23 October 2012

GSMA and the International Association of Public Transport (UITP) release White Paper on Mobile NFC in the Transport industry

The paper aims at helping mobile operators and transport operators to deploy mobile NFC based solutions to improve the travel experience of customers across Europe. The highlighted benefits of this technology include: convenient ticket purchase through a mobile application without queuing; lower distribution costs; faster ticket validation; more interoperability across cities and borders as NFC handsets can support multiple ticketing standards; a comprehensive user experience by linking ticketing to geolocalized and timely delivered information.

The paper warns of the fragmentation and interoperability risks and gives guidance on the way to move forward to achieve successful mobile ticketing deployments.  From a technological standpoint, the performance and security required by transport operators should be achieved and flat battery operation should be guaranteed to cope with customer constraints. From a user experience point of view, the enrolment and usage should be easy, the payment options should remain flexible, the user should control its data and effective customer service should be provided to him. The regulatory considerations advocate the use of open standards, underlining the French led initiative on contactless  interoperability for transit equipment pushed at CEN level, and the control of sensitive customer data.

 The commercial considerations highlight the uncertainty around the business case for NFC ticketing, and proposes the deployment of business models that share the risk and rewards across multiple parties. The paper foresees the demand by many operators of “off-the-shelf” tools allowing to lower start-up costs. The paper encourages transport operators to build Apps that allow purchasing tickets across several networks and to make these Apps easily available to international travelers. Different models to limit bilateral negotiations and technical fragmentation are proposed: mobile operator could create joint ventures; third parties could build international hubs for both MNOS and transport operators; small transport operators could aggregate their commercial and technical requirements.

The White Paper was published on 22nd October and can be downloaded here.
The GSMA Public Release note of 16th October can be readhere