Module 6: Smart Card Usage Models – Mobile, NFC and Pay TV Smart Card Alliance Certified Smart Card Industry Professional Accreditation Program Smart Card Alliance © 2010 CSCIP Module 6 - Mobile-NFC-Pay TV Final - Version 2 - October 8, 2010 1 For CSCIP Applicant Use Only About the Smart Card Alliance The Smart Card Alliance is a not-for-profit, multi-industry association working to stimulate the understanding, adoption, use and widespread application of smart card technology. Through specific projects such as education programs, market research, advocacy, industry relations and open forums, the Alliance keeps its members connected to industry leaders and innovative thought. The Alliance is the single industry voice for smart cards, leading industry discussion on the impact and value of smart cards in the U.S. and Latin America. For more information please visit http://www.smartcardalliance.org . Important note: The CSCIP training modules are only available to LEAP members who have applied and paid for CSCIP certification. The modules are for CSCIP applicants ONLY for use in preparing for the CSCIP exam. These documents may be downloaded and printed by the CSCIP applicant. Further reproduction or distribution of these modules in any form is forbidden. Copyright © 2010 Smart Card Alliance, Inc. All rights reserved. Reproduction or distribution of this publication in any form is forbidden without prior permission from the Smart Card Alliance. The Smart Card Alliance has used best efforts to ensure, but cannot guarantee, that the information described in this report is accurate as of the publication date. The Smart Card Alliance disclaims all warranties as to the accuracy, completeness or adequacy of information in this report. Smart Card Alliance © 2010 CSCIP Module 6 - Mobile-NFC-Pay TV Final - Version 2 - October 8, 2010 2 For CSCIP Applicant Use Only Table of Contents 1 INTRODUCTION ................................................................................................................................. 5 2 SMART CARD DRIVERS AND BENEFITS ..................................................................................... 6 2.1 STRONG SECURITY .............................................................................................................................6 2.2 MULTIPLE APPLICATIONS ..................................................................................................................6 2.3 CONSUMER AND MOBILE OPERATOR CONVENIENCE .........................................................................6 3 MOBILE TELECOMMUNICATIONS .............................................................................................. 7 3.1 SIM S AND MOBILE NETWORKS ..........................................................................................................7 3.2 USAGE MODEL FOR SIM AND UICC FOR MOBILE DEVICES ...............................................................8 3.3 TECHNOLOGY .................................................................................................................................. 11 4 UICCS .................................................................................................................................................. 13 4.1 UICC S AND MOBILE NETWORKS ..................................................................................................... 13 4.2 USAGE MODEL FOR MOBILE DEVICES ............................................................................................. 13 4.3 TECHNOLOGY .................................................................................................................................. 14 5 NEAR FIELD COMMUNICATION (NFC) ..................................................................................... 15 5.1 NFC APPLICATIONS ......................................................................................................................... 15 5.1.1 Transit and Ticketing ........................................................................................................ 16 5.1.2 Payment ............................................................................................................................ 16 5.1.3 Advertising ........................................................................................................................ 16 5.1.4 Connectivity ...................................................................................................................... 17 5.1.5 Maximizing other Wireless Platforms ............................................................................... 17 5.1.6 A Day in the Life of an NFC Mobile Phone ...................................................................... 18 5.2 NFC TECHNOLOGY .......................................................................................................................... 19 5.3 NFC MOBILE ECOSYSTEM AND CONVERGENCE WITH CONTACTLESS CARD TECHNOLOGY ............. 21 5.3.1 Key Functionalities ........................................................................................................... 22 5.3.2 Ecosystem Players............................................................................................................. 23 5.3.3 Key Factors in Building a Successful NFC Mobile Ecosystem ......................................... 24 5.3.4 Conclusion ........................................................................................................................ 25 5.4 THE NFC FORUM ............................................................................................................................. 25 5.5 NFC DEPLOYMENT STATUS ............................................................................................................. 26 5.6 SECURITY AND NFC APPLICATIONS ................................................................................................. 29 5.6.1 UICC (SIM)-Based Secure Element .................................................................................. 30 5.6.2 SD Card-Based Secure Element ........................................................................................ 30 5.6.3 Embedded Hardware Secure Element............................................................................... 31 5.6.4 Secure Element Integrated in the Mobile Device Baseband Processor ............................ 31 5.7 STATUS OF NFC TECHNOLOGY ........................................................................................................ 32 5.7.1 Standards .......................................................................................................................... 32 5.7.2 Certification ...................................................................................................................... 33 5.7.3 NFC Device Availability ................................................................................................... 34 6 PAY TV ................................................................................................................................................ 37 7 SAMPLE SMART CARD MOBILE AND SUBSCRIBER MODELS ........................................... 38 7.1 GSM AND SUBSCRIBER PRIVACY ..................................................................................................... 38 7.2 NFC PROXIMITY MOBILE PAYMENTS .............................................................................................. 39 7.2.1 Technology Overview ........................................................................................................ 39 7.2.2 Collaboration Model Overview......................................................................................... 39 7.2.3 Collaboration Model Stakeholder Roles and Benefits ...................................................... 41 Smart Card Alliance © 2010 CSCIP Module 6 - Mobile-NFC-Pay TV Final - Version 2 - October 8, 2010 3 For CSCIP Applicant Use Only 8 RELEVANT STANDARDS AND SPECIFICATIONS ................................................................... 44 8.1 STANDARDS RELEVANT TO SMART CARD PHYSICAL CHARACTERISTICS ......................................... 44 8.2 STANDARDS AND SPECIFICATIONS RELEVANT TO TECHNOLOGIES RELATED TO THE CARD INTERFACE ....................................................................................................................................... 44 8.3 STANDARDS AND SPECIFICATIONS RELEVANT TO THE CARD COMMANDS AND APPLICATION DATA STRUCTURES .......................................................................................................................... 44 8.4 STANDARDS AND SPECIFICATIONS RELEVANT TO ISSUERS OR SPECIFIC INDUSTRY SECTORS .......... 45 9 REFERENCES .................................................................................................................................... 46 10 ACKNOWLEDGEMENTS ................................................................................................................ 48 Smart Card Alliance © 2010 CSCIP Module 6 - Mobile-NFC-Pay TV Final - Version 2 - October 8, 2010 4 For CSCIP Applicant Use Only 1 Introduction Smart cards are used extensively in the telecommunications industry worldwide. Eurosmart forecasted that 300 million memory smart cards and 3.4 billion microcontroller smart cards shipped globally for telecommunications applications in 2009. This module describes how smart cards are used in mobile, Near Field Communication (NFC) and Pay TV applications. After reviewing this module, CSCIP applicants should be able