EPISODE

2.7.4 Statement No 4, dated 23rd September 1996

Preamble:

These statements are provided as an indication of the Project perceptions at the time of issue; they should be used in the historical context, as dated and should not necessarily be seen as a continuing belief or understanding.

Pan-European Requirements for Smart-cards and Payment Methods

1. Introduction

A smart-card, or similar product, is destined to become the means by which database information is loaded into the receiver, and by which it is updated as roads are improved. This statement reviews the function of these products, identifies requirements for payment in a genuine pan-European system, and proposes a simple and effective mechanism for deriving an income from the sale/rental of devices which may be distributed by or on behalf of Service Providers who cannot attract public support.

2. Smart-cards

Each TMC receiver needs to have access to both a location code database and an event database coded in the user’s language. Without these databases the datastream arriving is meaningless. Each user will wish to acquire a series of databases, covering the areas in which he/she will travel. These are expected to be distributed in the form of a smart card, CD ROM, or some other exchange media. For the purposes of this statement the smart-card will be assumed and the word "card" used to describe it.

It is expected that cards will be supplied by a variety of providers, formatted to appropriate standards using data derived from national databases (see EPISODE Statement No. 3). In order to ensure that a quality of service is maintained, it is imperative for cards to have an expiry date, guaranteeing that out-of-date cards are no longer usable.

3. Payment for Services

Each and every Service Provider will need to fund the costs of service provision in some way. In many countries this will be by public grant, but some countries are unwilling to support services and thus a mechanism must be included to generate a cash flow to pay for a service. This will enable a genuine pan-European TMC service to be realised.

The simplest means of providing payment for a service is to derive income from the sale of cards to the user. These cards will need to be replaced periodically, in order to ensure consistent service quality, and thus a source of regular income can be realised.

The ‘profit’ on the sale or rental of cards may be used to finance the costs of obtaining the database used, and to finance the Service Provider offering the data delivered to the user.

4. Multiple Service Providers

It is expected that in many areas a TMC service may be available from more than one Service Provider, permitting competition to push quality up and costs down. The FORCE project has identified the need for a Service Identification code carried within the datastream which will enable a receiver to locate the service operated by a preferred provider. To enable such a system to operate, to the benefit of the consumer, cards need to have the ability to carry one or more Service Identification (SId) codes (rather in the same manner as a GSM card does today), allowing a TMC receiver to automatically find the required service(s). Relationships could be established between Service & Card Providers, permitting one card to give access to more than one service.

The attached figure shows the example of a card produced which offers access to the services of Service Providers SP 1 and SP 2, but not those of SP 3. Service Providers 2 and 3 are from one country, and Service Provider 1 from another.

The card depicted uses elements from the databases of both countries. It is expected that money to be allocated to the respective service providers could be distributed in proportion to the number of codes used from each country, the area of coverage, or some other method. In any case, the card provider is supplying a product which is licensed by both countries’ Database Owners, and by both of the Service Providers.

5. Recommendations

5.1	To enable a pan-European TMC system to be realised it must be possible to use the sale of cards to the consumer as a means of deriving income. Many countries and service providers will decide not to make a charge - but if a common mechanism is in place, then the same standard of card may be used everywhere, and the flexibility of introducing/removing a charging policy is retained.
5.2	Cards must have an expiry date. This date would be agreed by the Service Provider and Database Owner, but a lifetime of up to three years would appear to be reasonable. After the expiry date a new card would have to be used, ensuring a consistent level of service quality.
5.3	Cards must carry a list of Service Provider SIds, from which the user is able to derive a service. Receivers would use this list to search for a service from those available in any given area. This feature allows competition between Service Providers.
5.4	Revenue derived from the sale of cards should be distributed to the Service Providers listed on the card in proportion to the number of related location codes or some other method.

Figure: Service and Card Provider Relationships and Payment Mechanisms

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