E-ticket distribution via internet / high security standard – low cost equipment Nils ZEINO-MAHMALAT Head of e-ticketing Verkehrsverbund Rhein-Ruhr (VRR)

Agenda Facts and figures about the VRR VRR’s way of doing e-ticketing Two challenges Projects: low cost smart card readers and open source software

The VRR is situated in the Land of North Rhine - Westphalia

The VRR is situated in the Land of North Rhine - Westphalia

NRW consists of 9 regional pt authorities

Facts and figures about the VRR

Facts and figures about the VRR 21 cities 5 districts 7.3 million inhabitants 5,072 km² surface 1,440 inhabitants/km² 3.6 million private cars

Facts and figures about the VRR 21 cities 5 districts 7.3 million inhabitants 5,072 km² surface 1,440 inhabitants/km² 3.6 million private cars pt operators: 26 local services 5 rail services

Facts and figures about the VRR 21 cities 5 districts 7.3 million inhabitants 5,072 km² surface 1,440 inhabitants/km² 3.6 million private cars pt operators: 26 local services 5 rail services NETHERLANDS 5,200 buses and trams 300 heavy rail vehicles 850 lines 12,000 km length of lines 11,500 stations 290 million kilometres every year 1.1 billion rides per year Revenues from ticket sales p.a. € 834 million 20,000 employees

VRR and its neighbours using e-ticketing VGN VRR VRS inhabitants: 12.5 million cities and towns: 54 surface: 12,345 km2 pt operators: 48 length of lines: 22,000 km lines: 1,300 bus stops and stations: 18,500 rides per year: 1.9 billion

E-ticketing often means: Touch in and touch out (e. g E-ticketing often means: Touch in and touch out (e.g. Oyster in London).

E-ticketing often means: Automatic Fare Collection.

E-ticketing often means: Gates.

VRR’s way of doing e-ticketing (1)   No touch in and touch out No AFC No gates : smart cards for subscription ticket holders

VRR’s way of doing e-ticketing (2) More than 1 million subscription ticket holders. E-ticket is stored on a smart card when contract is signed and card is issued. E-ticket can be altered if customer wants to change fare stage or tariff zone. Customer presents smart card for inspection only.

High security level VRR’s cards are based on the German e-ticket standard: VDV-Kernapplikation ● Microprocessor cards ● SAMs ● Trust Centre

Purchase of e-tickets with high level equipment Today: Distribution via own customer service centres only. Powerful equipment is needed (smart card readers with SAM)  expensive (fixed costs) Too expensive for smaller pt operators or sales partners (e.g. convenience stores) with low transaction volume: Inefficient.

System architecture in customer service centre LAN Secure Application Module (SAM) Back office system KA Smart card reader/terminal

Smart card reader (ISO14443) Very simple Contains no internal logic / no terminal processes Low cost

Connecting a sales partner (Convenience store, kiosk, etc.) DSL Internet Secure Application Module (SAM) KA Back office system

Inflating the back office system? Low cost equipment at the point of sale causes a greater complexity in the back office system. Exorbitant rise in costs ? Or is it possible to reduce the costs for the back office system at the same time?

IT costs make e-ticket inefficient Today: Smaller pt operators pay too much for their back office systems. Why? Current software is expensive and more complex than needed. - Available licensing models do not fit smaller pt operators.

Open source software for back office systems Idea: Many software tools needed for customer management already exist as open source software. Software components to deal with e-tickets according to VDV-Kernapplikation have to be developed.

VRR takes an open source initiative VRR will develop software components specifically to generate e-tickets to process hot lists to communicate with smart card readers via the internet  integrated software distribution  all parts will be published under an open licence (e.g. GPL)

Conclusions Technical equipment for e-ticketing must become cheaper for use by smaller pt operators. Low cost equipment (very simple smart card readers) should be implemented at the points of sale. A less complex software package for the IT back office is needed. VRR takes an open source software initiative to reduce costs and to stimulate further development.

Nils Zeino-Mahmalat Verkehrsverbund Rhein-Ruhr (VRR) zeino@vrr.de