With the arrival of data services, a new wireless eco-system has come into play. Whereas the wireless business used to be a 2-way relationship between the carrier and the subscriber, there is now an influx of new entrants offering a whole new range of services and content based on data.

For the mobile operator, this represents a great challenge. As carriers once controlled the mobile services by delivering the only killer applications of the past (voice), they now need to open up their infrastructure or find new business models to accommodate service providers to ensure that the most attractive way of accessing the end user remains via the mobile network. Traditionally, operators have worked within a walled garden model which is easy to control but limiting in terms of service offering.

For data service provisioning, this model will not meet the requirements of the end user. In order to continue to provide a relevant service, operators need to encourage content and service providers to work with them. This will need new billing systems and new revenue sharing business models.

In opening up their networks to content and service providers, the carrier needs to find a way to retain a certain control. There needs to be a happy medium between encouraging the adoption of mobile data through a more open approach and giving away their own value.

The GSM market is reaching saturation point. Customers need improved capacity and service quality while operators are facing a loss of revenue because of price wars for voice services, and a lack of fresh customer prospects. They need to migrate to 3G to increase service and business opportunities. Differentiation is key and it is through data services - billing, roaming, localization and customer profiling, etc.- that carriers can set themselves apart.

Key enablers driving the success of the wireless data eco-system

In order to cross the chasm from mature voice to the fledgling data market, carriers are in need of some key enablers in order to help them put their stake in the ground. Firstly, they need to provide a secure infrastructure in order to build consumer confidence in the network. Secondly, the sheer weight of content available over the wireless data network requires a flexible system to manage the access.

Next, a new model for data billing and revenue sharing that satisfies the needs of the operator and the content / service provider is needed. Lastly, all these elements need to work together to provide the subscriber with an enjoyable and practical end-user experience.

More than just a SIM

With the predicted explosion of data that will accompany GPRS and 3G, there is a need for enhanced security. Smart cards provide a portable, secure way for operators and mobile service providers to offer identity proofing. The smart card is the best way to ensure privacy of data, security of transactions and non-repudiation. Beyond this, it is also the most appropriate platform for securing data applications while providing some level of control to the carrier within the new eco-system.

The card plays a fundamental role as an architecture control point with the ability to enable service provisioning and offer a secure payment infrastructure. Its unique value is in managing control of access to the network and content, privacy and profiling management, trust and payment.

Enabling a trusted wireless internet experience.

The arrival of the extended online relationship to the wireless market requires a higher level of identification and authentication. The SIM enables identity proofing for internet-based services and security (network access control, anti-viral systems, etc.). It is able to identify the end-user rather than just the wireless device in order to guarantee transactions and offer non-repudiation.

Privacy management

The end-user is looking for affordability, ease of use and ease of access to services. Their concern is what happens to the data that the carrier collects about them. Who has access to it and how can they protect themselves from invasions of privacy? The SIM card is able to act as a controller for privacy management by empowering the consumer to keep control over the use of their personal information.

The end-user will be able to implement filters about the type of data they wish to receive, and when. The card becomes a proactive marketing tool allowing the operator to push relevant services while respecting the rights of the end user subject to local laws and the request of the individual.

Enabling content

Access & Digital Rights Management
Managing access to content is one of the primary roles of the card which is set to grow as content becomes data oriented. In a business environment, where Wireless LAN will most likely prevail, the card is able to provide the necessary control to allow access to corporate data. For example, a worker in Finance would not have the same access rights as one in Sales and so the card is able to identify and authenticate the individual before remotely managing their access to their LAN.

Service provisioning
In addition, by using the OTA channel, the operator is able to provide services according to the end-user profile while the card manages the application download according to the particular subscription.

Open platform
A fully interoperable Java CardTM means that any subscriber will be able to download an ever-growing number of creative mobile services. Java is a de facto standard, providing a language that anyone can develop in, and a flexible operating system. It will enable carriers to implement more secure services with a quicker time to market. Aside from cutting costs and development time, it enables easy application development, the flexibility to add or delete services remotely and increased personalization of the service offer while offering up to the subscriber services created by a pool of 3 million Java developers world wide.

Getting closer to the end-user

Personalized services
The smart card remains the only direct link between the carrier and the end-user and it is through this medium that the carrier can retain some level of control over the services downloaded and manage the subscription. The operator is able to improve the end-user experience by offering a more personalized service while contacting their existing subscriber base without the cost and effort of a new campaign.

Direct marketing tool
By building up customer profiles, the carrier can propose targeted services using the SIM as the direct marketing link. The operator can even upgrade the subscription without the end-user having to go to a point of sale thus making the SIM card one of the best ways to communicate directly with their customers.

Securing wireless transactions

Payment
The arrival of a true wireless data delivery and service model will mean that wireless devices will become the only device needed for daily needs. This will incur a greater need for security for all services and applications in order to prevent fraud and encourage trust for the end-user. First in the line is m-commerce and the business of wireless transactions including payment. As subscribers start to rely more and more on their mobile devices to pay their electricity bills, buy airline tickets and purchase stocks, etc., security for transactions is essential. Public Key Infrastructure built into the card guarantees the transaction by providing trust, digital signatures and encryption.

Secure provisioning
Not only does the card secure m-commerce but it also renders it easier to use. With WAP provisioning (based on the latest release of WAP 2.0) embedded onto the card, the end-user benefits from ready-to-go mobile commerce without the hassle of installation or configuration.

Dispute resolution
The SIM card is also able to protect both sides of the transaction. It is able to provide concrete proof that a transaction has or has not been carried out and is therefore able to settle potential disputes between the retailer and the customer. The carrier is in a position to become a trusted authority for payments and certificate issuance while providing mutual authentication between the network and m-commerce enabler.

Customer retention: The SIM as an active ingredient.

In the current economic climate, it is clear that as the voice market has matured, telecom companies are seeing a downturn in their profit margins. They are now looking for ways to cut the cost of logistics, reduce the rate of churn, and turn the situation around to their advantage.

Smart Agent technology
As the uptake of new customers has slowed, operators are concentrating more on their existing customer base in order to prevent churn. The card is able to react in a situation where, for example, the end-user has received a certain number of dropped calls. Before the end-user makes the decision to leave one carrier for another, a cookie stored in the card is able to gauge the risk and send an alert to the operator. The operator is then able to remotely offer a new service or an incentive in order to keep their subscriber.

Conclusion

As networks evolve from voice to data, the role of the card is developing in order to provide carriers with an increasing level of support and security. The balance of the operator – subscriber relationship has shifted as content / service providers have entered the loop and the card is instrumental in managing this change. It enables the operator to guard a certain level of control over the end-user through which they can enhance and build up the relationship, while enabling new entrants to access and offer services within the new, more open business model. For corporate use, application download and m-commerce, the card will provide security by managing the access to both content and networks, while guaranteeing transactions and offering dispute resolution. For the end-user, the card will provide an environment of trust and ease of use.

Whatever the technology, the smart card is a constant in the evolution from voice to data. It will help operators migrate their networks while retaining and expanding its role to support a wider range of wireless functions.