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Technology Stocks : Smart Cards -- Ignore unavailable to you. Want to Upgrade?


To: Dennis Roth who wrote (281)8/22/2000 12:17:16 PM
From: Eric L  Respond to of 343
 
Re: SIM/R-UIM and Smart Cards in GSM/CDMA/TDMA-EDGE/ESMR

Thanks to Scott Zion for providing this link.

>> New World Order

Wireless Review
Tim Kridel
July 15, 2000

wirelessreview.com

Smart cards aren’t just for GSM anymore. Although ETSI has been strongly influenced by European and GSM interests, the CDG isn’t concerned that NewSMG9 will overlook CDMA, North America and Asia.

Are banks doomed to extinction? That was one theme at a May Global Mobile Commerce Forum (GMCF) debate.

"The very existence of banks as we know them is under threat," said David Birch, Consult Hyperion director, who argued that new technologies would allow other entities to step into the role of performing transactions and other functions.

Wireless is in a good position to capitalize on Birch’s vision, thanks to smart cards, which aren’t just for GSM anymore. TIA will publish a standard for the removable user-identity module (R-UIM), which, like GSM’s SIM, is a removable smart card or chip that would serve as a platform for value-added services and improve end-to-end wireless e-commerce (m-commerce) security. At least one vendor, Schlumberger, already has an R-UIM smart card available, but so far, CDMA providers in North America still are assessing the market potential and watching handset vendors’ timetables.

The need for a universal smart-card platform for use in 2.5G and 3G networks led ETSI to create a working group called "NewSMG9," which had its inaugural meeting in late May. (A new, less-cryptic name is forthcoming.) Its goals include creating:

* A common integrated-circuit (IC)-card platform for all wireless systems • Application-independent specs for the interface

* IC-card standards that incorporate sophisticated security features to support apps such as m-commerce.

One of NewSMG9’s challenges is understanding work by the GSM/ANSI-41 Interoperability Team, the 3G Partnership Project and myriad other groups currently working on one aspect or another of smart cards.

"All of these groups come with a different flavor of the SIM card to support a system-specific implementation of the subscription management," said Jean-Louis Carrara, Gemplus director of telecom marketing and technical engineering. "All this is putting some constraints on the industry to make sure that it will be possible one day to have one card that supports all of these. The goal of NewSMG9 is to say: ‘You guys can create a TDMA-GSM-interworking group. You can create a Nextel SIM card. You can create a CDMA SIM card. But rather than reinventing everything, here are the core specifications that you should take as a minimum and then add on what you need.’"

Although finding common denominators is a tall order, it helps that the standards community is fairly close-knit.

"Because it is a small industry in a way, everybody is a colleague, (and) you do tend to find out what everybody else is doing," said Jennifer Vancini, Certicom director of strategic marketing. "Everybody is pretty good about working together because ultimately, we all want global interoperability."

More Than Telecom If there’s a drawback to that chumminess, it’s the potential for excluding non-telecom companies such as banks and retailers, which are eager to expand into m-commerce. NewSMG9’s interim chairman, Klaus Vedder, wasn’t available to comment on which companies already had representatives at the inaugural meeting. But if one goal is defining the core support for m-commerce, it would seem to make sense to solicit their input now rather than later.

"To my knowledge, at this point, there are no application-level people involved such as banks and retailers because it’s so early on and has to do with a lot of the component-level issues versus what the applications are," Vancini said. "Sometimes it’s good once things get further along to involve them so that they would know how they would take advantage of that smart card: What are the physical connections? What are the security issues? But since it’s a pretty technical-level forum to begin with, it’s pretty unusual for people at that level to get involved so early on."

Others argue that it’s critical that non-telecom companies’ concerns and expertise in areas such as security are on the table early on and that telecom hubris shouldn’t get in the way. That’s partly because building a standard is like building a house: Reconfiguring the floor plan is expensive and difficult after the foundation is poured.

"To not get their input now will be detrimental," said Terry Yen, CDMA Development Group (CDG) Asia/Pacific director. "People think that we’re the most knowledgeable in this area. I don’t think that’s true. That might be an excuse to keep other people out. We’ve got to get those people in now. I think this is hiding behind ‘We’re the experts; this is too technical.’ That’s baloney."

Indeed, non-telecom companies, particularly those with more technical resources, already are helping hash out m-commerce standards. One is Visa, which in 1998 submitted a proposal to SMG9 to recognize its Visa Open Platform as a standard to be adopted for Java-based SIMs. Another possibility is e-Citi, the e-commerce division of Citicorp whose current projects include an m-commerce trial in Japan. It doesn’t have a representative at NewSMG9, but that’s not because it feels that the group’s work is unimportant.

"We’re just doing so many things," said Nina Das, Citicorp spokesperson. "We can’t be in everything."

In order to make wireless an attractive vehicle for e-commerce, it has to be global because companies such as banks likely would balk at having to deploy multiple, incompatible solutions for each region. That’s one obstacle that the WAP Forum managed to avoid.

"WAP has been a really great example of how the industry can work together, especially so quickly," said Certicom’s Vancini. "I think that the WAP Forum did a good job of marketing itself and getting people involved early on and creating a sense of urgency to get it done fast."

Both WAP and the R-UIM also are examples of how the industry is shifting toward interoperability and away from market-stymieing squabbles over incompatible technologies. Although ETSI traditionally has been strongly influenced by European and GSM interests, the CDG isn’t concerned that NewSMG9 will overlook CDMA, North America and Asia.

"R-UIM’s purpose is interoperability with GSM," Yen said. "NewSMG9 is going to help our current discussions with operators because it’s going to guarantee an evolution path to 3G."

The CDG will influence NewSMG9’s work through its own representation and though its member companies’ representatives, and Yen acknowledged that ETSI’s track record shouldn’t be overlooked.

"ETSI and the Europeans have the bulk of experience in SIM cards and smart cards," Yen said. "We need to count on that experience. I’m pretty positive that they’re not going to abuse this position. SIM cards are one of those things that is a lynchpin of interoperability. If they mess with the standard too much, they’re going to sacrifice interoperability with those standards (and) defeat the whole purpose for their existence. It’s kind of a nice little checks and balances that exists." <<

- Eric -



To: Dennis Roth who wrote (281)9/9/2000 1:14:50 PM
From: Eric L  Read Replies (1) | Respond to of 343
 
Re: Oberthur - Infineon

Note: I am under the impression that Oberthur recently went public on the Paris, Bourse.

>> OBERTHUR CARD SYSTEMS & INFINEON TECHNOLOGIES SIGN SUPPLY CONTRACT WORTH 150 MILLION EUROS FOR CHIP DELIVERY IN 2001

Los Angeles
August 31, 2000
Press Release

smartcardcentral.com

A long-term Technological Partnership Is Agreed Between The Two Companies

Oberthur Card Systems, one of the world's leading suppliers of smart cards, Visa & MasterCard cards and a technological leader in GSM, announced today a multi-million Euro contract with Infineon Technologies, the world's first manufacturer of smart card Ics, that reinforces Oberthur's position as a leader in the global smart card marketplace.

In a major strategic move, Infineon is guaranteeing to supply Oberthur Card Systems with a minimum volume of chips in 2001 as part of a contract worth 150 million Euros.

In addition to this supply agreement, Oberthur has formed a long-term, technological alliance to work in partnership with Infineon for research, development and marketing of products and smart-card technology solutions worldwide.

Jean-Pierre Savare, founder and CEO of Oberthur Card Systems said: "As an essential component in our smart cards, we are dependent upon the delivery of chips to maintain our unrivalled reputation for quality of service. The shortage of chips is forecasted to continue well into 2001, however, this supply contract and technological partnership signed with Infineon, one of the leaders in chip manufacturing, has guaranteed that Oberthur Card Systems will continue to service its customers at the highest level of their expectations".

Ulrich Hamann, Senior Vice-President & General Manager for Infineon's Security and Chip Card ICs business group commented: "We are thrilled to be working so closely with Oberthur Card Systems. Pooling our expertise and experience in this marketplace is a very strategic decision and reflects the foresight and vision of the management within both companies. During this period of silicon drought, we are delighted to be one of the key suppliers and it is testament to our world class position that we can guarantee delivery of large volumes of the chips necessary to drive this market forward."

About Oberthur Card Systems

Oberthur Card Systems (Code SICOVAM 12413) is a global leader in the area of smart cards, specializing in the design and production of solutions based on microprocessor cards (smart cards), memory and magnetic stripe cards, as well as associated services: Personalization and Card Management. Oberthur has a large portfolio of products and offers solutions in the areas of banking, pay TV, mobile telecommunications, electronic commerce, security, health care, and transportation.

Number one supplier of VISA and MasterCard cards in the world, the Company is also world leader in the development and marketing of solutions for mobile and electronic commerce. It is also the first global supplier of cards for pay-TV. Firmly committed to open standards, Oberthur backs Java Card, Open Platform, MULTOS and Windows for Smart Cards and it is the first supplier of Java cards.

Oberthur Card Systems employs more than 3,000 people worldwide. The international reach of Oberthur is ensured through 30 sales offices and 13 manufacturing sites around the world. Website is www.oberthurusa.com <<

- Eric -