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

2. 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

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

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

5. NRW consists of 9 regional pt authorities

6. Facts and figures about the VRR

7. 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

8. 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

9. 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

10. VRR and its neighbours using e-ticketing
VGN
VRR
VRS
inhabitants: 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

11. 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).

12. E-ticketing often means: Automatic Fare Collection.

13. E-ticketing often means: Gates.

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

15. 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.

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

17. 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.

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

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

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

21. 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?

22. 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.

23. 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.

24. 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)

25. 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.

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