momo payments panel - ctia slides (kate kingberger

1

CTIA- The Wireless Association

Kate KingbergerDirector, Wireless Internet DevelopmentCTIA- The Wireless Association

[email protected]

Presentation for DC MobileMonday

Mobile Payments:Global Perspectives and Western Implications

November 22, 2010Finnish EmbassyWashington, DC

Review of CTIA in Mobile Payments

• What is CTIA ?

• Wireless Industry Metrics = Growth

• CTIA Departments = Active and Pro-active

• Payment Types = Multiple forms for Mobile

• NFC - Review

• Common Short Codes = US and LatAm

• MFS Best Practices = Guidelines

CTIA-The Wireless Association® (www.ctia.org) is an international organization representing the wireless communications industry. CTIA advocates on behalf of its members at all levels of government.

The association also coordinates the industry’s voluntary best practices and initiatives, and sponsors the industry’s leading wireless tradeshows.

Wireless Internet Development department negotiated cross-carrier SMS in the Industry in 2003.

CTIA’s Role in the Industry

CTIA Member Based Association

• US Wireless Carriers (MNOs)

• Handset/Device Manufacturers

• Network manufacturers

• Platform providers

• Application providers

• Content providers


• What is CTIA ?




• NFC - Review



97,035,925

109,674,358

134,561,370

148,065,824

169,467,393

194,479,364

219,652,457

243,428,202

262,720,165

276,610,580

292,847,098

-

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10

6

Consumer Metrics –Total Estimated Subscriber Connections

Source: CTIA Semi-Annual Wireless Survey

June 2010 ended with 292.8 Subscriber ConnectionsEqual to 93% of total US population

70

200,000,000,000

400,000,000,000

600,000,000,000

800,000,000,000

1,000,000,000,000

1,200,000,000,000

Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10

Reported Six-Month Text Traffic Grows 33% Year-Over-Year

Traffic Measures –Six-Month Texting Traffic (includes IM)


1.8 trillion text messages in last 12 monthsUp 33% from prior period

8

585 675820 858 941 1,014 1,104 1,122 1,081 1,156 1,119 1,13825

33

49 6594

147

216385

620

740 823983

11

2

3

3

6

9

1024

32

$53.78 $52.19 $50.70 $49.39 $50.01 $49.81 $50.14 $49.51 $49.87 $48.89 $48.37 $48.79

0

500

1,000

1,500

2,000

2,500

Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10

Billi

ons

of M

essa

ges

/ Min

utes

Semi-annual Voice Traffic Semi-annual Text Traffic Semi-annual MMS Traffic Total ARPU (including toll & roaming)

Semi-Annual Traffic Measures –Voice & Data


In latest 6 months:1.138 trillion MOU982.9+ billion text messages32+ billion MMS

9

Consumer Metrics – Devices and Users

Based on sequential questions:•279.5 mm total reported subscribers (overall survey) (292 mm– Estimated total)

•264.5 mm data-capable handsets – (up 7.5 million)

•243.7 mm SMS-capable devices – (up 5.3 million)

•243.5 mm web-capable handsets – (up 5.1 million)

•61.2 mm Smartphones & PDAs – (up 11.4 million)

•12.95 mm wireless-enabled laptops, netbooks, & wireless broadband modems

– (up 1+ million)


100%

95%

87%

87%

22%

4%

ALL

Data

SMS

WEB

Smartphones

‘net Books’


• What is CTIA ?




• NFC - Review



Policy and RegulatoryLobbying in DCFederal, State, Congress

Trade ShowExhibitors and Attendees

WIRELESS Show (Spring)

Enterprise & Applications (Fall)

Handset CertificationTesting and Certifying viability and safety

All Handsets available to Consumer in US market

Short Code Management CSCA – usshortcodes.com(SMS- Text Messaging)

5 and 6 digit codes using SMS to deliver programs to US consumers

CTIA – The Wireless AssociationDepartments

Other Departments: Wireless Foundation; Wireless Internet Development; Membership; Public Affairs

Publications from WIC Initiatives available on CTIA.org website include:

SMS Interoperability Guidelines http://ctiait.ctia.org/SMS-MMS/index.htm

MMS Interoperability Guidelines http://ctiait.ctia.org/SMS-MMS/index.htm

Code Scan White Paper and Marketing Paper http://www.ctia.org/business_resources/wic/index.cfm/AID/11478

Location Based Services (LBS) Best Practices and Guidelineshttp://www.ctia.org/business_resources/wic/index.cfm/AID/10331

Mobile Content Classification Rating Categorieshttp://www.ctia.org/content/index.cfm/AID/10673

Mobile Financial Services (MFS) Best Practices and Guidelineshttp://www.ctia.org/business_resources/index.cfm/AID/11507

Enhanced Messaging Use Cases and Call Flowshttp://www.ctia.org/business_resources/index.cfm/AID/11506


• What is CTIA ?




• NFC - Review



Payment Types Via Mobile

Mobile Payment Segment/ Scheme Description Example/ Providers

Remote Digital/ Payment to phone Bill Run by Operator & aimed at low value payments for mainly digital content

Most Operators

Remote Digital/ Premium SMS To pay for Digital content & for interactive TV

Content Providers such as Jamster & TV companies

Remote Digital / Mobile Web & WAP Billing Non-SMS based payments for mobile web digital content via WAP billing

UK’s Payforit

Remote Digital & Physical/ SMS – mobile Wallet & Account based

SMS based using a pre-registered account and/or mobile wallet

PayPal Mobile, SmartPayJieyin & PayMate

Remote/ P2P Person-to-Person

SMS based transfer of funds between two mobile phones to redeem for cash or goods. Via SMS, downloaded application, account based or via phone browser.

Obopay, Globe Telecom and Trumpet

Remote Physical/ Mobile Web & WAP billing Mobile web browser user interface with WAP billing

mPoria, Rakuten, Digby

Point of Sale/ Text & PIN & Bluetooth Text-based and Bluetooth transactions at the physical storefront

PayMate, Vodafone New Zealand, ROLLCOM

Point of Sale/ Contactless (NFC)“Wave & Pay” scheme where phones are waved in front of reader, e.g. NFC or FeliCa

NTT DoCoMo, MasterCard PayPass and Visa

Juniper Research, October, 2009 – White Paper “Sharing Money the Mobile Way”

Current Payment Methodologies Include:


• What is CTIA ?




• NFC - Review



What is NFC

Content courtesy of Inside Contactless, Inc. ‐ 2010

• Derived from Contactless Smart Card Technology

• Any NFC device can act as a reader and as a card

• It works via standards (NFC Forum)

Near Field Communication offers an automatic and secure RF link between electronic devices.

(mobile phones, PDAs, computers , payments terminals, etc.)

Card Emulation

Reader mode

Device Pairing(Peer to Peer)

What are the Carriers doing in NFC ?

Tuesday Nov 16th, 2010

AT&T, T-Mobile and Verizon Wireless Announce Joint Venture to Build National Mobile Commerce Network

Joint Venture called ISIS www.PayWithIsis.com

Carriers – Founding members = AT&T, Verizon, T-Mobile USA

Discover Financial Services’ - payment network (7 million merchants)

BarclayCard – first issuer on the payment network

NFC Technology- embedded in phones – Encrypted exchange of info


• What is CTIA ?




• NFC - Review



Mobile Payments

Mobile Payment Segment/ Scheme Description Example/ Providers

Remote Digital/ Payment to phone Bill Run by Operator & aimed at low value payments for mainly digital content

Most Operators

Remote Digital/ Premium SMS Short Code Enabled - To pay for Digital content & for interactive TV

Content Providers such as Jamster & TV companies

Remote Digital / Mobile Web & WAP Billing Non-SMS based payments for mobile web digital content via WAP billing

UK’s Payforit

Remote Digital & Physical/ SMS – mobile Wallet & Account based

SMS based using a pre-registered account and/or mobile wallet

PayPal Mobile, SmartPayJieyin & PayMate

Remote/ P2P Person-to-Person

SMS based transfer of funds between two mobile phones to redeem for cash or goods. Via SMS, downloaded application, account based or via phone browser.

Obopay, Globe Telecom and Trumpet

Remote Physical/ Mobile Web & WAP billing Mobile web browser user interface with WAP billing

mPoria, Rakuten, Digby

Point of Sale/ Text & PIN & Bluetooth Text-based and Bluetooth transactions at the physical storefront

PayMate, Vodafone New Zealand, ROLLCOM

Point of Sale/ Contactless (NFC)“Wave & Pay” scheme where phones are waved in front of reader, e.g. NFC or FeliCa

NTT DoCoMo, MasterCard PayPass and Visa

Juniper Research, October, 2009

CSCA- Common Short Code Administration

5 or 6 digit numbers •Random - Assigned by CSC Registry•Selected - number chosen from available CSCs•First number can not be ‘0’ or ‘1’, i.e. number range is 20000 to 99999

Leased, not bought•$500 per month for random codes, $1000 per month for selected codes•Lease periods of 3, 6, and 12 months•Leases may be renewed•Leases assigned to content owner

CSC assignment is the first step•CSC applications must be individually approved by participating carriers•CSC connectivity must be implemented and tested with each participating carrier•Commercial terms for CSC applications must be negotiated with participating carriers (ie standard rate or premium)•The CSCA does not facilitate any step after the CSC number assignment


• What is CTIA ?




• NFC - Review



Mobile Finance- Specific Published Work by CTIA Member Group

Mobile Financial Services (MFS) Best Practices and Guidelineshttp://www.ctia.org/business_resources/index.cfm/AID/11507

This was a voluntary and joint effort by CTIA member companies. Legal representatives participated.Presented to and accepted by CTIA Board of Directors, January, 2009.

Meant to be a guideline that assists Application Providers background from which to base their development and customer practices.

Important step because the members foresaw meteoric growth in this area.

Mobile Finance- Specific Published Work by CTIA Member Group

• MFS Guidelines/Best Practices (BoD, Jan 2009)

• Ensure that Liability Rests with Mobile Financial Service Providers

• Clear & Conspicuous Disclosures to Users

• Extra Layer of Security for Financial Data

• Fraud Prevention

• Compatibility Standards: Networks & Handsets

• Collection, Use and Control of Data

• Customer Service/Complaints

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CTIA- The Wireless Association

Kate KingbergerDirector, Wireless Internet DevelopmentCTIA- The Wireless Association

[email protected]

Presentation for DC MobileMonday

Mobile Payments:Global Perspectives and Western Implications

November 22, 2010Finnish EmbassyWashington, DC

momo payments panel - ctia slides (kate kingberger

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