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Smart Card – EMV – Security – Internet

10 June 2002

Presentation by Mr. Alan SiuDeputy Secretary for Information Technology and BroadcastingGovernment of the Hong Kong Special Administrative Region

HONG KONG FRENCH SYMPOSIUMHONG KONG FRENCH SYMPOSIUM

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Hong Kong/France CollaborationHong Kong/France Collaboration

HHK signed MoU on ICT collaboration K signed MoU on ICT collaboration with Francewith France

HK – an advanced digital city for French HK – an advanced digital city for French ICT companies to explore business ICT companies to explore business opportunitiesopportunities

HK – a strategic partner for French ICT HK – a strategic partner for French ICT companies to explore Mainland market companies to explore Mainland market after China’s accession to WTOafter China’s accession to WTO

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Clear Government strategyClear Government strategy

Digital21 IT Strategy positioning HK as a Digital21 IT Strategy positioning HK as a leading digital cityleading digital city

– Enhancing our e-business Enhancing our e-business environmentenvironment– Building E-governmentBuilding E-government– Developing our IT workforceDeveloping our IT workforce– Building a digitally inclusive societyBuilding a digitally inclusive society– Exploiting enabling technologiesExploiting enabling technologies

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Legal and E-commerce Legal and E-commerce infrastructureinfrastructure

Electronic Transactions Ordinance Electronic Transactions Ordinance to provide legal framework for to provide legal framework for electronic transactionselectronic transactions

PPublic key infrastructure ublic key infrastructure establishedestablished

Four recognised certification Four recognised certification authoritiesauthorities

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Well established IT and Telecom Well established IT and Telecom infrastructureinfrastructure

Over 250 ISPsOver 250 ISPs

Internet services among cheapest in the world at less thanInternet services among cheapest in the world at less than

- US $0.2 per hour for dial-up- US $0.2 per hour for dial-up

- US $26 per month for unlimited broadband usage- US $26 per month for unlimited broadband usage

Wide choice in speed and connectivity (1.5 Mbps to 10 Wide choice in speed and connectivity (1.5 Mbps to 10 Mbps)Mbps)

External connectivity: 900 GbpsExternal connectivity: 900 Gbps

85% of our population have mobile phones85% of our population have mobile phones

One of the first in Asia to introduce GPRS serviceOne of the first in Asia to introduce GPRS service

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Community receptiveness to IT Community receptiveness to IT and new innovationsand new innovations

60% 60% PC penetration ratePC penetration rate

50% Internet penetration rate, of which 40% used broadband 50% Internet penetration rate, of which 40% used broadband servicesservices

Second in the world in average browsing time for household Second in the world in average browsing time for household Internet users (12 hours 12 minutes per month)Internet users (12 hours 12 minutes per month)

86% of people aged 15 or above have used e-business 86% of people aged 15 or above have used e-business servicesservices

Number of online banking users increased to over 600, 000Number of online banking users increased to over 600, 000

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Strong service culture and Strong service culture and dynamic business sectordynamic business sector

Strong service cultureStrong service culture

Dynamic business sector responsive to new Dynamic business sector responsive to new service needsservice needs

E-business applications in various industry sectors, E-business applications in various industry sectors, - Internet banking and wireless - Internet banking and wireless stock tradingstock trading - e-catalogue and e-trading- e-catalogue and e-trading - online booking- online booking

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E-government developmentsE-government developments

Clear E-government strategyClear E-government strategy

Flagship projects: Flagship projects: - Electronic Service - Electronic Service Delivery SchemeDelivery Scheme - Electronic Tendering - Electronic Tendering SystemSystem

90% of public services have e-90% of public services have e-option by 2003option by 2003

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Good foundation for E-commerce Good foundation for E-commerce Application DevelopmentApplication Development

Smart cardSmart card

Electronic paymentElectronic payment

Internet payment through Internet payment through online banking servicesonline banking services

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Octopus cards (1)Octopus cards (1)

Started in 1997 for fare payment in public Started in 1997 for fare payment in public transporttransport

Multi-application micro-payment system, Multi-application micro-payment system, utilising contactless smart cardsutilising contactless smart cards

Over 8.5 million cards in circulationOver 8.5 million cards in circulation

Convenient application and reloading Convenient application and reloading processprocess

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Octopus cards (2)Octopus cards (2)

Over 130 service providersOver 130 service providers

Widely used in Widely used in - public transport- public transport - car parks- car parks - retail services - retail services (fast food, convenient (fast food, convenient stores, cake shops)stores, cake shops)

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Octopus cards (3)Octopus cards (3)

-- Self-help services e.g. Self-help services e.g. vending machines, photo vending machines, photo booths, photocopiersbooths, photocopiers

- Leisure and sports - Leisure and sports facilitiesfacilitiese.g. swimming poolse.g. swimming pools

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Octopus cards (4)Octopus cards (4)

-- Access control for housing estates and Access control for housing estates and commercial complexescommercial complexes

-- Average daily transactions:Average daily transactions: - 7.5 million cases- 7.5 million cases - HK$48 million - HK$48 million (US$ 6 million)(US$ 6 million)

- Potential use in schoolsPotential use in schools

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Smart ID card project (1)Smart ID card project (1)

e-Cert Driving Licence

Library Card

Change of Address

Provide a one-stop user-friendly tool for community adoption of e-business

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Smart ID card project (2)Smart ID card project (2)

No need to carry a separate driving licence No need to carry a separate driving licence and library cardand library card

Option of a one year free use of digital Option of a one year free use of digital certificate to be embedded onto smart ID certificate to be embedded onto smart ID cardscards

Great potential for development of Great potential for development of automatic passenger clearance system at automatic passenger clearance system at immigration control pointsimmigration control points

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Electronic paymentElectronic payment

Widely used in private sector, e.g. utilities Widely used in private sector, e.g. utilities companies, telecommunication operators, companies, telecommunication operators, banks, etc.banks, etc.

Octopus cardOctopus card

Commonly used in paying Government Commonly used in paying Government bills. Over 7 million or 40% of payments bills. Over 7 million or 40% of payments made to Government by electronic means made to Government by electronic means in 2001-02.in 2001-02.

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Future Focuses Future Focuses in Hong Kong in Hong Kong

Exploiting smart card and Exploiting smart card and electronic payment technologies electronic payment technologies

Regional centre of e-business Regional centre of e-business application developmentapplication development

Promotion of cross-border e-Promotion of cross-border e-business developmentsbusiness developments

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Future trends of Future trends of smart card developmentssmart card developments

Integration with tokens and Integration with tokens and security features security features

Multi-functions and one-stop Multi-functions and one-stop servicesservices

More user-friendly support More user-friendly support servicesservices

Regional and international co-Regional and international co-operationoperation

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TThank Youhank You