MDM no3 1998 QXP 3.32 a 1999-02-19 17.59 Sidan 1 mobile data3/98 •M A G A Z I N E•

EFT/POS and Mobitex – a winning combination [10]

Mobitex offers true two-way messaging [20]

mobile data magazine 1 Canadians on the move [4] • Top-notch banking in Turkey [15] • Those innovative Koreans [18] MDM no3 1998 QXP 3.32 a 1999-02-19 17.59 Sidan 2

contents: no.3 1998

Publisher’s Note Canada: The pizzaman cometh The theme for this issue is wireless point-of- Cantel AT&T’s new AirPOS service is on its way [3] sale applications. Find out why this is becoming [16 ] to becoming the national standard and is being a cornerstone application for many operators used by a variety of merchants, including a with significant near-term growth potential. pizza delivery service.

Mobile Data News Wireless innovations abound in Korea Cantel expands its network The Mobitex operator in Korea is developing [5] New Mobitex modem [18 ] innovative applications. WyndTell POS in Indonesia Mobitex goes for the moon Interactive messaging is a new market in which [20] operators are competing with vastly different technologies. Our technology review shows why Mobitex is the superior alternative for interactive messaging.

Point-of-sales and Mobitex – Charting the wide world of terminals a winning combination More than a dozen manufacturers supply Our theme article for this issue explains why [24] terminals for the fast-growing wireless POS [10] Mobitex is the ideal technology for wireless POS segment. We contacted the suppliers to get the applications, which are expected to show strong facts on these important products. growth in coming years. Wanda Wave The Netherlands: No cash on delivery A visit to Turkey reveals that our roaming needed with Dutch service [27] reporter is a shopaholic. Can wireless The PTT Post Parcel Service chose Mobitex to messaging provide a cure when Wanda’s fingers [14] increase efficiency and improve customer are itching to take out her credit card? service.

Turkey: Wireless point-of-sale spreading in Turkey Yapi Kredi Bank is installing 4,000 wireless POS [15 ] terminals which will increase the bank’s market share in merchant banking and improve service to card holders.

PUBLISHER CONTRIBUTORS Mobile Data Magazine is Gunilla Rydberg Alan Sheats & published under Swedish Tel: +46 31 703 60 63 Eva Jonsson Wallin press law by Ericsson Mobile E-mail: POSTAL ADDRESS EDITORIAL CONSULTANT Data Design AB in cooperation [email protected] Ericsson Mobile Data Bugli Company AB with The Bugli Company. Design AB EDITORS LAYOUT The opinions expressed in S:t Sigfridsgatan 89 Ingrid Wallgren Henrik Kool Mobile Data Magazine are not S-412 66 Göteborg Tel: +46 31 703 64 40 necessarily those of Ericsson Sweden E-mail: PRINTED BY Mobile Data Design AB. [email protected] Alfredssons Offset AB E-MAIL Mobile Data Magazine is [email protected] Bollebygd, Sweden Henrik Kool distributed to the international INTERNET Tel: +46 31 703 63 72 PRE PRESS telecommunications community E-mail: CITAT AB, Gothenburg http://www.ericsson.se/ in more than 100 countries. mobitex [email protected]

2 mobile data magazine MDM no3 1998 QXP 3.32 a 1999-02-19 17.59 Sidan 3

PUBLISHER’S NOTE New wave of growth

   In Turkey, Yapi Kredi Bank is has been increasingly steadily for    working with Mobitex operator many years, but users have lacked a for wireless data Mobicom to deploy a versatile truly convenient, plug-and-play continues to change. wireless POS service for merchants solution for wireless massaging. New market con- and consumers. In Canada, Cantel With the Interactive Paging service ditions and user AT&T has developed the AirPOS offered by BellSouth Wireless Data demands shape our service, which will be used by and similar services being launched world. Yesterday’s several of the country’s commercial by other Mobitex operators, such a killer app is finally banks. In the Netherlands, RAM solution is finally available at a very making prime Mobile Data operates the only affordable price. time. An appli- network approved for connection to cation once considered a sleeper is BeaNet, the national network for Mobitex technology continues to now a market opener. EFT/POS transactions. evolve. This is as it should be and Of course, Mobitex, the de facto These three case studies represent the primary reason why Mobitex is international standard for wireless only a small sample of the POS the leader in wireless data data, just gets better. Ericsson, applications currently in operation communications. operators in 22 countries around or now being deployed. In Europe, the world and a growing number of the Americas and Asia, Mobitex In light of this, we are very suppliers continue to advance the operators and their business pleased to be able to announce that technology. Some things never partners are finding that wireless Rogers Cantel, the first Mobitex change. POS is a key market segment with operator outside the Nordic region, significant growth potential. is expanding its network in Canada. Our theme for this issue is wire- As our article on wireless POS Due to Rogers Cantel’s dedication less POS (point-of-sale) appli- terminals shows, equipment manu- and expertise, combined with a high cations. For some time, this applica- facturers are also eager to take level of IT maturity in Canada, we tion segment has been regarded as advantage of this opportunity. We are certain that their expansion the next big thing in wireless data, have identified nearly a dozen project will be successful. Their yet various obstacles have pre- manufacturers of wireless POS investment also proves that vented wireless POS applications terminals for Mobitex and made Mobitex is truly a competitive from being deployed on a wide every effort to obtain information system when it comes to interactive scale. about their products for this issue messaging and POS. Today the pieces are finally in of Mobile Data Magazine. place. Mobitex operators and Despite our best efforts, we have terminal vendors are able to offer undoubtedly missed some products. financial institutions and merchants We offer our apologies to these turnkey solutions based on a highly vendors. Please send us your reliable and cost-efficient network product information, and we will service. Wireless POS is becoming do our best to rectify the omission. the cornerstone application in many markets, offering a business On another front, interactive case that illustrates the key benefits messaging is gaining ground. Of Gunilla Rydberg of Mobitex technology. course, e-mail and Internet usage 

mobile data magazine 3 MDM no3 1998 QXP 3.32 a 1999-02-19 17.59 Sidan 4

mobile data news Mobitex expands from coast to coast in Canada

available nationwide. “IVI Checkmate has partners have the most effective sales made a significant investment in Mobitex- channels, the right technology and best-of- based POS products. Rogers Cantel’s clear class products. The demand is there and commitment to Mobitex on a national scale Rogers Cantel is well-positioned for it.” will ensure that we can provide our portable With this most recent expansion, Rogers Rogers Cantel has announced the POS terminals to more Canadians than ever Cantel will add enhanced Mobitex coverage ■ largest expansion of the Mobitex before,” says Barry Thomson, IVI Check- to Victoria, Vancouver lower mainland and network to date. Canadians in major urban mate’s president and CEO. the Fraser Valley, Edmonton, Winnipeg, centers from coast to coast will now have The growth of the Internet and the greater Montreal, Quebec City and Halifax, access to the dedicated packet-data explosion in the use of e-mail is indirectly thereby completing its coast-to-coast transmission capability of Mobitex. This driving the demand for two-way paging. The provision of service. This phase is major expansion of the network will demand for wireless e-mail access is very scheduled for completion by April 1999. complete phase two of the two-part Mobitex strong, but until recently, the technology build-out and will provide Mobitex coverage available has been expensive for end-users For more information: to over two-thirds of the Canadian and limited in terms of functionality. Now, Frank Maduri population. with RIM’s new Inter@ctive 950 two-way Cantel AT&T Frank Maduri, director of wireless data at pager, users can send and receive e-mail [email protected] Rogers Cantel, enthusiastically explains how wirelessly and continue to have access to Tel: +1416 935 7325 market and technology forces have basic paging functionality. Rogers Cantel converged and motivated this nationwide readily anticipates the likely upswing in investment. There has been a significant demand for Mobitex services among mobile increase in the demand for wireless data business professionals. services, particularly point-of-sale (POS) “We are committed to providing more New CD-ROM applications and two-way messaging. The mobile professionals in Canada with easy forthcoming technology has advanced and reached the and secure access to the full range of point where these services can finally be wireless services, including corporate e-mail Ericsson Mobile Data Design delivered in a user-friendly and cost-effective and LAN access,” comments Charles ■ announces the development of a manner. Hoffman, CEO of Rogers Cantel. “Canadians CD-ROM version of the Mobitex Interface Canadians are the world’s largest users of need to be productive and have access to Specifications (MIS). Until now, the debit cards on a per capita basis. The their computer networks, even when they company has distributed the MIS in the form availability of wireless hand-held POS are away from the workplace. The robust of a thick binder to operators and devices will allow Canadians to continue and reliable coverage of the Cantel AT&T application developers. using their debit cards, even when paying for Mobitex network is the answer to that need.” The new CD-ROM, which is in HTML taxis, home deliveries and so forth. The Another market segment that stands to format, is redesigned, updated and much Canadian addiction to plastic will definitely gain from the network expansion is easier to use compared with the hard-copy result in a skyrocketing demand for wireless telemetry. Rogers Cantel sees potential version. Users can quickly browse through POS. Two out of five of Canada’s major within the next two years, as utility the contents to find the information they commercial banks have signed up to use companies begin to deregulate. By that time, need. The binder will also be kept up-to- Rogers Cantel’s network for electronic funds the company will be well equipped to meet date for those who prefer paper. transfer applications, making coast-to-coast the utilities’ demands. The release date is scheduled for this coverage a must. (See separate article on Frank Maduri strongly believes that a autumn. Distribution channels for the CD- page 10.) bright future awaits Mobitex. ROM will be determined at the next MOA Rogers Cantel is already working with IVI “The timing is perfect. Calls are constantly meeting. Checkmate (formerly International Verifact coming in asking for our services, and we Inc.) to provide merchants and consumers have the solutions to the applications For more information with access to the convenience of a POS companies are looking for,with the coverage Contact your system, which the expansion will make to match. Cantel and its strategic business Mobitex operator.

4 mobile data magazine MDM no3 1998 QXP 3.32 a 1999-02-19 17.59 Sidan 5

New POS application makes for easy shopping

PT Massinfo Nusantara of Indonesia wireless network and poses a number of other major department stores, ■ has taken EFT/POS applications one difficulties in consistently obtaining a good- supermarkets and hotels. Between ten and step further. The Mobitex operator has quality line. 40 terminals are used, depending on developed a system for multiple point-of- Larger stores normally use a leased transaction volumes. sale terminals connected to one radio wireline connection with a fixed The financial institutions using the modem. This application is ideal for larger communication cost. Cost efficiency is Wireless Router ISO 8583 include American users, such as department stores and obtained only with higher credit card Express Bank, Citibank and Duta Bank. supermarkets, which may have many POS transaction volumes; if cash sales are PT Massinfo Nusantara plans to continue terminals on-site for credit card sales, but numerous, then the system becomes introducing the application to potential need only one connection. expensive for the merchant. Since Mobitex merchant and banking customers who The multiple point-of-sale terminals are is based on packet switching, the costs are would benefit from switching to a wireless connected to the Mobitex network using the based on the actual number of data packets system. The company currently has an Wireless Router ISO 8583 from PT Dataline transferred through the network. In the end, exclusive distribution agreement for the Prima Komunikasi, which also contains a it is much cheaper than the public telephone Wireless Router ISO 8583 and is interested radio modem (see configuration). network, both in terms of dial-up and leased in introducing the multiple POS application in This application was developed lines. The ability to use several POS other countries as well. specifically to help users reduce the costs of terminals on one Mobitex connection serves the communication link between the POS to further enhance cost efficiency. For more information: terminals and the bank host computer. In The multiple POS terminal application has Chendra Asih Saan Indonesia, most of these links are currently already been implemented in department PT Massinfo Nusantara over the public telephone network, which is stores, including Sogo, Metro and Makro, [email protected] relatively expensive compared with the and installations are underway in several Tel: +62 21 4758018

Radio Router modem PABX X.25 Network

Radio Radio base station NAC Router modem Host Computer Switching EFTPOS EFTPOSPABX EFTPOS EFTPOS (bank) Terminal Terminal Terminal Terminal (operator)

New Ericsson modem announced

Ericsson Mobile Data Design recently Ericsson’s latest-generation mobile The new modem, which is expected to be ■ announced the Mobidem M3090 telephones. Since the unit is designed solely available during the first half of 1999, was OEM Wireless Modem. The M3090 is a for integration into third-party OEM developed in record time by a team of compact wireless radio modem designed equipment, it has no casing Ericsson engineers who faced the challenge for easy integration into third-party OEM and employs a 14-pin of moving to a completely new platform with equipment for telemetry, security and serial interface. a new processor and a new development SCADA applications. “With the environment. A full report on this ground- Designed for the 900 MHz Mobitex new M3090 breaking product will be published in the networks operating in North and modem, we will be next issue of Mobile Data Magazine. South America and Korea, the able to fully leverage M3090 is a fourth-generation continued advances in For more information: product that employs an Ericsson’s world-leading Mats Almqvist entirely new platform. The mobile telephone techno- Ericsson Mobile Data Design new unit is extremely logy,” notes Tuomo Keinänen, [email protected] small, using the same circuit general manager for Mobitex Tel: +46 31 703 64 58 board and ASICs (application- modem sales at Ericsson Mobile specific integrated circuits) as Data Design.

mobilemobile datadata magazinemagazine 5 MDM no3 1998 QXP 3.32 a 1999-02-19 18.00 Sidan 6

mobile data news

States, WyndTell The deaf community has indeed customers can use responded positively to the partnership. WyndTell virtually Besides enabling deaf professionals to work anywhere they travel, more closely and effectively with their including at more colleagues and clients, the nationwide than 130 of the busi- coverage facilitates travel. Nancy J. Bloch, est airports in the executive director of the National Association country. for the Deaf, says, “WyndTell eliminates the “BellSouth Wireless search for a public TTY when you’re on the Data is pleased to road and provides so many more choices in support Wynd ways to communicate.” Communications’ The WyndTell service was developed after efforts in delivering a more than 18 months of research, service that can development and testing by dozens of change the lives of people with hearing impairments. The Americans who are features were developed directly in response Improving quality of life for the deaf deaf or hard of to the feedback from the pre-release hearing,” said William product testers. If you stop to consider the essential F.Lenahan, President and CEO of BellSouth Wynd’s director of sales, Judy Viera, who ■ role communications play in your Wireless Data. “Wynd has dedicated itself to is deaf, also provided a great deal of input on daily life, both at home and in the workplace, serving the deaf community by making a the product development. She says, it may be difficult to imagine what it would be significant investment in the research, “Working with the product development like to be deaf in this age of travel, mobility development and testing of WyndTell.” team and dozens of testers, we have created and cellular phones. He continues, “The combination of the a solution that, for the first time ever, gives The solution for this group of citizens can WyndTell service and the BellSouth deaf or hearing-impaired individuals the now be found, thanks to the expanded Intelligent Wireless Network will ensure that ability to be mobile, yet connected.” partnership between BellSouth Wireless deaf customers are always on, always Data and Wynd Communications, aimed at connected and always interactive.” For more information: providing broadscale wireless service to the Joe Karp, marketing manager at Wynd Joe Karp hearing impaired. This partnership brings Communications, has high expectations for Wynd Communications the nationwide, interactive BellSouth the future. “We see tremendous growth [email protected] Intelligent Wireless Network to Wynd potential in the deaf and hard-of-hearing Tel: +1805 781 6000 ext 702 Communications’ WyndTell service, the first community because WyndTell addresses service to deliver comprehensive, con- key communication needs. Because of this venient mobile communications to people potential, we have realigned our business to who are deaf or hard of hearing. primarily serve this segment. Correction The WyndTell service, which has been “We are seeing great response with The editors would like to note two commercially available since February of this customers in 42 of the 45 covered states, as incorrect statements in the article year, operates on a palm-sized, clam- well as among national opinion leaders and “Street parking worries solved in shaped terminal with a built-in screen and the leading universities and organizations Australia” published in Mobile Data full QWERTY keyboard. The device alerts focused on deafness which are using our Magazine 2/98. The article users of new messages by vibration, an LED service,” he asserts. mistakenly refers to Schlumberger or an audible alert. The WyndTell solution of France as a German company. gives people who are deaf or hard of hearing The article also states, the convenience of a mobile phone plus the “... information can also be flexibility to communicate interactively using transferred from the central a variety of methods, including text computer to the base stations, telephone (TTY), Internet e-mail, fax, alpha where it is forwarded by radio to Wynd recently paging and text-to-speech. the modem inside the parking announced that their With BellSouth Wireless Data’s Mobitex customers can now meter.” The latter part of this coverage available to over 93 percent of the choose between the two RIM sentence is incorrect. urban business population of the United pager models, 900 and 950.

6 mobile data magazine MDM no3 1998 QXP 3.32 a 1999-02-19 18.00 Sidan 7

New marketing communications material Survey of Mobitex from Ericsson applications

The marketing communications The new Mobitex Web site will be launched Two independent consultants are ■ department at Ericsson Mobile Data in September. It contains helpful information ■ currently working on behalf of Design has had its hands full over the on: Ericsson Mobile Data Design to analyze the

summer producing material for operators } Products and services Mobitex applications sector by performing a and others using the Mobitex network.Three survey of the existing applications and the } Mobitex market development and new posters, measuring 70 x 100 cm, are companies developing them. presentation of MOA available for use at trade shows, seminars or The study is intended to provide a as part of a display stand. They are entitled: } Applications complete global overview of the application

} Always connected – Always on-line industry and user groups. Therefore, all } Issues and trends input from application developers, operators } Worldwide de facto standard for } Contacts, news and case studies and users is highly appreciated. wireless data

} Wireless solutions for credit-card Be sure to check it out! To submit information on your validation company, please e-mail: [email protected]

Phase Two of our Internet development will include an on-line version of Mobile Data Magazine and connectivity information. A new brochure for interactive messaging is also available. It describes the numerous possibilities for operators interested in developing these services and why they should choose Mobitex technology. The brochure will present various issues from Ericsson has released a new both an operator and an end-user Mobitex Customer Services perspective and will be illustrated with real- Product Catalogue, describing professional Mobitex services life examples. in the areas of consultancy, implementation, training and To order posters support. and brochures, contact: Ericsson Mobile Data Design [email protected] New courses in Mobitex Tel: +46 31 703 6048

The Mobitex Training Center is ■ offering two new courses in its autumn 1998 program: Mobitex Cell Planning Principles and Mobitex R14N Upgrade Workshop. For those who would like to obtain a course description and schedule, inquiries may be sent to:

[email protected]

mobilemobile datadata magazinemagazine 7 MDM no3 1998 QXP 3.32 a 1999-02-19 18.00 Sidan 8

mobile data news

Catching crooks in motion

Criminal offenders are no longer safe drivers bypassing fixed vehicle recognition by Serco in partnership with Visual Image ■ on the streets of Manchester. The systems. Dynamics, Sanderson Insight and RAM Greater Manchester Police (GMP) force has Greater Manchester Police is one of the Mobile Data. Sanderson Insight provides signed an agreement with Serco, a support busiest forces in the country and recorded mobile access to the PNC via the RAM services and systems engineering company, over 303,000 crimes last year, of which more Network. to deploy LapCop, its mobile number-plate than 30 percent were vehicle-related. The Jim Lawless, managing director at Serco recognition system that uses Mobitex over area covers 500 square miles, including 160 Field Services, explains, “We recognized the the RAM Network. kilometers of motorway and almost 10,000 huge demand for an inexpensive, yet swift The system captures the number-plate kilometers of other roads. The PNC and and accurate system for automatic detection registrations of passing traffic and transmits GMP databases hold all police information of stolen vehicles and developed LapCop in them over the RAM Network to the Police on “vehicles of interest,” including details of response.” National Computer (PNC). Automatic stolen cars, disqualified drivers or drivers “Because of the scale of operation, the checks are carried out against listed who need to be urgently contacted. system had to be capable of conveying a vehicles and matches are transmitted to the “Our police force covers one of the regular flow of data at a very low cost,” says most appropriate police response unit within largest geographical remits in the UK, so we Vic Way, managing director of Sanderson seconds. wanted to implement a totally mobile Insight. “The RAM Network only incurs The RAM Network provides links to both solution, with automatic access to PNC data charges for data transmitted, rather than GMP vehicle listings and the central PNC when it’s needed, where it’s needed,” says time spent on-line, which meant there was database. Checks are made on each detective superintendent Bill Noble. “We no comparison with other networks.” vehicle registration mark as it arrives. If a look forward to seeing some radical results. RAM Mobile Data anticipates wider match is made, a report is automatically sent At the moment, the system links up to the expansion of the system in the coming back over the RAM Network to a data main vehicle databases, but if we roll it out months, as other police forces take an terminal in a police vehicle. The whole further, the solution could be developed to interest in LapCop. “This is another example process takes between four and 15 support continental plate listings, as well as of how mobility increases the value of seconds. make huge time savings in the identification information technology in the police A camera, which is part of the LapCop of stolen car parts,” adds detective Noble. environment,” says David Wellbelove, director system, is mounted in the back of a police Normally, PNC checks are carried out by of RAM’s public sector business unit. car and obtains a series of images from patrol vehicles over voice radio to the control And it is yet another reason why crime passing vehicles. The system runs room operator. doesn’t pay. Automatic Number Plate Recognition Besides many types of surveillance Software, which captures and converts applications, the system is ideal for use at For more information: number plate image data to text format. This major events with many people in cars. Frances Crossley is automatically transmitted as a PNC Three Racal Talon transporter versions of the RAM Mobile Data Ltd. request over RAM’s network, detailing time, MANPR system were recently tested at the [email protected] date and location. British Grand Prix by the Northamptonshire Tel: +44 181 990 9090 The equipped police vehicles are fully police, who were able to make no less than mobile and can be positioned on 42 arrests. motorways, major roads or at the scene of The Greater Manchester Police’s imple- accidents, which eliminates the problem of mentation of LapCop has been developed

8 mobile data magazine MDM no3 1998 QXP 3.32 a 1999-02-19 18.00 Sidan 9

MOA to meet in Amsterdam

The next meeting of the Mobitex considerable time to network extension and industry as the experts in wireless data com- ■ Operators’ Association (MOA) will relations with satellite operators. munications.” be held on October 19 in Amsterdam. Joining MOA membership continues to grow with the operators this time will be new associate both new operators and new associate For more information: members Mobix, Nomadic Communications members. The addition of a permanent Jack Barse and Infowave. executive officer has also strengthened the Executive Director, MOA “The previous two MOA meetings held organization substantially. David Neale [email protected] last January in Gothenburg, Sweden and in perceives a new optimism among MOA Tel: +1301 229 6031 April in Istanbul, Turkey were very members. successful,” relates MOA chairman David “We are finding that the arguments for Neale from Canadian Mobitex operator Mobitex as Rogers Cantel. “At these meetings, new the wireless carrier associate members participated much more of choice are very actively in the Technical Guidance Council, compelling,” he notes. and we are expecting more active “Recognition in the participation from vendors in Amsterdam.” industry is growing. David Neale considers that the People are aware of participation of vendors as MOA associate Mobitex’ strength as members has been very positive and a network that is built contributed to creating a common solely for data and development path for Mobitex products and which is ultimately services. In Gothenburg, there was a focus reliable. MOA’s mem- on telemetry and point-of-sale applications, bers are widely while the Istanbul meeting devoted regarded in the

Mobitex present at the flying finish

At the Belgium Ypres Westhoek Rally, Since spectator traffic at the event can be were gathered using a wireless connection ■ which took place on June 26-28, very heavy, three mobile sales terminals from a portable PC to the race control RAM Mobile Data Belgium was the solution were conveniently located just outside the center. There, points were calculated and provider for three Mobitex applications. The main event area, enabling spectators to any penalties were drawn. At previous rally applications were developed for the event purchase tickets without having to wait in events, times had been transmitted using a with safety and security in mind, while long lines and with the option of using a courier or closed-circuit radio, methods significantly modernizing the routines credit card if they wished. Since the which organizers realized were either associated with the rally. weekend tickets were relatively expensive, ineffective or provided inadequate coverage. A new mobile payment system based on using wireless payment transfer meant less However, the Mobitex network and the the Mobitex network was used for the first cash in circulation, thereby heightening coverage offered by RAM Mobile Data time, which enabled more secure ticket security. Belgium enabled both fast and reliable time distribution and payment, even in areas To enhance driver safety,the pace car and reporting. without electricity or communication lines. the cars ranked in the top-three were The use of RAM Mobile Data’s technology equipped with a GPS (Global is also a part of the organizing committee’s Positioning System) hooked up to strategy to classify the Belgium Ypres the Mobitex network, which Westhoek Rally as one of the qualifying enabled the functionaries in the races for the World Championships. race control center to follow each car during the races. The For more information: spectators in the press box and Lea DeBie the VIP section were also able to RAM Mobile Data Belgium follow the races more closely on [email protected] special screens. Tel: +32 2 715 25 77 At the end of each race, the start and finish times of all of the drivers

mobilemobile datadata magazinemagazine 9 CUSTOMER XXPERSPECTIVE

EFT/POS and Mobitex – a winning combination

This theme article provides an overview of wireless EFT/POS applications and presents three case studies from the Netherlands (PTT Post Parcel Service), Turkey (Yapi Kredi Bank) and Canada (Cantel AT&T AirPOS). This special theme issue also includes a separate article (page 24) on wireless POS terminals.

   be a as disparate countries as Turkey, the Ideally suited more opportune time for Netherlands and Canada, Mobitex Electronic Funds Transfer/Point-of- T devoting an issue of Mobile operators are finding a booming Sale (EFT/POS) refers to the Data Magazine to wireless point-of- market for POS applications. electronic, on-line authorization of a sale (POS) applications. For quite a As our presentation shows, growth transaction from a remote terminal while, industry insiders have been in this application segment is likely by a financial institution or host predicting that this would be an area to be global. Now that the obstacles processor that is typically part of the of explosive growth, yet time after for wireless POS have been computer system of a bank or time, these hopes have been dashed overcome, banks, credit card issuers credit-card issuer. Although credit by a variety of obstacles. and other financial institutions are cards are often involved, the Today, however, the picture is demanding scalable solutions that transaction may be credit, debit or finally bright. As the case studies in work not only in a single market, but funds transfer. this feature article show, POS in many markets and on a global The idea behind wireless applications are finally taking off. In scale. EFT/POS applications is simple.

10 mobile data magazine Instead of using a wireline connection for it should look just like a dial-up wireline communication between the point-of-sale connection to the payment terminal. Terminal terminal and the host system which approves equipment and protocols designed for the transaction, why not take advantage of the EFT/POS applications operating in this Mobitex network, which can provide a environment are thus not immediately useful in connection in places where ordinary telephone a wireless environment. service is not available or waiting times for services are prohibitively long? Transparent solution As an added benefit, a wireless POS The Canadian experience shows that operators application supports mobility. Although many and terminal manufacturers must work applications, such as the Yapi Kredi Bank’s together to create a service that meets the ATM installations in Turkey, are based on fixed banks’ requirements. Put simply, the operator terminals, wireless POS terminals allow a must implement a gateway to the banks’ main- mobile sales force to collect payments directly at frame systems, while the terminal manufacturer the customer site. Mobile terminals also allow must adapt an existing payment terminal or retail sales to be conducted in temporary develop a new terminal that operates over a locations, such as exhibition halls and football wireless network. arenas. Providing a transparent solution means In addition, the packet-switched Mobitex changing as little as possible, says Stephen Jack, network was designed for short, “bursty” data. senior marketing manger at Rogers Cantel and This makes it ideal for POS applications, which the chief architect behind the AirPOS Financial typically involve data packets of less than 150 Gateway. To the bank’s system, a wireless POS bytes for a request and less than 110 bytes for an terminal should be just like any other terminal. authorization. Because call set-up time is It should support the same protocol and appear negligible and customers pay only for the in every respect to work like a wireline terminal. amount of data transferred, not connection The AirPOS Financial Gateway on which the time, a packet-switched wireless data network is Cantel AT&T service is based, is a unique also extremely efficient for POS applications. solution that simplifies the terminal designer’s According to estimates by Mobitex operators, a task. In effect, all of the software in a con- single radio cell can support up to 1,200 POS ventional terminal for handling communicat- terminals. ions can be eliminated. “The terminal can simply send data out the port and assume that there is With Mobitex a bank will Achieving credibility always a connection. All we require is that you find POS solutions that Proponents of wireless POS solutions, however, put the bank-specific data in an MPAK will support multiple underestimated the challenges facing them in (Mobitex packet),” explains Stephen Jack. applications, such as opening this market. Although the new wireless Other gateway implementations require more integrated solutions for technology showed much promise, it was work. In the Turkish case, for example, YKB taxis and customizable viewed with suspicion in many quarters. decided to take a more traditional approach, solutions for retail “Banks and other financial institutions are by which uses the Mobitex network’s built-in X.25 operations. ▼ nature extremely cautious,” notes MOA gateway. In the Netherlands, chairman David Neale, who as vice president RAM Mobile Data was able to for data and emerging technologies at Rogers take the middle road by imple- Cantel Inc. managed the development of the menting a gateway in its network Cantel AT&T AirPOS service now being used to the national BeaNet network by the Royal Bank of Canada. “They demand used by virtually all of the an extremely high level of security for financial country’s EFT/POS applications. transactions and are heavily dependent on legacy systems with proven reliability. They do Wide selection of terminals not buy new technology for the technology’s The variety of gateways with sake, and we had to work very hard to establish which terminal manufacturers our credibility.” must work means that expertise In virtually all markets, experience shows that in banking systems and banks want a completely transparent solution. EFT/POS protocols is not suffi- In effect, although a wireless link is being used, cient. These suppliers must also

mobile data magazine 11 operation on Mobitex networks in many European countries, use of around the world. Each application, credit and debit cards and PIN codes however, shows how the Mobitex is very high. The BeaNet network used operator worked closely with its for EFT/POS in the Netherlands business partners to implement a makes this country somewhat service and an application that meets unique. The Mobitex network the unique requirements of its market. operated by RAM Mobile Data In North America, wireless POS Netherlands is also the only wireless applications have been in operation service certified for connection to for some time. VeriFone as a BeaNet, making Mobitex the logical ▲ In the Netherlands, as in many other terminal manufacturer and Master choice for wireless POS applications. countries, use of credit and debit cards and Card and American Express as There are numerous other PIN codes is very high. With Mobitex, credit card issuers are very active in examples from Singapore, the U.K. response time is typically 4-12 seconds. this market, and the systems and other countries, where operators developed by these companies are and service providers have found the be experts in communications, and being field tested and deployed in arguments compelling for a wireless wireless networks add a new South America, Europe and POS application based on Mobitex challenge. Although Ericsson’s elsewhere with excellent results. technology. In these countries, Mobitex OEM radio modems and The success achieved by the infrastructure is not an issue. There software from third-party sources Cantel AT&T AirPOS service, are many alternatives for both fixed can help to reduce the complexity of however, marks a breakthrough in and wireless communications, yet the task, developing a wireless POS this field. Currently, both the Royal Mobitex has been identified as the terminal is still a non-trivial under- Bank of Canada and the Bank of most reliable, cost-efficient and taking. Nova Scotia have signed on. flexible solution. Despite these challenges, more Negotiations are also nearing com- Turkey is perhaps the most than a dozen suppliers (see separate pletion with two other Canadian spectacular success story in this article) are currently offering wire- commercial banks. AirPOS and issue. In this case study, a new less EFT/POS terminals. These supp- Mobitex are thus positioned to operator has moved very quickly to liers include both established players, become the de facto national deploy a network offering excellent as well as new entrants to the field. standard for wireless POS appli- coverage in the most populated areas This wide range of products reflects cations in Canada. of the country and to assist its the tremendous potential these largest customer in implementing a companies and the Mobitex Cornerstone application service that gives Yapi Kredi Bank operators see in today’s market. The Dutch PTT Post Parcel Service (YKB) a major competitive ad- Growth rates for EFT/POS application is representative of cur- vantage in the market. Here, wireless terminals are international. Growth rent trends in Europe and other parts POS is the cornerstone application in terminal deployment is highest in of the world. In the Netherlands, as for a new operator. the Latin American, Asia Pacific and Middle East regions, where it is expected to amount to around 40 percent annually. Although lower, growth rates in Europe and North America are still expected to top 20 percent and reach as high as 35 percent in some countries, according to the Nilson Report, a POS industry newsletter.

Nationwide standard The three case studies accom- panying this article represent only a small number of the many POS applications currently operating or ▲ Mobile terminals allow retail sales and cash withdrawal to be conducted in temporary soon scheduled to be taken into locations such as exhibition halls, football arenas and amusement parks.

12 mobile data magazine Working the value chain As Stephen Jacks at Canadian was by no means given. As our three It is no coincidence that wireless operator Cantel notes, “We knew case studies show, a well-conceived POS has assumed this role for that we had to work the entire value business strategy and a team effort Mobicom, the new Turkish op- chain, from the terminal involving the operator, the terminal erator. In both Asia and South manufacturers and the banks to the supplier and the customer were America, new operators are finding banks’ customers. Building a world- needed. that wireless POS applications class service and striving to become When these prerequisites are provide the soundest business case a value-added operator would be present, wireless POS applications for their markets and are acting meaningless without recruiting have tremendous potential. Today, accordingly. This is the first-ever retailers and merchants who wanted after many false starts, the pieces are issue devoted to point-of-sale ap- to use the service.” finally in place for truly transparent plications, but wireless POS success This point was also not lost on applications that offer superior stories will undoubtedly be a regular YKB’s managers, who identified benefits in terms of cost efficiency, feature in future issues of Mobile as one of their primary strategic extremely reliable and rapid Data Magazine. goals to increase their share of processing, and mobility. Wireless This does not mean that there are the merchant banking business. EFT/POS and Mobitex technology not challenges in successfully However, in both Turkey, the are a winning combination. ■ deploying wireless POS applications. Netherlands and Canada, success

The gateway to the financial giants

The AirPOS Financial Gateway is the extension of the standard Mobitex data needed for the financial central component in Cantel AT&T’s Transport Protocol for point-of-sale transaction. Instead, the gateway new AirPOS service and the key applications. handles handshaking, acknowledg- factor in providing a transparent Using MTP/POS, Stephen Jacks and his ments and other aspects of the end-to- solution for Canada’s commercial team designed a gateway that in every end communications protocol on the banks. Cantel AT&T evaluated several respect emulates wireline terminals as terminal’s behalf. alternatives for providing gateway seen by the central system at the bank. Right the first time functionality, including the On the wireless side, however, conventional Mobitex X.25 gateway communication is completely “The proof for us that we had gotten it and a gateway developed by connectionless. This means that the right came with certification testing by BellSouth Wireless Data in the U.S., gateway sets up and tears down all calls the Royal Bank of Canada,” relates but found that none of these on behalf of the terminals with which it Stephen Jacks. “The AirPOS Financial solutions met all of the banks’ communicates. Gateway was certified with no faults on requirements. The company thus the very first test. This was a truly Compelling features decided to build its own gateway. exceptional result that showed that we Apart from greatly simplifying terminal satisfied the bank’s very stringent “Our solution was to use a special switch design, this architecture has several requirements in every respect.” that feeds into the Mobitex exchange compelling features. Perhaps the most The Canadian Mobitex operator now (MOX),” explains Stephen Jacks. “With important of these is that commu- hopes to share this outstanding this switch, which does not have to be nication between the AirPOS Financial achievement with other operators. co-located with the MOX, we can Gateway and the terminals uses MASC, Although it was developed in-house at handle up to 12,000 simultaneous users the native data format for Mobitex, considerable effort and expense, per frame relay line. This makes it a very meaning that communication is Rogers Cantel does not regard the flexible and scalable solution.” maximally efficient. AirPOS Financial Gateway as Another advantage is that this proprietary technology, but rather Connectionless environment architecture avoids the overhead of an encourages other operators to study its The switch itself is a standard product, end-to-end session between the solution and to develop similar which is unremarkable in most terminal and the host system at the products. The company is also respects. The secret behind the AirPOS bank. The wireless POS terminals considering submitting the MTP/POS gateway, however, lies in what Cantel operate in a connectionless environ- protocol extensions to MOA’s Technical has termed MTP/POS. This is an ment and send and receive only the Guidance Council.

mobile data magazine 13 The Netherlands: No COD needed with Dutch service

COD (cash on  , , the PTT Post for BeaNet transactions. With the wireless delivery) is Parcel Service is one of the connection to BeaNet, customers can pay using becoming a thing WNetherlands’ largest parcel services. a credit or debit card and a PIN code from of the past in the The company has specialized in freight virtually any location throughout the Netherlands. forwarding and the delivery of parcels weighing Netherlands. Data delivery over RAM’s Thanks to Mobitex up to 30 kg. Mobitex network is reliable and fast, with and the wireless The PTT Post Parcel Service handles over 75 response times typically less than 10 seconds. data network million parcels per year, making it the largest “We are very satisfied with the function and operated by RAM company of its kind in the country. If requested performance of the RAM Mobile Data Mobile Data by the customer, deliveries may be insured, network,” reports Gerald van Weel, product Netherlands, registered and paid upon receipt. Delivery is manager at PTT Post Parcel Service. payments for guaranteed overnight. parcels delivered Of the parcels delivered by the PTT Post Satisfied customers by the PTT Post Parcel Service, some three million are paid by The advantages of effecting electronic Parcel Service can the receiver. Previously, these parcels often had payments at the door are obvious. Customers be made on to be returned because the receiver did not have do not need to keep cash at home when delivery using a cash or a check on hand for payment. This was expecting a parcel from the PTT Post Parcel debit or credit a source of irritation both for customers and Service. Drivers carry less cash and checks, card. The payment the drivers. which increases security. Using wireless is forwarded A solution was found in the wireless payment payment terminals also helps to reduce the wirelessly over methods offered by RAM Mobile Data. With a number of parcels that must be returned the Mobitex wireless POS terminal, drivers are able to accept because the customer did not have cash at network to payment at the door on delivery of a parcel. home. In addition, administrative work is BeaNet, a national eliminated, since less cash and fewer checks are network that Fast and reliable handled. supervises all PIN To date, some 600 PTT Post Parcel Service The response from the PTT Post Parcel code transactions drivers have been equipped with wireless POS Service’s customers has been positive. in the terminals supplied by NCR, which is also the Customers regard the new wireless terminals as Netherlands. main contractor for the project. The battery- a convenient means of payment and consider operated terminal has a keypad, a radio modem this an improvement in service. and an antenna. It communicates with RAM In the Netherlands, where payment using Mobile Data’s Mobitex network and forwards credit and debit cards with PIN codes is widely transactions to BeaNet, which handles all PIN accepted, wireless payment terminals are not code transactions in the Netherlands. limited to post parcels. RAM Mobile Data is The PTT Post Parcel Service is the first actively marketing the wireless payment service logistics service supplier to offer customers the to taxi companies, amusement parks, mobile ability to pay via wireless POS terminals. RAM shops and exhibitions. ■ Mobile Data is also the only network approved

14 mobile data magazine Wireless POS spreading in Tur k ey

Yapi Kredi Bank (YKB) is one of Turkey’s largest commercial banks. When Turkish Mobitex operator Mobicom brought wireless data technology to Turkey, YKB saw an opportunity to significantly improve customer service and increase its market share in merchant banking with wireless terminals.

,   Mobitex share in merchant banking and to place orders for its first 4,000 units operator in Turkey, has penetrate new markets for mobile with Ingenico and Intellect. Mbeen working with applications, including cash wireless EFT/POS solutions since handling for distribution operations, Solid image-maker 1997, when the decision to invest in a home delivery and retail operations The wireless POS terminals deliver wireless data network was taken. in tourist areas. major technical benefits to YKB and Since that time, Mobicom has YKB has a market share of 34 its customers. Among these are fast worked hard to build out its network percent among persons holding response times (typically 4 to 12 and to offer wireless POS services to banking cards, making it one of seconds, vs. 15 to 30 seconds for customers. These efforts were Turkey’s leading banks in this wireline) and superior availability recently rewarded when Yapi Kredi market. The bank’s share of (99.96 percent vs. 70 percent for Bank (YKB), one of Turkey’s largest merchant banking, however, was less wireline). Additional benefits commercial banks, decided to than 20 percent, and with the new include extremely high security, high deploy 4,000 wireless POS terminals. wireless POS terminals, YKB was reliability with no congestion or Deployment of the initial 400 intent on increasing this share. The overload and virtually unlimited units began in June. Completion of bank therefore sought alternative expansion capability. From the the first phase of the project POS solutions that would support bank’s perspective, Mobitex has an consisting of 4,000 terminals will be multiple applications, integrated advantage in that Mobicom takes completed by September. According solutions for cashiers and checkout responsibility for network manage- to YKB’s business plan, a second counters and customizable solutions ment. phase will then commence with an that would be suitable for a wide “We regard Mobitex as a solid increasing number of terminals. variety of retail operations. image-maker,” says Ayhan Feridun, Since 1997, more than ten vice president for business and scope Multiple POS solutions EFT/POS vendors have been development at YKB. “Our new Installing ATMs in locations where working with Mobicom on the wireless solutions for on-line wireline service is not available or integration of existing and new banking are a catalyst for increasing not completely reliable was a major products with Mobitex for the market share and improving factor in YKB’s decision. More Turkish market. Following customer service. Furthermore, we important business objectives, Mobicom’s initial marketing and can offer easier and more efficient however, were to increase market development efforts, YKB elected to operations with significant cost

mobile data magazine 15 reductions for key customer groups Tourism is another sector in which Premier application in the merchant and retail sectors.” the bank sees great potential. Although Mobicom concentrates on Currently, Mobicom’s network all wireless data segments, including Opening new markets offers best coverage in the high- field sales and service, trans- Offering a range of solutions is a key population areas around Istanbul, portation, public safety and element in YKB’s business strategy, Ankara and Izmir. Coverage is being telemetry, wireless POS is in many which is intended not only to expanded, however, along the respects the premier application for increase market share but to open Southern Mediterranean coast Turkey’s new Mobitex operator. new markets. One such market is where the most popular tourist Together, Yapi Kredi Bank, mobile sales forces, where YKB will resorts are located. Visitors to Mobicom and its business partners use its wireless POS solution to Turkey will thus be able to make are creating new services and enable payments to be collected cash withdrawals on their Visa and defining a new market in one of directly from distribution channels. American Express cards at YKB’s Europe’s most dynamic economies. With other solutions for merchants, wireless ATMs, as well as pay for If the initial results are any the bank intends not only to increase meals and souvenirs at restaurants indication, the 4,000 wireless POS its share in merchant banking, but and stores equipped with wireless terminals now being deployed by also to increase its customer base in POS terminals. YKB are only the beginning. ■ the card payment market.

Canada: The pizzaman cometh

In the classic Eugene O’Neil   the co- base, was the first to certify the drama, it was the iceman who brand Cantel AT&T, AirPOS service for debit and credit filled the ice box that kept MAirPOS is a new wireless card transactions. More recently, the food and drinks cool and POS service for retailers and other Bank of Nova Scotia also approved refreshing. Today, for many business operations where fast, the service for its merchant people of a younger efficient and convenient payment is customers. Negotiations are also generation, the welcome key to maximizing profitability. The nearing completion with an sound of the doorbell signals new service, which was developed additional two commercial banks in pizza delivery. Now, thanks to by Cantel AT&T in Canada, is Canada. the Cantel® AT&T™ AirPOS™ adaptable to virtually any retail “The Royal Bank is committed to service, Canadians no longer operation and has been approved the timely delivery and support of need cash, but just a debit by Canada’s leading financial efficient and convenient electronic card to pay for pizzas institutions. debit and credit payment solutions delivered to their homes. The Royal Bank of Canada, which to all business segments,” says Frank has the country’s largest merchant Moore, vice president for merchant

16 mobile data magazine services and point-of-sale at the Mobitex network paves the way for a take advantage of Rogers Cantel’s Royal Bank. “This wireless service series of portable, long-range expertise to explore new business provides the opportunity for us to wireless terminals from IVI. The opportunities that will allow IVI to enhance our service both to the new terminals will be deployed in develop the high-quality products commercial and personal banking a number of currently untapped that customers demand from us and customer.” electronic payment markets, for which IVI is renowned.” including taxis, limousines, home “The market for wireless POS is Enormous growth expected and office delivery and stadium poised for enormous growth,” says The first device to be approved for concessionaires. Charles Hoffman, president and use on the AirPOS services is the Air “Rogers Cantel is a leader in the CEO of Rogers Cantel Inc. “Rogers Quatro wireless POS terminal wireless industry and continues to Cantel is pleased to work with manufactured by IVI Checkmate, advance the technology of wireless Canada’s largest POS company to Canada’s leading producer of point- communication,” states L. Barry provide the first national wireless of-sale terminals. Approval of IVI’s Thomson, president and CEO of POS service in Canada. Together, Air Quatro for use on the Canadian IVI Checkmate. “We are pleased to IVI and Rogers Cantel will carry some of the two billion electronic transactions that occur in Canada each year.”

Profitable for customers Rogers Cantel has had a clear vision to create a service that adds value to the network and which will increase profitability not only for IVI and other business partners, but for the banks and their customers, as well. Recently, the Canadian Mobitex operator also announced a sub- stantial network build-out that will help the banks and their merchant banking customers to launch the AirPOS service nationwide. The coming months will be exciting times for Rogers Cantel as more and more merchants come on line. In the meantime, one of the most gratifying initial successes was the decision by a Toronto-based chain of pizza restaurants to use the AirPOS service in its home delivery operations. Now, as Cantel AT&T engineers and marketing repre- sentatives work overtime serving their many new customers, they can at least send out for pizza with a clear conscience. ■

▲ Downtown Toronto: Banks demand an extremely high level of security for financial transactions, notes David Neale, who as president for data and emerging technologies at Rogers Cantel, managed the development of the Cantel AT&T AirPOS service now being used by the Royal Bank of Canada.

mobile data magazine 17 CUSTOMER PERSPECTIVE

Wireless innovations abound in Korea

The Mobitex network operated     applications owner to install a wireline debit by Intec Telecom, which was out of the gate was a unique terminal and incurred a cost of largely in place and operational Osystem for collecting bus KRW 50 per transaction to Korea before the recent economic fares. In Seoul, with a population of Telecom. downturn in Korea, is adding some 12 million people, buses are the Mobitex operator Intec Telecom new subscribers at a rapid primary means of public transport. saw the opportunity. Charging only rate. Many of these new With bus fares often costing several KRW 30 per transaction and subscribers are using thousand Korean Won (KRW), offering a wireless terminal for innovative applications keeping enough coins on hand is a immediate installation costing much developed in Korea by problem for the city’s commuters. less than a wireline terminal, Intec Intec Telecom. The Intec A smart-card system enabling made rapid inroads. “Today we have Group, of which Intec commuters to pre-pay bus fares had 1,000 kiosks connected to our Telecom is a subsidiary, been in use for some time. The idea system, and the number is growing also includes ITS, a behind this system was that daily,” reports Sang-Un Yoo, company that manu- commuters would be able to load executive managing director at Intec factures wireless their cards with cash at any one of Telecom. terminals for the 3,000 kiosks around the city. Intec also plans to extend the Mobitex operator. However, this required the kiosk smart card system to Seoul’s subway

18 mobile data magazine system. Recently, the operator won a concession paging, but we expect that this will be a later covering about half the subway system, which development in Korea.” currently uses paper tickets. When the smart- Current plans call for a two-way paging card system is taken into operation, commuters service to be launched this autumn. While will be able to use the same card for buses and initial customers for this service will undoubt- subways. edly be found in vertical markets where two-way paging is adeqaute for simple dispatching Taxi drivers kept busy applications, there is significant potential in the The next area for expansion was a taxi horizontal market. Today, there are more than dispatching system. For taxi drivers, the extra 16 million one-way paging subscribers in fares and increased revenues that a wireless Korea. dispatching system promised was an attractive More promising right now are telemetry prospect, but the cost of the wireless terminal applications for the security sector and the was a crucial factor. power industry. Intec Telecom is now To demonstrate the promise of this completing work on a gateway for a security application, some 300 Seoul taxis were application in which existing wireline equipped. Following this initial successful connections via the PSTN will be replaced by deployment, a second roll-out is now in wireless links over the Mobitex network. progress that will bring the total number of “For security systems, a wireless data taxis equipped with Mobitex to 1,500 by the network offers a superior solution,” Sang-Un end of the summer. With the introduction by Yoo points out. “Not only is Mobitex cheaper ▲ Intec, the Korean ITS later this year of a less expensive terminal, than wireline with respect to both installation Mobitex operator, Intec Telecom expects this number to rise to and monthly service costs. A wireless link is by has developed a between 5,000 and 6,000 taxis. nature more secure, since there is no line that unique smart-card The dispatching system used in Seoul criminals can cut when attempting a break-in.” system for collecting includes a GPS (Global Positioning System) bus fares. receiver mounted in the mobile terminal in the Ambitious plans for growth vehicle. At the dispatching center, operators can Intec Telecom predicts that the number of view an electronic map that shows vehicle installations in the security and insurance sector locations, direction of travel, speed and distance will grow to more than 5,000 by the beginning from the destination. Dispatch operators and of next year. The company also has ambitious drivers can also exchange text-based messages plans for a telemetry application for the power with full support for Korean characters. industry, which operates some 400,000 The response from drivers has been switching stations throughout the country. enthusiastic. Drivers using the system report Today, power outages are a relatively that they get many more fares. By working to common occurrence. With a wireless data bring down the cost of terminals, Intec has application, however, electricity distribution demonstrated its commitment to taxi operators. companies could more quickly locate and repair This, in turn, has increased revenues both for faults. With telemetry and a wireless data drivers and for Intec Telecom. network, power companies will also be able to monitor their networks more efficiently and New growth areas identified take preventative action when demand surges Other areas on which Intec Telecom is focusing occur. are two-way paging, the security and insurance “There is no doubt that Intec Telecom is a sector and the power industry. As yet, there are very ambitious and innovative operator,” says few applications or users in these markets, but Lars Birkstedt, area manager for Korea at Intec Telecom sees significant potential for the Ericsson Mobile Data Design. “The Korean future. Mobitex operator has moved very quickly to ▲ Intec expects “Two-way paging is an attractive app- build a network with excellent coverage that will the number of taxis lication,” relates Sang-Un Yoo. “There is soon be the world’s second largest. Intec equipped with considerable interest in two-way paging in a Telecom offers an excellent service that is Mobitex terminals to number of vertical markets, so this is where we rapidly attracting new customers.” ■ rise to between will start. Naturally, we are also interested in 5,000 and 6,000 opening a horizontal market for two-way vehicles.

mobile data magazine 19 TECHNOLOGY

Mobitex goes for the moon

In the rapidly developing interactive paging market, Mobitex is going for the moon. Designed from the outset as a fully two-way wireless data network, Mobitex offers the best technology for interactive paging. Feature for feature, it beats rival technologies hands down. With so much going for it, there are no limits for Mobitex in this new market.

  is a new type which they are designed. Closing in on a new market of service and a new market In this article, we will examine the Two-way messaging systems fall Ibased on Mobitex technology. technologies used for interactive somewhere between one-way paging Although significant enhancements paging and other forms of two-way and mobile data systems in terms of have been made in the Mobitex messaging from the standpoint of subscriber cost and functionality. A system software to accommodate end-user requirements. First, further differentiation of services interactive paging, it is important to however, let us place two-way can be obtained by dividing the two- note that the basic technology messaging in the context of estab- way messaging market into three remains the same. What is new are lished technologies and define the segments: delivery acknowledgment, the devices used for interactive space for which the market players preprogrammed and full two-way paging and the user requirements for are battling. messaging. This differentiation also

20 mobile data magazine such as Mobitex, on the other hand, the full functionality of the system will not be needed for two-way messaging. Mobitex operators thus essentially get a two-way messaging network for the cost of a system software upgrade, while one-way paging opera- tors face substantial invest- ments in infrastructure.

Staking out the battleground Interest in two-way messaging ▲ Without interaction, a longer message simply increases the user’s frustration in the paging industry has over not being able to respond. grown steadily in recent years. One development fueling this reflects a trend in the market which is going interest has been the increasingly widespread from one-way to two-way paging and from use of alphanumeric devices, which have alphanumeric pagers to more capable devices transformed the pager from a simple beeper for interactive messaging. into a more useful information appliance. The Delivery acknowledgment is the simplest combination of an alphanumeric pager and the form of two-way messaging, offering what is broadcast capabilities of paging networks has advertised to U.S. consumers as guaranteed enabled the development of attractive wireless delivery. A further step up in functionality is a information services that customers perceive as system offering preprogrammed responses, having real value. For many users, however, an typically one of 16 numerical codes alphanumeric pager begins to look like one-way representing a pre-defined message. This type of e-mail. Without interaction, a longer message system has sometimes been referred to as 1.5- simply increases the user’s frustration over not way messaging. Full two-way messaging, being able to respond. finally, presents few limits on the response Of course, many paging subscribers do not transmitted by the mobile device. This is the want or need more than simple beeper type of service being offered by BellSouth functionality. Although the two-way messaging Wireless Data in the U.S. as interactive paging market is expected to show exponential growth and for which the Mobitex system software has over the next five years, it is starting from a been enhanced. near-zero level today and, according to Few entirely new technologies are being estimates by the Yankee Group, is expected to developed specifically for two-way messaging. amount to no more than 25 percent of the total Instead, existing technologies for one-way paging market by the year 2002. Interactive paging and mobile data are being adapted to paging subscribers, in particular, will be the new market requirements. Other contenders predominantly new users, include the Short Message Service (SMS) not existing users who offered in digital cellular systems, primarily have moved from simple GSM and D-AMPS, as well as variants of these beepers to a more capable technologies for PCS (Personal Communications service. Systems). For Mobitex operators, Clearly, adapting an existing technology interactive messaging re- and/or re-using an existing network for two-way presents an entirely new messaging is most cost effective for operators. market which can be well Migrating an existing technology to two-way served using the net- messaging, however, is more or less difficult. A work’s existing func- one-way paging system requires significant tionality. BellSouth Wire- added functionality. With a mobile data system less Data is leading the

mobile data magazine 21 way with its Interactive Paging service, which that must be fulfilled by Mobitex or any other targets new customer groups that are different competing technology? Industry experts agree in many respects from traditional wireless data on the following six requirements, although not users. Many Mobitex operators around the necessarily on their order: world are watching the U.S. with interest and } Coverage preparing to launch similar services. } Device size Mike Lazaridis, president of RIM (Research } Service cost in Motion), the Canadian company that } Battery life manufacturers the Inter@active Pager being } Network latency used by BellSouth Wireless Data, charac- } Capacity teristically takes an aggressive view of the opportunities for operators. “The market will Beating the competition be two things: super cheap one-way for In the U.S., BellSouth Wireless Data is something like five dollars a month with the entering the battle for interactive paging device included, and full two-way, all-you-can- customers armed with Mobitex technology that eat for 25 dollars a month. That’s the battle- beats rival technologies hands down on ground. Everything else is no man’s land.” virtually all counts. Compared with, for example, ReFLEX, a system developed by Fulfilling user requirements Motorola on the basis of its industry-standard Apart from interactivity and full two-way FLEX technology for one-way paging, Mobitex messaging, which are the defining offers significantly better functionality. characteristics of the new interactive paging In the critical area of coverage, Mobitex has service, what are the primary user requirements the edge as one-way paging operators scramble to upgrade their networks for two-way messaging. While one-way paging networks have long been able to offer coverage exceeding that of cellular networks, BellSouth Wireless Data has worked hard and invested substantial sums over the years to catch up. Now, with a wireless data network that was designed from the start to support two-way data com- munications, BellSouth Wireless Data is able to offer greater coverage nationwide and better coverage in major metropolitan areas than the leading two-way paging operator. For end- users, Mobitex thus means being in touch more often and in more places. Another important parameter in which Mobitex offers vastly superior service is network latency. Response times for a round- trip message returned to the sender with a reply from the recipient are typically less than ten seconds with BellSouth Interactive Paging Service. Competing two-way paging operators Reasearch In Motion recently introduced its new Inter@ctive Pager do not even come close. Network latency of a 950, a revolutionary device in the field of interactive messaging. About system is seldom less than a minute and often as the size of a deck of cards (3.5 x 2.5 x 0.93 inches), it has an improved much as four or five minutes. Such long LCD display and a keyboard that's easier to use with a thumb- latencies, which are a consequence of a network operated roller wheel and a menu-driven interface. According to RIM, architecture designed for one-way paging the pager delivers higher performance and increased memory, along broadcasts, mean that two-way paging services with an extended battery life – it can operate up to three weeks on a are simply not interactive. single AA alkaline battery! The Inter@ctive Pager 950 will also be A related issue is capacity. Paging networks priced lower than preceding models. were designed as broadcast networks for one- way messaging. Adding a second network for

22 mobile data magazine the way by leveraging the power of Mobitex technology to open this new and exciting market. Outside the U.S., other Mobitex operators are studying the market carefully and preparing their own service offerings. As stated at the outset, interactive paging is an entirely new market for Mobitex. Most users will not need the full functionality of the Mobitex network. On the other hand, new subscribers for interactive paging services will most likely not be found among traditional paging users. Instead, interactive paging will undoubtedly attract users who are best described as road warriors and pocket people with an intense desire ▲ Field tests by independent researchers have shown that the Mobitex-based interactive for advanced communications paging service operated by BellSouth Wireless Data is 100% reliable. devices that fit in a pocket and run for weeks on a single charge. For receiving messages can be prob- that the Mobitex-based interactive people for whom e-mail, interactive lematic, and the greater volume of paging service operated by messaging and Internet connectivity data that two-way messaging entails BellSouth Wireless Data is 100- are essential, interactive paging may quickly leads to capacity problems. percent reliable. A competing two- very well become a lifestyle choice. The Mobitex system, on the other way paging service, on the other As countless reviewers in the trade hand, which was designed from the hand, exhibited an error rate as high press have noted since the start for two-way data commu- as 10 percent under the most introduction of RIM’s Inter@ctive nications and which features demanding conditions. Missed or Pager and BellSouth Interactive distributed intelligence in its base garbled messages are not the kind of Paging Service, having full two-way stations, does not suffer from these service that users want. messaging capabilities and the problems. equivalent of a universal mailbox in Perhaps most devastating for Taking a giant leap the palm of your hand quickly other two-way paging services is that Mobitex technology can thus becomes addictive. Like landing on they are simply not as reliable as provide a truly interactive paging the moon, it’s one small step for Mobitex, despite promises of service with user benefits that cannot Mobitex, but a giant leap for guaranteed delivery. Field tests by be matched by rival technologies. mankind. ■ independent researchers have shown BellSouth Wireless Data is leading

Best battery life in the business

In the Mobitex community,the virtues of packet switching have means that the radio transmitter is switched on and been extolled countless times. Now, there’s a new twist. consuming power the whole time. Thanks in large part to packet switching, the Mobitex-based Mobitex technology also offers numerous functions for interactive paging service offers the best battery life in the conserving power that have been significantly enhanced in the business. latest system release. Now Mobitex PC Card modems can be For users of portable devices who want long battery life, circuit powered up or down and the transmitter switched on or off switching becomes a major liability. Unlike packet switching, more quickly than ever. This capability, combined with a which sends data in short bursts, circuit switching demands a number of protocol improvements, allows battery life for dedicated connection for the duration of the exchange. That pocket devices to be extended to as much as three weeks.

mobile data magazine 23 INDUSTRY OUTLOOK

Charting the wide world of terminals

What would a theme issue on EFT/POS be without mentioning the companies that develop and produce terminals? Terminal manufacturers and application developers are, after all, among the driving forces behind expansion of the Mobitex user base. They are the ones working closely with countless supermarkets, restaurants, department stores, gas stations, banks and financial institutions all over the world, providing solutions that meet the needs of their day-to-day operations. Their innovations introduce the possibilities of wireless data to new market segments and users every day.

 D M set Company: Bentas Company: Dialogis Software GmbH out to provide the readers Based in: Turkey Based in: Germany of this issue with a M EFT/POS product(s) EFT/POS product(s) comprehensive overview of the : The Dione : MobilX25-Box EFT/POS terminal market. In the Xchequer family of POS terminals with a (Mobitex modem not included) Mobitex modem process, we have unfortunately Modem compatibility: All radio missed some manufacturers, either Modem compatibility: Ericsson M2160 modems that support MASC and MPAK due to lack of contact information, Protocols supported for EFT and Protocols supported for EFT and or because the surveys we sent were credit-card verification: Visa Emea credit-card verification: All types of not returned to us. So if there’s a and ISO 8583 ATMs and POS products using the X.25 company missing here – and protocol for communication between Countries in which products are especially if that company is yours – the terminal and host can run on the being used for Mobitex: Pilot projects please contact the editor and we’ll Mobitex network using the MobilX25- in Turkey publish the information in a future Box. The application can also be used issue of the magazine. Countries in which products are sold: for lottery terminals. Tu r ke y Countries in which products are Markets and/or segments currently being used for Mobitex: Turkey in focus with regards to Mobitex: Countries in which products are sold: Banking, retail and Internet are presently Turkey, Switzerland, Austria, Germany in the spotlight. and Kuwait, with other countries soon to Future outlook: Plans include be added. Sales channels include integrating Bentas’ Insurance Package.

24 mobile data magazine subsidiaries, agents and direct sales. to provide better service for visitors. Countries in which products are being used for Mobitex: Turkey, Markets and/or segments currently Canada, the U.S., Latin America, Poland in focus with regards to Mobitex: Company: Hypercom Corporation and Belgium. Special attention being paid to the banking sector for ATMs, EFT providers, Based in: United States Countries in which products are sold: as well as lottery companies. EFT/POS product(s): T7P Integrated More than 60 countries through subsidiaries and distributors. Future outlook: Dialogis is interested Printer Terminal with a Mobitex modem in establishing contact with distributors included Markets and/or segments currently in other Mobitex countries that would Modem compatibility: Modems from in focus with regards to Mobitex: All like to sell the MobilX25-Box. Reasearch In Motion mobile applications are of interest (taxis, delivery vehicles, etc.) Protocols supported for EFT and credit-card verification: Supported Future outlook: Ingenico aims to protocols include ISO 8583, Visa II, provide a full range of products for EFT APACS and Visa I solutions using Mobitex networks.

Countries in which products are Worth noting: Ingenico provides Company: Digital Equipment BCFI AB being used for Mobitex: United States mobile solutions using short-range Based in: Sweden and Venezuela radios (433 MHz, 900 Mhz) and long- range radios (Mobitex, GSM, RD-LAP EFT/POS product(s): Automatic teller Countries in which products are sold: and CSTD). machines (Mobitex modem not Hypercom serves companies in more included) than 50 countries through a worldwide network of offices and affiliates in Modem compatibility: All radio Argentina, Australia, Brazil, Chile, China, modems that support the MASC Hong Kong, Hungary, Japan, Mexico, protocol. Russia, Singapore, the U.K. and Protocols supported for EFT and Venezuela. Company: Intec Telecom credit-card verification: The ATM Markets and/or segments currently Based in: Korea application protocols Diebold 912 and in focus with regards to Mobitex: NDC are supported. EFT/POS product(s): Handy Terminal Unites States, Latin America, Asia and for credit-card verification (Mobitex Countries in which products are Europe. modem included) being used for Mobitex: Indonesia Future outlook: Plans include (live) and Poland (pilot) Modem compatibility: Ericsson M2190 integrating Mobitex in Hypercom’s new Countries in which products are sold: point-of-sale terminals called ICE. Protocols supported for EFT and Russia, Poland, Germany, Spain, Mexico, credit-card verification: MASC Austria, Indonesia, China, Malaysia, Countries in which products are Middle East and the Ukraine, through being used for Mobitex: Currently both subsidiaries and partners. available in Korea with installations in Markets and/or segments currently Turkey and Brazil upcoming in the near in focus with regards to Mobitex: future. Company: Ingenico Mexico and Eastern Europe Countries in which products are sold: Based in: France Future outlook: Goals include The company is emphasizing sales in establishing a pilot in Mexico in EFT/POS product(s): The portable Brazil and Turkey at present. cooperation with Ericsson. Elite 780 terminal – a complete Markets and/or segments currently integrated EFT solution with smart card, Worth noting: Besides solving the in focus with regards to Mobitex: magnetic strip reader and thermal problems that arise from the lack of Gas station chains in Korea printer. Mobitex modem is included. fixed communication networks in Future outlook: Plans include certain countries, this technology Modem compatibility: Any MAFK extending terminal sales to supermarket enables continuous cost justification of radio modem chains and restaurants. ATM networks by easily moving a Protocols supported for EFT and non-profitable ATM to another location. credit-card verification: Supported It can also be used in temporary protocols include ISO 8596, Visa, installations at sporting events, fairs, etc. MasterCard.

mobile data magazine 25 series or a RIM radio modem. The Nurit 2090 and 3010 are compatible with Company: Intellect Company: IVI Checkmate Ericsson’s M2100 series.

Based in: Australia Based in: Canada Protocols supported for EFT and credit-card verification: Lipman’s EFT/POS product(s): The 9770 EFT/POS product(s): The Air Quatro terminals support practically any end- Universal Payment Terminal with an M900, a multiple POS terminal controller to-end protocol, including synchronous integrated chipcard and magstripe with a wireless connection to host and asynchronous protocols. reader and a built-in Mobitex modem processors through Mobitex, and the Elite 700 RF,a mobile battery-operated, Countries in which products are Modem compatibility: Modems that fully-integrated debit/credit POS being used for Mobitex: The United comply with the PC card type-3 form terminal using Mobitex for connection to States and Turkey factor the host processor. A Mobitex radio Countries in which products are sold: Protocols supported for EFT and modem is internally integrated in both Main markets are the U.S., Turkey, Israel, credit-card verification: The 9770 is products. Hungary, Russia, China and Thailand. easily programmed for any EFT or Modem compatibility: RIM 900 Products are sold through subsidiaries credit-card verification protocol. or local distributors. Adaptations for different markets are Protocols supported for EFT and made by Intellect or its dealer. The credit-card verification: Base24, ACI, Markets and/or segments currently common PAX software development Visa I and Connex are supported in the in focus with regards to Mobitex: platform allows existing EFT or credit- majority of applications. Terminals are mainly sold through banks card protocols to be ported from wired and ISOs, so end-user segments are Countries in which products are terminals to the 9770 radio-connected difficult to categorize. being used for Mobitex: United States terminal. and Canada. Future outlook: The company plans to Countries in which products are penetrate additional markets, with an Countries in which products are sold: being used for Mobitex: Fully emphasis on countries that have United States and Canada. Sales operational in Turkey. Plans include Mobitex. channels include banks, processors and entering the Dutch market soon with the VARs. same Mobitex version. Markets and/or segments currently Countries in which products are sold: in focus with regards to Mobitex: IVI Intellect has its own offices in Australia, Company: VeriFone Inc. Checkmate emphasizes POS retail, New Zealand, Belgium, Japan and the mobile segments (such as taxis), Based in: United States U.S. Products are sold worldwide delivery services, home repair and EFT/POS product(s): Custom- through OEM deals with companies mobile merchants. developed products for specific pilot such as NCR and IBM, or by opportunities. distributors. Future outlook: The company intends to establish its wireless POS products in Modem compatibility: RIM Markets and/or segments currently the targeted markets. in focus with regards to Mobitex: Countries in which products are Benelux is Intellect’s new target after the being used: 110 countries worldwide success in Turkey. Market segments Markets and/or segments currently currently in focus include applications in focus with regards to Mobitex: such as home deliveries, repair services High value-added markets. and mobile trade (fairs, special events, etc.) Company: Lipman Future outlook: As the cost of radio Electronic Engineering Ltd. technology decreases, they will Future outlook: Since Intellect is an incorporate this technology into a Based in: Israel integrator, rather than a developer, of broader range of products. Mobitex technology, it will ensure that its EFT/POS product(s): Three POS terminals remain state-of-the-art and in terminals for the Mobitex network: Nurit tune with network developments. 2070, Nurit 2090 and Nurit 3010. A Mobitex modem may be included according to customer requirements.

Modem compatibility: The Nurit 2070 is compatible with Ericsson’s M2000

26 mobile data magazine WANDA WAVE´S ETHEREAL TALES Fantastic plastic

should have known better than utmost to ensure that my credit cards doing the following afternoon when to take all my credit cards on would be accepted wherever I went. I found myself purchasing an Imy trip to Turkey. The advance additional suitcase to carry home all information that I had received from After having spent twice as much of my purchases. Mobicom, the Turkish Mobitex in one afternoon as I had budgeted Depressed, I sat down at a café to operator, told me that their in pocket money for my entire trip, I have a cup of that delicious Turkish customer YKB had very ambitious realized that I needed help. The coffee and tried not to look at the plans for wireless POS. I still wasn’t earrings and bracelets that I had fabulous rugs in the shop across the prepared for how easy it was to purchased were very beautiful, and street. It was my fourth cup for the purchase virtually anything with a they would at least fit in my purse. day, and this time I had succumbed credit card in Turkey. How I was going to get an oriental to having a pastry with my coffee. Of course, my Turkish hosts were rug home on the plane, however, was But at least I had resisted the urge to most considerate. Every amenity another matter. buy something on six different occa- was afforded me, and they went to I decided to send a message for sions. great lengths to ensure that my help to my Canadian friend Julia, As I pulled out my PC to check schedule during my visit to their who was a shopaholic and had set my e-mail, I was pleased to see a country gave me an opportunity not up an informal network for others reply from my friend Julia. I only to talk to key people in the suffering from this affliction. I was frowned, however, as I opened her Turkish wireless data industry, but sure that I could count on her for message and read the following also to enjoy Istanbul. Unfor- some good advice. advice: tunately, that meant that there was Of course, I also had work to do, “I’m happy to say that I don’t have a plenty of time for shopping. so I hurried off to meet my contact problem any more. Today, whenever Everywhere I went in Istanbul at the bank. As luck would have it, I get the urge to go shopping, I there were temptations. From the he took me to visit a merchant who phone out for a pizza. And as of last mind-boggling variety of the huge had just installed one of YKB’s week, the delivery boy even takes Kapali Çarsi bazarre to the Vakko wireless POS terminals. He wanted credit cards. Life is good!” department stores to modern malls to demonstrate the new terminal, and I sighed wearily as I took another such as the Galleria, I was like a fool, I offered my credit card. bite of my pastry. I needed constantly confronted by an almost I was very pleased with myself for my credit cards to cover infinite variety of goods for sale. being able to resist the temptation to my expenses on the trip Spanning two continents, Istanbul buy everything in sight and to limit home, but when I got is a unique city. Although very my purchases to figs in cognac until home, I would simply European in many respects, the I realized that, due to language have to bite the bullet. Oriental influence is evident every- difficulties, I had purchased not a The only cure for where. Unfortunately for me, that single jar of figs, but an entire crate! shopaholics is to cut up meant that there were exotic items their plastic. ■ for purchase everywhere I looked, The professional woman in me did and my Turkish hosts were doing their not want to acknowledge what I was  

mobile data magazine 27 MDM no3 1998 QXP 3.32 a 1999-02-19 17.59 Sidan 28

LinksMobitex information: . http://www.ericsson.se/mobitex http://www.data-mobile.com/bmd02000.html

Mobitex e-mail addresses at Ericsson: Marketing and sales: [email protected] Customer support: [email protected] Logistics: [email protected] Mobitex training center: [email protected]

Ericsson links: Ericsson Mobile Systems: http:www.ericsson.se/wireless Ericsson Mobile Data Design: http:www.ericsson.se/mobitex

Mobitex operators & associations featured in this issue: Rogers Cantel, Canada: http://www.cantelatt.com Massinfo Nusantara, Indonesia: http://www.datasel.co.id RAM Mobile Data, UK: http://www.ram.co.uk RAM Mobile Data, Belgium: http://www.ram.be BellSouth Wireless Data, US: http://www.bellsouthwd.com United Wireless, Australia: http://www.uw.com.au RAM Mobile Data, Netherlands: http://www.ram.nl

Companies and organizations featured in this issue: Wynd: http://www.wynd. net Schlumberger, France: http://www.slb.com Sanderson Insight: http://www.sanderson-insight.co.uk/ NCR, Netherlands: http://www.ncr.nl Royal Bank of Canada: http://www.royalbank.com. Research In Motion RIM: http://www.rim.net Bentas, Turkey: http://www.bentas.com.tr Dialogis Software, Germany: http://www.dialogis.de Digital Equipment, Sweden: http://www.digital. se Hypercom, US: http://www.hypercom.com Ingenico,Ingenico, France: France: http://www.ingenico.frhttp://www.ingenico.fr Intellect,Intellect, Australia: Australia: http://www.intellect.com.auhttp://www.intellect.com.au IVIIVI Checkmate,Checkmate, Canada: Canada: http://www.ckmate.comhttp://www.ckmate.com VeriFone, US: http://www.verifone.com

Ericsson Mobile Data Design AB S:t Sigfridsgatan 89 S-412 66 Göteborg Sweden phone: +46 31 703 60 00 fax: +46 31 703 60 33