Next Generation Payment Systems - and the Toll Industry

1. Next Generation Payment Systems - and the Toll Industry

2. OmniAir Overview Industry Overview An Evolution in the Toll Business A Means to Shape it OmniAir Program Toll Application Standards Payment System Business Model Agenda

3. Overview • OmniAir Consortium, Inc. • A non-profit trade association established in 2003 by organizations interested in interoperable, reliable, and cost-effective Electronic Toll Collection (ETC) and 5.9 GHz DSRC systems. • Certification Program • A third-party test of compliance with technology standards & interoperability requirements. • National Interoperability Interface Specification • A standard, uniform transaction process for tolling that defines interfaces from Operator to Clearinghouse to Issuer. • OmniAir Goals • Member-developed non-proprietary protocols • Supplier Competition • National Interoperability • Lower Cost

5. The Reason Behind OmniAir 5.9GHz Dedicated Short Range Communication Systems and the Vehicle-Infrastructure Integration (VII) Program

6. 5.9GHz DSRC is a short to medium range communication technology for both Public Safety and Private operations in road-to-vehicle and vehicle-to-vehicle communication environments FOR SAFETY Federal Priority is safety. DSRC provides for high data transfer rates in circumstances where very fast communication links and smaller communication zones are important: collision avoidance, hazardous bridge condition warnings, traffic management ALSO FOR TOLLING & PRIVATE SECTOR USE OmniAir created by the toll industry to establish standards for national interoperability. Private Sector would adopt these standards as Electronic Payment System (EPS) applications and tolling devices are developed and deployed regionally and nationally DSRC and OmniAir

7. What the OmniAir effort means for the Toll Application An Opportunity to Define the Evolution of your Business A Way to define the Future

8. How Create Standards for toll collection Define a business model using best business practices of others (cellular, bank) Move ‘ETC to ‘EPS’

9. Toll Collection today is reliable Grass roots, regional development Relying mostly on custom-built systems Multiple methods and practices exist Back-office financial processing not standardized Result: Operational costs comparatively price inelastic (installation, maintenance, labor, collection, processing) despite high adoption rates and large volumes Where Toll Collection is Today: What we Know

10. Even with a regional tag standard, standard devices (tags) alone do not provide for interoperable toll collection Operators must move from custom-built solutions & in-house data systems that cannot ‘talk’ And collaborate so internal information systems can talk This requires standardized data and interface standards

11. Success (specifications are used) rests on industry-driven, consensus based efforts The resulting specifications return ‘True’ Interoperability – technical through contractual Deployments without such it can result in divergent, non-interoperable systems that slow deployment and/or reach limits of efficiency and innovation

12. What we want: Evolve • ETC - Regional Toll Application • EPS - National Payment System • ETC – Discrete, Isolated, Homegrown Deployments • EPS – Discretionary Integration with Peers in Retail, Banking and Auto • ETC – Rigid Solutions, One Size, Device Focus • EPS – Flexible Solutions, Choice, Service Focus • ETC – Proprietary Application • EPS – Standards-based Services

13. Leverage from this: Interoperability is regional at best Multiple CSCs Unique Interface Specifications lead to limited choice

14. Major National Major Stored Bank #2 National Value Card Bank # 3 MasterCard Major National Bank #1 Clearing House #2 OmniAir Certified EPSNIS Customer Customer Clearing Cl earing INTEROPERABILITY Service Center Service Center House #1 House #3 Clearing House #4 Toll A Toll D Toll B Parking Garage Private Toll C Retailer McDonalds To this: • Interoperability across EPS • CSC Flexibility • Multiple Clearinghouses L4 L3 L1 L2

15. Work is Underway Sponsor Test Host Integrator SME (you)

16. Give the interface standards away to other regions (TeamTX, TeamFL, IAG, Title-21) interested in testing and verification Work with industry: tolling, automakers, banks and others to develop a certification program to ensure interoperable deployment Next Steps

17. Potential Results of OmniAir Program • Offloaded from Operators at their discretion, the standard allows others to issue tags & accounts and the Operator to focus on servicing the facility: • Reduction in fixed and recurring costs associated with the toll industry’s current practice of building, operating & maintaining exclusive and/or numerous CSCs. • Enable economies of scale, efficiency and competition, greater market availability and penetration (as it opens the door for other businesses to participate)

18. What the OmniAir Program Is Not • Is not a top-down development effort • Is not an ‘either/or’ approach • Does not appropriate an operator’s unique brand/identity • Do not preclude an operator’s customer relationship management function • Does not pre-define your KPIs or QoS measures • Is not a revolution (big, new), but an evolution (measured, familiar)

19. Conclusion: Tolling Swims in a Big Pond • Everywhere we look, technology innovation is reducing barriers between previously discrete business sectors and actors • These new actors ‘want in’ to your sector • For tolling they are: financial account issuers (Banks), retailers and automobile manufacturers • An OmniAir interoperability specification created today by tolling incumbents allows collaboration rather than competition • It increases the potential for the business terms to be defined by OmniAir members – those who began tolling and know it best.

20. Thank you for listening! Tim McGuckin www.omniair.org