awards for pushing the frontiers of technology · 2016-01-21 · awards for pushing the frontiers...
TRANSCRIPT
March 1999
Volume8
Number3
© 1999 Smart Card News Ltd., Brighton, England. No part of this publication may be reproduced, stored in a retrievalsystem, or transmitted in any form or by any means, electronic, mechanical, optical, recording or otherwise, without theprior permission of the publishers.
Awards for Pushing the Frontiers of TechnologySmart Card industry companies who are pushing the frontiers oftechnology were honoured with the presentation of the AdvancedCard Awards 1999 at a gala dinner during the Smart Card �99conference and exhibition in London last month.
A special award, the ORGA Industry Lifetime Achievement Award,went to Smart Card pioneer Juergen Dethloff, who revealed hislatest invention, Cartemonnaie, which he says will make electroniccash money safe for the first time.
Continued on page 43
www.smartcard.co.uk
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March 1999
Cards on the CoverNottinghamshire CountyCouncil�s Freedom Card
Page 044University of Central Florida Card
Page 048Windows NT Security by Miotec
Page 044Security Dynamics� SecurID Card
Page 046
Main PhotographPresentation of the Advanced
Card Awards at Smart Card �99
Important AnnouncementPlease note that Smart Card News staff members
can now be contacted directly via e-mail.Please see the production credits below for details.
News
043 - 056Smart Card Industry AwardsNottinghamshire Freedom CardContactless Parking for BeijingHealthcare Card for US VeteransPhilips and IBM Team on SecurityFrequent Traveller Loyalty Scheme Smart Cards for HawaiiParis Metro Ticket TerminalsKorea Enters Combi-card ArenaFinnCity Card Pilot in FinlandMondex Sells Japan FranchiseCuba to Launch Tourist CardKeyless Go Option from MercedesMajor Contracts for ERGThyron Announces New Products
Special Feature
057 - 059Smart Card Tutorial�Smart Cards - The Future� continued,by David Everett
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CONTENTS
SMART CARD NEWS � MARCH 1999
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SMART CARD NEWS � MARCH 1999
Smart Card Industry Awards
Continued from page 41
The award winners were:
BT Most Innovative Product of the YearNEC Electronics (France) SA for FeRAM (Ferro-electric RAM) replacing the standard EEPROM inSmart Card security microcontrollers. It has a writeaccess time that is 10,000 times faster, has 1,000times more endurance and consumes 10,000 timesless energy.
Thomas Cook Global Services Best LoyaltyApplicationGemplus for the Community Rangers loyaltyscheme which rewards children for achievements,attendance and behaviour at school and in thecommunity. The scheme has been introduced bySedgefield Borough Council in North East Englandto reward children for positive contributions tosociety and encourage them to become responsiblecitizens. Points earned can be redeemed at localleisure centres and participating businesses such ascinemas, theatres, book and CD shops, Internet cafesand several food outlets.
Bull Best Transport or Travel ApplicationTransmo Citycard for the UK�s HertfordshireCounty Council Smart Scheme (HSS), the largestSmart Card transport scheme in the UK with a multi-application card for administering concession traveland season tickets for bus travel in the county. Thescheme is a partnership between Transmo CitycardLimited, Hertfordshire County Council and busoperators Arriva the Shires.
Best Communications ApplicationLogica International for the Logica m-Commerceserver suite, an end-to-end electronic solution inmobile commerce. The server ensures secure andtimely delivery of �value� between the linkednetworks of the mobile operator, bank and retailer.This �value� can be cash, tickets or any other contentthat can be sent in electronic format.
STMicroelectronics Best New Security Product Schlumberger for Sishell which applies a siliconsecurity shield during the manufacturing processover the active surface of the Smart Card chipphysically protecting it from unauthorised accessusing chemical agents or �hacking� by mechanicalor electronic probing.
Best New ChipPhilips Semiconductors for their MIFARE PRO dualinterface Smart Card IC. The chip combines bothcontact and contactless interfaces with the samememory fully controlled by a microprocessor,making it suitable for banks, transport operators andother service providers to offer their services on onecard.
Best Marketing CampaignTouch for the Nottingham Citycard campaign. TheCitycard is the largest civic reward card scheme inthe UK and uses Smart Card technology to providecardholders with savings on shopping and leisureactivities throughout the city. It was launched byTouch in partnership with the City Council.
ORGA Industry Lifetime Achievement AwardThis prestigious award went to Juergen Dethloffwho was unable to attend the ceremony but askedone of the judges, Patsy Everett, founder andManaging Director of Smart Card News to acceptthe award on his behalf.
The Smart Card pioneer revealed his latestinvention, the Cartemonnaie which is applicable toany kind of electronic purse. For the first time inthe history of cash money, he said, money now issafe - secured against loss and theft.
�You will hear more about Cartemonnaie verysoon,� he promised.
He recalled how everything started back in 1968when he, and his late partner Helmut Groettrup,developed the invention of what today is called thechip card and when he then filed the first patentapplication.
The �monolithic semiconductor block�, �the Chip�in the card, primarily served for the security of cardsystems; other functions came later.
In 1976, he filed his invention of the microprocessorcard which gave the card the potential of a powerfulmachine; this patent application comprised the socalled �transport code� and the �charge pump�(which makes, for example, telephone cardsresistant against tampering).
In 1988, he filed for patent of his invention whichmakes the cardholder the master of his/her card.
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SMART CARD NEWS � MARCH 1999
Nottinghamshire Freedom Card
Nottingham County Council has started to issuecontactless Smart Card travel passes for concession-ary fare passengers following trials with schoolchildren.
Schlumberger is providing around 24,000 of itsEasypass cards using MIFARE contactlesstechnology from Philips Semiconductors for thescheme. The number of cards is expected to rise toabout 150,000 by April 2000 when the Council plansto issue cards county-wide.
The Freedom Card is part of East MidlandsIntegrated Ticketing (EMIT) scheme, designed forstudents and others entitled to concessionary travelsuch as the disabled and pensioners. Possible futureapplications for the card include an electronic pursefor purchasing meals at schools and day centres, orleisure services, and as an ID card for libraries.
UK manufacturer, ESP Systex, is providing itsFreezeFrame desktop personalisation system whichincorporates a PC, video camera and colour printer.The system enables the name and travel rights to beentered using a keyboard, takes a photograph andthen encodes it all to the Schlumberger contactlesscard�s microchip in about a minute per person.
Contactn Dirk Hinze Schlumberger( +33 (0)1 47 46 79 50: [email protected]
MioLock for Windows NT
A new security device to protect Personal Computersfrom unauthorised use has been announced byFinnish card manufacturer Miotec.
Called MioLock, the device uses a Smart Cardcontaining user ID and password. When the card isinserted into the reader, which connects to any serialport in the PC, the information is passed to the PCin encrypted form. There is an option to specify aPIN to enhance the security.
Logoff is equally easy - just take the card away andthe PC is locked from other users.
Contactn Ragnar Nyblin Miotec( +358 9 8045 3015: [email protected]
Lucent & BTG to Promote Patents
BTG, the London-based technology-transfercompany, and Lucent Technologies have announcedan agreement to collaborate on the commercial-isation of a portfolio of Smart Card patentsdeveloped by Bell Labs, Lucent�s research anddevelopment arm.
There are about 50 patents covering Smart Carddesign and applications.
David Armstrong, Director of BTG�s Electronicsand Telecommunications Division, said: �Webelieve this patent portfolio will be of interest tomanufacturers, solution providers and serviceoperators in a wide variety of industries. He addedthat this relationship will benefit Lucent, BTG andthe Smart Card industry.
Contactsn Melanie Edge BTG( +44 (0)171 575 1677: [email protected]
n Donna Cunningham Lucent Technologies( +1 802 482 3748: [email protected]
Smart Card Technology Institute
The SmartCard Group, a division of AmdahlCorporation, is creating the Smart Card TechnologyInstitute (SCTI) to enable executives to makeinformed business decisions that advance the useof Smart Cards.
It plans to provide structured education programmesto financial services, retail, transportation, telecom,insurance and government organisations.
The Institute, launched in Toronto, Canada on 4March, will be followed with the first executiveeducation session with others later in New York,Washington DC and San Francisco. Sessions willaddress the enhancement of service delivery usingSmart Card technology, how to contain fraud andhow businesses are using the technology to gaincompetitive advantage. The Institute is enlistingpartners to provide additional expert programmrcontent and technical resources.
Contactn Esther M Hansen Amdahl Corporation( +1 408 992 2257: [email protected]
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Contactless Parking for Beijing
Australian electronic technology company,Omnitech Holdings, working in conjunction with alocal partner, is to provide the world�s firstcontactless Smart Card car parking meter systemfor the Beijing Government.
The project is estimated to be worth in excess of US$20 million with the first stage starting in May andinvolving the development of a prototype, itsinstallation, trial and extension to 25,000 parkingmeters. It will be undertaken by VFJ Technology,Omnitech�s Sydney-based Smart Card solutionssubsidiary.
Arthur Sturgess, Omnitech�s Chairman, said that oncompletion of a successful trial, the parking metersystem would extend into other major Chinese cities.
Contactless technology for parking meters isconsidered more appropriate than conventionalsystems in China because of Beijing�s harshoperating and climatic environment, he explained.
The announcement coincides with VFJTechnology�s entry into business alliances withGemplus of France, and Cubic TransportationSystems of the US.
Cubic was a partner with Omnitech in phase one ofthe US $20 million Shanghai Metro project whichuses contactless Smart Cards and involvedOmnitech producing 200,000 Smart Cards andinstalling 700 readers at 20 different railway stationson the Shanghai Metro Line.
It has also supplied contactless Smart Cards andreaders for tollways in Guangxi, Sichuan and Xian,Hong Kong Air Cargo Terminal Limited at ChepLap Kok Airport, and access control systems toHong Kong University.
Contactn Arthur Sturgess Omnitech( +61 2 9737 9900.
Dione Licenses RPK Security
RPK Security, Inc., has announced a licensingagreement with Dione to enable the UK companyto add RPK�s encryption technology to electronicpayment systems and Smart Card readers.
The RPK Encryptonite Engine combines thebenefits of public key systems (authentication,digital signatures/certificates, key management)with the speed of a secret key system in onealgorithm.
Contactn Debra Montner RPK Security, Inc.( +1 212 488 9891: [email protected]
Schlumberger/Keyware Agreement
Schlumberger has signed a memorandum ofunderstanding with Keyware Technologies tocombine Schlumberger Smart Card technology withKeyware�s Layered Biometric Verification (LBV)technology such as voice, face and fingerprint.
�Smart Card-based biometric verification opens thedoor to a whole range of very powerful secureapplications, explained Francis Declercq,Keyware�s President and CEO. �At the same time,it gives individuals ownership of their personalinformation.�
Contactsn Isabelle Marand Schlumberger( +33 (0)1 47 46 55 42: [email protected]
n Ann Lambrechts Keyware Technologies( +32 2 721 4574: [email protected]
Gemplus Readers Certification
Gemplus has announced that Microsoft Corporationhas certified Gemplus Smart Card readers for usewith Windows 98 and Windows NT.
Both the Gemplus GPR400 for laptops, and theGCR410p for desktops, have received certificationfrom Microsoft�s Windows Hardware Quality Labsas compliant with the PC/SC specifications. TheGemplus GPR400 is a PC Card (PCMCIA) type IISmart Card reader and the Gemplus GCR410p is adesktop serial port Smart Card reader.
Gemplus last October endorsed Microsoft�sannouncement of Smart Cards for Windowsoperating system.
Contactn Flavie Gil Gemplus( +33 (0)4 42 36 56 83: [email protected]
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SMART CARD NEWS � JANUARY 1999
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Healthcare Card for US Veterns
A home care pilot program, which will run for sixmonths and involve 80 veterans enrolled in the VA�sHomeCare program, will give private physiciansand clinicians access to patient data at the patient�shome as well as local VA and non-VA emergencydepartments.
Information at the point-of-care
Called the DataCard SmartRec, the system enablespatients to carry clinical, demographic and benefitseligibility information with them wherever they go.Patient-specific information is loaded onto eachpersonalised Smart Card and presented to the careprovider at the point-of-care. To access the medicalinformation, Smart Card readers and the SmartRecapplication have been installed at registration pointswhere veterans seek emergency or specialty care,and on laptops used by home care providers. Carddata is printed from the laptop or PC, then updatedfollowing treatment.
�Previously, all home care medical records werecontained in paper files,� explained Chaz Kastel,Health Administration Officer at the VA medicalcenter in Charleston, SC. �Whenever a veteransought medical attention outside the VA network,we would need to fax medical records to thephysician. It was a time-consuming task that couldcause delays for patients needing immediate medicalattention.
�With SmartRec, clinicians can access this patient-specific information quickly and easily at the point-of-care. This underscores our commitment toimprove service to our veteran patients.�
In addition, SmartRec will help streamlineprocesses, reduce admission time, eliminateduplication of tests and help prevent medicationerrors, says DataCard.
�SmartRec makes all healthcare encounters fasterand simpler,� said Ravi Sharma, President ofDataCard�s healthcare company. �In seconds,clinicians can determine whether the patient isallergic to certain medications, whether certain testshave been performed and how the patient hasresponded to their therapy program. Smart Cardtechnology makes this medical information easilyaccessible and highly portable.�
Building on previous success
The SmartRec pilot builds upon the successfulimplementation of the Veterans Identification Card(VIC), which veterans use for access to VA facilities
and services. Using DataCard image capturesoftware and card personalisation systems, the VAproduced VIC cards for 2.6 million veteransworldwide. However, VIC utilised encodedmagnetic stripe cards, which limited the amount ofinformation that could be stored on each card. Incontrast, SmartRec�s microchip is capable of storingextensive medical and demographic informationand can be customised to fit a variety of applications,including access control and biometricidentification.
Contactn Mark Iverson DataCard Corporation( +1 612 988 1763: [email protected]
Smart Network Authentication
Security Dynamics Technologies has announced theSecurID 1100 Smart Card, the first Smart Card towork with its ACE/Server security solution. It isworking with Gemplus and using a GemplusMPCOS-based multi-function microprocessor cardand Gemplus readers. Availability of the SecurIDSmart Card is scheduled for early in Quarter Twothis year.
Contactn Amanda Sills Security Dynamics( +44 (0)118 936 2600: [email protected]
India�s Drivers go Smart
Orga have won the contract to supply India with itsfirst Smart Card based driving licence. The schemewill take place in the Indian state of Gujarat and willinvolve an estimated 10 million driving licences.The first phase will involve the installation of 25issuing systems across the state which will then befollowed by a full state roll out. The Orga contractwas established through Orga�s Dubai office incooperation with Smart Chip Ltd., its partner inIndia. The Smart driving licence will incorporatethe owners fingerprint as well as their traditionalpersonal details. 1998 has turned out to be Orga�smost successful financial year with record sales ofDM 302 million (£105 million). At the end of 1998Smart Cards totalled a world volume of 1,295million, a figure anticipated to increase to 1,840million cards by the end of 1999, a growth rate of42.1%.
Contactn Scott Allen( +44 (0) 1628 624 265: [email protected]
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Philips and IBM Team on Security
Philips Semiconductors and IBM Research haveformed an alliance to develop next-generation 16-bit multi-function Smart Cards for secure uses suchas banking, electronic purse, medical records, secureauthentication and customer loyalty programs.
It is planned that the new cards will use Philips�SmartXA Smart Card processor running an IBMsecure operating system and enhanced JavaCardvirtual machine software.
The companies say this is �the first time that multipleSmart Card applications can be written in differentprogramming languages and then loaded onto thesame card after it is issued.� For example, the cardscould accept applications written in nativeassembler language, high-level languages like Ccompiled to native binary code or interpretedlanguages such as Java.
The security of the IBM-Philips approach is beingevaluated by third-party certifying programs(ITSEC and Common Criteria), the firms said.
Scott McGregor, Senior Vice President and GeneralManager of Philips Emerging Businesses Unit,explained: �Companies will be able to issue a singlecard that supports applications from multiplesources, knowing that an independent third partyhas assured that valuable information remainstotally separate and secure from other companiesoffering services on the card.�
Elaine Palmer, Manager of the group developingthe software at IBM Research, said the new designof cards �will enable an ever increasing range ofelectronic commerce applications.�
SmartXA provides a hardware firewall, a 16-bitcomplex instruction set computer (CISC) processorand advanced memory configuration. It is about 30times more powerful than current 8-bit architecturesand runs software interpreters like Java �quicklyand efficiently,� the firms said.
The operating system provided by IBM Researchwill optimise the link between hardware andJavaCard virtual machine or application software,managing system resources and keepingapplications separate from each other.
n More about the alliance at: www.ibm.com/research
Two Million Smart Watch Sales
Gemplus has announced that two million Smartwatches built around the contactless technology ofits subsidiary, SkiData, have been sold over the last10 years. The company says it expects to ship500,000 contactless watches in Asia alone this year.
After SkiData brought its first watch, KeyWatch, tomarket for use as a ski pass, SkiData and Swatchagreed to a joint development, production and salesprogram for Smart watches, called Swatch-Access. Today this watch is used in more than 450 ski resortsin 17 countries, including the US, as well as inSkiData parking access systems, event access andstadiums.
Marc Gemeto, Access Control Marketing Managerat Gemplus, described the take-up of the Smart watchas �phenomenal.�
He also revealed Gemplus is in discussions withleading watch makers around the world overapplications such as residential access, e-purse,loyalty, wireless and transport.
Contactn Lisa Colley Gemplus( +44 (0)1705 488037: [email protected]
Smart Cards for NSW Students
Australian telecommunications company Telstra isissuing reloadable Smart Cards to 45,000 Australianstudents and staff at campuses in New South Wales.
The cards will be used for identification, libraryaccess, site access and college memberships bystudents and staff at selected TAFE (tertiary andfurther education establishments) campuses. Theywill also contain a reloadable electronic purse forthe payment of goods and services in retail areasclose to the campuses.
The educational establishments may extend thestudent Smart Cards to all NSW�s 425,000 studentsand help develop new applications.
Also involved in the project are Wang Global, FoxTechnology, Cardcorp and Keycorp.
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Frequent Traveller Loyalty Scheme
Schlumberger Smart Cards & Terminals hasdeveloped a Smart Card-based loyalty applicationtargeting frequent travellers with GSM phones.
The Frequent Traveler e*Assistant applicationcombines air miles for air time with personalisedand on-demand flight information.
When subscribers book a flight on a participatingairline, they will have the option of automaticallyreceiving the following information and alertsdelivered via their hand set - flight confirmation andschedule, two-hour reminder alert before flight time,gate information when assigned, alerts about gatechanges, flight delays or cancellations, and alertwhen the plane is starting to board.
They can also access information such as flightstatus, information on earlier and later alternateflights, and direct connection to airline travelassistance operators.
�Business travellers are typically intensive users ofmobile phone services; and GSM providers can usethe Schlumberger Smart Card-based FrequentTraveler e*Assistant loyalty application to win andretain business,� said Sami Nassar, Director,Telecom, Schlumberger Smart Cards & Terminals,North America.
Contactn Debra Montner Montner & Associates( +1 203 226 9290: [email protected]
University of Florida Card
The Huntington National Bank has introduced aSmart Card program at a mass carding event on theUniversity of Central Florida campus. The eventattracted more than 18,000 students, faculty andstaff who lined up to be among the first to receivethe UCF Card.
Other college campuses such as Florida StateUniversity and Arizona State University have asimilar type product, but the UCF Card is claimedto be a more technologically advanced version.
In addition to serving as an ID and library card, otherfunctions include purchases at campus vendingmachines and photocopiers and prepaid telephoneservice. It also serves as the users� ATM card fortheir Huntington Checking Account.
The bank�s new on-campus office reports it hasissued 24,000 UCF cards and opened 2,500 UCFaccounts.
Contactsn Jane Ashley The Huntington National Bank( +1 407 740 7150: www.huntington.com
Telecom NZ Victim of Y2K Bug
Telecom New Zealand is to replace its publicpayphones at a cost of at least $6 million becausethe management software is not Y2K compliant.
In July it will start a new nationwide payphonenetwork using Smart Cards to replace the currentmagnetic stripe stored-value cards.
The new pay-phone technology will allow newservices such as downloading e-mail, accessing theInternet, direct dial keys, and user guides in fivelanguages.
100,000,000th SIM from Gemplus
Gemplus has delivered its 100,000,000th SIM cardsince the introduction the SIM card in 1992, to ChinaTelecom, the world�s largest GSM operator and oneof Gemplus� major customers.
China Telecom currently has over 17 million GSMmobile subscribers and expects to add a further 13million to their customer base this year.
Contactn Tarvinder Dhillon Gemplus ( +65 771 9140: [email protected]
Golden Swan Award for L&G
France Télécom has awarded its prestigious 1998Cygne d�Or (Golden Swan) award to Landis & GyrCommunications �for exceptional standards ofequipment and service.� The trophy was acceptedby Joël Doucet, Director-General of Landis & GyrCommunications SA, France.
Contactn Adolf Deyhle L&G Communications( +41 22 749 33552 +41 22 733 5219
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Smart Cards for Hawaii
The Pathways Group, Inc has entered into a letterof intent with Consolidated Amusement Company,Inc. in Honolulu, Hawaii, to provide an integratedsystem for unattended electronic ticketing,concession purchases, and loyalty program cards toa new �Sixteen-Plex� CAC theatre at the PearlridgeShopping Center.
The pending agreement calls for the installation ofPathways� proprietary TIKITBOX product atvarious locations within the theatre. These ticketingkiosks will allow customers to purchase tickets inan unattended fashion.
Customers will also be eligible for loyalty points,frequent movie passes, and concession purchasesusing a Smart Card. Points can be used for thepurchase of products or services in the theatre or atother participating merchants.
An exclusive client card program will be part of theanticipated system, and CAC says it will havebenefits that break new ground in the cinema viewingexperience.
CAC operates multi-screen theatres throughout thestate of Hawaii, and is a wholly owned subsidiaryof Pacific Theatres Corporation of California. Theparent company operates over 30 additional multi-screen venues on the West Coast.
Contactn Carey Daly The Pathways Group( +1 707 546 3010: [email protected]
Correction from Schlumberger
The Schlumberger MagIC 9000 POS terminal hasnot yet been granted EMV certification, as stated inthe January 1999 issue of Smart Card News. Thefinal series of tests shall be carried out within thenext few weeks and the test report for EMV level 1approval submitted to Europay accordingly.
Due to a regrettable mistake on our part the newswas released prematurely. We would like to makeit clear that Smart Card News published thisinformation in good faith - and we are very gratefulfor this opportunity to put the record straight.
Isabelle MarandSchlumberger Test & Transactions
BAFA Approval for G&D
Giesecke & Devrient has become the first Germancompany to set up a process for the exchange ofknow-how and technology that satisfies the exportcriteria of the Federal Export Office (BAFA) whichhas granted a collective export licence, valid for twoyears, permitting secure data transfer to six G&Dsubsidiaries with no limitation on data content.
Based on standard Internet protocols andcomponents, the software allows G&D employeesto access proprietary information using browser andJava technologies enabling staff in the networkedsubsidiaries to work with the same up-to-date toolsand information as their colleagues in Munich.
Contactn Christian Treinies Giesecke & Devrient ( +49 89 4119 2125: www.gdm.de
Independent MIFARE Certification
Philips Semiconductors has announced that it hasestablished Testhouse arsenal, of Vienna, Austria,as the independent MIFARE Certification Institute.The aim is to ensure compatibility between differentmanufacturers� MIFARE products within the scopeof ISO/IEC 14443 A.
This means that tendering parties will be able to relyon the fact that certified MIFARE card productsfrom any supplier will work correctly with anycertified terminal from another supplier.
Contactn Arsenal research( +43 1 79747 5252 +43 1 799 1955
PubliCARD�s Amazing Acquisition
PubliCARD Inc., headquartered in Fairfield,Connecticut, has announced it has completed itsacquisition of Amazing Smart Card Technologies.
The acquisition of the Santa Clara, California-basedSmart Card manufacturer strengthens PubliCARD�splans for market penetration and follows earlier take-overs of Greenwald Intellicard and TritheimTechnologies.
Contactn Richard Phillimore PubliCARD( +1 203 254 3900
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software available as components of a larger SmartCard-based solution.�
Software products already developed by Gemplus,including GemMobile Remote Manager, a remoteadministration platform for GSM cards, andGemSAFE, a Smart Card-based network securitysolution, have been transferred to the new divisionfor R&D and marketing support.
Contactn Lisa Colley Gemplus( +44 (0)1705 488037: [email protected]
Sainsbury�s Using Smart Cards
High Street food retailer Sainsbury�s is using SmartCards at its London offices for staff to purchase foodfrom cashless vending machines and cafeterias.Now in a further stage the cards are being used inan access control system.
An ID400 system from UK company Caradon Trendhas been installed in a group of five buildings whichconstitute the core of Sainsbury�s London head-quarters, and at a couple of more remote sites. Thesystem makes use of a previously fitted optical fibrecommunications network, sharing it with a CCTVsystem.
Once further developed, the system will allowcentralised management and monitoring, from asingle PC, of 13 buildings and a database of some4,500 authorised users.
The system controls access to building entrances,car park barriers/shutters and internal doors. Anumber of ID408 controllers, which can control upto eight doors and are linked, hold the details andaccess rights of all cardholders.
Doors and other entry points are fitted with purpose-built proximity Smart Card readers developed byCustom Micro, and connect to the controllers.
The Smart Cards incorporate a memory chip andloop aerial and could contain as many as 16separate functions. Sainsbury�s is currentlyconsidering various additional applications,including photocopying.
Contactn Caradon Trend( +44 (0)1403 211888: www.trend-controls.com
NEWS
SMART CARD NEWS � MARCH 1999
Paris Metro Ticket Terminals
Schlumberger is supplying some 1,000 advancedticket sales terminals to RATP (Régie Autonomedes Transport Parisiens) for all Paris Metro stations.
Over 40 terminals are already in use at key stationsin the city as a trial, the success of which has led tothe order for terminals to be deployed throughoutthe network.
The new terminals accept any method of paymentand rapidly print magnetic stripe Metro tickets.Among the facilities are a cheque reader andperipherals which are capable of accepting Smartbank cards and e-purse payment cards.
A key element in this major upgrade is thepreparation for contactless Smart Card ticketingwhich could be introduced by RATP as early as thisyear, says Schlumberger which has incorporated acontactless card reader/writer in the terminal.
Contactn Dirk Hinze Schlumberger( +33 (0)1 47 46 79 50: [email protected]
Gemplus Software Launched
Gemplus has announced Gemplus Software, a newdivision which will focus on delivering softwareproducts to its Value Added Resellers (VARs),developers, partners and customers.
Philippe Maes, Senior Vice President, GemplusSoftware, said: �Open systems and standardisationare the key factors that will accelerate the adoptionof Smart Cards in new markets and applications.
�We are providing software products that will speedup development and lower the cost of deliveringnew Smart Card applications. We will make this
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Visa Plans EMV Implementation
Visa�s EU Board recently voted to adopt a frameworkfor ensuring that credit/debit cards and merchantterminals achieve EMV (Europay/MasterCard/Visa) �96 3.1.1 compliance to achieve inter-operability between Europe�s wide variety of chipcard programmes.
Contactn Stacy Torbit Visa EU( +44 (0)171 795 5390: [email protected]
ORGA Smart Card Design Award
ORGA Card Systems� 5th Annual Smart CardDesign Competition was won by US art studentAmanda Ferraro who received a cash prize and atrip to Germany. The awards ceremony was heldlast month at the Moore College of Art and Designvisual-arts college for women in Philadelphia. USWEST co-sponsored the event.
ORGA Card Systems, the US subsidiary of ORGAKartensysteme, Germany, invited art students at thecollege to create the design that will appear on USWEST�s limited edition Smart phone cards to bedistributed both in Europe and the United States.Entries were judged by an international panel ofbusinesspersons spanning two continents, MooreCollege faculty and independent designers.Siegfried Eichinger, President of ORGA USA, said:�Events like this provide an excellent opportunityto introduce the many benefits of this leading-edgetechnology to a non-technical audience.�
Contactsn Andy Arriviello ORGA Card Systems( +1 610 993 9810: [email protected]
n Henna Remstein Moore College( +1 215 568 4515, ext. 1228: [email protected]
NEWS
SMART CARD NEWS � MARCH 1999
Korea Enters Combi-card Arena
Samsung Electronics and Samsung SDS haveunveiled a new combination card chip which is thefirst of its kind in Korea.
Samsung says its new combi-card is the first singlechip in Korea that includes both contact and non-contact formats. It has 8K bytes EEPROM and 24Kbytes ROM.
Development has been completed for a system thatallows entry to subway passengers and the companynow plans to diversify into financial and trafficsystems.
Contactn Sungin Cho Samsung Electronics( +82 2 727 78562 +82 2 727 7469: [email protected]
Smart ID Card for Dutch Army
The Royal Netherlands Army is using MIFARE-based multi-function cards.
As an identity card it replaces both military passportsand civilian Ministry of Defence ID cards and showsthe bearer�s name, date of birth and photograph andalso records this data in the chip. It is also used foraccess control using the MIFARE contactlessinterface and can be used as a meal card and forpurchasing tax-free goods in MOD shops. Otherfunctions, such as computer access, may be addedin the future.
Port of Rotterdam Cargo Card
A contactless Smart Card based on PhilipsSemiconductors� MIFARE technology has beenintroduced at the Port of Rotterdam as anadministrative tool from the authorisation of truckdrivers to customs formalities. Called the CargoCard, it holds the driver�s personal information.Security has been strengthened with the use ofbiometrics, in this case the scanning of the driver�sleft hand.
Contactn Elisabeth Dörner Philips Semiconductors 2 +43 3124 299270: [email protected]
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FinnCity Card Pilot in Finland
The three major banks in Finland running thenational electronic purse system, Avant, have agreeda common multi-application card scheme with fourmajor Finnish cities and Finland�s PopulationRegistration Center, the governmental body incharge of the national Electronic ID.
Setec has developed a powerful new multi-application card within its SetCard family for usein the scheme. Called SetCard 16K/RSA, the cardsupports ISO 7816 functions, dynamic multi-application handling, banking applications such asSmart debit and credit and electronic purse.
The first pilots will be in the cities of Vantaa andEspoo within the great Helsinki metropolitan area.The FinnCity card will store an RSA-basedelectronic ID application, the Avant electronic purseapplication and a number of city application formunicipal and transportation services.
One of the first services will provide a convenientand secure means of applying for the rental ofmunicipal apartments and children�s day-careservices over the Internet.
Setec says that in this service the electronic IDapplication is used for strong authentication of thecommunicating parties and for non-repudiation oftransaction by utilising digital signatures.
Contactn Fred Granberg Setec( +358 9 894112 +358 9 878 6133: [email protected]
Multi-application Cards for Israel
Israeli company VISA ALPHA, owned by FirstInternational Bank of Israel, has ordered 300,000Smart bank cards from Oberthur Smart Cards ofFrance.
The cards will comply with UKIS specificationsand the EMV (Europay/MasterCard/Visa) standardsand integrate an electronic purse function withdebit/credit applications. They will be the first multi-application bank cards available in Israel.
Contactn Marie-France Magne, Oberthur Smart Cards( +33 (0)1 41 25 28 28: [email protected]
ST Unveils SmartJ Platform
STMicroelectronics has unveiled its SmartJplatform for next-generation multi-applicationcards.
Built around a 32-bit RISC core developed byNCT/Advanel Logic, it is being combined with ST�ssecurity know-how and advanced 0.35/9 non-volatile memory technology, as well as contact andcontactless interfaces, DSP, biometric processingand custom logic blocks.
According to the company, key benefits will be thesmaller memories and lower clock speed resultingfrom direct execution of Java code.
Contactn Maria Grazia Prestini STMicroelectronics( +33 (0)4 50 40 25 32
Dan Cunningham Leaves SCIA
Smart Card industry veteran Dan Cunningham, isstepping down as President and Chief ExecutiveOfficer of the Smart Card Industry Association(SCIA) effective 15 March.
In recognition of his service to SCIA and the industry,SCIA�s board of directors has named him as theirfirst director emeritus and he becomes a lifetimehonorary member of the board.
�When I took over as President and Chief Executivea little more than two years ago, my goal was togrow SCIA�s membership to a level that would beself-sustaining,� said Cunningham. Noting that themembership has increased from 14 to nearly 90firms, he said he feels he has accomplished his goal.
�I look forward to moving back to the for-profitsector and devoting full time to my consulting firm,Potomac Systems & Technologies,� he said.
SCIA Chairman Jim Lout commented: �We greatlyappreciate Dan�s years of service, and are glad tohave him still involved with the board.�
Now the SCIA is restructuring its internaladministration and will soon be seeking one or moreindividuals to fill new management positions.
Contactn Colburn Aker SCIA( +1 202 789 2424
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Mondex Sells Japan Franchise
Mondex International has sold its electronic cashfranchise for Japan to a consortium of three majorfinancial institutions - Sanwa Bank, which is in theworld top ten; JCB, one of the top five credit cardbrands with 39.5 million card members; andMasterCard International.
Helping to drive the introduction of Mondex willbe the alliances with a number of leading JapaneseSmart Card industry vendors such as Dai NipponPrinting, Hitachi, Oki and Panasonic.
The attraction for Japanese customers, according toMr Gondo, JCB�s Senior Vice President and GeneralManager (Electronic Commerce) will be Mondexfunctions such as person-to-person transfer, theability to download cash from a phone line and thesystem�s suitability for vending.
It is planned to implement the MULTOS multi-application operating system for Smart Cards whichallows several applications to operate from one card.
The deal will come as a blow to Visa which is pushingits Visa Cash card and has around 100,000 incirculation in Japan. Also affected will be thedomestic electronic purse offered by NTT, theJapanese telecommunications company, which hasissued a similar number of cards as Visa Cash.
Michael Keegan, CEO of Mondex International,said: �The addition of this important G7 economystrengthens Mondex�s postiion as the only globalelectronic cash product - no other electronic cashsystem can now match our presence in so many ofthe world�s financial markets.�
Contactsn Robin O�Kelly Mondex International( +44 (0)171 557 5036
n Shogo Kimura Sanwa Bank( +81 3 5252 1236
n Akihiro Nakatani JCB( +81 3 5259 1239.
Finnish Support for MULTOS
Finland�s two largest card fabricators, Setec andMiotec, have announced support for the MULTOSmulti-application Smart Card operating system andwill offer MULTOS cards.
Setec is Northern Europe�s largest Smart Cardmanufacturer. Lauri Personen, the company�s
Division Manager for Smart Cards, said: �As Setechas a clear focus on demanding high end Smart Cardsolutions it is only natural that we also look into thepotential of MULTOS.
�As we have been working for many years withSmart Card-based interpreters, we see obviouspossibilities in applying our expertise in developingapplications on the MULTOS platform too.�
At Miotec, Finland�s privately owned cardmanufacturer, Managing Director TapioRobertsson, commented: �MULTOS is more thanjust an operating system. What is really importantto issuers is the fact that each card will support anumber of different applications securely with allthe card management infrastructure necessary toensure a realistic and workable offering which isready for immediate deployment into the market.�
The announcement of support from the Finnish cardmanufacturers was made by MAOSCO, the industryconsortium promoting MULTOS as an industrystandard and managing its development.
Contactn Narda Shirley Gnash communications for MAOSCO( +44 (0)181 563 9446: [email protected]
Low Cost Loyalty Card
Schlumberger has announced a low-cost loyaltycard, called Primeflex Entry, for the simple �pointsper purchase� loyalty schemes operated by massretailers and oil companies.
�Many retailers who want to implement a loyaltyscheme are missing out on the benefits of SmartCards by choosing magnetic stripe technologypurely on cost grounds, explained Jean-ClaudePerrin, Schlumberger Product Line Manager.
Schlumberger says the card is based on provenmemory card design with additional capacity andstorage for user details. Each card can store up totwo million points, plus additional informationabout the card holder for use in building targetedmarketing schemes.
Contactn Isabelle Marand Schlumberger( +33 (0)1 47 46 55 42: [email protected]
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Cuba to Launch Tourist Card
A Smart Card for tourists visiting Cuba is to beissued by the Central Bank of Cuba. It is to be pilotedthis month by employees in the island�s tourismindustry before being put into general use for allvisitors in the summer of this year.
Holiday makers arriving in Cuba will be issued withthe Smart Card payment card - which will alsoincorporate an electronic purse - at their hotel.
The card will be personalised with their name anda PIN code. The card can then be used to pay for alltypes of purchases, including small amounts suchas taxi fares, meals in restaurants, souvenirs andpostcards. It will be reloadable and will be returnedupon departure from Cuba.
The contract for the system has been awarded toIngenico Data Systems which has selected OberthurSmart Cards to supply the multi-function cards.
Contactn Marie-France Magne Oberthur Smart Cards ( +33 (0)1 41 25 28 28: [email protected]
Mobile Phone Cash Dispenser
Visa International, in partnership with Barclaycardand GSM network operator Cellnet, has announcedthe first consumer trial of �mobile electronic cashmachines.�
Starting in April this year, around 1,000 consumerswill be able to download electronic cash overCellnet�s GSM network on to their Barclaycard (withVisa cash functionality) by inserting it into aspecially designed Motorola StarTAC mobilephone.
The phone asks the user to enter the �withdrawal�required, up to a limit of £50, and a bank PIN forsecurity. The e-cash is then deposited onto theBarclaycard via the GSM network, and debited fromthe user�s account.
Customers can check their credit card details anddownload e-cash at anytime and in any place wherethey can use their Cellnet phone.
Jon Prideaux, Visa�s Executive Vice President forNew Products, commented: �A cash machine inyour pocket really does represent the ultimate inconvenience.�
Cellnet�s Managing Director Peter Erskine, said:�Withdrawing e-cash over your mobile may seema futuristic idea - but within five years it will becommonplace.�
The service uses the new dual card cellular phonefrom Motorola, a specially programmed SIM cardfrom De La Rue and m-Commerce server softwarefrom Logica.
Contactsn Stacy Torbit Visa EU( +44 (0)171 795 5390: [email protected]
n Ellie Wallace Barclays( +44 (0)171 699 2670
n Damian Peachey Cellnet( +44 (0)1753 565309
Fortronic Name Returns
The acquisition of the Scottish-based terminalsbusiness of De La Rue by French Ingenico Groupwas confirmed last month and the new companywill be known as Ingenico Fortronic.
Established in 1972 as Fortronic Ltd, the companyhad its name changed when it became part of De LaRue Card Systems in 1997.
The company will continue to be based inDunfermline and will now manufacture and marketIngenico products in addition to its own productrange, including the portable Elite 730 paymentterminal, which is to be introduced to IngenicoFortronic�s markets in the near future.
This is a powerful, portable terminal which acceptsboth Smart Cards and magnetic stripe cards.Communication between the terminal and baseplatform is processed via infrared transmission.When operating on battery it can process up to 200transactions before recharging is necessary.
Ingenico now claims to be the world�s second largestprovider of EFTPOS terminals after the furtheracquisition of Bull Telesincro, dominant supplier inthe huge Spanish market, from Groupe Bull.
Contactn Kirsty Moralee Ingenico Fortronic( +44 (0)131 459 8800: [email protected]
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Major Contracts for ERG
ERG of Australia has won two major contracts -one in partnership with Motorola - and has alsoreceived a government research and developmentgrant.
New World First Bus, Hong Kong�s newest buscompany, has awarded ERG a HK$23 millioncontract to design, install and commission its 700buses into Hong Kong�s multi-modal contactlessSmart Card fare collection system.
This brings to seven the number of transit operatorsparticipating in the Creative Star Octopus Systemwhich enables passengers to travel on all modes oftransport using the one Smart Card ticket. Thecontract calls for all of the buses to be equipped bythe end of this year.
Berlin transit contract
ERG and Motorola�s Worldwide SmartcardSolutions Division, have been awarded a contractby BVG, the Berlin Transport Authority, to trialSmart Card electronic ticketing covering Berlin andthe surrounding greater Brandenburg area. S-BahnBerlin GmbH (Rapid Train System of Berlin) andVBB (Transport Authority of Berlin-Brandenburg)will also participate in the trial scheduled to start inOctober and last three to six months.
About 25,000 people will test the system on twosubway lines, two bus routes and one tram line. Upto 150,000 transactions per day are expected. BVGexpects full system implementation and generalpublic availability by 2002.
R&D grant in Australia
Further good news for ERG came this month withthe announcement of an Aus$3 million research anddevelopment grant from the CommonwealthGovernment�s Industry Research and DevelopmentBoard.
The grant is to further develop ERG�s multi-application Smart Card system originally designedfor Hong Kong. The Octopus system (see above),will be used as a base for a similar system whichcan be scaled down to meet the needs of any city.ERG will supplement the grant with a further Aus$14million on the project over the next 12 months.
It is planned to license the technology to cities thatchoose to operate the system independently or outsource the operation to ERG and its alliance partners.
Chief Executive Officer, Peter Fogarty, explained:�Hong Kong was developed to meet the specificneeds of a very large sophisticated transit network.Not all transit systems are as large or have the needfor all the levels the Hong Kong system delivers.
�The new system will provide transit operators withthe opportunity to use any number and combinationof modules to build a Smart Card-based transitsystem which exactly meets their needs. The systemcan then be expanded to accommodate other SmartCard applications such as electronic purse.�
Killer application
He said that transit was the �killer application�everyone was looking for. The new system wouldbe a huge leap forward for the commercialisationof Smart Cards. The industry now realised that anySmart Card program, regardless of application,required both volume and frequency to succeed.
�With millions of commuters in any given city usingpublic transport each day, transit is the killerapplication providing the necessary card base onwhich other applications can be supported.�
Contactn Wendy Watson-Ekstein ERG ( +61 89 273 12042 +61 89 273 1208: [email protected]
Brewery to Trial Loyalty Card
UK brewery, Wolverhampton & Dudley Breweriesis to carry out a six month trial of a Smart Card-based loyalty scheme in three of its MilestoneRestaurants in Wolverhampton, Weston Super Mareand Nottingham. The scheme has been designed byLoyalty Logic and will run in conjunction with anew EPOS system from Crown ManagementSystems.
Details of rewards have yet to be finalised but couldinclude promotions relating to future meals or bonuspoints. Loyalty Logic will run and manage thedatabase and produce weekly reports to identifycustomers and their habits for targeted promotions.
Contactn Chris Jacobs Loyalty Logic( +44 (0)1252 7767442 +44(0)1252 776748: [email protected]
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Thyron Announces New Products
Thyron has launched its latest mobile and desktopcard processing terminal called PayCell which itsays is the first terminal that is independent of themobile communication network it operates across.PayCell achieves mobility via the use of inter-changeable PCMCIA wireless modems that supportGSM, CDPD, Mobitex and other data networks,making worldwide and cross-border mobilepayments and electronic commerce a reality.
The company has also introduced TASK-Corporateto manage and secure Internet Web and e-mailapplications. It provides physical digital tokens foruser authentication, message content signing andconfidential trust, as well as addressing the keyrequirements for secure certification and regis-tration of authorised users.
Contactn Rohit Patni Thyron( +44 (0)1923 236050: [email protected]
Parking Plans for Bologna
Schlumberger is installing several hundred Stelioparking payment terminals in the Italian city ofBologna. At present the payment terminals accepttoken and card payment but the city plans tointroduce an electronic purse to pay for municipalservices, including parking and transport.
Contactn Isabelle Marand Schlumberger( +33 (0)1 47 46 55 42: [email protected]
Internet Kiosks for Marriott Hotels
Marriott International has approved the installationof iCom Internet kiosks in common areas whereguests can access the Web, send and receive e-mail,and conduct business etc 24 hours a day.
Michael Marashlian, Vice President of Sales andMarketing at iCom, told SCN that payment is withdollar bills, major credit cards or coupons but thereare plans to incorporate Smart Cards which will helpin marketing and also reward frequent users withdiscounts.
Contactn Michael Marashlian iCom Network( +1 619 450 0759: [email protected]
Evaluaton Kit for FingerTIP
Siemens has announced the availability of anevaluation kit for its FingerTIP biometric fingerrecognition technology (SCN February page 39). Thekit compirises a sensor mounted in a small casing, aCD ROM containing software development kit anddocumentation. The sensor can be plugged into theparallel port of a PC and powered directly from a PCmouse port or via the separate power adaptor supplied.
Contactn David Close Siemens ( +44 (0)1344 396313: [email protected]
SIM Card Order for ORGA
ORGA Card Systems in the US will be the exclusiveprovider of SIM Smart Cards for the American SamoaTelecom PCS network, scheduled to launch mid-1999.
Contactn Frank Barbalace ORGA( +1 610 993 9810: [email protected]
Cryptoflex for Windows 2000
Schlumberger has announced that its CryptoflexSmart Card is now interoperable with the MicrosoftWindows 2000 operating system. Smart Cards canbe used to secure network logon, e-mail and remoteaccess over the Internet. Jason Garms, Microsoft�sWindows Security Product Manager, said: �We arepleased that the Schlumberger Cryptoflex Smart Cardis enabled to take advantage of the extensive PublicKey Infrastructure (PKI) integrated into the Windows2000 platform.�
Contactn Isabelle Marand Schlumberger( +33 (0)1 47 46 55 42: [email protected]
New Incard Office for Singapore
European Smart Card supplier, Incard, head-quartered in Italy, has opened a new office inSingapore where it is currently delivering GSM andpayphone cards in volumes. The address is Incard -Singapore R.O., 101 Thomson Road - 05-02 UnitedSquare, Singapore 307591.
Contactn Vincent Lee Sales Support Asia Pacific ( +65 353 13732 +65 256 6877
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Smart Cards � The Future(continued)
In looking at the future of Smart Cards there is reallyonly one question we would like to answer �who isgoing to make money, where�?
The business of Smart Cards has changed so muchover the last few years that we need to have a lookat the then and now. In the early days of the Industrycard companies such as Gemplus would producethe total card as a solution to a problem. The CardCompany would design and develop the softwareprograms to be manufactured into the ROM by thesilicon manufacturer. On receiving the silicon waferthe manufacturer would then produce the micromodules for embedding into the card plastic. Thesame company would then print the cards andpersonalise the application with the relevant data.Such cards might typically be sold for about $5 ofwhich up to 50% would be recovered to pay for thedevelopment process and the necessary profitstream. A production run of 1 million cards wouldreturn several million dollars.
Now lets move to the end of the millennium wherelife in the Smart Card world has become a lot morecompetitive. Major applications such as GSM areproduced against open specifications such thatmanufacturers have to compete aggressively. In sucha market we can see the total card price in the regionof $2 - $3. The contribution for the software isestimated to be in the region of 10% - 20%. Aproduction run of 1 million cards might now onlyreturn $200,000 to pay for the softwaredevelopment.
Just before passing on we need to agree that such areturn is totally unacceptable in that it would notcover costs. What can be done in a back bedroomfor $20,000 ends up costing at least $400,000 as aproduction item. The point that we are making sofar is that the providers of Smart Card software eitherhave to generate large volumes, which incidentallyis why the GSM application is so successful (65million cards in 1998), or the application providerhas to enter a market that is not price sensitive. Suchmarkets are often by their nature short lived becausethey either fade out or they expand into competitivevolume markets.
It is the emergence of the Smart Card as an essentialtoken in our electronic world that is causing these
new market pressures. We have mentioned GSM asthe current success story but popping out of thewings we can see financial cards (credit, debit andelectronic purse) and probably even more importantthe ID cards that will become the backbone ofelectronic commerce.
Interoperability and cost go hand in hand. The PCmarket has developed on a common infrastructurethat allows interoperability between applications ondifferent hardware implementations. The operatingsystem in this case Windows xx hides the details ofthe particular hardware from the applicationsoftware. In principle at least we can run ourapplication software on any PC providing sayWindows 95. Well that�s what it says on the box andin general it works. In the case of the PC we havethe advantage of using a common processor basefrom Intel.
In the case of the Smart Card life is somewhatdifferent. We have about six major manufacturersof chips which to all intents and purposes have littlein common. There is no way that a native applicationwritten for a Siemens chip will run on a Hitachichip, or any other chip come to that. Both the softwaredeveloper and the consumer lose by this approach.The software developer by the previous argumentneeds volume to pay for his development and togive a return on his investment. There are far moredevelopers working on the PC than the Macintoshand here we really only have a choice of three (UNIXmachines being the other alternative). It is this veryproblem that has given rise to Java, which gives youthe ability to program with platform interoperability.The advantage to the end consumer is equally clear.
Apart from platform interoperability Java is alsointended to manage another important requirement,security! Much is spoken about the security of theJava sandbox but the basic principles are quitesimple. If we invoke a common abstract machineon top of the real machine then all applications arewritten to interface with the abstract machine, thereal machine is hidden. Now it is only necessary towrite the applet once, in the language of the abstractmachine. Whenever we meet the same abstractmachine regardless of the underlying platform(assuming it has sufficient available resources) ourapplication will run. But the abstract machine iscontrolling all access to the resources of the realmachine, the memory, I/O, disc drives etc.
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Figu
re 1
Abst
ract
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Mac
hine
s
Applications(NATIVE CODE)
OperatingSystem
(NATIVE CODE)
HardwareResources
Real Machine Architecture
Applications(ABSTRACT MACHINE CODE)
Security Kernel(NATIVE CODE)
Abstract Machine(NATIVE CODE)
HardwareResources
Abstract Machine Architecture
This means that we can in a well-designed systemstop one application from interfering with another.Figure 1 shows the difference between these twoapproaches. It is important to note that in the realmachine environment that the applications caninterface with the hardware resources direct. Thismeans that one application can interfere withanother application�s memory storage. Oneapplication could read the secret cryptographic keysof another application. The only way to stop this isby having special hardware that controls theallocation of memory to applications, in other wordsa hardware memory management unit (MMU).Looking at current Smart card chips only the newPhilips Smart XA offers this sort of facility.
This approach to Smart Cards has now been adoptedby three organisations:
n Maosco Multosn Sun JavaCardn Microsoft Smart Cards for Windows
In each case the operating system is composed oftwo parts, a virtual machine which is a particularspecification of an abstract machine and a securitykernel which forms the interface between the virtualmachine and the hardware resources.
We can see immediately that the business model forthe traditional card companies has changed. Becausethe definition of the virtual machines are public itopens up a New World for software developers toenter the Smart Card arena. The card companies arealso directly competing with each other on a standardproduct so their differentiation has to be based onimplementing the same thing better or cheaper thantheir competitors. In any event the margins forsoftware are much reduced but the volumes arepotentially much higher.
There is also the secondary advantage for applicationdevelopers of being able to obtain off the shelfproducts because the ROM mask is fixed and canbe manufactured with no prior knowledge of theapplications.
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So is this a win-win situation for all the players?The semiconductor companies end up with manu-facturing standard products. The card companiescan use a standard chip which optimises the cost ofthe card but their traditional margins are muchreduced so they need to move higher up the foodchain as system integrators which will produce amuch higher added value. The consumers also gainbecause of the lower cost of the core component.
But there must be a snag and of course there is. Thevirtual machines put in an extra software layer thatis at the core of the application execution. Everyabstract machine instruction has to be converted toone or more real machine instructions in real time.This results in a performance degradation of about1:20 in the conversion from the abstract machine tothe real machine. However in general applicationswill not run 20 times slower. The designers of thesecurity kernel will provide libraries written innative code that executes the core routines of theSmart Card applications. The cryptographic algo-rithms for instance will be executed in native codeaccessed from the virtual machine. Typically wemight expect Smart Card applications to run some10% - 20% slower but given the improvement inperformance of the chips this is likely to be perfectlyacceptable.
What we are really saying here is that the SmartCard is much more likely in the future to become acommodity where scale of volume is necessary toproduce the necessary revenue returns. The higheradded value will accrue to the system integratorsand this is where the battleground of the future willbe.
David B Everett
SSB Awards PKI Contract
Italian banking company, Società per I ServiziBancari (SSB), has awarded a contract toSchlumberger for Cryptoflex Smart Cards for itsEllips public key infrastructure (PKI) to provide asecure solution for organisations to use the Internetor intranets for banking, e-commerce and othersensitive applications. The French company is alsosupplying Reflex card readers and integrationsoftware.
Contactsn Rossana Aniello SSB( +39 02 34 84 283: [email protected]
n Isabelle Marand Schlumberger( +33 (0)1 47 46 55 42: [email protected]
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