--Smart Definition:

Cards--

According to Axalto America, a company produces high-end smart cards and creates the operating systems to run it Today's smart cards are nothing less than single-chip computers with extensive memory . The term "smart cards" is used to describe different types of cards, from cards that simply carry data in memory to those that can carry out sophisticated processing of data. Actually microcontrollers or what might be thought of on a computer as the motherboard, rather than simply a single part of the motherboard.

Overview :
Today, the SIM cards basic functionality in wireless communications is subscriber authentication and roaming. Although such features may be achieved via a centralized intelligent network (IN) solution or a smarter handset, there are several key benefits that could not be realized without the use of a SIM card, which is external to a mobile handset. These benefitsenhanced security, improved logistics, and new marketing opportunitiesare key factors for effectively differentiating wireless service offerings. This tutorial assumes a basic knowledge of the wireless communications industry and will discuss the security benefits, logistical issues, marketing opportunities, and customer benefits associated with smart cards.

Introduction to Smart Card :

Smart-card technology has advanced remarkably, experts say, in terms of both the amount of memory a single chip can store, and with regard to the power of the chip itself. Current smart cards have 64 kilobytes of memory, but, says Pattinson, "I'm sure 128, 256, 512 kilobytes of data will become available on smart cards" in the not-too-distant future. He says that advances in silicon geometry will allow the chips to become ever more powerful, with the only limitation being the space available on the card itself. "We have 5 x 5 millimeter physical size to fit [the chip] into," he says.

Varieties :
Smart cards come in two varieties Microprocessor and Memory Cards. Memory cards simply store data and can be viewed as a small floppy disk with optional security. Memory cards depend on the security of a card reader for their processing. A microprocessor card can add, delete, and manipulate information in its memory on the card. It is like a miniature computer with an input and output port, operating system, and hard disk with built-in security features. Smart cards have two different types of interfaces. Contact smart cards must be inserted into a smart-card reader. The reader takes contact with the card modules electrical connectors that transfer data to and from the chip. Contact less smart cards are passed near a reader with an antenna to carry out a transaction. They have an electronic microchip and an antenna embedded inside the card, which allows it to communicate without a physical contact. Contact less cards are an ideal solution when transactions must be processed quickly, as in mass transit or toll collection. A third category now emerging is a dual interface card. It features a single chip that enables a contact and contact less interface with a high level of security . Bonnett notes that traditional 125 kHz proxy cards are read-only, meaning they can hold and store but never change--any information. The company's new contact less iClass line is far more sophisticated and, at 13.56 MHz, far more powerful. "With a lot of the new technology we're doing with iClass and our other contact less technologies, we do have processing capabilities on the card," such as the ability for a new code to be created on a card each time it is held up to a reader, for added security. Bonnett says that iClass is a microcontroller-based technology, just in the contact less realm. The number and types of applications it can perform are limited because it doesn't use the Java operating system. The faster processors of these cards allow benefits such as faster data processing and throughput. The greater memory means that the cards could do more than simply allow or deny access. They could hold information such as an employee's medical history, encryption algorithms, and biometric identifiers. Another type of Smart card is Hybrid cards .

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Hybrid Cards :
The promise and cost savings of smart cards can be offset by the expenses associated with making a transition from, say, a magnatic-stripe card used for physical access to a smart card with fingerprint biometric data on board. "You can put a lot of different technologies onto this little piece of plastic," including magnetic stripes, bar codes, and optical character recognition (OCR) codes, adds John McKeon, principal, biometrics and smart cards, IBM Global Services. These cards can also be contact and contact less. Two characteristics make smart cards especially well suited for applications in which security-sensitive or personal data is involved. First, because a smart card contains both the data and the means to process it, information can be processed to and from a network without divulging the cards data. Secondly, because smart cards are portable, users can carry data with them on the smart card rather than entrusting that information on network storage or a backend server where the information could be sold or accessed by unknown persons. This is clear from the following figure.

A smart card can restrict the use of information to an authorized person with a password. However, if this information is to be transmitted by radio frequency or telephone lines, additional protection is necessary. One form of protection is ciphering (scrambling data). Some smart cards are capable of ciphering and deciphering, so the stored information can be transmitted without compromising confidentiality. Smart cards can cipher into billions of foreign languages and choose a different language at random every time they 3

communicate. This process ensures that only authenticated cards and computers are used and makes hacking or eavesdropping virtually impossible. It's not only the chips that have changed, but also the way they work. The change began in the late 1990s with the introduction of the Java card, which allows multiple functions, protected by firewalls, to coexist on a single card. Java cards also allow new functions to be added.

JAVA cards :
To understand how previous types of smart cards--what Pattinson terms "file-system cards"--differ from the Java card (created by Axalto, using Sun Microsystems' Java technology), Pattinson gives the example of an electronicwallet application in which a card would hold balance information. "If you wanted to change [the balance], you had to modify the information of the card, and send it back to the smart card and store it back in the file," he says. The Java card provides all that functionality within the card, meaning that data can be stored and modified safely within the card itself. So, for example, a command to deduct three dollars from the card's balance would be sent to the card, rather than pulling the balance off the card and carrying out the operation. Keeping the data on the card adds additional security. Similarly, as discussed in a following section on biometrics, matching a person's biometric template (from, say, a fingerprint) to one stored on a card can be carried out on the card itself, meaning that organizations do not need to keep large databases of biometric information if they merely want to verify that the person presenting an ID card is the person authorized to have that card. Java cards are capturing an increasingly large part of the smart-card market. Sun Microsystems announced at a recent trade show that more than 750 million Java cards have already been deployed. That represents a growth of more than 50 percent in a single year, according to Sun. Another benefit of these cards is that there's a built-in backup system in case one part of the card has a problem, says Bonnett. "If one of the technologies fail for whatever reason, the rest of the card is still accessible and usable," he says. He compares hybrid cards to dual-technology cards where both technologies are on one chip. In these, "a single piece of silicon is able to do both contact and contact less" interfaces. But "if the chip fails, it fails for everything," he says, adding that these cards are also more difficult to manufacture.

Biometrics:
There are many biometric technologies, from obvious to obscure (these latter include systems that would analyze odor, gait, or vein structure), but the most commonly implemented systems are fingerprints, iris scans, face recognition, and hand geometry. These technologies vary not only in terms of their accuracy but also in the types of applications and facilities for which they are best suited.

Finger print : According to research from the International Biometric Group,

fingerprint technologies have nearly half of the market share of biometric technologies (hand geometry and facial recognition are about equal with 11 and 12 percent of the market respectively, and iris represents 9 percent).

Iris scans: Iris scans are the most accurate of the biometric technologies. A
report by the U.K.'s National Physical Laboratory (NPL) showed that iris scans had significantly fewer false accepts than other biometric technologies. This is one reason this type of biometric is often deployed in high-security areas.

Smart Card Readers :

Cards with both contact and contact less interfaces are, as noted previously, becoming more common. Card readers are beginning to have some of the same functionalities, says HID's Bonnett. He notes that companies such as OMNIKEY have a dual-interface reader that can read both contact and contact less cards.

Cost of Smart card :

A credit card can be produced (prior to personalization) for about 26 cents, while microprocessor-chip cards can run between one and three dollars apiece, says Lisker. "Fraud is running about six or seven basis points--in other words, six or seven one-hundredths of one percent--so it's hard to justify in a business case paying that kind of money when you're issuing 40 million cards," he says. "The cost of the solution outweighs the risk, and that's been the holdback" to wider use of these cards. Technological advances are also occurring in the biometric industry, whose fortunes are closely aligned with smart cards, because the latter is often the delivery mechanism for the former.

Practical Views of Smart Cards :

Front Side
Magnetic Strip
Contact with Handset

ATM Card
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SIM

Back Side

Uses of Smart Cards :

The top five applications for smart cards throughout the world currently are as follows: Public telephonyprepaid phone memory cards using contact technology . Mobile telephonymobile phone terminals featuring subscriber identification and directory services . Bankingdebit/credit payment cards and electronic purse loyaltystorage of Loyalty-- points in retail and gas industries . Pay-TVaccess key to TV broadcast services through a digital set-top Box .

1. Introduction to Smart Cards in Wireless Communications :

Smart cards provide secure user authentication, secure roaming, and a platform for value-added services in wireless communication Presently, smart cards are used mainly in the Global System for Mobile Communications (GSM) standard in the form of a SIM card. GSM is an established standard first developed in Europe. In 1998, the GSM Association announced that there are now more than 100 million GSM subscribers. In the last few years, GSM has made significant inroads into the wireless markets of the Americas. Initially, the SIM was specified as a part of the GSM standard to secure access to the mobile network and store basic network information. As the years have passed, the role of the SIM card has become increasingly important in the wireless service chain. Today, SIM cards can be used to customize mobile phones regardless of the standard (GSM, personal communications service [PCS], satellite, digital cellular system [DCS], etc.). Today, the SIM is the major component of the wireless market, paving the way to value-added services. SIM cards now offer new menus, prerecorded numbers for speed dialing, and the ability to send presorted short messages to query a database or secure transactions. The cards also enable greeting messages and company logotypes to be displayed. Other wireless communications technologies rely on smart cards for their operations. Satellite communications networks (Iridium and Globalstar) are chief 7

examples. Eventually, new networks will have a common smart object and a universal identification module (UIM), performing functions similar to SIM cards.

2.Enhanced Security Benefits :

SIM cards have several features that enhance security for wireless communications networks. Smart-card supporters point to the potential of limiting or eliminating fraud as one of their strongest selling points. SIM cards provide a secure authentication key transport container from the carriers authentication center to the end-users terminal. Their superior fraud protection is enabled by hosting the cryptographic authentication algorithm and data on the cards microprocessor chip. SIM cards can be personal identification number (PIN) protected and include additional protection against logical attacks. With added PIN code security, SIM cards offer the same level of security used by banks for securing off-line payments. Because the home network authentication algorithm also resides in the card, SIM cards make secure roaming possible. They can also include various authentication mechanisms for inter network roaming of different types. Complete fraud protection (with the exclusion of subscription fraud) can only be provided in the context of a complete security framework that includes terminal authentication, an authentication center, and authentication key management. Smart cards are an essential piece of this environment, but only the complete architecture can allow fraud reduction and secure roaming. Finally, it should be noted that biometric smart-card applications such as voice or fingerprint recognition could be added to provide maximum fraud prevention. Smart cards could then combine the three basic security blocks of possession, knowledge, and characteristics.

Identification Model

3.Providing Value-Added Services :

One of the most compelling benefits of smart cards is the potential for packaging and bundling various complementary services around basic mobile telephony services. These services can greatly reduce churn and increase usage and brand recognition . SIM cards chip can be programmed to carry multiple applications. The activation of new applications can be downloaded to the card over the air, in real time, thereby reducing the time (and cost) to market. Direct Marketing With their convenient form factor, smart cards can be used in direct-mail campaigns to sell wireless subscriptions, both for prospecting and subscription renewal. Using temporary or prepaid smart cards, network operators have a low ost channel for selling their services. In addition, subscription changes, renewals, and upgrades are easily handled by sending new cards in the mail

Providing value-added services such as mobile banking, Web browsing, travel services create a high cost of exit for the customer. Long-distance companies have successfully used joint programs with airline companies to ensure the long term loyalty of their customers. The more services a customer receives, the more difficult it is for the customer to leave the service provider. Smart cards provide an excellent vehicle for surrounding the core wireless service with these other valuable services, and packaging- and service-bundling opportunities are numerous.

4.Direct Marketing :
With their convenient form factor, smart cards can be used in direct-mail campaigns to sell wireless subscriptions, both for prospecting and subscription renewal. Using temporary or prepaid smart cards, network operators have a low ost channel for selling their services. In addition, subscription changes, renewals, and upgrades are easily handled by sending new cards in the mail.

A Direct Marketing Scenario

5.Advertasing :
Two services, used in conjunction with smart cards, provide network operators with possibilities for highly targeted advertising. Short message service (SMS) and cell broadcast leverage smart cards to send advertising or informational messages that appear on the handset display to wireless users.

6.Trial Subscription :
Smart cards are an ideal vehicle for trial subscriptions. Programmed as prepaid cards, they can attract new customers to try wireless services with limited, defined financial risk for both the network operator and the consumer.

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Customer Benefits
Full Portability of Services
The smart card effectively breaks the link between the subscriber and the terminal, allowing the use of any properly equipped terminal and helping to realize the wireless promise of anytime, anywhere communications. In fact, subscribers need not be constrained to using voice terminals only. A variety of other mobile communications devices such as personal digital assistants (PDAs) and personal intelligent communicators (PICs) are available that may have voice communications added as an integral part of their capabilities. If these other devices are equipped for smart cards, the potential for communications is increased. Similarly, data communications applications could benefit from the security features inherent in smart cards.

International Roaming
Wireless customers often require the ability to place and receive calls when traveling abroad. For these customers, international roaming enabled by smart cards is quite valuable. For example, Ameritech, AT&T, and GTE have all instituted international roaming programs using GSM phones and smart cards. The program uses co-branded smart cards, which corporate customers bring with them when they travel abroad. Customers are given a telephone number from a GSM carrier, which allows them to be contacted in any of the countries that have international roaming agreements.

Intersystem Roaming
The incompatibility of different communications radio interfaces and authentication protocols (time division multiple access [TDMA], code division multiple access [CDMA], GSM, personal digital cellular [PDC], mobile satellite systems, etc.) requires subscribers to make choices that constrain them to use only one particular type of handset that works with only one radio interface. With a smart card, it becomes possible for subscribers to use one handset for different interfaces and protocols. This feature is already implemented among the three frequencies used by the GSM platform (900, 1800, and 1900 MHz). American National Standards Institute (ANSI) telephone industry price index (T1P1).3 has recommended standards for a user identity module, a smart card that can be used with the major radio access methods. Thus, it becomes conceivable to have current GSM smart cards modified so that they can work with a CDMA handset. For example, North American GSM operators have designed a process in which the SIM holds both the GSM and advanced mobile phone service (AMPS) authentication algorithm and data to provide authentication on both networks in inter roamings situation .

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Multiple Services on a Single Card

As mentioned earlier, maximum value is realized by the subscriber when multiple applications are stored on a single card . A multi application smart card could provide access to airline reservation and ticketing systems and information networks, as well as a mobile telephone service. Considering the many cards that the average person carries these days (i.e., numerous credit cards, debit cards, employee ID cards), integrating more applications into a single card (or at least fewer cards) has obvious appeal and benefits. It is important to note that there is clear interest on the part other industries to package their services with mobile telephony. For example, research by Citibank indicates clearly that a substantial percentage of the companys customers would like to be able to conduct its banking on a variety of platforms, including wireless. Such services are already available using a standardized toolbox for smart-card application creation.

Smart Carda key to information services

Separation of Business and Personal Calls

The smart card allows customers to be billed separately for personal and business calls made on a single phone. For example, Airtel, a Spanish GSM operator, uses a SIM card with two sets of subscription informationone for corporate and the other for personal use. Airtels dual SIM cards have been well received in the corporate market.

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Factors Driving Smart-Card Acceptance :

Certain industries, in particular information technology (IT), government, and financial services, will lead the way to mass-market acceptance of smart cards. Large IT players are deploying public key infrastructure (PKI) to provide secure logical access to information. PKI is becoming the way to secure messaging and browsing of private information, leading the way to secure electronic commerce. Smart cards are the ideal vehicle to transport the digital certificate associated with the trusted third parties of PKI infrastructures. They provide secure certificate portability and can combine other security applications such as disk file encryption and secure computer log-on. The inclusion of smartcard readers in the equipment listed in the PC99 recommendation has already driven large computer manufacturers to integrate smart-card readers into their product offer (for example, Hewlett Packard and Compaq). Government agencies around the world are relying on smart-card technology to secure off-line portable information, including identification documents and electronic benefit transfer systems. A Brazilian province has issued its drivers licenses on smart cards to allow the police to view securely stored ticket information immediately. The U.S. government is a major early adopter of smart cards. It has instituted numerous smart card identification programs for its defense department and recently announced that it will further explore the nationwide use of smart cards for electronic benefit transfers as a fraud reduction tool. In the financial industry, large players such as Barclays and Citibank currently use SIM cards to provide banking information to mobile users via their GSM phones. Electronic purse systems based on VisaCash, Mondex, Proton, and other schemes are deployed around the world and account for tens of millions of cards in Asia, Europe, and Latin America. Major U.S. banks are considering or conducting trials of smart card-based systems. The push by these major financial services firms will serve to accelerate consumer acceptance.

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Consumers Primed to Use Smart Cards :

Research conducted by the Smart Card Forum, an interindustry association dedicated to advancing multi application smart cards, has generated the following statistics: 45 percent of consumers are favorably disposed to using smart cards 25 percent of households would actually obtain these smart cards . 44 percent of consumers are likely to use identification-type smart cards (telephone cards, gas cards, automated teller machine [ATM] cards, etc.)

Online Resource:
For this seminar report I viewed many sights on Internet using www.google.com & Yahoo search. Among this sights www.smo_cards.com there is a article named The Smart Cards Are ComingReally , by- Peter Piazza , I found this article much important for making this seminar report . SAIKAT MUKHERJEE

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