...... 7.4...... 4.8 ...... 8.5 Developed Regions...... 2.8...... 18.1...... 11.3 ...... 20.1 C&E Europe...... 0.2...... 1.3...... 0.6 ...... 1.1 China...... 0.5...... 3.6...... 0.9 ...... 2.3 Emerging APAC...... 0.2...... 1.4...... 0.2 ...... 0.4 S America ...... 0.1...... 0.6...... 0.2 ...... 0.5 Midle East and Africa ...... 0.2...... 1.1...... 0.3 ...... 0.6 Emerging Regions...... 1.2...... 8...... 2.2 ...... 4.9
Global 4 26.1 13.5 25 source: GfK
WEARABLE DEVICE SHIPMENTS
Category 2014 2015 2019
units % of units % of units % of (millions) market (millions) market (millions) market Wristwear ...... 17.7...... 90.4...... 40.7...... 89.2...... 101.4 ...... 80.4 Modular ...... 1.6...... 8.3...... 2.6...... 5.7...... 6.7 ...... 5.3 Clothing ...... 0 ...... 0.1...... 0.2...... 0.4...... 5.6 ...... 4.5 Eyewear ...... 0.1...... 0.3...... 1...... 2.2...... 4.5 ...... 3.5 Earwear ...... 0 ...... 0.1...... 0.1...... 0.1...... 0.6 ...... 0.5 Other...... 0.2...... 0.9...... 1.1...... 2.4...... 7.3 ...... 5.8
Total 19.6 100 45.7 100 126.1 100 source: IDC quarterly wearable device tracker
www.gemalto.com 123 102-124 Netsize 2015 Data_final 02/06/2015 15:44 Page 23
The Gemalto Netsize Guide /// Data
CELLULAR M2M AS A PERCENTAGE OF TOTAL MOBILE CONNECTIONS
Q2 2014 Q4 2020 % %
North America...... 10.5 ...... 27 Europe ...... 6.8 ...... 20.4 Asia Pacific ...... 2.4 ...... 8.8 Latin America...... 2.1 ...... 6.9 CIS ...... 2 ...... 8.3 MENA...... 1.2 ...... 3.7 Sub-Saharan Africa ...... 1.2 ...... 2.9 World ...... 3 ...... 9.7 source: GSMA
SMART CITY CONNECTED DEVICE VOLUMES
Category 2015 2016 2017 units (millions) units (millions) units (millions)
Healthcare ...... 9.7 ...... 15...... 23.4 Public services...... 97.8 ...... 126.4...... 159.5 Smart commercial buildings...... 206.2 ...... 354.6...... 648.1 Smart homes ...... 294.2 ...... 586.1...... 1067 Transport...... 237.2 ...... 298.9...... 371 Utilities...... 252 ...... 304.9...... 371.1 Other ...... 10.2 ...... 18.4...... 33.9
Total 1107.3 1704.2 2674 Source: Gartner
124 www.netsize.com 125 Netsize 2015 Acknowledgements_final v2 02/06/2015 15:46 Page 1
Acknowledgements /// The Gemalto Netsize Guide
The Gemalto Netsize Guide
Published by: Gemalto N.V 6 rue de la Verrerie, 92197 Meudon Cedex, France
Gemalto logos and product Editors: and/or service names are trademarks of Gemalto N.V. or Jane Strachey its affiliates. The reproduction, Head of Marketing Communications, Netsize duplication, distribution, publication, modification, Tim Green copying or translation of any of the material contained in this Editor in chief, Mobile Money Revolution guide, without the express and www.mobilemoneyrevolution.co.uk written authorization of Gemalto @timgreen64 and Netsize, is strictly prohibited. Counterfeiting shall be pursued. NetsizeTM is Design and layout: protected by French, EEC and 155 Creative international intellectual [email protected] property laws. All other 15 5 creative trademarks and copyright www.155creative.co.uk material quoted in this guide are design. print. online. the sole property of their Data: respective owners. Where a trademark or a copyright Thanks to comScore, GSMA, GfK, Beecham, CCS, Gartner material is quoted in this guide by third parties contributing to it, Photo credits: Gemalto and Netsize do not Creative commons, Fotolia. Photos and images supplied by the thereby represent that such third parties have an ownership interviewees are published under their responsibility. interest in, or a license to use, any such trademarks or Acknowledgements: copyright material. No copyright material in this guide may be Many thanks to the interviewees and all who have worked together copied or further disseminated to produce this edition of the Gemalto Netsize Guide. without the express and written permission of the legal holder of Mike Bell (Jaguar), Mark Curtis (Fjord), Jamie Conyngham (Tapit), that copyright. While Gemalto and Netsize have attempted to Steve Leonard (Singapore Infocomm), Matt Owen (M2M make the information in this Intelligence), Tarra Del Chiaro (GUESS), Martin Enriquez (Visa), guide as accurate as possible, James Lyne (Sophos), Sonny Vu (Misfit), Ben Wood (CCS), Taanya the information in this guide is provided 'as is' without any Manlik and Sarah Radwanick (Comscore), Ulrike Röhr (GfK), express or implied warranty of Robert van der Meulen (Gartner), Manfred Kube, Michael Tworek, any kind. Gemalto and Netsize Laetitia Jay, Jean-Claude Deturche, Jean-François Ouillet, Thomas exclude all liability to any person Seitz, Remi de Fouchier, Benoit Jouffrey, Michel Guiragossian and arising directly or indirectly from using this guide and any Chantal Abadie (Gemalto), Ludovic Maupain, Niclas Granholm and information from it. Arnaud Dubreuil (Netsize).
@ 2015 Gemalto N.V. All rights reserved. @ 2015 Gemalto N.V. All rights reserved.
www.netsize.com 125 126,127 Netsize 2015 - Notes_final 03/06/2015 11:00 Page 1
The Gemalto Netsize Guide /// Notes
NOTES
______
126 www.netsize.com 126,127 Netsize 2015 - Notes_final 03/06/2015 11:00 Page 2
Notes /// The Gemalto Netsize Guide
NOTES
______
www.gemalto.com 127 01,126 Netsize 2015 - COVER_final v2 02/06/2015 15:42 Page 1
About the Gemalto Netsize Guide A world of connected devices lies just around the corner. After the desktop and mobile eras, we’re now entering a phase in which sensors will be embedded into wearables, appliances and industrial objects. These devices will change in response to context. In a sense, what was previously dumb will become alive.
In this 2015 edition of the Gemalto Netsize Guide, we explore the on-going evolution of mobility and the profound impact of the Internet of Things.
Netsize powers micropayment and messaging services for operators. We help our customers to monetise mobile services, improve brand awareness, acquire new customers, manage customer relationships and optimise business efficiency. The Netsize payment network connects more than 1000 companies to over 160 mobile network operators and reaches more than two billion consumers.
Gemalto helps people trust one another in an increasingly connected digital world. Billions of people want better lifestyles, smarter living environments, and the freedom to communicate, shop, travel, bank, entertain and work – anytime, everywhere – in ways that are enjoyable and safe. In this fast moving mobile and digital environment, we enable companies and administrations to offer a wide range of trusted and convenient services by securing financial transactions, mobile services, public and private clouds, eHealthcare systems, access to eGovernment Published by: Gemalto N.V. services, the Internet and internet-of- 6 rue de la Verrerie, 92197 Meudon Cedex, France things and transport ticketing systems.