1. Optimising Mobile Electronic Signature
Restricted - Confidential Information
© GSMA 2012
All GSMA meetings are conducted in full compliance with the GSMA’s anti-trust compliance policy

2. Part 1:
INTRODUCTION TO MOBILE IDENTITY
AND THE MOLDOVAN MOBILE ID
PROGRAMME
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3. Introduction to the GSMA and the mIdentity programme
About the GSMA
The GSMA represents the interests of mobile operators worldwide. Spanning more
than 220 countries, the GSMA unites nearly 800 of the world’s mobile operators,
as well as more than 200 companies in the broader mobile ecosystem, including
handset makers, software companies, equipment providers, Internet companies,
and media and entertainment organisations. The GSMA also produces industry-
leading events such as the Mobile World Congress and Mobile Asia Expo.
About the mIdentity programme Working Group members:
The GSMA Mobile Identity programme has
been initiated to ensure that Operators are
well positioned to understand and unlock the
potential that electronic and mobile identity
can offer the industry and its consumers. This
includes being aware and prepared for the
opportunities and challenges resulting from
existing and upcoming legislative, regulatory
and technical standards.
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4. The GSMA believes that mobilising identity will bring convenience and
security to users, and will be a nice addition to operators’ service portfolio
Why identity should go mobile?
1 Ubiquity 2 Mobility 3 Security 4 Remote 5 Cost
management
• There are ~6billion • Putting identities on • Potentially, mobile ID • Digital document
mobile subscription mobile phones will on the phone can be • Identity can be management is
s in the world today allow users to access more secure because managed remotely usually 6 times less
places and services it is protected by a pin (mobile certificates costly than paper
anytime, anywhere or is stored securely can be wiped, equivalents
on the SIM or servers forwarded to another
party easily etc)
Why should operators enter identity management?
1 Leverage their 2 Reduce churn 3 New revenues 4 Extended reach and 5 Big companies are
assets improved image entering the space
• If the SIM is more • Diversify revenue
• MNOs own users’ strongly tied to the streams with new • Facilitation of ID • Large players such as
SIMs which they carry identity of the user, B2B solutions to registration means Apple, Google or
everywhere users will be less public and private more citizen will be Facebook are entering
• They also have data likely to change clients able to access MNO this space through
on users, storage operators • Increase customer services (SIM over-the-top services
assets, and network ARPU registration / KYC) (e.g. Google
capabilities to enable • Improves MNO’s Authenticator,
mobile ID image Facebook Connect)
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5. The GSMA mIdentity programme has been developed to catalyse the
development of identity solutions on mobile
The GSMA mIdentity group aims at catalysing the development of mobile identity solutions
1 Identify the opportunity Identify & blueprint current best practice
Catalyse the introduction and spread best practice business
2 Stimulate activity model and regulatory approach
3 Scale for industry impact Support the scaling of services to reach critical mass
Moldcell and GSMA are closely cooperating on the launch of Mobile eID in Moldova
Meetings with other WG
Early member Selected as a pilot members
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6. Mobile eID will be launched in 2012 by Moldcell as part of the Moldovan
government e-transformation initiatives
In 2012 By 2020
• Mobile eID has been chosen as the • All public services shall have their
Authentication and Access Control electronic counterparts;
(AAC) service which will enable remote • An average of 12 new electronic
access to government services. services shall be implemented and
• This service will identify and launched every year;
authenticating users, authorizing their • An average of 8 back-office processes
transactions and determining their rights should be digitized every year;
into various governmental information • 50% adoption of electronic public
systems services shall be reached
eID Authentication Reader Mobile eID
 Is the electronic equivalent  Works on the same
to showing an ID card in the principles as eID, but does
physical world not require smart card
 Provides highest level of readers, nor a computer
security as of today by  The SIM is the smartcard,
using two factors of and the phone is the reader
authentication: a device (the  Mobile penetration in
smart card) and a code eID card Moldova is close to 94%,
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7. Mobile electronic signature is a legal way to prove one’s identity and the
most secure authentication process
Subscribing Using remote identification
Certificate Authority
Conduct identity
checks
Certificate
5 authenticity
ID Certificate check
Mobile operator
MNO Point of Sale / Registration
Authority
Collect identity
documents 6
4 2
3
SIM including
ID certificate + PIN
Access requested Service provider
Subscriber 1
7
Access granted
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8. The GSMA has identified Mobile Signature as being a big business opportunity
in Europe for the coming years, generation $1.6b / year once mature
Potential yearly revenues Mobile Signature ID storage
once market matures, by - +
area and solution Potential market size Remote enrolment Aggregated profiles
Europe: $1.6b
North America:
$1.3bn
Middle East and
North Africa: $48m Asia Pacific:
$1.7bn
South Asia:
$647m
South America:
$228m
Sub Saharan
Africa: $56m
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9. Specificities of the Moldovan context are mostly encouraging, even if some
others are potential challenges
Positive elements Potential challenges
Large scale launch
Where only one operator launched the
service, success has been limited
Financial risk bore by the state Willingness to use mID
Certificates are paid by the state in MNO should educate people to use it.
exchange for a revenue share Help of state agencies would be useful
No electronic alternative Low ARPU
In other existing deployments, mobile $9.6 against $11.8 in Turkey or $25.3 in
ID competes with “eID + reader” Finland
Interoperability & simplicity Low banking penetration
e-government services will be available Banking services are usually among
on all networks at the same price the most successful services
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10. Part 2:
HOW TO MAXIMISE THE MOBILE ID
OPPORTUNITY
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11. The mobile electronic signature value proposition is attractive for all
stakeholders
For the State For Telecom Operators
• Increased reach • New revenue stream
- Anywhere: Make services accessible $ - Monthly fee per user
from distant / isolated areas and from - Potential fee per transaction from
abroad service providers
- Anytime: Make services accessible at • Increased customer relevance
any time of the day / of the year - More services offered to consumers
• Cost savings: - Potential churn reduction
- Improve efficiency and costs
For Service providers For users
• Easier remote selling process • Access remotely to more service
- Remote contract signing - e.g. Voting, loan request, tax
- Non-repudiation and legal value declaration, subsidy request…
• Increased security: • Simplified identification:
- Universally auditable - Single password and authentication
- Certificate Authority liable in case of
**** process for a large range of services
fraud
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12. As in every double-sided market, a chicken-and-egg dilemma must be solved
to maximise the opportunity
MORE SERVICES MORE USERS
Service provider Users
For Service providers, more users For users, more services means a
means a bigger opportunity: bigger opportunity:
- Higher number of transactions - Higher value of the subscription
- More potential customers - Increased convenience
- More reasons to choose mobile - More reasons to subscribe
ID as an identifier
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13. To increase attractiveness of the service at launch, the most appealing
services must be developed first which will drive adoption
MORE SERVICES MORE USERS
EXAMPLE: For Turkcell Mobil Imza, a small number of banking services drive most of the transactions
Services by category Transactions by category
Business other
other Solutions 2%
2 Government 3%
27%
Finance
20
Business
Solutions
31
Finance
68%
Government
15
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14. A larger range of services must be developed and made accessible to drive
adoption beyond early adopters
Create a diversity of services Facilitate access to services
• Create online portals:
Governmental Example:
services ID tickets (Estonia)
Unique portal for transportation, exhibition,
sport, etc. verifying concession status
Financial
Telecom
services
• Create physical access points:
Example:
Mobile signature ATM (Turkey)
Cardless withdrawal identifying the user
Business through mobile signature
Healthcare
solutions
• Make services interoperable
Retail Example:
Mobiilivarmenne (Finland)
All services are accessible with the three existing
solutions, which drives addition of new services
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15. To increase the attractiveness to service providers at launch, efforts must be
focused on high-value subscribers
MORE SERVICES MORE USERS
EXAMPLE: For Turkcell, MobilImza is mostly used by high-value subscribers
Average Revenue Per User
$29.5
$11.8
Average Turkcell subscriber Mobile Signature user
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16. Other best practices have been identified to improve adoption rates beyond
high-value customers
Drive momentum at launch Lower barriers to adoption
• Offer attractive pricing at launch • Facilitate registration
Example: Example:
Free trial period (Finland) Joint registration process (Turkey)
Elisa and Sonera decided to offer the Turkcell re-uses bank’s credentials to
service for free during the first year secure the identity of service users
• Use cross-marketing with partners • Avoid hardware change
Example: Example:
Turkcell + banks (Turkey) WPKI-ready SIMs dissemination (Turkey)
Turkcell launched several marketing Turkcell distributes WPKI SIMs to business
WPKI
campaigns with banks which were customers as standard
using Mobile Signature
• Share the cost with users
Example:
• Official launch by the government
VIP customers sponsorship (Turkey)
Moldcell + other operators + eGov (Moldova)
Government support would make the project more Garanti Bank pays the Mobile Signature
credible and visible service for their most valuable customers
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17. THANK YOU FOR YOUR ATTENTION
QUESTIONS & ANSWERS
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