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© GSMA 2012

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Optimising Mobile Electronic Signature

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Part 1:INTRODUCTION TO MOBILE IDENTITY

AND THE MOLDOVAN MOBILE ID PROGRAMME

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Introduction to the GSMA and the mIdentity programme

About the GSMAThe GSMA represents the interests of mobile operators worldwide. Spanning more than 220 countries, the GSMA unites nearly 800 of the world’s mobile operators, as well as more than 200 companies in the broader mobile ecosystem, including handset makers, software companies, equipment providers, Internet companies, and media and entertainment organisations. The GSMA also produces industry-leading events such as the Mobile World Congress and Mobile Asia Expo.

About the mIdentity programmeThe GSMA Mobile Identity programme has been initiated to ensure that Operators are well positioned to understand and unlock the potential that electronic and mobile identity can offer the industry and its consumers. This includes being aware and prepared for the opportunities and challenges resulting from existing and upcoming legislative, regulatory and technical standards.

Working Group members:

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The GSMA believes that mobilising identity will bring convenience and security to users, and will be a nice addition to operators’ service portfolio

Why identity should go mobile?

Mobility

• Putting identities on mobile phones will allow users to access places and services anytime, anywhere

Ubiquity

• There are ~6billion mobile subscription s in the world today

1 2 Security

• Potentially, mobile ID on the phone can be more secure because it is protected by a pin or is stored securely on the SIM or servers

3

Why should operators enter identity management?

Remote management

• Identity can be managed remotely (mobile certificates can be wiped, forwarded to another party easily etc)

4 Cost

• Digital document management is usually 6 times less costly than paper equivalents

5

Reduce churn

• If the SIM is more strongly tied to the identity of the user, users will be less likely to change operators

Leverage their assets

• MNOs own users’ SIMs which they carry everywhere

• They also have data on users, storage assets, and network capabilities to enable mobile ID

1 2 New revenues

• Diversify revenue streams with new B2B solutions to public and private clients

• Increase customer ARPU

3 Extended reach and improved image

• Facilitation of ID registration means more citizen will be able to access MNO services (SIM registration / KYC)

• Improves MNO’s image

4 Big companies are entering the space

• Large players such as Apple, Google or Facebook are entering this space through over-the-top services (e.g. Google Authenticator, Facebook Connect)

5

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The GSMA mIdentity programme has been developed to catalyse the development of identity solutions on mobile

Identify the opportunity Identify & blueprint current best practice

Stimulate activityCatalyse the introduction and spread best practice business model and regulatory approach

Scale for industry impact Support the scaling of services to reach critical mass

The GSMA mIdentity group aims at catalysing the development of mobile identity solutions

1

2

3

Moldcell and GSMA are closely cooperating on the launch of Mobile eID in Moldova

Early member Selected as a pilotMeetings with other WG

members

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Mobile eID will be launched in 2012 by Moldcell as part of the Moldovan government e-transformation initiatives

• Mobile eID has been chosen as the Authentication and Access Control (AAC) service which will enable remote access to government services.

• This service will identify and authenticating users, authorizing their transactions and determining their rights into various governmental information systems

• All public services shall have their electronic counterparts;

• An average of 12 new electronic services shall be implemented and launched every year;

• An average of 8 back-office processes should be digitized every year;

• 50% adoption of electronic public services shall be reached

By 2020 In 2012

Mobile eID Works on the same

principles as eID, but does not require smart card readers, nor a computer

The SIM is the smartcard, and the phone is the reader

Mobile penetration in Moldova is close to 94%,

eID Authentication Is the electronic equivalent

to showing an ID card in the physical world

Provides highest level of security as of today by using two factors of authentication: a device (the smart card) and a code

Reader

eID card

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Mobile electronic signature is a legal way to prove one’s identity and the most secure authentication process

Subscribing

Certificate Authority

Conduct identity checks

MNO Point of Sale / Registration Authority

Collect identity documents

Subscriber

ID

ID Certificate

SIM including certificate + PIN

Using remote identification

Service provider

Mobile operator

1Access requested

2

Mobile num

ber of

the user

3

PIN re

ques

t4

PIN g

ener

ating

a ce

rtific

ate

Identity proven

6

7Access granted

Certificate authenticity

check5

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North America: $1.3bn

South America: $228m

Sub Saharan Africa: $56m

South Asia: $647m

Asia Pacific: $1.7bn

Middle East and North Africa: $48m

Europe: $1.6b

The GSMA has identified Mobile Signature as being a big business opportunity in Europe for the coming years, generation $1.6b / year once mature

Mobile Signature

Remote enrolment

ID storage

Aggregated profilesPotential market size- +

Potential yearly revenues once market matures, by area and solution

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Specificities of the Moldovan context are mostly encouraging, even if some others are potential challenges

Positive elements Potential challenges

Large scale launchWhere only one operator launched the service, success has been limited

Financial risk bore by the stateCertificates are paid by the state in exchange for a revenue share

No electronic alternativeIn other existing deployments, mobile ID competes with “eID + reader”

Interoperability & simplicitye-government services will be available on all networks at the same price

Low banking penetrationBanking services are usually among the most successful services

Low ARPU$9.6 against $11.8 in Turkey or $25.3 in Finland

Willingness to use mIDMNO should educate people to use it. Help of state agencies would be useful

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Part 2:HOW TO MAXIMISE THE MOBILE ID

OPPORTUNITY

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The mobile electronic signature value proposition is attractive for all stakeholders

• Increased reach- Anywhere: Make services accessible

from distant / isolated areas and from abroad

- Anytime: Make services accessible at any time of the day / of the year

• Cost savings:- Improve efficiency and costs

For the State For Telecom Operators

• New revenue stream- Monthly fee per user- Potential fee per transaction from

service providers

• Increased customer relevance- More services offered to consumers- Potential churn reduction

• Easier remote selling process- Remote contract signing- Non-repudiation and legal value

• Increased security:- Universally auditable- Certificate Authority liable in case of

fraud

For Service providers For users

• Access remotely to more service- e.g. Voting, loan request, tax

declaration, subsidy request…

• Simplified identification:- Single password and authentication

process for a large range of services

$

****

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As in every double-sided market, a chicken-and-egg dilemma must be solved to maximise the opportunity

MORE SERVICES MORE USERS

For users, more services means a bigger opportunity:

- Higher value of the subscription- Increased convenience- More reasons to subscribe

For Service providers, more users means a bigger opportunity:

- Higher number of transactions- More potential customers- More reasons to choose mobile

ID as an identifier

Service provider Users

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To increase attractiveness of the service at launch, the most appealing services must be developed first which will drive adoption

MORE SERVICES MORE USERS

Finance20

Government15

Business Solu-tions31

other2

EXAMPLE: For Turkcell Mobil Imza, a small number of banking services drive most of the transactions

Finance68%

Government27%

Business Solutions3%

other2%

Services by category Transactions by category

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Governmental services

Financial services

Business solutions

Retail

Healthcare

Telecom

A larger range of services must be developed and made accessible to drive adoption beyond early adopters

Create a diversity of services Facilitate access to services

• Create online portals:

• Create physical access points:

• Make services interoperable

ID tickets (Estonia)Unique portal for transportation, exhibition, sport, etc. verifying concession status

Example:

Mobile signature ATM (Turkey)Cardless withdrawal identifying the user through mobile signature

Example:

Mobiilivarmenne (Finland)

Example:

All services are accessible with the three existing solutions, which drives addition of new services

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To increase the attractiveness to service providers at launch, efforts must be focused on high-value subscribers

MORE SERVICES MORE USERS

EXAMPLE: For Turkcell, MobilImza is mostly used by high-value subscribers

$29.5

$11.8

Average Turkcell subscriber

Mobile Signature user

Average Revenue Per User

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• Offer attractive pricing at launch

• Use cross-marketing with partners

• Official launch by the government

Other best practices have been identified to improve adoption rates beyond high-value customers

Drive momentum at launch Lower barriers to adoption

• Facilitate registration

• Avoid hardware change

• Share the cost with users

Joint registration process (Turkey)Turkcell re-uses bank’s credentials to secure the identity of service users

Example:

WPKI-ready SIMs dissemination (Turkey)Turkcell distributes WPKI SIMs to business customers as standard

Example:

VIP customers sponsorship (Turkey)

Example:

Garanti Bank pays the Mobile Signature service for their most valuable customers

Free trial period (Finland)Elisa and Sonera decided to offer the service for free during the first year

Example:

Turkcell + banks (Turkey)Turkcell launched several marketing campaigns with banks which were using Mobile Signature

Example:

WPKI

Moldcell + other operators + eGov (Moldova)Government support would make the project more credible and visible

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THANK YOU FOR YOUR ATTENTION

QUESTIONS & ANSWERS