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Connected World
The Gemalto Netsize Guide 2015
featuring wearables, watches, cars, smart meters, SMS, locks, secure products, NFC, smart cities, mobile ID...and bees
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The Gemalto Netsize Guide /// Contents INTRODUCTION Introducing our connected world.................................08 IoT technologies and platforms ...................................12
ON THE COMMUTE The connected car ........................................................20 Towards new motoring models....................................24 Q&A with Jaguar...........................................................26 Connected insurance claims........................................30 SMS is just the ticket....................................................34 NFC is OK for TfL..........................................................38 Singapore goes smart ..................................................42
AT WORK A SIM for the industrial world ......................................48 Keeping M2M secure....................................................52 Connected machines....................................................56 A SIM to save the honey bee ........................................58 SMS in the enterprise...................................................60
AT LEISURE Next gen locks and access...........................................66 Q&A with Misfit wearables ...........................................70 Spending e-money........................................................74 Time for the smart watch.............................................76 Keeping up with contactless ........................................82 Tap to pay from the phone bill......................................84 Mobile ID .......................................................................86 A Spotify for reading .....................................................88
THE FUTURE The view from Fjord ......................................................92 A perspective by CCS....................................................96
DATA Smartphone data ........................................................102 Mobile OEM market shares........................................103 Smartphone OEM market shares ..............................107 Smartphone OS market shares .................................112 IoT forecasts ...............................................................114 04
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Preface /// The Gemalto Netsize Guide
Welcome to the Gemalto Netsize Guide Philippe Vallee, Chief Operating Officer, Gemalto
Welcome to the 2015 edition of the Gemalto Netsize Guide. This one’s a bit different. How? Well, for the first time, it’s not exclusively about the mobile phone. Instead, we’re taking a deep dive into the next big phase of mobility – the world of connected things. Most readers will recognise this shift from their own business dealings. Visit any mobile trade event and, in addition to the many impressive new smartphones on display, there will invariably be connected cars, smart watches and intelligent home appliances. It’s amazing to see luxury goods firms and even toothbrush makers engaging with our business. So the Internet of Things is well and truly launched. But important questions remain. What are the best user interfaces for smart devices? How can they be protected from hackers? Which connection technology should they use? In this guide, you can find out all these topics and more. You’ll see how smart devices might affect life at home, at work, on the commute and at leisure. You can also catch up on related mobility topics such as mobile payment, NFC, and messaging. Meanwhile, as ever, you’ll find the comprehensive market information and statistics we know you appreciate. Enjoy!
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For over a decade the Gemalto Netsize Guide has explored the impact of mobile on people and companies. In that time, we’ve seen the technology move from feature phone beginnings to smartphone maturity. Now, mobile is taking its place amid a broader revolution. The phone is merely one ‘thing’ in a huge network of connected things. That’s why we’ve broadened the focus of this 2015 edition to investigate the impact of IoT on our commute, our work life and how we spend our leisure time.
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The Gemalto Netsize Guide /// Introduction
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Introduction /// The Gemalto Netsize Guide
Network effect A world of connected devices lies just around the corner. Rémi de Fouchier, VP of marketing communication at Gemalto, ponders the possibilities of this exciting new future. In this edition of the Gemalto Netsize Guide, Fjord’s Mark Curtis heralds the dawn of a new wave of digital. He calls it the era of ‘living services’. After the desktop and mobile eras, he argues, we’re now entering a phase in which sensors will be embedded into wearables, appliances and industrial objects. As a result, these devices will change in response to context. In a sense, what was previously dumb will become alive.
In virtually every area of industry, makers of simple ‘dumb’ devices will have to adjust to the challenge of managing ‘living’ goods. The pace of change in digital is staggering. Around a decade ago, when the Gemalto Netsize Guide was first launched, the focus was very much on the impact mobile would have on our lives. Today, that fascinating story is still being played out. But there impact of the socalled Internet of Things could be even more profound. Why? As Curtis says: “the connected future will not just be about ‘me’. It will extend into industry, transport,
health and agriculture. It will reach into very facet of human activity.” The market watchers agree that the IoT is set to skyrocket. ABI Research says the installed base of active wireless connected devices exceeded 16 billion in 2014 but will hit 40.9 billion by 2020. Meanwhile Gartner estimates that IoT product suppliers will generate $300 billion by the same time. Of course, all these products will give rise to a vast new market for IoT solutions – one which IDC forecasts will grow from $1.9 trillion in 2013 to $7.1 trillion in 2020. The impact will be everywhere. In the consumer space, people are just starting to become aware of the potential of connected devices (beyond phones and PCs). Till now, the spotlight has been taken by wearables – largely fitness trackers and to a lesser extent smart watches. It’s all been quite inward-looking and geeky: these devices mostly track a user’s activity or display notifications. However, experts think the eventual purpose of the wearable will be as a remote control for the world. These devices will sync to sensors inside other objects to save time and effort. Thus, the watch will open your front door, start your car, tap to pay in
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The Gemalto Netsize Guide /// Introduction
stores or pulse to give you directions. Clearly, both Apple and Google are driving towards this future. Apple created HomeKit as a platform to put IoS in control of the smart home, while Google spent $3 billion on Nest, maker of a smart thermostat. Insiders expect Google to build out a smart home strategy from this acquisition. It is even rumoured to be launching a dedicated IoT OS called Brillo. The design factor It’s logical that these tech giants should eye appliances and wearables. They’re huge markets. But these spaces require a different approach from traditional tech. In wearables, for example, the design factor is paramount. Simply, people 10
will not wear utilitarian products. This explains why fashion companies like GUESS (interviewed in this publication) have entered the smart watch space. And why some startups proclaim design to be the most critical factor in a wearable. Sony Vu, founder of Misfit (also interviewed), sums up his approach as follows: “We started with what people would wear, and then we worked backwards.” Alongside smart home and wearables is the connected car. According to IHS Automotive, the number of cars connected to the Internet worldwide will hit 152 million by 2020. This process is already under way with most new models allowing drivers to connect their phones to the in-car systems. At present the main drivers of in-car
Rémi de Fouchier, VP of marketing communication, Gemalto
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Introduction /// The Gemalto Netsize Guide
connectivity are entertainment, traffic, communications and mapping. Further ahead car makers plan to connect cars to a wider ‘smart city’ network. This will help to soothe congestion and save energy. It could even lead to self-learning or autonomous vehicles, and yield new business models. Car makers may evolve from sellers of goods to providers of a more holistic transport service. From dumb to smart They won’t be alone in having to change their approach. In virtually every area of industry, makers of simple ‘dumb’ devices will have to adjust to the challenge of managing ‘living’ goods.
These new markets require a different approach from traditional tech. In wearables, the design factor is paramount. Simply, people will not wear utilitarian products. Selling a mechanical front door lock is not the same as maintaining one that is permanently connected to the Internet and approved users. There are connectivity issues to be considered. What’s the best protocol to ensure a reliable connection? Wifi and Bluetooth may work at home, but what works best for the smart meter in a remote location? Or a turbine in a power station? Cellular is probably the answer here. But not with the traditional SIM card we know from phones. It’s why the GSMA developed a specification for www.gemalto.com
an embedded SIM that can be soldered in to withstand heat, cold and vibration. It reckons mobile handsets will constitute only 72 per cent of cellular connections (it’s currently 92 per cent) by 2020. Another consideration is security. A world of connected devices is, sadly, a world of opportunity for criminals and mischief-makers. Are manufacturers ready for this? In this publication, James Lyne of security specialist Sophos, suggests not. His own tests reveal a generally poor level of protection. But the good news is that strong solutions do exist and that, to date, attacks are rare. So there’s still time to act. Of course, all this talk of the future overlooks the impact today’s technologies are still having on our connected world. Contactless at last NFC is finally making an impact, for example. Most phones now support it. And consumers are being eased into tap-and-pay by the decision of Transport For London and others to embrace NFC. Merchants and service providers are even finding new ways to use SMS. It may be 20 years old, but text still has a vital role to play. For example, in a world of digital services and documentation, a simple text pass code sent to your mobile could your securest form of authentication. Socalled Mobile ID is already being rolled out. There’s so much to be excited about. We hope the Gemalto Netsize Guide 2015 whets your appetite. 11
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The Gemalto Netsize Guide /// Introduction
The Internet of Things is home to mulitiple devices, connection types and software standards. It’s a bit of a mess.
One platform would be just the Thing… The history of tech is littered with platform wars, from VHS v Betamax to IoS v Android. So has the vast complexity of the Internet of Things taught all participants to sit down and agree on standards? Not so far, writes Tim Green. Imagine you’re going to throw a party, and you invite hundreds of people who speak different languages. Then throw in some guests who have lost their voices. Confusion would reign. It wouldn’t be a great deal of fun. It’s unlikely any new business partnerships or romantic alliances would be formed. But this same scenario threatens to slow down the progress of the Internet of Things (IoT). 12
If you think about it, the IoT is like a grand industrial equivalent of the party. It involves potentially millions of machines talking to each other in order to make human lives better. These devices will be necessarily diverse. The connected car will tell the smart heating system to warm a room to 20 degrees. The smart washing machine will tell the manufacturer it needs a new part. The smoke alarm could warn the www.netsize.com
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park ranger about forest fire. Of course, all these different appliances will command different levels of power consumption and connection bandwidth. Some will be always-on, others will transmit only intermittently. But it’s imperative that, regardless of their quirks, they can all ’speak’ to each other. Sy Choudhury, senior director of product management for the Allseen Alliance (see below) says: “We need to make devices that are truly interoperable. In the smart home for example, our TVs and other screens should be voices for our appliances.” Unfortunately, this universal language is far from established. www.gemalto.com
Instead, a range of standards are competing to define the future of IoT. It’s one reason why the ‘party’ has yet to really kick off. There are essentially two areas that need to be straightened out. The first is the transport layer. This describes how the IoT device connects with other IoT objects. Options include Bluetooth, wifi, cellular and more. They each vary in range, power consumption and bandwidth, but obviously they need to interoperate in some way. The second consideration is the application layer. This relates to the codebase built into applications so that they know how to interpret information received from other 13
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devices. There are two main options here: Qualcomm’s Alljoyn and Samsung/Intel’s Open Internet Consortium. It’s also worth mentioning a third, the mobile platform, given that the smartphone will likely be the remote control for much IoT activity. So let’s look at the options: THE TRANSPORT LAYER Bluetooth Smart Bluetooth Smart (previously known as Bluetooth Low Energy or BLE) extends the short range of Bluetooth and also consumes far less battery power. It was originally aimed at wearable technology, and should become prevalent in the smart home. However, progress in mesh networking technology could see 14
Bluetooth leapfrog across devices to connect to thousands of things across long distances. The tech’s cause is helped by the fact that it is already a feature on smartphones, which will likely act as the management hub for connected homes. Then there are Bluetooth Beacons. These are the small wireless sensors placed inside any physical space that transmit data to a phone. In a shop, for example, they can trigger offers as a consumer passes a certain product display or simply walks through the door. Finally, Bluetooth Smart is regarded as very secure. It uses powerful encryption to ensure no one can intercept or unscramble comms between smart devices.
Sy Choudhury, of the Allseen Alliance. “We need to make devices that are truly interoperable.”
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Introduction /// The Gemalto Netsize Guide
Wifi Everyone knows wifi. Parents with children will recognise its centrality to a home life dominated by iPads, laptops and portable games players. Wifi is good for short distance, high energy connections like music streaming and film viewing. But wifi’s ability to handle highbandwidth makes it power-intensive — watch your laptop battery die if you use it for streaming. This is why many smart home products reject wifi: you don’t want your smoke alarm running out of battery every two days. ZigBee Alliance Zigbee is a low power spin off of wifi based on the IEEE 802.15.4 standard. It’s over a decade old and the Zigbee Alliance comprises more than 300 companies including giant corporations like Philips, Mitsubishi Electric, Epson and more. Where ZigBee scores is in distance and power consumption. Devices are usually powered by batteries that have a life lasting months or even years. And they can communicate across long distances because of mesh networking. Mesh networks link up multiple devices so that a signal can hop across them. ZigBee supports up to 65,000 nodes on one network. This not only supports long range comms but it also makes the connections more robust (if one device fails, the single still gets through). For this reason Zigbee is better established in industrial sectors than the smart home. Analysts say www.gemalto.com
ZigBee-enabled devices account for 74 percent of the market, and will hit more than 350 million in annual shipments by 2019. But Zigbee faces competition from Thread… Thread Thread is a relatively new standard developed by Google's Nest Labs, ARM and Samsung, It is a low-power mesh network built on existing standards, which means that devices using ZigBee et al can easily migrate to it. Existing Thread specifications will be able to support a network of up to 250 devices. Thread’s key advantage is that Nest already uses it, and Nest is the big gorilla of the smart home space. Nest (now owned by Google) is one of the few firms to have achieved some genuine consumer adoption. Thread-compatible products won’t hit the market until a certification program is launched next year, but developers can start building products now. Cellular/GSMA Embedded SIM Specification The mobile operators are understandably very keen to embrace the IoT. Now they are close to connecting every individual in the world, they are licking their metaphorical lips at the prospect of connecting billions of devices. They started this process years ago, calling it Machine to Machine (M2M). Demand could be huge. Many connected devices are in remote locations and have simple functions, so they would not be suited to wifi or 15
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Bluetooth. Indeed, they may only need a 2G connection. So in 2013, the operators’ trade body, the GSMA, launched its Embedded SIM initiative. The idea behind the specification is to allow secure overthe-air operator management of M2M services. Thus, Embedded SIMs are generally more hardy than regular SIMs. They can be hermetically sealed (especially where devices are placed in wet or hot environments - like smart meters), which means the card can’t be swapped. For this reason, users can manage the SIM remotely. They can even switch operators this way. The world’s biggest network operators (América Móvil, China Mobile, KDDI and many more) have all committed to launch services based on the GSMA specification. THE APPLICATION LAYER AllSeen Qualcomm’s alliance of over 50 includes big names like Microsoft, LG, Sharp, Panasonic and Cisco. It is dedicated to evangelising and exploring the use of the AllJoyn open source project (created by Qualcomm, now run by Linux). Alljoyn is a codebase developers can use to make apps that can communicate over any transport layer without the need for Internet access. This software enables functions such as discovery of adjacent devices, pairing, message routing and security. It runs on platforms 16
such as Linux and Linux-based Android, iOS, and Windows. After a bright start, there was growing suspicion of Qualcomm’s motives for launching AllSeen. Observers wondered if a for-profit company should be running a free open source project. Qualcomm issued a public post saying it wouldn’t make a profit from AllJoyn, but it couldn’t prevent the creation of a rival consortium: the Open Interconnect Consortium. Open Interconnect Consortium The OIC’s main supporters are Intel and Samsung. Like Alljoyn/AllSeen it exists to manage an open source code base that lets developers build devices that can ‘talk’ to each other. It was launched out of concern that Qualcomm might seek to make a profit from its open-sourced protocol – or restrict access to some of the IP. For all its opposition to Alljoyn/AllSeen, OIC does address a slightly different market. It’s more focused on the industrial sector than the Qualcomm protocol, which has more resonance in the smart home. This is why the OIC announced a strategic liaison agreement with the Industrial Internet Consortium (IIC) in February. The deal will see the two groups share information that will help fashion an industrial grade IoT architecture. www.netsize.com
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Introduction /// The Gemalto Netsize Guide
The IoT involves potentially millions of machines talking to each other in order to make human lives better. These appliances will command different levels of power consumption and connection bandwidth. Some will be always-on, while others will transmit only intermittently.
The smart home is just one modest part of the over IoT. But the mobile phone makers are all over it.
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SMARTPHONE PLATFORMS Apple HomeKit Smartphones are already used as the ‘remote control’ for some elements of the Internet of Things such as the smart home. Though it’s unlikely they will have a central role in factories or cities, smartphones are still a critical factor in the evolution of IoT. Apple knows this, which is why it announced a software platform called Homekit to allow devices, such as web security cameras, smart plugs, thermostats, lights and locks to be unilaterally controlled from one app. It’s part of the iOS 8 operating system and it works with Siri too. The platform will in theory save users from having to access a different app for every smart device in the home. Instead,they can do it all from HomeKit. So when you tell Siri to “turn on the kitchen lighting,” it will do so, regardless of the make or model of the lights. Naturally, Apple wants
manufacturers to badge their products as 'Made for Apple HomeKit’. At time of writing confirmed Homekit partners included Philips, Osram Sylvania, Texas Instruments and more. Android™ Google has not yet launched an equivalent of iOS Homekit (though rumours abound), but it does have various initiatives focused at different IoT segments. There is Android Wear, for example, which tailors the OS for watches and wristbands. Meanwhile the Android Auto platform does the same for the connected car. And don’t forget, Google also owns the smart thermostat firm Nest (which surely has plans to expand into other product areas) and has experimented with its own wearable devices – most notably Google Glass. Samsung Tizen It’s not easy being Samsung. You might sell millions of smartphones, but you don’t control the software inside them. So Samsung is desperate to do things differently in the IoT space. Hence Tizen. This is Samsung’s OS for the new world of connected smart devices. In its favour, the platform requires less processing power and memory than most other mobile phone OSs. But Samsung will face an almighty battle to establish the platform in such a competitive space.
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A study by TomTom found drivers spend an average of eight working days a year in traffic. No wonder motorists are embracing connected in-car entertainment, while manufacturers race to build networked transport systems that can ease congestion. In this section we look at how connected tech can improve the way we travel. From Singapore’s effort to create a ‘smart city’ to Italy’s experiments with SMS travel tickets.
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The Gemalto Netsize Guide /// On The Commute
Where next for cars? In-car tech is now the number one factor when people buy automobiles. No wonder car makers are racing to provide the best systems and connections. Something strange has been happening at CES, the giant convention for gadget freaks. Also at Mobile World Congress, the expo where 90,000 people come to see the latest phones. Both these huge events are suddenly full of automobiles. Not in the car parks. On the show floor. Without doubt, cars are the hot new connected devices. It’s taken a while, but motor manufacturers are realising it too. In a sense, cars are they are becoming something like smartphones on wheels. Mark Fields, CEO of Ford, said at CES: “We’re thinking of ourselves as a 20
mobility company and not only a car and truck company. We want to be viewed as being part of this community.” Ford was one of ten car makers exhibiting their latest in-car technology at the event. And why wouldn’t they, when research by Accenture says 39 per cent of the world’s consumers value it higher than anything else when buying a new car. The same survey said just 14 per cent care most about power and handling. In an age when even the cheapest cars are comfortable and reliable, in-car connectivity is the new
Mark Fields, CEO of Ford, says car makers should think of themselves as ‘mobility’ providers.
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Research by Accenture says 39 per cent of the world’s consumers value in-car technology higher than anything else when buying a new vehicle differentiator for auto makers. And there’s serious money in it. According to a report by Allied Market Research, the connected car market is forecast to reach $141billion by 2020. Some of the impetus for car makers to invest comes from government. In Europe, for example, the EC has introduced a 112-based eCall system that automatically alerts the nearest help service in case of an emergency. It passed a law that says eCall (according to European Norms) will be declared mandatory effective with all new vehicle type approvals by March 2018.
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nearby restaurants/fuel stations/parking etc > Connectivity – built in LTE/4G offering wifi for passengers Needless to say, they have a variety of ways to meet these needs. Some, like Audi with its Audi Connect product, have built their own proprietary in-car systems.
The dash to the dashboard But mostly, car makers are racing to win over consumers. The battleground covers these features:
Car v phone These in-built communications systems are necessary for diagnostics and calling emergency services. But entertainment? Phonecalls? Don’t drivers have smartphones for that? This is the big quandary facing auto manufacturers. They don’t want to cede control of their in-car systems, but neither do they want to ignore their customers’ preferences. But they will have to face up to the challenge. Why? Because both Apple and Google are pushing hard into the car space through, respectively, Apple CarPlay and Android Auto.
> Entertainment – music, podcasts, radio > Navigation – including street-view level navigation and up-to-date points of interest > Automotive diagnosis – oil levels, type pressure, engine diagnostics > Communications – phones and texts made via Bluetooth > Road side assistance – direct links to emergency services for breakdown calls > Contextual help/offers – displaying
Waiting on the platform These systems give developers a standard platform for updating their smartphone apps so they work safely and fluently inside the car. So, when the driver plugs in a phone to the car, the display will reveal all supported apps and let the driver control them by voice or touch. Developers are working on these updates, and many car makers are supporting the two platforms. However, it seems unlikely they will 21
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THE CONNECTED CAR. YOUR MOBILE PAYMENT DEVICE? Visa’s new pilot project lets drivers order and pay for pizza and fuel from the dashboard. By some estimates, half of all digital transactions now take place on a phone or tablet. People simply love to shop ‘on the go’. So why not shop and pay in that other great mobile device: the car? Well, a handful of drivers in California already can. Early in 2015, card company Visa kickstarted a pilot to let drivers order ahead for various items direct from the in-car display. One of the partners is Pizza Hut. Here’s how it works: motorists assign their Visa card details to the display and then touch the display to order pizza. The driver chooses a menu item and is then transported to a shopping cart 22
with a picture of their Visa card and a ‘Place Order’ button. After hitting the button, the software reveals a map with turn-by-turn directions to the restaurant and a confirmation message stating when the order will be ready. When the car arrives, Bluetooth beacons recognise the driver and transmit his or her location to the POS, which prepares the order and takes the payment via Visa Checkout. Visa hired Accenture to build the app and enable the partnerships. It’s also working with a parking group and a fuel station. At a demo during Mobile World Congress 2015, Martin Enriquez,
Visa’s director of innovation and strategic partnerships, said the project is all about finding new ways to migrate consumers from cash to digital. He said: “The Internet of Things is going to bring a lot of new opportunities for e-commerce. We’re looking for partners who can help us make these ideas happen faster.” Enriquez accepts that the emerging IoT is messy and fragmented. However, he believes Visa is in a good position to marshall various partners into mutually beneficial standards. “We’ve done it with tokenization in the payment space,” he says. “We worked
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On The Commute /// The Gemalto Netsize Guide
Next up – a wearable to open your car door?
give up on their own internal systems. Consumers will just have to get used to having two options. After all, there’s money in it. Car makers could conceivably get a cut from purchases made in a car. In fact, Visa is working on a pilot for ordering food, fuel and parking from the car dashboard (see box). Internet inside Of course, all of this depends on cars connecting dependably to the Internet. Till recently, this has been through the phone, though upmarket manufacturers such as Tesla, BMW and Audi offer built-in wifi and 4G connections to their cars. This is beginning to hit the mass market: Chevrolet is installing 4G LTE in
mainstream vehicles like the Chevrolet Silverado. Market boom Analysts say the trend is accelerating. Half the cars sold in 2017 will have some kind of mobile connection and by 2022 there will be over a billion connected cars on the road, says Analysys Mason. Naturally, this is not entirely due to motorists wanting access to Pandora while they drive. The bigger vision is of the intelligent car sitting within a world in which smart cities and homes all talk to each other – a world in which airports tell cars when flights are delayed and drivers set thermostats on the commute home. with our competitors to make that change and it’s working. I think we can help here too. Visa is not a car company, but I do think we can work with different companies to make them aware of the opportunity.” Enriquez gives the example of fuel ordering. “For this to happen, the station would need to integrate Beacons and then request information from the car about the kind of fuel needed, how much fuel the car has left and what it would cost to fill it. “Now, the car firm may not want to give all this information, but if we can have an open conversation we can work out what can be shared so that everyone benefits. “And once one company does this and it works, all the others might pay attention and think: we should do this too.”
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Next year’s model Connected tech could do more than improve in-car entertainment. It could replace car ownership with car sharing. Or turn vehicle makers into ‘mobility providers’. The Gemalto Netsize Guide looks ahead to a dramatic new era on the road. Earlier this year, Audi unveiled its Audi Key app. As expected from a high-end automobile maker, the app is a state-of-the-art demonstration of what is now possible in the connected car space. Thus, drivers can use it to see how much gas is in the tank, how many miles to the next service, even where the car is. But the most notable feature of Audi Key may be this: it lets drivers register other people’s phones for use with the car. Thus, at a press of a button, someone other than the owner can walk up to the vehicle and open it with an NFC-enabled handset. That sounds cool. But think about the long term implications. If it’s that 24
easy to assign and revoke car keys, why should everyone need their own car? There’s no doubt that technological progress is encouraging car makers, government and - of course citizens to re-consider society’s relationship with the car. Some previously unthinkable ideas are already here. Car sharing companies such as Zipcar and Car2go have helped to establish an entirely new market sector, one that Frost & Sullivan says 26 million people will use by 2020. It seems that a vast swathe of people are already happy not to own a car. They certainly have financial incentives for sharing. Frost & www.netsize.com
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Jean-Claude Deturche, Senior Vice President of Mobile Financial Services at Gemalto.
Sullivan says it’s is around $3,000 per year cheaper than buying. And there’s an infrastructural payoff too. It’s been reported that the average car is idle 96 per cent of the time. Sharing is clearly far more efficient. Indeed, Frost & Sullivan says that for every car that goes into a car sharing club, up to nine are removed from the streets. Responding to change Car makers know they have to respond to this shift. BMW launched a venture with car rental firm Sixt called DriveNow, which lets users find, unlock and start cars using a mobile app, then drive them on a charge per minute basis. There’s no central collect and return point so users can drive where they like and leave the car nearby. Sixt managing director Alexander Sixt proclaimed the scheme to be the start of a revolution that could “make mobility so cheap that only the rich will buy cars”. The transformative potential of sharing is why Avis bought Zipcar for $500 million in 2013. The purchase could see Avis re-invent its hire business, replacing brick and mortar units and fixed parking with a virtual model based around the app. Mobility subscriptions? Jean-Claude Deturche, senior VP of Mobile Financial Services at Gemalto, has been working with major car companies on connectivity ideas. He believes they are all considering dramatic new models. “In future you might sign a three
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year contract with a car maker to guarantee mobility,” he says. “They deliver a car to your house, you use it and then drop it wherever you go ready for next driver. But it needn’t even be just about cars. Your contract could cover trains, buses and bikes too.” Enabling all of this change is, of course, connected technology. At the center is the evolution of the SIM to suit industrial applications and remote provisioning. There’s also the fast roll-out of 3G, 4G/LTE, with 5G on the horizon. And even the emergence of ‘mesh’ networks that turn every car into its own node on the network to enable vehicle-tovehicle and vehicle-to-infrastructure communication. The new driver for hackers These developments are propelling the industry towards a momentous endpoint: the autonomous car. It’s exciting. But the path is paved with hurdles: If cars get connected, they will almost certainly be hacked, with criminals using phone malware to exploit holes. While this will be a nuisance if it affects in-car entertainment, it could be life-threatening should a hacker gain control of the steering wheel or gas pedal. It’s another area Gemalto is working on. Deturche says: “The automotive companies are investing a lot in the space, and obviously the mobile is where they want to put the keys. But these systems have to be highly secure if they are to open a car worth $50,000.” 25
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Auto focus Will your smartphone control your in-car systems? Can an automobile ever be a thing in the Internet of Things? The Gemalto Netsize guide chatted to Mike Bell, global director of Connected Car at Jaguar Land Rover. The automobile industry has come a long way since Henry Ford told customers they could have a new Model T Ford in any colour "so long as it is black." Today, the car market is all about choice – dozens of colours, and any combination of features from power steering to heated seats. Of course, the ultimate form of personalisation for drivers is less about the specs of the car itself than the experience they have when they’re on a journey: entertainment, 26
navigation, communication. With the arrival of connected technologies, an exciting new era for drivers awaits. For manufacturers? Well, it’s complicated. Auto makers have to decide whether to build their own in-car systems for connecting drivers to smart services – or to simply let drivers plug in their smartphones. Should they embed a SIM? Connect by wifi? And what kind of interface should they design to give motorists plenty of utility and
Mike Bell, global director of Connected Car, Jaguar Land Rover
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“Our strategy is based around having both built-in connectivity and allowing the car to communicate with the phone as well. We don’t see them as separate.” fun without causing them to crash into trees? The high-end car maker Jaguar Land Rover thinks hard about these questions. So the Gemalto Netsize Guide asked Mike Bell, global director of the firm’s Connected Car division, to share his thoughts. In the past some car makers have built their own systems even though drivers seem to want to use their phones. How does JLR handle this? Our strategy is based around having both built-in connectivity and allowing the car to communicate with the phone as well. We don’t see them as separate. The truth is our customers will bring the devices they want into the vehicle. We know that people place a higher priority on their choice of phone than on their choice of vehicle. Lots of surveys have shown that. They have an expectation that their phones will just work, and we support that. So how does the car sync with the phone? We have an app called InControl Touch, which lets people connect their nomadic devices to the vehicle. We have a number of apps – Stitcher and Parkopedia and others – that have been optimised for our vehicles and they sit inside InControl. www.gemalto.com
Another option inside the app is justDrive. This bundles programs like Spotify, Twitter, and Yelp. When you download these and you plug your phone into the car, they will come up on the touchscreen and be tailored to work with the car UI. They go into landscape mode, and can be controlled from steering wheel or by voice activation so you don’t need to look at the touchscreen. For passengers, we provide wifi hotspots too using an antenna on the roof. How are these apps adapted to work inside the car? We have an SDK. Developers use it to enable their apps for the systems. We tend to work with apps that are useful for driving such as apps for parking locations, music streaming and so on. We have around 40 in production. It varies by territory, but we aim to support the top 10 drivercentric apps in every country. How does this fit alongside Apple and Google’s own in-car platforms (Apple Car and Android Auto)? Like I said, we have to support everything. People just expect choice, so we will work with Apple and Google. At the moment though, I think developers find them a bit restrictive, and anyway there just aren’t many apps available for them. What about in-car systems that don’t involve the phone? We use an embedded SIM. We need something that’s automotive grade so it’s soldered in, and it can 27
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withstand high temperatures and vibration. It’s what we call telematics, and it’s primarily about driver safety and security really. In the event of a crash, the telematics system can notify emergency services, for example. But it’s also for convenience. If you’re away from the vehicle you can control the in-car system from the Android or iOS InControl Remote app. You can see the location, fuel levels, diagnostics. You can open the doors of the car, pre-heat it, keep journey records for expenses, check
tyre pressure. It will even give walking directions to the car from any distance. I think we have to have some internal systems purely because of life cycles. Phones are almost disposable, whereas our vehicles have to stay on road for 10 years. You just won’t expect your phone to work in 10 years. That means the M2M platform should work for ten years too. The challenge comes from factors like the sunsetting of certain technologies. So if, for example, the
Jaguar Land Rover’s selflearning intelligent car will recognise drivers before they’ve even opened the door.
AFTER THE LEARNER DRIVER, HERE COMES THE LEARNER CAR Jaguar Land Rover is already planning for a future in which a car adapts itself to its owner. Deep inside a lab in the middle of England, engineers are creating a living car. OK, not living exactly. But intelligent enough to pick up on a driver’s choices and journeys, and adapt itself accordingly. In 2014, Jaguar Land Rover started work on its self-learning 28
intelligent car project. This comprises an algorithm that recognises who is in the car and learns their preferences and driving style. The software then applies this to factors like calendar, time of day, traffic conditions and the weather. The big idea is that the
car can do all the heavy lifting so the driver can concentrate on the road. The intelligent car will recognise drivers by their smartphones. As they sit down, the mirrors, steering wheel, temperature and seat settings will all be set to the individual's preferences and www.netsize.com
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Some car makers have tried to build their own in-car entertainment systems. Truth is, drivers want to use their phones.
networks turn off 3G, we’d have to look at making our in-car systems upgradable. That is something car makers don’t generally do. It’s a challenge. Some things can be done over the air. But when it comes down to the hardware level, it’s something we can’t change easily. How are car makers like JLR preparing for connecting cars to the Internet of Things? You can argue the vehicle is one of the biggest things in the Internet of Things. So it will play its part. However, you have to ask what are the use cases: just because I can connect my car to a fridge, would I want to? What helps me on my journey? What makes sense? We’re looking at the concept of the self-learning car. When the car knows the intent of the driver, it all becomes more useful. If the car knows I am approaching my local supermarket, for example, it could tell me what I need. The car has to learn this, because you generally don’t set the route for journeys you take all the time. It’s some way off though. As it stands,
external conditions. Other features include: > Destination Prediction automatic destination based on historical usage. > Fuel Assist - suggests fuel stations which have the driver's preferred brand and location. > Predictive Phone Call predicts who drivers are likely to call in a certain situation. > Passenger Awareness - will www.gemalto.com
the Internet of Things uses lots of different standards. They’re not joined up, so we will have to choose our partnerships carefully, and wait to see which platforms get established. Assume these standards emerge, what scenarios could play out? I think smart cities will definitely emerge. Things like anticipating traffic, automated parking and integrating into other transports scenarios to make journeys easier. After all, most car journeys also involve a journey by foot or train or bus and so on. And what about the smart home? We’re certainly thinking about it. As for use cases, I honestly don’t know yet. Sometimes you just have to take the ‘build it and they will come’ approach. You can’t always ask people what they want. I remember when Nokia asked their customers whether they wanted cameras in phones, most of them said no. The truth is people often don’t know what they want until they try it.
detect passengers and offer them preferred infotainment settings > Intelligent Notifications based on traffic situation, the car can alert people that the driver will be late or provide relevant contextual updates such as flight delays. > Auto Adaptive Cruise Control the car applies the preferences it has learned when the driver is
driving the vehicle. Dr Wolfgang Epple, Director of Research and Technology for Jaguar Land Rover, is optimistic about this techno motoring future. He says: “It is technology concepts like the self-learning car that will ensure any future intelligent car remains fun and rewarding to drive as we move closer to more autonomous driving over the next 10 years.” 29
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Pic: Rachel @Flickr
As smart as you claim? Imagine if your car could tell your insurance company how you’d been driving – and set your payment accordingly. It already can. But this kind of smart monitoring is just the start, says Matt Owen, MD of M2M Intelligence. Motor Insurance may not be renowned for its technology innovation, but when it comes to the Internet of Things, it’s right out in front. Over the last few years, the business has been experimenting with new business models such as 30
usage based insurance, cost permile, and pay as you drive. And all of it enabled by the emergence of smart devices and connections. It goes without saying that cost savings and new revenue are powering these new ideas. In www.netsize.com
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essence, new technology lets insurance companies monitor driver performance more accurately. And that means it can reward good driving and punish bad habits. This innovation emerges from the ability to gather data inside a car, and to transmit this data over the air back to the insurer. Usually this is done by embedding a SIM card in the car’s telematics systems, which
New technology lets insurance companies monitor driver performance more accurately. And that means it can reward good driving and punish bad habits sends information via the cellular network. It can even be 2G. Pay As You Drive, the original telematics model, began in the US in the mid 2000s. For the first time it gave insurers data about a customer’s actual car use. It is a simple concept: if you don’t do many miles, you don’t pay so much. Pay how you drive But measuring miles driven is only part of the insurance story. How those miles have been driven is what really provides a deeper understanding of risk. Historically insurers have only been able to calculate premiums on broad stereotypical driver profiles, using proxies such as gender, age and neighbourhood to put them into broad buckets. Spreading this risk across the whole base in each category flattened the impact of the few bad apples on the www.gemalto.com
moderate majority, but it left the door open for niche competitors to pick off lucrative segments like the over 50s. That skewed the demographics and reduced the value of the middle market. Regulation made the problem worse. In Europe anti-discrimination legislation meant that since 2012, insurers could no longer use gender to set premiums. So even though young women are on average safer drivers than young men, you can’t create a policy only for females. This move alone took two per cent off the industry’s margins. Clearly the industry needed more sophisticated tools to sort the good from the bad. Then it came up with the idea of Pay How You Drive. The challenge was how to enact it. A few insurers tried smartphone apps. They monitored the phone’s in-built accelerometer and GPS to measure acceleration, braking and cornering. But the idea was easily sidestepped by boy racers who would leave their iPhones at home or in Grandma’s car, then go street racing with no effect on the policy. Smarter data So the insurance industry began to settle on either hard-wired SIMs or self-installed plug-ins which use the car’s built-in “OBD” diagnostics port to gather further intelligence. These systems have become highly sophisticated. They can use the accelerometer to gauge driving dynamics, and the odometer to assess mileage and time. But the 31
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cleverest systems now know the speed limit of the road on which cars are travelling. Some, such as the the UK’s RAC Advance unit, even incorporate crash detection systems that can tell genuine collisions from potholes, kerbs and speed humps. One big benefit of these systems to insurers is that, for the first time, they can get first notification of incidents in real time, putting them back into the lucrative claims management process. Nudging better behaviour But it’s not all about detecting accidents and measuring driving patterns. These systems can also feed back information to motorists in the hope of nudging them to drive more safely. In large scale roll-outs cloud-based data crunching engines assign a score for every driver journey and give back a personalised overall rating. Then this score is delivered to the app, triggering warnings and advice or praise and rewards. It’s especially useful in the corporate “grey” fleets where employers have a duty of care to lone workers clocking up the miles on company business. Of course, none of this innovation is of any value unless the connectivity is reliable and ubiquitous. It’s why many of the larger groups have moved away from single network contracts to multi-network SIMs with better geographical coverage and resistance to outages. The move to roaming SIMs is 32
eroding the traditional price barriers, and when the benefits are weighed against the cost, the value proposition is generally clear cut. Not just insurance With the permission of the driver there’s little to limit the potential of this technology. Once you have health-monitoring data on thousands of cars, analytics can add real value to the user. It’s why the big gains made by car insurers are now trickling down to other motoring sectors such as breakdown, repair and maintenance. The RAC sends the vehicles’ fault codes back to a central database where a big data application can translate them into warnings, advice and intelligence on vehicle health. This too is fed back to the user through a smartphone app. How does this help them? Well, it means that when they call in with a roadside breakdown the RAC may already have a good idea where they are and what’s wrong with the car. It
Matt Owen, MD of M2M Intelligence
The big gains made by car insurers are now trickling down to other motoring sectors such as breakdown, repair and maintenance can then send the right engineer with the right parts. Similarly, the insurer can also predict with some accuracy when an engine part may need replacing. This opens up a world of new revenue opportunities: when you can tell 10,000 Ford Focus drivers www.netsize.com
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Pic: State Farm @Flickr
M2M tools will let insurers monitor how people drive. This could reward safer motorists.
that at 30,000 miles there’s a 70 per cent chance they’ll need a new widget, then you have created a powerful marketplace. Real-time maintenence It’s already happening in the US where connected car specialist Zubie recently teamed up with car retailer AutoNation to power realtime vehicle alerts. These relate to engine performance, battery issues and other maintenance items. It means, for example, that when a ‘check engine
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light' comes on, AutoNation can alert the customer and schedule an appointment. This is just the start of a trend for monetising customer journeys, using real time data to highlight opportunities for special offers via the smartphone app. It could start with obvious suggestions such as insurance extensions for driving overseas based on GPS feedback. But in time it may extend to coffee, restaurants, hotels or anything that centres around the driving experience. 33
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Pic: magro_kr @ Flickr
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Text is just the ticket Efficient, low cost and ubiquitous…even after all these years, SMS remains a compelling medium for ticketing. That’s why bus companies and parking operators across Europe are rolling it out. For any transport operator one consideration overrides all the rest: how to get people on and off a bus or train as quick as possible. Paper tickets leave a lot to be desired. They can be costly and inefficient. Staff need to sell them, which brings with it risks of robbery and embezzlement. Meanwhile, it can be expensive to buy and maintain ticket machines to dispense them. This is why there’s such hype around e-tickets that use NFC, Beacons and smart wristbands. But the truth is these technologies are not yet mainstream. Should a transport operator wish to make ticketing more efficient, it will need something everyone can use today. Something simple. Something like SMS. Now, some readers might be thinking: isn't SMS supposed to be dead? Wasn’t it killed by IM, SnapChat and Twitter? Actually, quite the opposite. While end users have embraced new messaging media, enterprises are more keen than ever on SMS (sometimes called A2P for
With SMS no consumer education is required: there’s no enrolment process; everyone knows how to send a text. www.gemalto.com
‘application to person’). In fact, analyst Ovum predicts the next few years see A2P volumes increasing from 1.4 trn in 2013 to 2.19 trn by 2018. So why is SMS still growing? It’s because text remains the most immediate, ubiquitous and affordable comms tool money can buy (see box). Simply, it reaches every mobile user in the world and extends into virtually every location (no need for a data connection). It’s also highly direct: recipients tend to respond instantly to a text. Finally, no consumer education is required: there’s no enrolment process; everyone knows how to send and receive a text. All of which explains why transport and parking operators have been exploring the use of text as an alternative to ink on paper. SMS tickets combine speedy purchase with improved safety for staff. Passengers can buy from anywhere – no need to queue for the ticket machine. Or have the correct change. Plus text is available on any kind of handset – even the oldest feature phone. And, to repeat, no data connection is required. Some intermediaries already offer what they call mobile ticketing. But actually they take payment from a credit card. In this scenario, the user 35
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must go through a lengthy process of assigning their card to the service via the phone to a website or app. However, a much more straightforward form of text ticketing lets the user simply pay from the phone bill. This simplifies the payment process. All a user has to do is text a shortcode and wait for a text to be returned. That text is their ticket and their phone bill is debited. Regulatory issues Now, there is a wrinkle here. And it comes down to regulation. In the EU at least, there are rules restricting the use of the phone bill to pay for anything that’s not a phone call, text or mobile consumable (like a ringtone). Any intermediary wishing to bill for something like parking may need a financial licence. It is up to the member nation to implement this requirement locally. To date, only a few countries have required a licence for mobile payments for ticketing. One or two firms, such as Gemalto/Netsize, are studying the reglatory environment, and the emergence of new ecosystems. They
are applying for licences to support some ‘charge to bill’ services. So let’s look at two: Mobile bus tickets: ATAF Italy Text-based ticketing has been successful for Italian transport operator ATAF. It launched its service in Florence in March 2012 backed by all four major telcos in Italy: TIM, Vodafone, Wind and 3. The passenger buys a ticket by texting a shortcode. The MNO then deducts the payment from the user's phone bill and sends back a text. This text contains a validation code which is shown to the driver. ATAF uses this system to sell bus tickets in many regions. It sold over half a million text tickets in the first four months of 2014 and says one in ten passengers is a mobile user. Andrea Ferrari, operations manager at ATAF/BusItalia, says passengers are delighted with the scheme. “They can buy a ticket any time, anywhere. There are no limits. And this has enlarged the base and reduced fraud,” he says. Ferrari adds that the charge-to-bill element of the process has been crucial to the project’s success.
WHAT’S SO GREAT ABOUT OLD-SCHOOL SMS? HERE ARE NINE REASONS... 1. Ubiquitous – every mobile user can send and receive texts, regardless of device, OS or network 2. Always on - no data connection required 3. Immediate – people respond to texts far quicker than email, for example 4. Easy to create – a message contains up to 160 characters, which demands a concise and clear message 5. Customisable – messages can draw from an opted-in database to include name, location and more 6. Rich – messages can include links to rich content like photos and videos 7. Responsive – texts can include calls to action when you want the recipient to respond 8. Premium – people value texts, so they are more likely to read and respond 9. A channel for payments - consumers can pay with a premium text message
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“With a credit card system, one of the main barriers is pre-registration. It is time consuming and people don’t feel so secure about it. Phone credit is so obvious, so simple.” This kind of text-based ticketing is now available in cities across Belgium, France, Holland and Finland. However, in other localities regulation restricts it. In Sweden, for example, bus and train operators switched from a textbased system to one that required pre-registration of a bank card and an app download. Passengers were unimpressed and transactions fell. Yet even here, the underlying ordering method was still SMS. Developers designed the app to send a message to the phone as validation when the user purchased a ticket. Pay for parking with a text Drivers love SMS ticketing because it frees them from finding the right change or from taking minutes to www.gemalto.com
enter long credit card details. SMS also returns more immediacy and flexibility back to motorists, and it can help them to avoid fines. Typically, the customer sends a text specifying the duration of the stay and the vehicle registration. The shortcodes vary by location so the operator can tell where the car is and what fee to charge. The cost of the ticket is then deducted from the phone bill, and the driver is sent an SMS that displays the duration permitted. However, in some cases, the motorist can send a text, which starts a meter running. The cost of the stay will only last until the customer texts ‘stop’. Another option is for the parking operator to send a text to remind a driver to buy more time. Companies such as EasyPark are rolling out these services in Sweden, Denmark, Norway, Finland and Germany. 37
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Tube journeys on tap There’s a contactless revolution going on underneath London. Every month, passengers on the Underground pay for 60m journeys with the tap of a bank card. Next up, phones and wristbands. London Underground is famous all over the world. Every day, people make 12m journeys on the ‘tube’. That’s four billion a year. Getting these travellers in and out of the underground’s 270 stations efficiently is a huge challenge. Just a few seconds shaved off each entry/exit can make a huge difference to the comfort of passengers, and the smooth running of the network. Purchasing and using tickets creates unnecessary hassle for travellers. Meanwhile, for Transport for London (TfL) it is costly and inefficient. Which is why TfL has pioneered a contactless revolution. It started in 2003 when TfL launched the Oyster card. Passengers could buy one of these contactless cards, pre-load it with funds, then simply tap to pay at the gate. Oyster was a huge success, By 2007, it accounted for over 60 per cent of all tube trips while fewer than three per cent of journeys were made on single and return tickets. By 2012, Oyster accounted for more than 80 per cent of all journeys, and over 55 million cards had been issued. For all its success, Oyster does have some shortcomings. The system
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requires customers to monitor their cards’ funds. It’s also quite complex to maintain. So TfL began examining alternatives. By 2014 all the major card companies had begun issuing contactless debit cards. It was obvious that here was the next phase of tube ticketing. TfL opted for a phased introduction to make it easier for customers to adjust to the change. The initial phase introduced contactless on London buses in December 2012, followed by a pilot on the Tube and the capital’s rail network in April 2014. In September 2014, TfL introduced contactless payments on all forms of public transportation. That includes not just the Underground, but also buses, the Docklands Light Railway, the London Overground and most National Rail services in the capital. Travellers could now use any contactless-enabled bank card to
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The London underground is now leading the UK’s transition to contactless: one in seven ‘tap to pay’ transactions in the UK now take place on London transport pay for their journeys. They could simply start touching in and out with all cards issued by Visa, MasterCard, Maestro or American Express with the contactless payment symbol. In the first week, they made more than a million contactless payments. One of the key benefits of the system is its simplicity. Visitors don’t need to understand the ticketing system, get an Oyster card or top it up – they just need a contactless bank card. It’s also easier for tourists. While there are some restrictions on international cards, visitors from 57 countries have so far made use of the system. Security is another benefit. TfL says its system is significantly safer than cash.
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Pilots of contactless wristbands are already taking place at rugby stadiums in the UK
Contactless payment cards are embedded with multiple layers of security to protect against fraud, boasting the same level of protection as chip and PIN cards. Needless to say, there have been a few glitches. TfL had to warn people of ‘card clash’, where the wrong card is charged because the user holds two cards together at the sensor.
This doesn’t seem to have deterred passengers. By February 2015, more than 60m journeys were paid for using contactless fares per month, with the payment method accounting for 14 per cent of all pay as you go journeys. In fact, the underground is now leading the UK’s transition to contactless: one in seven ‘tap to pay’ transactions in the UK now take place on London transport. The Mayor of London Boris Johnson says: "London was the first city in the world to offer passengers the option of getting from A to B with a simple flourish of a contactless payment card. "Clearly Londoners and visitors to the capital have embraced this innovative technology - with a million card swipes taking place each day as people zip around our fine city on TfL services."
CONTACTLESS TUBE JOURNEYS: NOT JUST FOR CARDS The overwhelming majority of contactless payments made on the Tube come from a bank or Oyster card. But there are alternatives. Users can, of course, pay by mobile – so long as their phone is NFC-enabled and supports a wallet app. As of 2015, there still aren’t many options. EE offers ‘Cash on Tap’ on 18 Android phones. Meanwhile, Vodafone supports payment through its SmartPass app. It’s also possible that payments could be made from Apple Pay once the service is launched in www.gemalto.com
the UK. Then there’s the rumoured Android Pay service from Google. If and when this arrives, that would bring contactless mobile payment to virtually any Android device. Another intriguing possibility is wearable payment. A number of organisations are trialling contactless wristbands at stadiums and events – and could extend the concept to wherever contactless payment is accepted, including the London Underground. Wearable technology scores here because it’s fast and helps commuters
avoid ‘card clash’, where readers detect more than one contactless card. In most cases the payment on wearable technology is via a prepaid account to which funds are either added automatically when the balance runs low or which can be done manually online. In two pilots, Gemalto (with Guinness and the RFU) tested wearables at the Twickenham and Saracens Allianz rugby stadiums. The scheme supported payment both inside and outside the two grounds for transport and retail use. 41
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“We’re not trying to build everything. We’re challenging entrepreneurs by asking ‘how would you solve this?’ and then helping them.” Steve Leonard, Executive Deputy Chairman, Infocomm Development Authority of Singapore
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Today’s city of tomorrow Singapore is impatient to find out how smart technologies can transform lives. So impatient it’s set itself the goal of becoming the world’s first ‘smart nation’. The Gemalto Netsize Guide spoke to the man leading the effort, Steve Leonard. One of the big barriers to creating a truly connected society is fragmentation. At the device level there are different OSs and network technologies. More often than not, they don’t work together. That’s bad enough. But then you move to the infrastructure level, where any effort to establish connected services requires the approval of public sector bodies, regulators, government and more. Optimists believe that time will take care of these hurdles. But one country isn’t prepared to wait: Singapore. It has already declared its aim to become world’s first ‘Smart Nation’. Support from the top Singapore is uniquely qualified to will the idea into being. It’s effectively a city state anyway (it’s smaller that greater Los Angeles) and, for all the country’s free market success, Singapore’s government still wields significant power. Indeed, Singapore’s prime minister Lee Hsien Loong is driving the idea. At launch he said: “We will make Singapore a smart nation: enabling safer, cleaner and greener urban living, more transport options, better care for the elderly at home; more www.gemalto.com
responsive public services and more opportunities for citizen engagement.” One data backbone for all The connectivity infrastructure behind the Smart Nation project is being run by The Infocomm Development Authority – a combination of telco regulator, tech strategy board and investment vehicle. The IDA’s ambitious mission aims to connect the whole country and provide a data backbone that every business and public department can hook into. Here’s how Steve Leonard, executive deputy chairman of the IDA, describes it: “We have this acronym: E3A. It stands for ‘Everything, Everyone, Everywhere connected All the time’. So let’s say, at some point in the future, your doctor sends you home in a smart post-operative vest to monitor your wellbeing. That’s not going to work if there’s no connectivity in the elevator or in the underground. “So our smart nation thesis is to start with connectivity and then explore how we can do cool things in the sharing economy, in transport and health and so on.” The specifics of the project include a 43
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Smart Nation Platform that will capture and collect data via sensors placed around Singapore in aboveground ‘aggregation gateway’ boxes. Ultimately, the aim is to crunch the data to see how systems can be made more efficient. Cars, queues and care Trials are already underway. One involving RF Net, Panasonic, and Elixir Technology uses video sensors to assess the length and flow of queues. This info could be shared back to taxi firms, bus companies and even passengers. It can also speed the development of driverless vehicles. In fact, Singapore is already testing autonomous cars, opening up 6km of roads for trials. Healthcare is another key focus. This is why the Housing and Development Board is working on a Smart Elderly Monitoring Alert System in which home sensors can notify caregivers or neighbours when the need arises. However, not all the action will be ‘top down’. To encourage citizen participation, the government will open up 11,000 data sets so the public can contribute ideas and data. They can participate, for example, in the Virtual Singapore project to develop an integrated 3D map with layers of data and information about buildings, land and the environment. People power To give people the bandwidth to get involved, the IDA will launch heterogeneous network (HetNet) trials in lifts, pedestrian walkways, and transit stations later this year. This could help devices switch 44
Getting to trust the smart city The lasting benefits of a connected, smarter urban life hinge on people trusting the digital world, says Gemalto’s VP of Global Marcom Hsin Hau Hanna. People tend to get nervous about new digital services. They have obvious questions about security and privacy, And they get annoyed when a great promise only works half of the time or in specific places. These issues create barriers for most people thinking about adopting new ways to pay, travel, receive healthcare or store precious data. Cities are getting smarter, but if new services are to be used by the masses, they need to be accessed easily – anytime and anywhere. Users must also feel protected. Finally, new services should bring genuine additional benefits. That’s the only way to incentivize people to change – and to win their trust.
between various types of wireless networks and let users roam with fewer losses of connectivity. State-sponsored nudges Of course, the state can’t do it all. Leonard agrees and says the IDA wants to nudge the private sector. “We’re not trying to build everything. We’re challenging entrepreneurs by asking ‘how would you solve this?’ and then helping them.” This help takes various forms. The IDA is well-connected, so it could connect a medicare startup, for example, to the minister of health. It’s another benefit of Singapore’s relatively small size. The organisation can also provide financial support. Its investment subsidiary has invested in several accelerators. Last year, it began investing in overseas entrepreneurs with a $200m European fund based in London. www.netsize.com
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On The Commute /// The Gemalto Netsize Guide
This Gemalto infographic presents a gleaming vision of a connected urban future.
www.gemalto.com
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For all the hype around the consumer IoT, the impact of connected tech may be greatest in industry. Agriculture, utilities, transport, healthcare – every one will be transformed when dumb devices become smart. In this section we look at how the SIM is evolving to function in challenging industrial environments. We also examine the security risks posed by a networked world of things. And we explore how M2M tech is coming to the aid of the honey bee.
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Hardwired When it comes to connecting remote devices, you can forget about wifi and Bluetooth. Only cellular will do. But these industrial devices can’t always handle a regular phone SIM. Which is why the GSMA created a special Embedded SIM specification. What’s the difference between a traffic light and a smartphone? No, it’s not a joke. It’s a serious question, and a very important one for the future of the Internet of Things. Especially for the world’s mobile 48
network operators. Until recently, MNOs focused primarily on phone connections. Their priority was selling SIM cards to as much of the human race as possible. But as phone penetration www.netsize.com
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At Work /// The Gemalto Netsize Guide
Traditionally, the UICC was printed onto a physical SIM, which made it almost impossible to replace. An eUICC turns this feature into software.
neared 100 per cent, the operators began to consider what else they could connect. Lucky for them that the IoT came along. The era of M2M By 2020, the GSMA (the MNO’s trade body) estimates mobile handsets will constitute only 72 per cent of all cellular connections (it’s currently 92 per cent). It also forecasts machine to machine (M2M) devices will number 14.5 www.gemalto.com
billion by the turn of the decade, with 652 million in healthcare, 952 million in automotive and 7.5 billion in smart cities. At Mobile World Congress 2015, the IoT loomed large. It was noticeable that this historic mobile show had become as much about cars, watches, meters, lighting systems and doors as it was about phones. These miscellaneous devices were everywhere. And operators want to connect them. 49
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However, watches, doors and – yes – traffic lights are very different from phones. Machines are not people First, they’re not personal: no one is going to painstakingly remove the casing of millions of gas meters and fit a SIM card into a special slot inside, then set them up with a subscription. Second, they are rugged. A traffic light is outside in all weathers. Its SIM card needs to be resilient to temperature variation and vibration. What’s more, these industrial objects generally have a much longer life than phones. And their
ownership can change frequently between companies with different mobile contractual agreements. So, to repeat, a traditional SIM just won’t do. This is why, in 2013, the GSMA created a specification for the Embedded SIM. The provision thing The most important new feature of the Embedded SIM is that it can be remotely provisioned. So a customer can buy thousands of devices and manage subscriptions from one dashboard. They can re-program them remotely to work with the network operator they choose.
Dr Martin Reber, CEO of Limmex
HOW THE LIMMEX WATCH WAS REMOTELY CONNECTED
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Switzerland is famous for its watches, but Limmex does things a little differently. It combines Swiss engineering with a unique service idea: watches that link seamlessly to emergency services. The Limmex watch supports people with particular care or security needs – children, VIPs, lone workers, the elderly or individuals with health problems. Wearers can call a relative or emergency response centre at the touch of a button. And thanks to built-in GPS, they can even relay location should the caller be disorientated or unable to speak. The particular challenge for Limmex when building its product was ensuring the watch would be permanently and reliably connected. The whole safety proposition fails otherwise. That’s why it worked 50
with Gemalto to build connectivity into the device at the build stage. Gemalto’s ODC (On-Demand Connectivity) platform provides instant mobile broadband connectivity to newly connected devices right out of the box. The firm has relationships with mobile operators all over the world, which means that Limmex could ship one version of its watch. No need to create numerous device variants and profiles to enable the cellular connection of devices in a specific country after they’ve been deployed to consumers. Instead, just a single product design across multiple markets. "We work with multiple operators, producing different product variants for each country and region we serve," says Dr. Martin Reber, CEO of Limmex. "With Gemalto's
solution, we canxxxxxxxxxxxxxxxxxxx enjoy more efficient manufacturing, a xxxxxxxxxxxxxxxxxxx streamlined supply chain, and xxxxxxxxxxxxx the freedom to quickly and easily market our product worldwide." Benoît Jouffrey, VP of ondemand connectivity for Gemalto, believes ODC has applications across the IoT space. He says: “We’re targeting manufacturers in the consumer electronics and M2M space – – and in cars. “All these firms want to simplify the build process. They can make the products in a single location, but provide connectivity for different territories from just one build.” “Our system will recognise where the user is, determine which operator the manufacturer works with and then switch on the right subscription.” www.netsize.com
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At Work /// The Gemalto Netsize Guide
cent of global M2M connections are serviced by operators deployed or committed to the GSMA’s solution. “We believe that our Global SIM solution, combined with the GSMA Embedded SIM Specification will drive rapid adoption of M2M communications worldwide,” says Randy Bryson, chairman of the M2M World Alliance. “By integrating the GSMA Embedded SIM Specification, members will provide robust local, flexible and cost effective support for our customers’ diverse M2M and IoT connectivity needs.”
The Limmex watch comprises an emergency services alert. It’s only possible because of a special SIM.
This means that Embedded SIMs can also be embedded in an M2M device. Manufacturers can solder them in so they can ensure severe weather or violent movement. Spec support Earlier this year the GSMA confirmed that more than 20 of the world’s biggest operators such as China Mobile, KDDI and Tele2 had committed to the specification. It also revealed that the nearly 65 per
Industrial companies are faced with an new challenge: how to transform previously dumb devices into connected subscription services. www.gemalto.com
New markets For the operators, this is a challenging development. Yes, they can use the embedded SIM to open up vast new M2M markets for their connections. But they will have to compete hard to win and maintain these new customers. Of course, the many new companies suddenly entering the market for SIMs are faced with an equal challenge: how to transform previously dumb devices into connected subscription services. Specialist help This is where a specialist firm like Gemalto comes in. Its subscription and provisioning services help device makers manage the network operator profiles on the embedded SIM. They can also connect devices when they are activated for the first time, and ensure the right subscription according to the choice of the customer. 51
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Trust no thing? Elevator makers never used to worry about hackers. Their products just went up and down. But connected elevators are different. They could give criminals an opportunity to make serious mischief. Welcome to a very new security threat. The Gemalto Netsize Guide asked James Lyne, global head of security research at Sophos, about the need to secure not just computers, but things. In 2013, an American couple were horrified to find their baby monitor screaming obscenities at their infant daughter. Their Internet-connected device had been hijacked by a mischievous hacker. The incident was widely reported, and was probably the first time most people had heard of a ‘thing’ being 52
intercepted this way. It almost certainly won’t be the last. A world full of connected devices represents a wonderful opportunity to make work and life easier for people. And it’s big business too. Gartner says the market will support 26 billion devices by 2020, and that the sector will generate revenues of www.netsize.com
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At Work /// The Gemalto Netsize Guide
IoT devices require no user name or password and contain no cryptic keys. There hasn’t been a security model like that in computing for over 10 years. $300 billion by this time. But every connected machine gives mischief makers and criminals a chance to attack. Clearly, these devices need to be secured. However, there’s no doubt that, as of today, most are not. Last year, HP's security software unit tested the popular Internet of Things devices like lawn sprinklers, alarms and thermostats. It found 70 per cent of them contained security exposures. On average, each device contained 25 holes. HP also discovered 80 per cent of devices did not require passwords of sufficient complexity and length, while nine in ten collected at least one piece of personal information. Also, 70 per cent routinely used unencrypted network services and transmitted credentials in plain text. ‘Legendarily bad’ None of this surprises James Lyne, global head of research at security specialist Sophos. He spent many months testing connected devices and has been stunned by the results. Take his experience with a wireless power plug connected to a light bulb and controlled by a smartphone. “I was horrified to find that you could connect and control it with no user name and password and control it,” he says. “I wrote a script to turn it on and off 200 times a second. It turns out that if you do this, the light will www.gemalto.com
explode. I did this in a hotel room and the cleaner ran out screaming.” Lyne observes that nearly all devices he analysed had similar vulnerabilities. He found CCTV security to be ‘legendarily bad’. In a test, he found on Google a 2005 tool – a brute force password tool that tries millions of passwords a second – to attack one camera. He says: “Most modern computers will lock you out if you do this. But I got the password in 30 seconds. Now, in this case at least there was a password. Most devices use ‘password’ or 1234 or nothing.” Watching the watchers Lyne found 540,000 of these cameras online, and accessed hundreds of them in less than an hour. He looked at a CCTV for a gas station in Malaysia and was able to zoom in on the chip and PIN reader and till code. “It was streaming to the internet for anyone to see.” In another example, Lyne watched a security guard falling asleep while watching CCTV. This lack of protection makes hacking ridiculously easy for any moderately skilled attacker. Lyne says: “These devices require no user name, password or cryptic keys. There hasn’t been security like that in computing for 10 years. Yet we have this model for devices people are using in their homes now.” Lyne stresses that the security situation may be terrible, but it’s not irredeemable. It’s more about attitudes than technology. He says: 53
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“Users treat these devices like dumb boxes when they are computers.” So why aren’t there more attacks similar to the baby monitor scare? The path to security Needless to say, it comes down to money. Lyne says: “The simple explanation is that attackers can’t make money from IoT hacks, or it doesn’t meet their political goals. They want to go to the computer or mobile where there is money. “But in a week, or a month or year, that might change. So security must be a key focus before it’s too late. It must learn the lessons Microsoft learned 10 years ago.” Thankfully, simple fixes would instantly provide excellent protection. “Take the light switch. It would be trivial to exchange a crypto key with the mobile the first time you connect to it. The user wouldn’t need to know it was happening. And you could block users without physical access to the device. “Password brute force protection is one line of code. It’s easy. Everyone
does it. You could cut and paste it from Google.” Much of the protection for M2M devices will come from the companies embedding connectivity inside them. Gemalto, for example, makes a tamper-proof SIM card with secure element that sits inside connected devices from cars to smart meters. The firm also offers software-based security that protects and encrypts data sent over the air by these devices. Laetitia Jay, Gemalto’s vice president of M2M solutions and services, says it’s crucial to make an honest assessment of the security priorities – and that all parties in the chain collaborate. She says: “Security can be difficult and costly, especially if it hasn’t been a factor before, and when your priority is just to get your product out. So the priority is to assess the security need and then secure what matters. And it’s important for people to work together: if only one side is thinking about trust, then you cannot secure the full ecosystem.”
James Lyne, global head of security research at Sophos, says IoT device makers need to change the way they think about their products.
ONE SIZE DOESN’T FIT ALL The security needs of a lawn sprinkler are not the same as a wristband that contains credit card details… A world of product manufacturers are suddenly waking up to the need to protect their devices for the first time. It’s daunting. But the truth is that different M2M devices require different levels of security. A smart door,
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for example, does not necessarily need to keep information about its usage confidential. But it does need to ensure only authenticated users can unlock it. Broadly there are four security factors to consider.
> Authentication. Does the device only allow access to approved users? > Confidentiality. Is the information gathered kept secret? > Integrity. It is possible to change any piece of the information sent by the device?
www.netsize.com
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Who’s watching the watchers? Connected CCTV cameras could contain obvious security flaws if not properly protected.
“It’s important for people to work together: if only one side is thinking about trust, then you cannot secure the full ecosystem.” Laetitia Jay, Gemalto’s vice president of M2M solutions
> Availability. Can the device be prevented from sending information? Every manufacturer has to examine these considerations and then take the necessary precautions. But this needn’t be a burden. In fact, it could be an opportunity to generate business. Laetitia Jay, Gemalto’s vice
president of M2M solutions and services, says: “If you have a solution that is safe from attacks you can connect to other providers in the ecosystem. That’s an opportunity to to build new business cases.” Gemalto itself sees IoTand machine to machine security as a priority. In 2015, it formally acquired SafeNet to strengthen
its own offerings even further. SafeNet’s cryptographic technology already protects over 80 per cent of the world's intrabank fund transfers. The two companies are now working on applying these cryptographic keys to Gemalto's portable secure elements – the kind used in connected devices from phones to ‘things’.
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The rise of the machines What’s the best way to connect a meter in the middle of the forest? Or a sensor in a super-hot factory? The industrial IoT – also known as M2M – has different demands from the consumer world of smart watches and thermostats. So says Manfred Kube, Gemalto’s head of M2M segment marketing. Beecham Research identified 300 M2M verticals, but it could be much more. It’s a vast potential market, and it needs well-designed connectivity solutions.
diagnose field issues from one central location. It delivers up-tothe-minute data and reports connectivity information such as Cell ID, signal strength and jamming.
You don’t want consumer grade SIMs in industrial products. In consumer markets you can change a SIM every two years. That’s not possible in enterprise applications. Also, you can’t be sending engineers out to fix remote smart meters all the time. It’s not practical.
Industrial customers are only interested in actionable data. So we remove complexity in the SensorLogic UI. For example, users can set up an alarm that’s triggered when the network signal strength goes below a pre-defined level.
I believe MIMs could be in every second or third product in the world. Gemalto developed a special SIM platform for the industrial IoT called Machine Identification Modules. (see box). We recommend a soldered MIM in some situations. In harsh environments with high temperature ranges, extreme vibrations and mechanical stress, you need something much more robust. Any organisation that has lots of remote M2M devices should be able to manage them centrally. We created SensorLogic Module Services to let customers easily 56
Security is essential in IoT. You have to trust the device. Manufacturers should think about security very early in development process. It needs to be there by design not hindsight. 80 per cent of security issues are in the software. Gemalto’s Safenet tech is a response to this. It can even secure individual application features by placing a secure wrapper around the software. A connected elevator might connect to different cells at the bottom and the top. This means that there can be lots of cell handovers. However, we provide a solution to know when the MIM might fail and to address it. www.netsize.com
Pic: Russellstreet@Flickr
The Gemalto Netsize Guide /// At Work
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At Work /// The Gemalto Netsize Guide
“In consumer markets you can change a SIM every two years. That’s not possible in enterprise applications.” Manfred Kube, head of M2M segment marketing, Gemalto
Some M2M services need LTE. But others are perfectly OK with 2G. You need a family of solutions. Device makers should use one MIM across different countries and MNOs. Our systems let them manage connections over the air. So when someone switches their device on for the first time, it will download the final operator credentials. Automotive customers are the early adopters. They’re already using high bandwidth LTE to enable in-car entertainment, navigation, breakdown calls and more. People are using industrial IoT to preserve bees. The applications of M2M are endless (see next page).
WHAT ARE MIMS AND WHY DO WE NEED THEM? If conventional SIMs are not suited to the vast range of new connected machines, what is? Gemalto’s answer is a new platform called Machine Identification Modules (MIM). The concept builds on Gemalto’s existing SIM technology. Like a regular SIM, it secures the identity of the machine to the carrier network, and provides secure authentication. But then it goes further to:
> Survive extremes of vibration, temperature, and humidity > Endure a long life span (around 10 years) > Occupy a small footprint > Integrate into industrial manufacturing processes The MIM platform, which is available in several form factors, is already enabling successful M2M deployments around the world.
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Follow the honey Could M2M technology help to tackle the decline in honey bee populations? Eltopia, Gemalto and the University of Minnesota created the ‘MiteNot’ project to find out. Who would have thought, when the SIM card was first used to connect people by phone, that the same technology might help to save bees? Unforeseeable, maybe. But today researchers at the University of Minnesota are using new cellular connectivity to turn back the destruction of this essential insect. In the US alone, bee colonies have declined by 90 per cent since 1962. One of the problems afflicting bee populations is the varroa destructor mite, which breeds and takes over hives. But it’s extremely difficult to identify and combat this invader. Bee keepers can use pesticides. But this is a heavy-handed solution with obvious side-effects. Another solution is to use heat. By applying high temperatures at a specific time, bee keepers can sterilize the mites and halt their breeding cycle. The difficulty is knowing when to do it. Marla Spivak, McKnight University Professor of Apiculture/Social Insects at the University of Minnesota, is now using cellular connectivity to monitor and manage the temperature of beehives. She worked with Gemalto and agricultural tech firm Eltopia to create the MiteNot solution. It centres around a compostable smart bee hive frame – a screen printed 58
circuit camouflaged to look and act just like the real thing. The frame is embedded with sensors to monitor the temperature of 32 elements that indicate brood status and different stages of the mite reproductive cycle. The information is sent by Gemalto’s Cinterion Module, which acts as a cellular gateway to transmit data over the Internet to Eltopia’s
“The MiteNot project holds more promise to turn the bee crisis around than any other idea that has come along in a long time.” Marla Spivak, University of Minnesota BeeSafe application. The app monitors the data and, when thresholds are met, instructs the M2M Module to turn up the heat. Spivak is extremely hopeful about this radical new solution. She says: “The MiteNot project holds the most promise to turn the bee crisis around than any other idea that has come along in a very long time – maybe ever.” www.netsize.com
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Text if you want to work better For all the rapid advances in messaging technology, sometimes all you need is something tried and tested. That’s why enterprises are finding new and surprising ways to use SMS.
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At Work /// The Gemalto Netsize Guide Pic: US Library of Congress
What’s the best way to provide information to a diverse and dispersed fleet of engineers? You could send email or IM to their smartphones. But mobile phones require data connections – which don’t typically extend to remote locations. What’s more, they eat up battery power. OK, voice calls. But hang on, voice demands real time human interaction. That’s expensive and hard to manage. Also, engineers are frequently in situations where they just cannot take calls. This is why, for more and more organisations with remote workers, there’s only one answer: SMS. Only this 23 year old channel is available, affordable and capable of providing the information needed to carry out precise instructions. Contrary to perceived wisdom, SMS is still growing. According to Ovum’s Mobile Messaging Forecast, it hit an all-time high of 7.7 trillion messages sent in 2014. Of course, it's true that person-toperson messaging is changing. Consumers are embracing new chat apps and social media services that promise cheaper and more flexible mobile comms. But in the A2P space, SMS marches on. ‘Application-to-person’, messaging describes the use of SMS by enterprises to send texts to customers, employees, suppliers and partners. This kind of messaging is exploding with new use cases. Let’s look at a few…
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The Gemalto Netsize Guide /// At Work
Bank card PIN codes Sending PINs to bank customers by post is an expensive and risky way to transmit highly sensitive information. These PINs are easily stolen. With SMS, banks can send PINs and know that the information is guaranteed to reach the customer. In fact, they can make the process even safer by experimenting with texts that expire after a given time – or insist that customers confirm receipt by sending a text back. In France, the retail bank LCL now issues PIN codes and also uses SMS to send temporary numbers to cardholders who have forgotten their PINs when out shopping. Customer service feedback Organisations routinely ask consumers for feedback. But calls can intrusive, while letters go ignored. This is another activity where the text message wins. In the UK, a major TV broadcaster regularly sends texts to opted-in users after an engineer call-out. It's found that response rates are between five and six times higher than other types of feedback. SMS confirmation when buying abroad In an era of online fraud, banks are extra careful when a card is used overseas. Typically, they will call a cardholder to check the purchase is legitimate. However, these calls are expensive to make and they’re not always answered. A text is quick and cheap because it can sit on the phone and therefore doesn't require an immediate response. A text to replace online passwords Online merchants are conflicted – they want to make logins quick, but they must also make them safe. So they ask for passwords and PINs, which slow everything down. Worse, people forget 62
passwords then abandon the transaction. SMS can really help here. Site owners can send a one-time passcode to a customer's phone, which they then enter into a box on the page. This process offers better protection because of the combination of 'what you know' (the passcode) and what you have (the phone). SMS appointment reminders When customers/patients/interviewees don't show up for their appointments, the costs can be exorbitant. This is why so many organisations now send SMS reminders. Healthcare providers in particular have had great success with text. Indeed, a 2012 US study revealed that attendance rates for patients who received text message reminders over a four month period were 79.2 per cent compared 35.5 per cent for those who received no reminder. Voice SMS for the visually impaired It's now possible to hear a text message. Voice SMS uses text-to-speech technology to convert an SMS and deliver it as a voice call to the recipient’s mobile. Track your package SMS One of the great annoyances of modern life is the missed delivery. Thankfully, the text message is helping to tackle this. Many postal services now let customers text the tracking number of the parcel to a shortcode, and then receive an SMS with its location. They can send further updates of its progress. Even better, some companies will text with a delivery window. Buying a bus ticket Paper transport tickets can be costly and inefficient. You need staff to sell them – or expensive machines to dispense them. SMS lets customers buy tickets by sending a text www.netsize.com
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At Work /// The Gemalto Netsize Guide
to a shortcode. The returned text is the ticket, which the passenger then shows to the driver. Italian company ATAF already sells tickets this way in many regions. Emergency services Can SMS save lives? In Sweden, LEKAB’s Mobile LifeSaver service has provided emergency help to thousands of people with suspected cardiac arrest since 2010. Volunteers trained in CPR sign up and then receive text alerts when there is an emergency in their location. Airline crew communications It’s hard to think of a workforce more dispersed than one employed by a major airline. Keeping track of these important employees is tough. So when there’s a change in schedule, the best channel for contacting pilot and crew is SMS. Text messages don’t require wi-fi or 3G. They arrive straight to the phone home screen, so they are usually read at the moment they arrive. Scandinavia’s SAS Airlines uses text to alert is pilots and crew teams to changes in schedule. It’s found SMS to be easily the most effective channel for direct communication. Remote field engineers As previously stated, text is emerging as the best way to contact a diverse and dispersed fleet of engineers. An enterprise may have thousands of operatives from multiple providers - all needing precise instructions on their daily schedules, the equipment needed for a job, time of arrival and so on. Text messages let operatives manage schedules for entire fleets from one dashboard. www.gemalto.com
Text appeal: nine reasons why we still love SMS 1. SMS is ubiquitous Anyone with a mobile can use SMS – no matter what handset, telco, OS or country. 2. SMS is always on Text messages are transmitted over the telco networks, which for the most part, reach across every inhabited location. 3. SMS is immediate Mobile is the most personal of all media. So it's no surprise that users open and respond to texts so quickly. 4. SMS campaigns are easy to create A text contains just 160 characters. 5. SMS messages can be targeted Opt-in SMS marketing campaigns can be targeted at particular customers. 6. SMS is rich A text can display a picture, or even a video. It can contain a hot link to a dedicated landing page. 7. SMS is responsive Any good promotional campaign has a call to action. 8. SMS is premium The premium cost of SMS actually makes it more attractive as a comms channel. People are more likely to open, read and keep a text. 9. SMS can be used for payments A premium text message reverses the charge, so the recipient pays for it. 63
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The Internet of Things is coming to a home near you. Maybe yours. In this section we look at the impact of connected technologies on all aspects of our lives away from work. On the way we shop and bank. Even on the front door key. We also take a peek at the evolution of the watch into a communication device – and see how the line between jewellery and wearables is blurring.
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Can technology disrupt this? Does your door know it’s you? If smart lock technology takes off, it will. The Gemalto Netsize Guide looks at the new breed of startups coming for your keys.
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Traditionally, someone had to manage the distribution of physical keys and fobs. With smart locks, they can assign or revoke virtual keys with the click of a mouse.
Opinions differ on the subject of the smart lock. Some say it’s technology for its own sake – a solution to a problem that doesn’t exist. Others say it is the inevitable next phase of home and workplace access. Indeed market watcher NextMarket Insights says the global smart lock market will grow from $261 million in 2014 to $3.6 billion by 2019. So what does a smart lock do? Fundamentally, it recognises approved users. More accurately, it recognises the smartphones of approved users. This is especially useful in a workplace where there is staff turnover and where different workers have different permissions. Traditionally, someone had to manage the distribution of physical keys and fobs. With smart locks, they can assign or revoke virtual keys with the click of a mouse. The access industry has been edging towards smart doors for years via numerical keypads, fobs and smart cards. But the arrival of the smartphone and short range wireless connectivity (specifically Bluetooth, wi-fi, Zigbee and NFC) has really propelled the market. Now, a group of companies is working to bring the technology to the consumer market. They believe the phone can hold a person’s keys just as it holds their music, photos and maybe money. Needless to say, big questions remain. Can this technology make a property safer? Or will it make it drastically more vulnerable? And will smart keys exist on their own or as part of a wider smart home
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system that embraces heating, lighting, alarms and more? Here are the start-ups trying to reboot your keys… Lockitron Bolt The $99 Bolt lock completely replaces a door’s deadbolt and connects to phones via Bluetooth. It also comes with a separate ‘bridge’ that connects the lock to the internet so owners can configure it remotely. The Bolt actually records every interaction with the lock - even when someone knocks on the door or unlocks it mechanically. August August’s neat round batterypowered module sits above the old house lock. It connects by Bluetooth and recognises any user that’s been given permission to access the house. The door is unlocked as they approach. The home owner can grant virtual keys to friends or even tradespeople – all from the August dashboard.
CHECK THIS OUT Hilton Hotels is preparing to let guests check in by phone before they arrive… If the engine behind tech innovation is making life easier, why are we still queuing at the hotel check-in? Our rooms contain giant flat screen TVs, remote controlled fireplaces and motion sensitive lighting. But when we arrive, there’s still a 20 minute wait to get the key. It’s one of the big remaining pain 68
points for the pampered business traveller. Now, perhaps, with the advent of smart connected technologies, it’s finally on the way out. In 2014, the Hilton hotel group unveiled a new service to digitise the check-in. Guests can use an app to choose their room in advance, and then customise their stay by purchasing upgrades and selecting room service items. Since all payment information is pre-verified, guests simply pick
up their room key from the front desk when they arrive. However, in phase two (scheduled for 2016), Hilton will let visitors open their rooms with their smartphones, so they can bypass reception completely. Geraldine Calpin, senior vice president and global head of digital at Hilton Worldwide, says: "In a recent study, 84 percent of business travellers surveyed said they wanted the ability to choose their own room. We are giving our guests the ability to www.netsize.com
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Knock knock. Who’s there? It’s the Kickstarterfunded Sesame smart lock.
Goji This Indiegogo product comprises an elegant round device that has a visual LED display. It works by connecting to the home wifi. What makes it a little different is the inbuilt camera that will send a photo to the owner to verify who’s at the door. It also supports the use of a fob for anyone who doesn’t have a phone. It is sold by Staples and Walmart. Sesame Kickstarter-funded Sesame’s big thing is ease of installation, which is done in seconds. Basically, you clip it over any existing lock and it turns the key as if a human were doing it. The other differentiator is the knock sensor. Users can designate a unique sequence and then either knock their phone or their door to make it unlock. Kwikset Kevo The Kevo looks like a regular front door lock. However, it connects to and recognises the smartphone of
any authorised visitor, who touch the key to open the door. It also recognises fobs for those without a phone. The device uses a public-key infrastructure system rather than Bluetooth. Noke Fuz’s Noke (pronounced No-key) is not a front door lock, but a smart padlock. It uses Bluetooth connectivity as the unlocking mechanism, activated when the smartphone is nearby. If the power dies, Noke has a Quick-Click function that lets owners use a series of long and short taps to unlock it. Friday Smart Lock Friday puts the emphasis on an ultra-modern aesthetic style, with the option to buy its pleasingly curvy lock in gunmetal, stainless steel and unglazed porcelain. The device works with Apple HomeKit, and will also connect to Nest so it can link to the smart connected thermostat in the home.
select not just their room type, but the exact location in the hotel, all the way down to their room number." Of course, this is something airlines have done for years. What’s tricky for hoteliers – especially at the high end – is the need to retain a human touch. Still, it seems as if efficiency is winning over a smile and a uniform. Reportedly, several hotel chains are also working on automated check-in too. www.gemalto.com
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The rise of
Shine
In a world of tech companies that can put features before design, Sonny Vu’s Misfit stands out. The firm’s Shine wearable is elegant and discreet. It features no screen, and its battery lasts for six months. Vu tells the Gemalto Netsize Guide why, in the wearable space, looks matter.
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The technology sector is all over wearables. Whether it’s activity trackers or smart watches or goggles, the feeling is that this is a vast market waiting to happen. But because this is technology, a huge proportion of these products are simply ugly. They put features before design. And while design is important in any product category, it’s doubly so in wearables when the item is on public display. So when Silicon Valley entrepreneur Sonny Vu launched his wearables company Misfit in 2011, he did so with a simple design ethos: “We started with what people would wear, and then worked backwards.” In quick time, Vu and his team drew some immutable conclusions. The big one? No screens. “We thought about what people would want on their wrists, and we concluded that a screen was not it. Most wearables come with one because we’re so used to having screens on phones. But that’s not the way to think about it. “If the main purpose of a wearable is to see how well someone is progressing toward their goal, there are other ways to do it that don’t involve a screen.” Friendly circles and lights Thus, Misfit’s first product, the Shine, is a sleek metal fitness and activity tracker. It is a simple aluminium button with no display or buttons. Instead it has LEDs that light up on tapping. Users set all their goals – running, walking
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We thought about what people would want on their wrists, and concluded that a screen was not it. Sonny Vu, founder of Misfit
sleeping and so on – on the Shine app and then use Bluetooth to sync it with the device. It’s very discreet. As stated, the battery lasts six months and the cost is just $99.99. Vu says: “The design language is based around circles and lights. Circles are friendly and universal. We also wanted the Shine to be flexible, so we made it clippable. You can wear it on a wristband, but if you want you can clip it into a necklace.” In fact, you can wear it in six ways including in specially designed socks. ‘When people tell me they put it on and forget it's there, that’s my favourite comment that people make about Shine,” says Vu. This thinking was all pretty audacious back in 2012, when wearables was still an embryonic market with plenty of doubters – and 72
the market was dominated by chunky watches with big screens. But just a few months after launch, Misfit raised over $0.8 million on the back of a Kickstarter campaign. Later, it raised around $7 million and then a further $15.2 million from VC investors.
Sonny Vu’s wearable products now sell in 20,000 stores worldwide
20,000 stores The company’s revenues went from zero to $40m in its first 12 months and its products are now distributed in over 20,000 stores. As the company has evolved, Vu has become more convinced that desire trumps all other factors in the design of wearables. This explains the decision to team up with luxury brands Swarovski and Victoria’s Secret on a range of fashionable Shine variants. For all it success so far Misfit is, www.netsize.com
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triple tap and long tap to control the bulb.Of course, Misfit doesn’t plan to create its own lightbulbs, door locks and heating systems forever. Instead, it’s teaming up with multiple partners to make Flash a remote control for the home.
Misfit’s stated aim is to make wearable tech so discreet that people forget it’s there
somewhat surprisingly, not fixated on activity tracking. Vu believes the true long term potential of wearables lies with their ability to help people interact more productively with the physical world. “It’s not all about sensors,” he says. “Charts and graphs? Who cares? I think people more interested in buying products that will actually do stuff for them – make their lives easier.” Lightbulb moment To explore this, Misfit launched Flash. It’s a less expensive version of Shine that supports connections to physical objects. They include the Misfit Bolt, a connected light bulb that lets users personalise their home lighting. Users set their preferences on the app, then use the Flash’s double tap,
www.gemalto.com
Partners at home These alliances include some of the most progressive companies in the smart home space: Logitech Harmony for home media and light controls; August Smart Lock to unlock your door; Nest thermostats and more. The remarkable end point of all this will see Misfit focus as much on data gathering as it does on selling wearable jewellery. Indeed, the firm already provides motion and sleep tracking algorithms to third parties – including some that are competitors to the Shine. It has an app for the Pebble Watch, for example. But surely, having given so much thought to its Shine and Flash designs, Vu wouldn’t want to abandon the hardware space. Or would he? “Hardware is important,” he says. “It helps you pay the rent and it gathers the data. But a Shine app on Pebble gathers data too. “That said. Different people want different things. Some people want Shine and some don’t. We’re OK with that. And there are different sectors too. “Even if Apple Watch is a massive success, there will be people who want a $50 device, which Apple will never make. We will.” 73
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Pay for anything… with your phone bill? Consumers love the convenience of buying digital goods from the phone bill. Imagine if they could pay for physical goods this way. In EU countries this may be possible. But it’s complicated. Until the late 90s mobile phone credit paid for two things: calls and texts. Then, along came ringtones, wallpapers and the like, and new items were added to the bill. This presented a challenge for financial regulators. If consumers could buy ringtones with phone credit, then why not newspapers or food or – hypothetically – cars? Such activity would turn mobile operators into financial institutions. And because many consumers have ‘post-pay’ subscriptions, it would even make them lenders. Suddenly, mobile network operators (MNOs) had the potential to become quasi-banks. And if they were to behave like banks, they would need to be regulated. But a telco is a telco and already regulated as such. To enter the financial services space would mean a huge impact on internal systems, which would have to process two very different lines of business. Making an exemption So telcos lobbied for an exemption to the 'Payment Services Directive' that governed financial institutions. This said: “As long as consumers use phone credit to pay only for ‘mobile 74
consumables’, operators and their partners would not have to apply for a licence”. Obviously that meant no physical goods. Licence to bill The trouble with the PSD ruling is that each EU state interprets the exemption in its own way. After all, what is a ‘physical good’? In Italy, for example, consumers can pay for bus tickets and bike rentals by phone bill thanks to an extension of the scope of the PSD exemption voted by the Italian Parliament in January 2013. In Germany and France, regulators have endorsed some local derogations to the PSD in order to allow pilots for parking, for example. With no common set of references across the EU, it is difficult to launch chargeto-bill services across multiple member states. And there are other potential issues linked to the telco exemption. For Instance, could any business set up as a telco www.netsize.com
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and claim an exemption? This would be an abuse of the regulations. And what about the payment intermediaries that work with operators: are they exempt or not? To address these questions, regulators began working on a revised version of PSD (PSD2), which will re-visit what can and cannot be permitted. This is unlikely to pass into law until 2016 at the earliest. Until this time, there is a way round the confusion. As previously stated, a mobile operator could itself apply for a financial licence that would solve the problem. However, the reality is that telcos cannot justify the time and cost of acquiring a licence for what is essentially a niche business. This is where payment companies like Netsize come in. They recognize the huge potential of impulse micropayments. By obtaining a licence, they could let merchants and telcos explore new business opportunities within a fully compliant framework. Passport please So this is what Netsize has done. It applied for a ‘Payments Institute’ licence, which allows it to process transactions via the phone bill and also via credit card. For Netsize, the best option for a smooth payment experience is to offer direct operator billing, which removes the need for preregistration on behalf of the consumer. For this, a payment intermediary licence is required. “We’ve seen many times that the need to enrol is a big barrier,” says Ludovic Maupain, President of the www.gemalto.com
An MNO could apply for a financial licence. However, the reality is that telcos cannot justify the time and cost of acquiring a licence for a niche business. newly created Netsize Payment SAS. “Consumers like to be able to pay on impulse, and they can’t do this if they have to sign up for a wallet. This is why we chose to apply for a Payments Institute licence.” Maupain believes a licence will allow Netsize to offer a compliant framework for a micro-payment eco-system while managing payment for all manner of low ticket items via the phone bill. With complements As stated, the licence will also let Netsize process credit card transactions. Traditionally card payments and operator billing have been viewed in opposition to each other. However, Netsize’s experience of handling card payments showed the two could be highly complementary. This is because card payments can instantly cover multiple geographies, while operator billing offers a better checkout flow and reaches ‘unbanked’ consumers. Arnaud Dubreuil, Payments Marketing Director at Netsize, says: “We see very little cannibalization. In fact, overall revenues are higher when both cards and MNO billing are available. Merchants can also offer more price points and go international more quickly.” 75
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Time’s up Are consumers ready for the smartwatch? Do they know why they need one? Tim Green ponders the past, present and future of this hot technology sector.
Heir to the crown? The Apple Watch finally launched in 2015.
The arrival of the smartwatch feels like a pivotal moment both for the technology business and for wristwatch makers. Here’s what Donald Brewer, vice president for technology for Fossil, says. “I think its because we are at this point of evolutionary leap, where a watch no longer needs to be limited to simply keeping time. People are ready for watches to become a functional technology element so we can eliminate the need to carry around one of the many devices we now stuff in our pockets.” Sounds about right. But here’s the thing. This quote is from 2003, when Fossil was working with Microsoft on the launch of the latter’s Smart Personal Objects Technology (SPOT) platform. SPOT was conceived to bring a new level of functionality to everyday objects – and the first to get the treatment were watches. As history shows, the launch failed. Microsoft closed down SPOT in 2008. The watches were too clunky, the technology was limited (no Bluetooth or wifi – watches used the FM signal to receive info) and consumers weren’t prepared pay up to $59 in annual subscriptions to get information channels. And so the smartwatch went into hibernation. Was the concept fatally flawed or just waiting for the right timing? The wisdom of the crowd The answer came when Pebble launched its hugely successful
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Kickstarter crowdfunding campaign in 2012. The unknown startup raised more than $10 million by pre-selling 70,000 smartwatches in a month. Pebble proved yet again the insistent pull of the smartwatch concept. There’s something magical about it. Maybe it goes right back to Dick Tracey and Star Trek. Critics said – and still say – that the Pebble watches are clunky and very much a male-orientated ‘geek’ purchase. But what is behind doubt was the excellence of the startup’s timing. This was the first smartwatch of the smartphone era. Pebble’s device was designed to complement the smartphone. More accurately, the smartphone app. The Pebble can display basic notifications – email, text, calls and so on – to save the user the hassle of 78
fishing out his or her phone. It can also show the weather, control phone functions like music and even switch off lights. Whether the Pebble was/is successful depends on your terms. The firm claims to have sold over 1m watches. That’s a lot. But, by comparison, 1.1bn smartphones were sold in 2014 alone. Enter the big boys Nevertheless, Pebble re-ignited the interest of consumers and manufacturers in the smartwatch. In October 2013, Samsung made the first move, stripping down Android to power its Samsung Gear product. Six months later, Google unveiled Android Wear as a platform for any OEM seeking a quick and clean OS for smartwatches. Android Wear is www.netsize.com
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a line of watches with an embedded SIM card and a subscription to emergency services. Then there was France’s Withings, which launched a range of sleek Activité watches designed around fitness and activity tracking. Other companies experimented with the form factor. Kairos Watches Tband, for example, puts smart notifications and tracking into a removable strap, so users can keep their favourite time piece. 2015 also saw mainstream watch makers confirm plans for the space. AG Heuer started work on product powered by Intel technology and Android Wear, while Swatch also revealed plans to go smart.
essentially a version of Google Now (Google’s intuitive personal assistant) design for a tiny wristbased screen. By the end of 2014, devices like the Moto 360 were showing what it could do. Without doubt, 2014 saw the
For all the trade interest in smartwatches, consumer sales have been modest. 89 companies sold 6.8 million smartwatches in 12 months emergence of a genuine smartwatch market for the first time. New entrants piled into the space. There were phone makers like LG, Samsung and Sony. There were also newcomers seeking to establish fresh market niches. Limmex, a Swiss company, released www.gemalto.com
Waiting for the mass market For all the trade interest in smartwatches, consumer sales have been modest. According to trade body The Smartwatch Group, 89 companies sold 6.8 million smartwatches in 12 months. The average price of a product was $189 to give the market a collective value of $1.291 billion. That was 82 per cent higher than the $711 million earned in 2013. Pascal Koenig, managing partner of Smartwatch Group concedes the mainstream has yet to adopt the smartwatch. He says: “While offerings in the wellness and sports market from companies like Garmin, Fitbit, Withings and Polar are based on solid use cases, the consumer market has not yet picked up. So far, the mobile phone companies around 79
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Google’s operating system Android Wear have not been able to deliver on their promise. As so many times before, it comes down to Apple to reach a breakthrough in the consumer market.” Ah yes, Apple. Apple time When the Cupertino company confirmed it would launch a watch in 2014, the dynamics of the business changed. Indeed, the Smartwatch Group expects the size of the market to grow to $8.7 billion in 2015. That’s seven times bigger than 2014. It says the average price of devices will to increase to $290, again largely due to the Apple Watch. Needless to say, there are many reasons to believe Apple will have a
huge impact on the evolution of the smartwatch. Apple has a long track record of excellence in physical product design and seamless user experience. But perhaps its biggest advantage is its army of willing developers and consumers. Apple, like most makers, wants the smartwatch to do more than tell the time, monitor activity and display notifications. It wants the smartwatch to be a link between digital services and the physical phone. That means using the watch to open the doors to hotel rooms, order an Uber car, pay for coffee, adjust central heating. All of this is not possible without the participation of developers – and Apple can rely on these third parties to launch
Kairos Watches Tband puts notifications and tracking into a removable strap rather than the face.
FASHION SENSE MEETS TECH SENSIBILITY Tech firms have dominated the smartwatch market to date. But traditional watch makers and fashion firms like GUESS are now making their first moves. The Gemalto Netsize Guide spoke to GUESS’s digital marketing chief Tarra Del Chiaro. First time visitors to Mobile World Congress in 2015 might have wondered whether it was really a ‘mobile’ show at all. The floorspace was full of new connected devices – and they weren’t all phones. They were cars and wristbands and smartwatches. Which is why the fashion brand GUESS was among the exhibitors. In 2014, it teamed up with the watch technology specialist Martian to create its own tech-enhanced range: GUESS Connect. The products will go on sale later this year. 80
It was a bold move, one of the first by a fashion firm into a smartwatch space dominated by tech firms. But according to Tarra Del Chiaro, GUESS’s global leader of digital marketing strategy (pictured), this was itself the motivation. “I believe there’s a clamour for fashion-led smart watches that are not made by technologists,” she says. “From what I’ve seen of the devices so far, the build and the colours are unremarkable. Our customers want something better. Especially women, who
have been pretty much ignored so far – even though 30 per cent of men’s watches are actually bought by females.” www.netsize.com
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services. Why? Because the developers know millions of people will buy an Apple Watch. What’s more, Apple knows that it cannot alone unearth creative ideas for the watch. As history shows, only talented programmers can do that. The reason Android and iPhone are so successful is not just because the phones look good. It’s because of Snapchat and Instagram and Angry Birds and Shazam. After a fashion Of course, there are major barriers in the way. Battery power is the most-cited. Will people be prepared to charge their watches once, even twice, a day? And what about the need to tether a watch to smartphone? Experts
So the five GUESS Connect models were designed to look identical to a normal timepiece, with the only difference being a small mono screen that shows notifications such as texts. They can also control the phone’s music and camera functions, and they feature a built-in microphone and speaker for hands-free calls and controls. GUESS is gambling on the notion that fashion-led customers value these features but not at the expense of looks. However, the firm may also have other more logistical advantages over tech firms. Distribution for example. “The tech firms don’t know how to access fashion retailers. We do. We have local 15,000 distributors in 115 countries, www.gemalto.com
suggest this could be a hurdle – especially given compatibility issues. The Apple Watch, after all, will not connect to an Android phone. Another major issue is fashion. Smartwatches are worn. They are on public display. The tech companies dominating the smartwatch space may know about design, but industrial aesthetics do not necessarily make for good jewellery (see box). However the future pans out, the sheer amount of effort and investment moving into the smartwatch space suggests we are now at the start of a brand new product category. One that could fundamentally change the way people interact. How exciting is that?
which could make a big difference to us,” says Del Chiaro. This coverage will also help GUESS manage customer support. That’s important because launching a tech product brings with it new issues for a fashion firm. Jewellery doesn’t go wrong. Tech does. Del Chiaro is honest enough to admit she doesn’t know how customers will respond to
GUESS Connect. However, she says that the firm is committed to the concept and will evolve it over time to move beyond pure notifications. But what will not change is the looks-first ethos. “Whatever new features and functions we introduce, we will not compromise on looks. We won’t be changing materials or virtualising the whole face. This is a huge opportunity for us.” 81
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NFC contactless: Now Fairly Common? The age of mobile contactless is here after a breakthrough year for NFC technology. Until fairly recently, many mobile insiders were pretty rude about NFC. They came up with alternative explanations of the acronym. One of the more printable of these was: Not For Consumers. Well, how fast things change. Today, thanks in part to the adoption of the tech by Apple and Samsung, NFC tech is fashionable again. The industry analysts agree that contactless is on a tear. According to Reports And Markets, the global NFC will grow at an estimated CAGR of 8.83 per cent from 2014 to 2022 to reach $16.25 billion by 2022. And it predicts the enabled handset market will grow at 55.8 per cent CAGR between 2014 and 2019. Device support IHS estimates that 416 million NFCenabled mobile phones were shipped in 2014, and predicts the number will rise to 1.2 billion – or two out of three mobile phones – by 2018. Meanwhile Berg Insight estimates the number of NFC-ready Point of Sale (POS) terminals shipped last year at 9.5 million. Needless to say, the launches of flagship handsets like the iPhone 6 82
and the Samsung Galaxy S6 have helped NFC’s cause no end. With hindsight it seems obvious that NFC would eventually find its place. In a mobile market so focused on ease-of-use, what could be more simple than performing an action with a mere touch? This is why NFC is particular interesting as a technology to enable payments and secure access. Inflection point Of course, stakeholders need to be aligned to make this happen. Experts believe this is happening. In its recent tech predictions, Deloitte said 2015 will be an inflection point ‘as it will be the first year in which the multiple
In a mobile market so focused on ease-of-use, what could be more simple than performing an action with a mere touch? prerequisites for mainstream adoption – satisfying financial institutions, merchants, consumers, technology vendors and carriers – are sufficiently addressed’. www.netsize.com
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Thus, by end 2015, five per cent of the 600 to 650 million NFC phones will be used at least once a month to make contactless in-store payments at retail outlets. It was 0.5 per cent of 500m last year. Deloitte points to improved security via tokenisation and biometric authentication as key to the boom. It reckons fingerprint ID has become an everyday action for 100 million individuals. The firm expects contactless payment to be combined with other processes at the point of transaction, such as the redemption of loyalty points.
It also says the channel could be made more secure by using location data as a security check. Deviations from a normal purchasing location could trigger a request for further verification, such as PIN entry. This serves as a reminder of the importance of hardare and software security in the story of NFC. The truth is, people are still nervous about keeping their wallets inside their phones. It’s why the combination of tokenization, biometrics and a robust ‘secure element’ (in the OS or the SIM) will be so central to its success.
The Galaxy S6 supports NFC and includes an in-built Samsung Pay feature
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How NFC can help every brand ‘go direct’ Could a company’s posters, POS material or even packaging connect consumers directly to its digital stores? Yes it could, says Tapit. It’s using NFC tags to create a new hybrid of physical and digital commerce.
“Enterprises want to forge direct relationships with consumers and this is a chance for them to do so via their own physical assets.” Jamie Conyngham, CEO, Tapit 84
Since 2008, apps have transformed the way consumers engage with their favourite companies. But now there are hundreds of thousands of apps – and this has led to a big discovery problem. Basically, consumers don’t want to download a new app for every brand they like. www.netsize.com
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When consumers tap to start the purchase process, brands can control the message and measure ROI on campaigns.
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Australian firm Tapit thinks it has a solution. The company started out as a specialist in NFC-enabled mobile marketing. It created an NFC platform so brands could put a tag on marketing material. When a consumer tapped on the tag, it would re-route them to more product information. Tapit worked on campaigns with Paramount, Telstra, Coca Cola, Virgin and many more. But this marketing function is just the start of a more ambitious plan. The next step is linking consumers via NFC to the media owner's mobile ecommerce site. Here they can buy digital content in one click. It’s called Tapit and Buy. Jamie Conyngham. CEO of Tapit, believes the concept could present brands with a major new commercial opportunity. He says: “Enterprises want to forge direct relationships with consumers and this is a chance for them to do so via their own physical assets. That means they can control the message and also measure precisely the return on investment achieved by their campaigns. It’s very powerful.” “You could imagine a toy brand, for example, generating extra revenue by selling a game with a branded product. There are so many opportunities for incremental revenue like this. These opportunities have always existed, but they’ve been missed because it’s so hard to get people to download an app or visit a website. NFC gets past this. All that’s required is a tap.”
NFC is not the only channel associated with this kind of instant transaction. There’s also Bluetooth BLE (Beacons) and wifi. However, Conyngham believes NFC is handsdown better. “Beacons requires a user to download an app before it can work. And it’s a push medium that risks interrupting the consumer experience. Or it can be switched off. NFC doesn’t require a download. And it’s ‘pull’. Every engagement is started by the consumer.” In the first phase of the project, Tapit will help brands sell digital goods charged to the operator phone bill. It’s worked with Gemalto Netsize to create the service, which is ideal for content such as e-books, video, music and games. Tapit expects strong interest from entertainment brands in particular. Gemalto Netsize has connections to hundreds of MNOs worldwide, so the potential addressable market is huge. Of course, there are restrictions. In most countries, there is a limit on the size of individual transactions – typically around 30 euros. And regulation forbids the sale of physical goods from the phone bill. However, Tapit is preparing for a second phase of the roll-out in which an NFC tap could route the consumer to a single click credit card transaction. In this scenario, the consumer could buy physical goods of any value. Gemalto Netsize is currently applying for a payments licence that would enable it to process credit card transactions. 85
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Logging out of passwords Our mobile numbers are unique. And our phones are always at hand. So could mobile provide a secure alternative to the password? Jean-Francois Ouillet, vice president of mobile security at Gemalto, outlines the potential of mobile ID. How many passwords do you have? Are they complicated enough to resist a hacker attack? Can you remember them all? In a world where portable devices can connect to millions of sites and apps, passwords are just not up to the job. Our research found people have an average of 25 user names and password combinations each. We need a trusted and simple way to bypass this unsatisfactory system. Such a solution does exist. It’s called Mobile ID. Here’s how it works: when you want to log in to a website, you select ‘log 86
with Mobile ID’ and type your mobile number. Your phone instantly displays a pop-up screen asking you to enter your Mobile ID personal code in order to connect to that website. That’s it: just a few seconds to log in. Mobile ID is secure because it identifies you not only by what you know (your Mobile ID personal code), but also by what you have (your phone). In other words: two factor authentication. This makes it virtually impossible for any criminal to pretend to be you. It’s a great way to move us away www.netsize.com
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Jean-Francois Ouillet, VP of mobile security at Gemalto
from using insecure passwords. Of course, it’s not the only form of login available. There’s also Facebook and Twitter. But there’s no guarantee their processes are secure, end to end. They still depend on login/password combinations. One sign-in to rule them all Another advantage of Mobile ID is its ubiquity (or its potential to be). In 2014, the telco trade body, the GSMA, created Mobile Connect to unify all MNOs behind one Mobile ID standard. Dozens of operators have pledged to support it. In time, this could make Mobile Connect a universal way to sign in. Marie Austenaa, the GSMA’s head of personal data and mobile identity, says: “You don’t need a user name and password to make a phone call, you just click on the green button. “In the digital world, you need a user name and password for every service you access. This is a problem and it’s something that the mobile operators have the assets to resolve, whether it’s through the SIM or mechanisms like USSD.” Building the backbone MNOs can’t do this alone. They need partners to furnish service providers with one connection to all telcos. This is where Gemalto comes in. We helped the GSMA draft the specs for Mobile Connect, and we already manage live Mobile ID services in individual countries. In time, these services will sync to Mobile Connect. In Norway, for example, hundreds of
www.gemalto.com
thousands of bank customers use BankID to sign in to services. Traditionally, they would use a PIN Pad, which they would often forget to take with them. Now they sign in securely with mobiles instead: the BankID is stored on the SIM card. Participating banks include DnB, Skandiabanken, Eika, Nordea and Sparebank1. Overall, Gemalto connects more than 500 service providers to Mobile ID worldwide. Another great benefit of Mobile ID is flexibility. People can use basic security for simple access to sites. But when payment is involved, they can use stronger authentication. Mobile ID can even go as far as providing users with a legally binding digital signature, thanks to an enhanced technology of the kind currently used in Finland. But no matter the level of security behind the scenes, the essential user experience will always remain the same. Speedier form filling Mobile ID is not only used for signing in securely. It could also speed up form-filling. In this scenario, a user would store personal data with the mobile operator. Then, when faced with a complex registration form, he or she could log in with Mobile ID and grant permission to fill in the missing details. This would be excellent for eGovernment services, such as applying for a passport. 87
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The Gemalto Netsize Guide /// At Leisure
The new news thing In a universally connected world, consumers can subscribe to services rather than own physical products. Movies and music are moving this way. Could magazines be next? France’s LeKiosk thinks so. There are dozens of videos on YouTube featuring toddlers desperately swiping magazines and complaining: this iPad doesn’t work. They all reflect the rapid change that’s hit print media in the past decade. In short, magazines are going digital. According to a mediaIDEAS report, digital revenues made up ten per cent of the total periodical industry in 2009. Last year it was 28 per cent. By 2020 it could be 58 per cent. Print at the crossroads It seems print is going the way of music and movies. If so, where is print media’s Spotify and Netflix? Step forward LeKiosk. The Paris-based company already has over 150,000 subscribers to its digital magazine service. LeKiosk receives PDFs of print magazines and transforms them into high-resolution, mobile-friendly publications.
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At Leisure /// The Gemalto Netsize Guide
Users can then access the titles through iOS and Android apps, which are currently available in France, the UK and Italy. Its catalogue includes over 1,000 titles including Vogue, GQ, Wired and many more. Pricing re-think Of course, digitisation does far more than make magazines browsable on a screen. It also changes the nature of distribution. Readers can download an e-magazine wherever and whenever they like. And keep dozens of titles on their devices at any time. This changes the way they want to pay. LeKiosk’s pricing structure reflects the fact that that different titles have different prices, and that readers won’t always want to read the same publications each month. It’s why LeKiosk gives users the option to buy magazines individually or to purchase a bundle of credits. The bundle depletes as they select publications to read. New models, new UI Ari Assuied, chair of LeKiosk (pictured), says: “The best way to build customer loyalty is to create business models. We want to simplify access to payment for our customers. People are very demanding of new products, and if we want engagement from them, we need to build the perfect user interface.” To make things even more convenient, LeKiosk teamed up with Netsize to give readers the chance to pay from the phone bill. In 2015, it launched partnerships with SFR, Orange and
www.gemalto.com
Bouygues Telecom – France’s three biggest mobile operators – to let users buy magazine bundles with one click. Carrier billing opportunity The arrangement also helps LeKiosk reach millions of consumers that do not use a credit or debit card, providing them with a convenient alternative to entering card numbers and personal details into tiny payment
“The best way to build customer loyalty is to create a new kind of business model.” Ari Assuied, founder of LeKiosk forms. No registration is required and the user's phone number acts as a unique identifier, allowing one-click payment via a 3G or 4G or wi-fi.
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Think about the impact of the autonomous car. Sure, it could reduce road accidents and ease traffic congestion. But could it also raise alcohol consumption? After all – no motorists, no drink driving restrictions. In this section, two expert analysts ponder some of the more unexpected consequences of our connected future.
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The Gemalto Netsize Guide /// The Future
Time for tomorrow If you think PCs and mobiles have changed your life, get ready for ‘Living Services’. Mark Curtis, chief client officer of digital design agency Fjord from Accenture Interative, looks ahead to a future where uber-connected devices are everywhere. I think the third wave of digital is starting now. We’ve had the desktop age, and then the mobile age – which we’re still in the middle of – and now we’re entering a new stage, which we at Fjord call ‘Living Services’. We’ve thought carefully about that name, because we feel that this is something that goes beyond the ‘internet of things’ or even the ‘internet of me’. Why? Because the connected future will not just be about ‘me’. It will extend into industry, and health and 92
agriculture. It will reach into all facets of human activity. So the services we will see created, via sensors embedded into wearables, nearables, PCs, mobiles and TV, will fundamentally be alive. They will change in response to context. Technology that mimics human interaction The digital services we have now don’t change shape in real time. Yes, we have online newspapers that update every hour or so. And we can www.netsize.com
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The Future /// The Gemalto Netsize Guide
“For me, driverless cars will have more impact on society than anything else we can foresee in the era of living services. It will affect almost everything. I can see huge numbers of people switching from public transport to cars.” get a book delivered in 24 hours. But none of this is fundamentally life changing. If they disappeared tomorrow, it would be irritating but no more. What’s coming next will materially will affect our lives. Live streams of data will modify the way machines respond in real time, the way human beings do. If you think about a shop assistant, he or she will respond to whether you’re smiling, whether you have children, what your past purchases were and so on. The technology will increasingly mimic human behaviour Of course this is deeply challenging at a design level; we just don’t know how to do it yet. What we do know is that technology is moving closer to our bodies. We’ve gone from TVs to desktop PCs to mobiles to wearables. And it may be that ultimately we locate technology inside of us. Users are ready The reason this is happening now is really a function of cost as well as technology. For example, Amazon has reduced the cost of using Amazon Web Services 42 times since www.gemalto.com
launch. 42! It’s hard to overestimate how this is changing what the cloud and ubiquitous computing can do. We’re also seeing the industrialisation of sensors. I think it’s also significant that there are just enough smart services around that people are starting to get comfortable with the concept. Take smart doors. Hilton Hotels and a few others have now launched smart room keys. Today, these doors aren’t really that smart: you can just open them with smartphone, that’s all. But what we’re seeing here is that something extremely dumb is getting a tiny bit smart, and hundreds of thousands of visitors will be exposed to that. They’ll begin to get comfortable with it. And then the step to smart thermostats and lighting and so on isn’t quite such a big deal. Simple but critical design issues There’s a science of movement around enabling digital services. Essentially, if you can halve the movement required of a person, you will be rewarded with their loyalty. I always think of the supermarket self-checkout as an example of this. People hate them, and this is because they demand so much cognitive activity from us. In the end, it’s just easier to get someone else to do it. There are simple design rules we have to follow. A useful way to think about this is about the natural bandwidth of the human body. 93
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The Gemalto Netsize Guide /// The Future
Fundamentally, your speed will determine how much rich information you can consume. If you’re sitting still, you can absorb a lot. But if you’re walking and you try to do too much, you tend to bump into lamp posts. This is why, when you want to communicate something simple and fast, vibration is often the best way
Mark Curtis, chief client officer of digital design and innovation agency Fjord at Accenture Interactive.
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The Future /// The Gemalto Netsize Guide
Fjord chose vibration over visuals when designing the Adidas fitness tracker.
to do it. We used this basic idea when we worked with Adidas on its fitness tracker. When a runner goes past a predetermined goal, the tracker vibrates. Richer info is better communicated to the eyes, but still needs to be glance-able. So we colour-coded it: get a red, and you slow down. For even more complex instructions, you need more than vibration and colour. With Adidas we used voice commands relayed via Bluetooth. An end to the ‘solar system’ with a phone at the centre I don’t think it’s sustainable for the phone to be the remote control for everything. That’s putting such a heavy workload on a device with a limited screen real estate, not to mention battery issues. For everyday use cases like your front door, you might assign that
“Technology is moving closer to our bodies...we’ve gone from TVs to desktop PCs to mobiles to wearables. And it may be that ultimately we locate technology inside of us.” function to your home screen, but for all the other irregular things I struggle to see how you can manage them from the phone. They’ll be harder to navigate. So I think this is why we’ll move from something less like a solar system with the phone at the centre and more like a constellation. www.gemalto.com
There are some interesting alternatives around. Amazon Dash is a wifi enabled device that combines barcode scanning and voice recognition so that householders can assemble shopping lists on the fly – and then proceed to purchase with one button press. It doesn’t have any dependence on a phone. The most profound change? Driverless cars For me, driverless cars will have more impact on society than anything else we can foresee in the era of Living Services. It will affect almost everything. I can see huge numbers of people switching from public transport to cars, and that will affect train and bus companies. Parking too. I predict that alcohol consumption might go up. The middle aged and middle class – who will be able to afford this first – may well start drinking on their journeys home from work or social events. Why wouldn’t they? Society is facing big moral choices There are huge societal changes coming. We need to make choices around data. Should we reward people for being healthy and slim, which is also penalising people for being fat? Once we have these data streams available, we’ll have to grapple with these big questions – and have ethical conversations we’re still not really having.
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The Gemalto Netsize Guide /// The Future
The thoughts of a smart watcher Ben Wood thinks a lot about wearables. He owns dozens of them. The chief of research at CSS Insight mused on the space for the Netsize Guide. We are currently in the stone age of wearables. Most of the devices shipped today are average or worse. Virtually every product we saw in 2014 was designed by engineers thinking purely about how you get devices on people’s wrists. That’s changing. We’re seeing Guess and Oakley and other fashion brands making products that will have some appeal to the ordinary consumer. They’re not perfect, but they’re not geekware. Any way you look at Apple Watch, it will be a rising tide. However well it’s received, it will sell millions to its devotees. Apple has the knack of finding use cases of tech that make a device come to life. The physical design is lovely. The software has clever solutions to difficult problems. The tricky bit is the apps. But Apple gave the developer community six months to come up with good ideas. And the best of those will trickle down to other devices, like Android Wear.
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We shouldn’t lose sight of the inbuilt obsolescence of technology. There are watch brands that market their watches as heirlooms you pass on to your grandchildren. Smart watches can never replicate that. Even my fitness bands require software upgrades. I am not so concerned about the challenge of people having to update software in their wearables. In subsidised smartphone markets people are used to getting phones for ‘nothing’. So it will be interesting to see if people are prepared to pay a lot of money upfront for these new devices. That said, people bought tablets without really knowing why they needed one. I think the same might be true for wearables. It’s why we think the industry could sell well over 20m watches this year. A smart watch must be glanceable. You have to decide what information is most useful. I think linear content like sports news and travel information will be the first things to catch on. Authentication is an interesting use case for wearables with passwords so hard to remember and the need for multi-factor authentication. Wellness and payments also have obvious potential too. Wearables will be complementary to phones for a long long time. Even devices that can ‘stand alone’ are not ready to work by themselves. 98
If I were a network operator, I would give premium subscribers as many SIM cards as they want for free. There’s every chance they’ll buy more data if you give them SIMs. We may see embedded SIMs soldered in these devices. That could lead could see quite spectacular growth in connected wearables. I’ve used Bluetooth headsets to make calls from a smart watch. You can also knock out a short message www.netsize.com.
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The Future /// The Gemalto Netsize Guide
GoPro was the biggest selling wearable of 2013
on a wearable. It’s quite easy. And it’s actually OK to speak into them for very short calls. One of the most successful wearable devices in 2014 was a camera: the GoPro. It sold 5.2m. Google Glass has done quite a lot of damage to the category. But there is obviously a future for eye wear in industrial vertical markets, especially with augmented reality. www.gemalto.com
Wearables for babies and children is very challenging. There are health issues around cellular devices worn by kids. It might not put parents off, but the distributors may get nervous. So maybe devices for old people or even pets might be a better bet. The use of sensors in wearables could let us track things like physical attraction. These devices will gather new types of data we haven’t ever collected before. 99
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Which mobile platform do Canadians prefer? How often do the French use sports apps? And what are the US’s top mobile destinations? The answers are all here - in the Gemalto Netsize Guide’s muchvalued data section. And there’s an IoT flavour to this set of stats too, with numbers on how that giant market will grow by device, vertical and overall value.
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The Gemalto Netsize Guide /// Data
SMARTPHONE PENETRATION BY COUNTRY Country
%
EU5 ................................................................................72.4 France ...........................................................................72.6
The feature phone era is well and truly over in mature markets except, for the moment, Japan. In most other countries, more than seven in ten people own a smartphone.
Germany........................................................................71.8 Italy ................................................................................55.9 Spain .............................................................................86.7 UK..................................................................................78.0 US ..................................................................................76.2 Canada ..........................................................................81.2 Japan.............................................................................46.9 * Sample of mobile users over 13 years old, December 2014
Š2015 comScore Inc
The US mobile market in 2015 is a two horse race. Apple and Samsung sell six out of every ten handsets sold. Nokia - the dominant force just five years ago languishes with three per cent of the market.
MOBILE OEM MARKET SHARES BY COUNTRY US
%
Apple .............................................................................31.3 Samsung ......................................................................29.6 LG ..................................................................................14.1 Motorola .........................................................................6.2 Other ...............................................................................5.5 Nokia .................................................................................3 HTC .................................................................................2.9 Kyocera ...........................................................................1.9 BlackBerry .....................................................................1.6 Pantech ..........................................................................1.2 Google ................................................................................1 ZTE ..................................................................................0.9 Huawei ............................................................................0.5 Sony ................................................................................0.3
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MOBILE OEM MARKET SHARES BY COUNTRY Canada
%
Samsung ......................................................................33.2 Apple ............................................................................31.1 BlackBerry .....................................................................7.2 LG ...................................................................................6.9 Other ..............................................................................5.6 Nokia ..............................................................................4.5 Google ............................................................................4.3 Motorola .........................................................................3.2 HTC .................................................................................3.1 Kyocera ...........................................................................0.5 Sony ................................................................................0.4
MOBILE OEM MARKET SHARES BY COUNTRY Japan
%
Apple ............................................................................19.6 Sharp ............................................................................19.5 Fujitsu ...........................................................................11.5 Panasonic .....................................................................10.5 Sony ...................................................................................9 Kyocera ...........................................................................8.9 NEC ................................................................................5.9 Other ..............................................................................3.5 Samsung ........................................................................3.2 Toshiba ...........................................................................2.6 Casio ...............................................................................1.8 LG ...................................................................................1.3 Pantech ..........................................................................0.9 HTC .................................................................................0.7 Hitachi ............................................................................0.6 Sanyo ..............................................................................0.5
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MOBILE OEM MARKET SHARES BY COUNTRY EU5
%
Samsung ......................................................................37.3 Nokia ...............................................................................16 Apple ............................................................................14.9 Sony ................................................................................7.4 Other ..............................................................................6.5 LG ......................................................................................5 HTC .................................................................................3.5 Motorola .........................................................................2.4 Huawei ...........................................................................1.9 Alcatel ............................................................................1.4 BlackBerry .....................................................................1.4 Google ...............................................................................1 Acer ................................................................................0.4 Siemens .........................................................................0.3 ZTE .................................................................................0.3 Sagem ............................................................................0.2
The fortunes of handset makers differ across the major EU countries. Samsung leads the way, but behind it the picture varies wildly. In some markets Nokia remains a force. In others, Apple comes second - even though it doesn’t make feature phones.
MOBILE OEM MARKET SHARES BY COUNTRY France
%
Samsung ......................................................................39.2 Nokia ............................................................................13.4 Apple ............................................................................15.1 Sony ................................................................................7.8 Other ..............................................................................8.9 LG ...................................................................................4.5 HTC .................................................................................2.3 Motorola .........................................................................1.6 Huawei ...........................................................................0.6 Alcatel ............................................................................2.4 BlackBerry .....................................................................1.8 Google ............................................................................0.7 Acer ................................................................................0.9 Siemens ............................................................................0 ZTE .................................................................................0.2 Sagem ............................................................................0.5 104
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Data /// The Gemalto Netsize Guide
MOBILE OEM MARKET SHARES BY COUNTRY Germany
%
Samsung .........................................................................40 Nokia ............................................................................14.8 Apple ............................................................................14.3 Sony ................................................................................8.3 Other ..............................................................................4.6 LG ...................................................................................4.6 HTC .................................................................................4.8 Motorola .........................................................................2.7 Huawei ...........................................................................2.2 Alcatel ............................................................................0.7 BlackBerry .....................................................................0.6 Google ............................................................................0.7 Acer ................................................................................0.4 Siemens .........................................................................0.9 ZTE .................................................................................0.1 Sagem ............................................................................0.2 MOBILE OEM MARKET SHARES BY COUNTRY Italy
%
Samsung ......................................................................39.8 Nokia ............................................................................25.2 Apple ..............................................................................9.3 Sony ................................................................................2.4 Other ..............................................................................6.5 LG ...................................................................................5.9 HTC .................................................................................1.4 Motorola .........................................................................2.6 Huawei ...........................................................................2.6 Alcatel ...............................................................................2 BlackBerry .....................................................................0.8 Google ............................................................................1.1 Acer ................................................................................0.3 Siemens .........................................................................0.2 ZTE .................................................................................0.1 Sagem ............................................................................0.1 www.gemalto.com
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MOBILE OEM MARKET SHARES BY COUNTRY Spain
%
Samsung ......................................................................37.1 Nokia ..............................................................................8.6 Apple ..............................................................................9.4 Sony ..............................................................................12.3 Other ............................................................................10.1 LG ...................................................................................9.4 HTC .................................................................................2.8 Motorola ............................................................................2 Huawei ...........................................................................3.6 Alcatel ............................................................................1.4 BlackBerry .....................................................................1.1 Google ............................................................................1.2 Acer ................................................................................0.2 Siemens .........................................................................0.1 ZTE .................................................................................0.8 Sagem ...............................................................................0 MOBILE OEM MARKET SHARES BY COUNTRY UK
%
Samsung ......................................................................30.3 Nokia ............................................................................16.7 Apple ............................................................................24.3 Sony ...................................................................................7 Other ..............................................................................3.9 LG ...................................................................................2.2 HTC .................................................................................5.6 Motorola ............................................................................3 Huawei ..............................................................................1 Alcatel ...............................................................................1 BlackBerry .....................................................................2.9 Google ............................................................................1.3 Acer ................................................................................0.2 Siemens .........................................................................0.1 ZTE .................................................................................0.3 Sagem ............................................................................0.2 * Sample of mobile users over 13 years old, December 2014
Š2015 comScore Inc 106
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SMARTPHONE MARKET SHARES BY OEM US
%
Apple dominates its home territory. Four out of every ten smartphones sold is an iPhone.
Apple .............................................................................41.2 Samsung .......................................................................29.3 LG ....................................................................................8.1 Motorola ..........................................................................5.3 HTC ..................................................................................3.8 Other ...............................................................................3.7 Nokia ...............................................................................2.6 BlackBerry ......................................................................2.1 ZTE ..................................................................................1.1 Google ................................................................................1 Kyocera ...........................................................................0.8 Huawei ............................................................................0.5 Sony .................................................................................0.2 Pantech ...........................................................................0.2
SMARTPHONE MARKET SHARES BY OEM Canada
%
Apple ............................................................................38.3 Samsung .......................................................................32.4 BlackBerry ......................................................................8.9 Google .............................................................................5.3 Other ...............................................................................3.9 HTC ..................................................................................3.7 LG ....................................................................................2.7 Nokia ...............................................................................2.3 Motorola ..........................................................................2.3 Sony ...................................................................................0. Kyocera ..............................................................................0 www.gemalto.com
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SMARTPHONE MARKET SHARES BY OEM Japan
%
Apple .............................................................................41.8 Sharp ................................................................................16 Sony ...............................................................................13.8 Fujitsu .............................................................................8.4 Samsung .........................................................................5.1 Kyocera ...........................................................................3.9 Other ...............................................................................3.8 NEC .................................................................................1.9 Panasonic .......................................................................1.7 HTC .................................................................................1.4 LG ....................................................................................1.4 Toshiba ............................................................................0.6 Pantech ...........................................................................0.1
SMARTPHONE MARKET SHARES BY OEM EU5
%
Samsung ........................................................................39.3 Apple .............................................................................20.6 Nokia ...............................................................................9.2 Sony .................................................................................8.5 HTC ..................................................................................4.7 LG .....................................................................................4.7 Other ...............................................................................4.3 Huawei .............................................................................2.3 BlackBerry .........................................................................2 Motorola...........................................................................1.7 Google ..............................................................................1.2 Alcatel .............................................................................0.8 Acer .................................................................................0.4 ZTE ...................................................................................0.2 108
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Data /// The Gemalto Netsize Guide
SMARTPHONE MARKET SHARES BY OEM France
%
Samsung ........................................................................37.8 Apple .............................................................................20.8 Nokia .............................................................................10.2 Sony ....................................................................................9 HTC ...................................................................................3. LG .....................................................................................3.9 Other ...............................................................................7.6 Huawei .............................................................................0.7 BlackBerry ......................................................................2.5 Motorola...........................................................................1.3 Google ..............................................................................0.8 Alcatel .............................................................................1.1 Acer .................................................................................1.1 ZTE ......................................................................................0
SMARTPHONE MARKET SHARES BY OEM Germany
%
Samsung ........................................................................43.6 Apple ................................................................................20 Nokia ...............................................................................7.7 Sony .................................................................................8.5 HTC ..................................................................................6.5 LG ........................................................................................4 Other ...............................................................................2.7 Huawei .............................................................................2.8 BlackBerry ......................................................................0.8 Motorola...........................................................................1.5 Google .................................................................................1 Alcatel .............................................................................0.5 Acer .................................................................................0.4 ZTE ...................................................................................0.2 www.gemalto.com
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SMARTPHONE MARKET SHARES BY OEM Italy
%
Samsung ........................................................................45.3 Apple .............................................................................16.6 Nokia .............................................................................14.2 Sony .................................................................................3.3 HTC ................................................................................2.32 LG .....................................................................................5.9 Other ...............................................................................3.0 Huawei .............................................................................3.6 BlackBerry ......................................................................1.4 Motorola...........................................................................1.0 Google ..............................................................................1.6 Alcatel .............................................................................1.3 Acer .................................................................................0.4
SMARTPHONE MARKET SHARES BY OEM Spain
%
Samsung ........................................................................39.5 Apple .............................................................................10.9 Nokia ...............................................................................5.7 Sony ...............................................................................13.3 HTC ..................................................................................3.1 LG .....................................................................................9.5 Other ...............................................................................7.7 Huawei ................................................................................4 BlackBerry ......................................................................1.2 Motorola..............................................................................2 Google ..............................................................................1.4 Alcatel .............................................................................0.8 Acer .................................................................................0.1 ZTE ...................................................................................0.7
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SMARTPHONE MARKET SHARES BY OEM UK
%
Samsung ........................................................................31.8 Apple .............................................................................31.2 Nokia ...............................................................................9.7 Sony .................................................................................7.5 HTC ....................................................................................7 LG .....................................................................................1.4 Other ...............................................................................1.5 Huawei ................................................................................1 BlackBerry ......................................................................3.7 Motorola...........................................................................2.6 Google ..............................................................................1.6 Alcatel .............................................................................0.4 Acer .................................................................................0.2 ZTE ...................................................................................0.3 * Sample of mobile users over 13 years old, December 2014
Š2015 comScore Inc
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SMARTPHONE MARKET SHARES BY OS 2013 2014 US % % Android ............................................50.913............................53.032 Apple ................................................42.002............................41.155 Microsoft ...........................................3.457 .............................3.569 BlackBerry ........................................3.362 ...............................2.06 Other Smartphone ............................0.173 .............................0.123 Symbian .............................................0.093 .............................0.061 Canada % % Android ............................................44.135............................50.073 Apple ................................................36.687............................38.268 BlackBerry ......................................15.467 .............................8.916 Microsoft ...........................................2.369 .............................2.349 Symbian .............................................1.175 .............................0.394 ............................................................0.168 ...................................... Japan % % Android ............................................57.628............................57.438 Apple ................................................41.096............................41.842 Microsoft ...........................................1.073 .............................0.538 BlackBerry ........................................0.203 .............................0.182 EU 5 % % Android ............................................60.911............................66.377 Apple ................................................19.998............................20.553 Microsoft ...............................................6.9 .............................7.699 Symbian .............................................6.504 .............................2.601 BlackBerry ..........................................4.04 .............................1.966 Other Smartphone ............................1.647 .............................0.804 France % % Android ............................................56.326............................63.044 Apple ................................................21.834 .............................20.78 Microsoft ...........................................4.497 .............................8.923 Symbian ...............................................6.91 .............................2.253 BlackBerry ........................................5.017 .............................2.518 Other Smartphone ............................5.415 .............................2.482 112
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Data /// The Gemalto Netsize Guide
SMARTPHONE MARKET SHARES BY OS Germany % % Android ............................................65.396............................69.385 Apple ................................................19.463............................19.983 Microsoft ...........................................7.541 .............................5.994 Symbian .............................................5.085 .............................3.228 BlackBerry ........................................1.334 .............................0.826 Other Smartp Italy % % Android ............................................56.276............................66.206 Apple ................................................16.577............................16.555 Microsoft .........................................13.344............................10.779 Symbian .............................................9.591 .............................4.511 BlackBerry ........................................2.977 .............................1.425 Other Smartphone ............................1.235 .............................0.525 Spain % % Android ............................................75.386............................81.215 Apple ...................................................9.54............................10.896 Microsoft ...........................................6.933 .............................4.447 Symbian .............................................4.217 .............................2.021 BlackBerry ........................................3.481 .............................1.243 Other Smartphone ............................0.444 .............................0.177 UK % % Android ............................................52.695............................54.319 Apple ................................................30.214............................31.197 Microsoft ...........................................2.494 .............................9.105 Symbian .............................................6.752 .............................1.418 BlackBerry ........................................7.502 .............................3.684 Other Smartphone ............................0.342 .............................0.278 * Sample of mobile users over 13 years old, December 2014 Š2015 comScore Inc
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The Gemalto Netsize Guide /// Data
SMARTPHONE ACTIVITY: APPS, SITES AND PAYMENTS US
Target Audience (000)
%
Total Audience ....................................................................181508.189 ....................................100 Ever in month [Email (Work/Personal)].............................143064.927 ..................................78.82 Ever in month [Weather] ....................................................124662.088 ................................68.681 Ever in month [Social Networking]....................................120683.551 ................................66.489 Ever in month [Search] ......................................................107686.393 ................................59.329 Ever in month [Maps/Directions].........................................96828.272 ................................53.347 Ever in month [Instant Messaging Service].........................94779.022 ................................52.217 Ever in month [Local/World News]........................................89887.06 ................................49.522 Ever in month [Watched TV/Video].......................................83234.794 ................................45.857 Ever in month [Sports] .........................................................73370.732 ................................40.423 Bank Accounts [Ever in Month] ...........................................72095.614 ..................................39.72 Entertainment News [Ever in Month] ..................................71427.586 ................................39.352 Retail [Ever in Month]...........................................................64245.588 ................................35.395 Financial News [Ever in Month]...........................................52435.096 ................................28.889 Electronic Payments/Money Transfer [Ever in Month] .......42557.244 ................................23.446 * Sample of mobile users over 13 years old, December 2014 Š2015 comScore Inc
SMARTPHONE ACTIVITY: APPS, SITES AND PAYMENTS Canada
Target Audience (000)
%
Total Audience.......................................................................19748.024 ....................................100 Ever in month [Email (Work/Personal)] ...............................14897.643................................75.439 Ever in month [Weather].......................................................13156.178..................................66.62 Ever in month [Social Networking] ......................................12131.811................................61.433 Ever in month [Instant Messaging Service] .........................11755.176................................59.526 Ever in month [Search] .........................................................11717.694................................59.336 Ever in month [Maps/Directions] ...........................................9540.673................................48.312 Ever in month [Watched TV/Video] .........................................8537.995................................43.235 Ever in month [Local/World News] ........................................8537.451................................43.232 Bank Accounts [Ever in Month]................................................7376.35................................37.352 Entertainment News [Ever in Month] ....................................6799.132................................34.429 Ever in month [Sports]............................................................6708.328..................................33.97 Financial News [Ever in Month] .............................................4641.277................................23.502 Retail [Ever in Month] .............................................................4332.003................................21.936 Electronic Payments/Money Transfer [Ever in Month]..........3337.335 ...................................16.9 * Sample of mobile users over 13 years old, December 2014 Š2015 comScore Inc 114
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Data /// The Gemalto Netsize Guide
SMARTPHONE ACTIVITY: APPS, SITES AND PAYMENTS Japan
Target Audience (000)
%
Total Audience.......................................................................48390.746 ....................................100 Ever in month [Email (Work/Personal)] ...............................33795.667................................69.839 Ever in month [Weather].......................................................32098.988................................66.333 Ever in month [Search] .........................................................28233.527................................58.345 Ever in month [Local/World News] ......................................24448.419................................50.523 Entertainment News [Ever in Month] ..................................21585.077................................44.606 Ever in month [Maps/Directions] .........................................20535.236................................42.436 Ever in month [Sports]..........................................................19001.055................................39.266 Financial News [Ever in Month] ...........................................18034.228................................37.268 Ever in month [Instant Messaging Service] .........................16522.088................................34.143 Ever in month [Social Networking] ......................................16163.582................................33.402 Retail [Ever in Month] ..........................................................11841.051..................................24.47 Ever in month [Watched TV/Video] .........................................9317.792................................19.255 Bank Accounts [Ever in Month]..............................................6321.785................................13.064 Electronic Payments/Money Transfer [Ever in Month]..........5875.052................................12.141 * Sample of mobile users over 13 years old, December 2014 Š2015 comScore Inc
SMARTPHONE ACTIVITY: APPS, SITES AND PAYMENTS EU5
Target Audience (000)
%
Total Audience.....................................................................175026.345 ....................................100 Ever in month [Email (Work/Personal)] .............................119438.509..................................68.24 Ever in month [Instant Messaging Service] .........................107782.18................................61.581 Ever in month [Weather].......................................................103095.13................................58.903 Ever in month [Social Networking] ......................................98081.791................................56.038 Ever in month [Search] .........................................................93196.543................................53.247 Ever in month [Local/World News] ......................................79315.204................................45.316 Ever in month [Maps/Directions] .........................................72017.826................................41.147 Ever in month [Watched TV/Video] .........................................70947.33................................40.535 Entertainment News [Ever in Month] ..................................60131.319................................34.356 Ever in month [Sports]..........................................................59821.995................................34.179 Bank Accounts [Ever in Month] ............................................52939.673................................30.247 Retail [Ever in Month] ...............................................................47616.3................................27.205 Financial News [Ever in Month] ...........................................38397.108................................21.938 Electronic Payments/Money Transfer [Ever in Month]..........34246.66................................19.567 * Sample of mobile users over 13 years old, December 2014 Š2015 comScore Inc www.gemalto.com
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The Gemalto Netsize Guide /// Data
SMARTPHONE ACTIVITY: APPS, SITES AND PAYMENTS France
Target Audience (000)
%
Total Audience.......................................................................34215.122 ....................................100 Ever in month [Email (Work/Personal)] ...............................20928.061................................61.166 Ever in month [Weather].......................................................16794.883................................49.086 Ever in month [Search] .........................................................17341.852................................50.685 Ever in month [Local/World News] ......................................17285.745................................50.521 Entertainment News [Ever in Month] ..................................16630.709................................48.606 Ever in month [Maps/Directions] .........................................12903.251................................37.712 Ever in month [Sports]..........................................................11110.184................................32.472 Financial News [Ever in Month] ...........................................10097.486................................29.512 Ever in month [Instant Messaging Service] .........................10976.356..................................32.08 Ever in month [Social Networking] ........................................9059.777................................26.479 Retail [Ever in Month] ...........................................................10871.523................................31.774 Ever in month [Watched TV/Video] .........................................5719.737................................16.717 Bank Accounts [Ever in Month]..............................................5860.322................................17.128 Electronic Payments/Money Transfer [Ever in Month] .............3967.1................................11.595 * Sample of mobile users over 13 years old, December 2014 Š2015 comScore Inc
SMARTPHONE ACTIVITY: APPS, SITES AND PAYMENTS Germany
Target Audience (000)
%
Total Audience.......................................................................44249.668 ....................................100 Ever in month [Email (Work/Personal)] ...............................29102.601................................65.769 Ever in month [Weather].......................................................25656.689................................57.982 Ever in month [Search] ........................................................27232.534................................61.543 Ever in month [Local/World News] ......................................20918.231................................47.273 Entertainment News [Ever in Month] ..................................21833.026................................49.341 Ever in month [Maps/Directions] .........................................18954.314................................42.835 Ever in month [Sports]..........................................................17584.198................................39.739 Financial News [Ever in Month] ...........................................17179.013................................38.823 Ever in month [Instant Messaging Service] ...........................13314.87..................................30.09 Ever in month [Social Networking] ......................................14156.743................................31.993 Retail [Ever in Month] ...........................................................10581.133................................23.912 Ever in month [Watched TV/Video] .......................................13837.744................................31.272 Bank Accounts [Ever in Month]................................................8844.76................................19.988 Electronic Payments/Money Transfer [Ever in Month]..........8040.149..................................18.17 * Sample of mobile users over 13 years old, December 2014 Š2015 comScore Inc 116
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Data /// The Gemalto Netsize Guide
SMARTPHONE ACTIVITY: APPS, SITES AND PAYMENTS Italy
Target Audience (000)
%
Total Audience.......................................................................25746.638 ....................................100 Ever in month [Email (Work/Personal)] ...............................18955.474................................73.623 Ever in month [Weather].......................................................19873.766..................................77.19 Ever in month [Search] .........................................................16642.646..................................64.64 Ever in month [Local/World News] ........................................16404.31................................63.714 Entertainment News [Ever in Month] ..................................13101.176................................50.885 Ever in month [Maps/Directions] .........................................13519.712................................52.511 Ever in month [Sports]..........................................................13068.715................................50.759 Financial News [Ever in Month] ...........................................13843.156................................53.767 Ever in month [Instant Messaging Service] .........................10253.067................................39.823 Ever in month [Social Networking] ......................................10455.931................................40.611 Retail [Ever in Month] .............................................................6558.671................................25.474 Ever in month [Watched TV/Video] .........................................8056.503................................31.291 Bank Accounts [Ever in Month]..............................................7257.392................................28.188 Electronic Payments/Money Transfer [Ever in Month]..........7140.933................................27.735 * Sample of mobile users over 13 years old, December 2014 Š2015 comScore Inc
SMARTPHONE ACTIVITY: APPS, SITES AND PAYMENTS Spain
Target Audience (000)
%
Total Audience.......................................................................31200.596 ....................................100 Ever in month [Email (Work/Personal)] ...............................21435.616................................68.703 Ever in month [Weather].......................................................22238.704................................71.277 Ever in month [Search] .........................................................18375.631................................58.895 Ever in month [Local/World News] ......................................18869.229................................60.477 Entertainment News [Ever in Month] ..................................18634.742................................59.726 Ever in month [Maps/Directions] .........................................14164.549................................45.398 Ever in month [Sports]..........................................................14129.454................................45.286 Financial News [Ever in Month] ...........................................14670.952................................47.021 Ever in month [Instant Messaging Service] .........................11075.801................................35.499 Ever in month [Social Networking] ........................................11667.97................................37.397 Retail [Ever in Month] ...........................................................11437.195................................36.657 Ever in month [Watched TV/Video] .........................................5677.041................................18.195 Bank Accounts [Ever in Month]..............................................8017.805................................25.698 Electronic Payments/Money Transfer [Ever in Month]..........6688.826................................21.438 * Sample of mobile users over 13 years old, December 2014 Š2015 comScore Inc www.gemalto.com
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The Gemalto Netsize Guide /// Data
SMARTPHONE ACTIVITY: APPS, SITES AND PAYMENTS UK
Target Audience (000)
%
Total Audience ........................................................................39614.32 ....................................100 Ever in month [Email (Work/Personal)] ...............................29016.757................................73.248 Ever in month [Weather].......................................................23218.138..................................58.61 Ever in month [Search] .........................................................23502.466................................59.328 Ever in month [Local/World News] .....................................24604.276..................................62.11 Entertainment News [Ever in Month] ..................................22996.889................................58.052 Ever in month [Maps/Directions] .........................................19773.378................................49.915 Ever in month [Sports]..........................................................16125.274................................40.706 Financial News [Ever in Month] ...........................................15156.723................................38.261 Ever in month [Instant Messaging Service] .........................14511.224................................36.631 Ever in month [Social Networking] ......................................14481.574................................36.556 Retail [Ever in Month] .............................................................13491.15................................34.056 Ever in month [Watched TV/Video] .......................................14325.275................................36.162 Bank Accounts [Ever in Month]..............................................8416.829................................21.247 Electronic Payments/Money Transfer [Ever in Month]..........8409.652................................21.229 Š2015 comScore Inc
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Data /// The Gemalto Netsize Guide
TOP 50 MULTI-PLATFORM PROPERTIES (US) - APRIL 2015 Property
Unique visitors - desktop and mobile (000s)
Total Audience .....................................................................................................257,879 1
Google Sites ................................................................................................................243,067
2
Yahoo Sites ..................................................................................................................213,365
3
Facebook .....................................................................................................................211,982
4
Amazon Sites ..............................................................................................................178,318
5
Microsoft Sites ............................................................................................................173,421
6
AOL, Inc. ......................................................................................................................170,447
7
Mode Media (formerly Glam Media) ...........................................................................152,080
8
Apple Inc......................................................................................................................140,433
9
Comcast NBCUniversal ..............................................................................................135,298
10
CBS Interactive ...........................................................................................................134,785
11
eBay .............................................................................................................................125,921
12
Wikimedia Foundation Sites .......................................................................................119,678
13
Gannett Sites...............................................................................................................115,612
14
Linkedin.......................................................................................................................115,427
15
Turner Digital ..............................................................................................................115,400
16
Time Inc. Network (U.S)..............................................................................................106,632
17
Twitter.com ..................................................................................................................102,013
18
Weather Company, The .................................................................................................98,464
19
Hearst Corporation .......................................................................................................89,721
20
Pandora.com .................................................................................................................86,231
21
Yelp ................................................................................................................................84,994
22
About .............................................................................................................................84,521
23
Wal-Mart .......................................................................................................................81,988
24
SheKnows Media...........................................................................................................80,904
25
WebMD Health ..............................................................................................................77,387
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The Gemalto Netsize Guide /// Data
TOP 50 MULTI-PLATFORM PROPERTIES (US) - APRIL 2015 CONTD... 26
BuzzFeed.com...............................................................................................................76,718
27
Pinterest.com................................................................................................................76,640
28
Conde Nast Digital ........................................................................................................75,951
29
Answers.com Sites .......................................................................................................75,598
30
ESPN .............................................................................................................................75,508
31
WordPress.com* ...........................................................................................................71,636
32
Mail Online / Daily Mail .................................................................................................67,615
33
Zillow Inc. Sites .............................................................................................................65,461
34
craigslist, inc.................................................................................................................63,474
35
Viacom Digital ...............................................................................................................62,523
36
Meredith Digital ............................................................................................................62,251
37
TripAdvisor Inc. .............................................................................................................59,684
38
New York Times Digital.................................................................................................59,333
39
Demand Media ..............................................................................................................58,572
40
Scripps Networks Interactive Inc. ................................................................................58,511
41
Netflix.com ....................................................................................................................58,222
42
Adobe Sites ...................................................................................................................57,930
43
Ask Network..................................................................................................................56,668
44
Vimeo.............................................................................................................................54,825
45
Cox Enterprises Inc.......................................................................................................53,617
46
Vox Media ......................................................................................................................53,208
47
iHeartRadio Network ....................................................................................................53,056
48
YP Sites..........................................................................................................................52,915
49
Fox News Digital Network ............................................................................................52,001
50
Gawker Media ...............................................................................................................51,594
Š2015 comScore Inc
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Data /// The Gemalto Netsize Guide
TOP 20 DIGITAL MEDIA PROPERTIES BY UNIQUE VISITORS (UK) - MARCH 2015 Property
visitors (000s)
Total Internet Audience
47,523
% share mobile and PC 72
1
Google Sites.................................................45,988 .............................................................66
2
BBC Sites.....................................................40,608 .............................................................33
3
Facebook......................................................40,576 .............................................................55
4
Microsoft Sites.............................................37,119 .............................................................36
5
Amazon Sites...............................................36,712 .............................................................33
6
Yahoo Sites...................................................32,421 .............................................................38
7
eBay .............................................................31,415 .............................................................37
8
Mail Online...................................................28,121 .............................................................21
9
Sky Sites ......................................................27,437 .............................................................19
10
Apple Inc. .....................................................27,339 .............................................................13
11
Wikimedia Foundation Sites .......................26,449 .............................................................26
12
Mode Media .................................................24,272 .............................................................16
13
Trinity Mirror Group.....................................23,333 .............................................................11
14
AOL, Inc........................................................22,052 .............................................................25
15
Twitter.com ..................................................21,612 .............................................................18
16
Linkedin .......................................................21,379 .............................................................18
17
The Guardian ...............................................19,200 .............................................................20
18
Telegraph Media Group ...............................18,830 .............................................................17
19
GOV.UK.........................................................16,449 .............................................................15
20
Tesco Stores ................................................14,903 .............................................................19
Š2015 comScore Inc
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The Gemalto Netsize Guide /// Data
THE INTERNET OF THINGS: INSTALLED BASE BY CATEGORY 2014
2015
millions
millions
2020 millions
Automotive .................................189.6 .....................................372.3 ....................................3511.1 Consumer ..................................2244.5 ...................................2874.9 ................................13172.5 Generic Business.......................479.4 .....................................623.9 ....................................5158.6 Vertical Business .......................836.5 .....................................1009.4 ..................................3164.4
Total .........................................3750 ....................................4880....................................25006 source: Gartner
THE INTERNET OF THINGS: % VALUE BY CATEGORY Total value .............................................................$1.9trn
Manufacturing ...................................................................15 Healthcare .........................................................................15 Insurance ...........................................................................11 Banking and securities......................................................10 Retail and wholesale ...........................................................8 Computing ...........................................................................8 Transport .............................................................................7 Government .........................................................................6 Utilities.................................................................................5 Real Estate...........................................................................4 Agriculture ...........................................................................4 Other ....................................................................................3 source: Gartner
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Data /// The Gemalto Netsize Guide
MARKET FOR SMARTWATCHES AND HEALTH/FITNESS TRACKERS Smartwatch 2014 units (m)
Health and Fitness Trackers 2014 2015
2015 units (m)
units (m)
units (m)
Western Europe..................0.8............................5.4.....................4 .........................................7.1 APAC ...................................0.8............................5.3.....................2.5 ......................................4.5 N America ..........................1.2............................7.4.....................4.8 ......................................8.5 Developed Regions.............2.8..........................18.1.....................11.3 ..................................20.1 C&E Europe........................0.2............................1.3.....................0.6 ......................................1.1 China...................................0.5............................3.6.....................0.9 ......................................2.3 Emerging APAC ..................0.2............................1.4.....................0.2 ......................................0.4 S America ...........................0.1............................0.6.....................0.2 ......................................0.5 Midle East and Africa .........0.2............................1.1.....................0.3 ......................................0.6 Emerging Regions..............1.2...............................8.....................2.2 ......................................4.9 Global source: GfK
4
26.1
13.5
25
WEARABLE DEVICE SHIPMENTS Category
2014
2015
2019
units % of (millions) market
units % of (millions) market
units % of (millions) market
Wristwear .......17.7.........90.4..........................40.7 ..............89.2.......................101.4 .............80.4 Modular ..........1.6.............8.3..........................2.6..................5.7.......................6.7 ...................5.3 Clothing ..........0 ...............0.1..........................0.2..................0.4.......................5.6 ...................4.5 Eyewear ..........0.1.............0.3..........................1.....................2.2.......................4.5 ...................3.5 Earwear ..........0 ...............0.1..........................0.1..................0.1.......................0.6 ...................0.5 Other...............0.2.............0.9..........................1.1..................2.4.......................7.3 ...................5.8 Total
19.6
100
45.7
100
126.1
100
source: IDC quarterly wearable device tracker
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The Gemalto Netsize Guide /// Data
CELLULAR M2M AS A PERCENTAGE OF TOTAL MOBILE CONNECTIONS Q2 2014 %
Q4 2020 %
North America................................................................10.5 ......................................................27 Europe ............................................................................6.8 .....................................................20.4 Asia Pacific .....................................................................2.4 .......................................................8.8 Latin America.................................................................2.1 .......................................................6.9 CIS ..................................................................................2 ..........................................................8.3 MENA..............................................................................1.2 .......................................................3.7 Sub-Saharan Africa .......................................................1.2 .......................................................2.9 World ..............................................................................3 ..........................................................9.7 source: GSMA
SMART CITY CONNECTED DEVICE VOLUMES Category
2015
2016
2017
units (millions)
units (millions) units (millions)
Healthcare ........................................9.7 .....................................15...........................................23.4 Public services..................................97.8 ...................................126.4 ....................................159.5 Smart commercial buildings............206.2 .................................354.6 ....................................648.1 Smart homes ....................................294.2 .................................586.1 .....................................1067 Transport...........................................237.2 .................................298.9 .......................................371 Utilities ..............................................252 ....................................304.9 ....................................371.1 Other .................................................10.2 ...................................18.4........................................33.9 Total
1107.3
1704.2
2674
Source: Gartner
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125 Netsize 2015 Acknowledgements_final v2 02/06/2015 15:46 Page 1
Acknowledgements /// The Gemalto Netsize Guide
The Gemalto Netsize Guide Published by: Gemalto N.V 6 rue de la Verrerie, 92197 Meudon Cedex, France Gemalto logos and product and/or service names are trademarks of Gemalto N.V. or its affiliates. The reproduction, duplication, distribution, publication, modification, copying or translation of any of the material contained in this guide, without the express and written authorization of Gemalto and Netsize, is strictly prohibited. Counterfeiting shall be pursued. NetsizeTM is protected by French, EEC and international intellectual property laws. All other trademarks and copyright material quoted in this guide are the sole property of their respective owners. Where a trademark or a copyright material is quoted in this guide by third parties contributing to it, Gemalto and Netsize do not thereby represent that such third parties have an ownership interest in, or a license to use, any such trademarks or copyright material. No copyright material in this guide may be copied or further disseminated without the express and written permission of the legal holder of that copyright. While Gemalto and Netsize have attempted to make the information in this guide as accurate as possible, the information in this guide is provided 'as is' without any express or implied warranty of any kind. Gemalto and Netsize exclude all liability to any person arising directly or indirectly from using this guide and any information from it.
Mike Bell (Jaguar), Mark Curtis (Fjord), Jamie Conyngham (Tapit), Steve Leonard (Singapore Infocomm), Matt Owen (M2M Intelligence), Tarra Del Chiaro (GUESS), Martin Enriquez (Visa), James Lyne (Sophos), Sonny Vu (Misfit), Ben Wood (CCS), Taanya Manlik and Sarah Radwanick (Comscore), Ulrike Rรถhr (GfK), Robert van der Meulen (Gartner), Manfred Kube, Michael Tworek, Laetitia Jay, Jean-Claude Deturche, Jean-Franรงois Ouillet, Thomas Seitz, Remi de Fouchier, Benoit Jouffrey, Michel Guiragossian and Chantal Abadie (Gemalto), Ludovic Maupain, Niclas Granholm and Arnaud Dubreuil (Netsize).
@ 2015 Gemalto N.V. All rights reserved.
@ 2015 Gemalto N.V. All rights reserved.
www.netsize.com
Editors: Jane Strachey Head of Marketing Communications, Netsize Tim Green Editor in chief, Mobile Money Revolution www.mobilemoneyrevolution.co.uk @timgreen64 Design and layout: 155 Creative info@155creative.co.uk www.155creative.co.uk
155creative design. print. online.
Data: Thanks to comScore, GSMA, GfK, Beecham, CCS, Gartner Photo credits: Creative commons, Fotolia. Photos and images supplied by the interviewees are published under their responsibility. Acknowledgements: Many thanks to the interviewees and all who have worked together to produce this edition of the Gemalto Netsize Guide.
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The Gemalto Netsize Guide /// Notes
NOTES
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Notes /// The Gemalto Netsize Guide
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01,126 Netsize 2015 - COVER_final v2 02/06/2015 15:42 Page 1
About the Gemalto Netsize Guide A world of connected devices lies just around the corner. After the desktop and mobile eras, we’re now entering a phase in which sensors will be embedded into wearables, appliances and industrial objects. These devices will change in response to context. In a sense, what was previously dumb will become alive. In this 2015 edition of the Gemalto Netsize Guide, we explore the on-going evolution of mobility and the profound impact of the Internet of Things.
Netsize powers micropayment and messaging services for operators. We help our customers to monetise mobile services, improve brand awareness, acquire new customers, manage customer relationships and optimise business efficiency. The Netsize payment network connects more than 1000 companies to over 160 mobile network operators and reaches more than two billion consumers.
Published by: Gemalto N.V. 6 rue de la Verrerie, 92197 Meudon Cedex, France
Gemalto helps people trust one another in an increasingly connected digital world. Billions of people want better lifestyles, smarter living environments, and the freedom to communicate, shop, travel, bank, entertain and work – anytime, everywhere – in ways that are enjoyable and safe. In this fast moving mobile and digital environment, we enable companies and administrations to offer a wide range of trusted and convenient services by securing financial transactions, mobile services, public and private clouds, eHealthcare systems, access to eGovernment services, the Internet and internet-ofthings and transport ticketing systems.