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Potential ITU Work Items in Electronic Commerce

Potential ITU Work Items in Electronic Commerce. Mostafa Hashem Sherif AT&T * (These are personal opinions and do not engage AT&T ). Overview. Review of ITU Core Competencies Areas of Electronic Commerce to be discussed Business to Business Business to Consumer (4 applications)

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Potential ITU Work Items in Electronic Commerce

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  1. Potential ITU Work Items in Electronic Commerce Mostafa Hashem Sherif AT&T* (These are personal opinions and do not engage AT&T ) ITU Mediacom 2004- 24 April 2001

  2. Overview • Review of ITU Core Competencies • Areas of Electronic Commerce to be discussed • Business to Business • Business to Consumer (4 applications) • Person to Person • Summary of Suggested ITU Work Items ITU Mediacom 2004- 24 April 2001

  3. Starting Position • Electronic commerce covers dematerialized relations among economic agents • No single standards organization can resolve all the problems facing electronic commerce • ITU efforts build on and complement on-going work in other standard organizations • ITU successes have been in the area of telecommunications infrastructure ITU Mediacom 2004- 24 April 2001

  4. ITU Core Competencies • Interoperability of transmission and switching equipment world-wide • Simple terminal interface for technologically unsophisticated users • Operations, administration and settlement across operators • Quality of service and performance management including accounting and billing ITU Mediacom 2004- 24 April 2001

  5. Trading Partner (TP) Trading Partner (TP) ANX Overseer Business to Business Electronic Commerce(example: Automotive Network Exchange (ANX)) ITU Mediacom 2004- 24 April 2001

  6. Problems Uncovered • Incompatibility of certificates • Encryption is costly for SME • Distributed management of a VPN is difficult • configuration management • performance management • fault management and trouble ticketing • User cannot easily collect information on performance ITU Mediacom 2004- 24 April 2001

  7. Content Manager (Retailer, broker, etc..) End-user or Customer Content Provider Service Provider Network Provider 1 Network Provider 2 Infrastructure Provider (s) Analysis in Terms of the Emerging Model for Telecommunications Services ITU Mediacom 2004- 24 April 2001

  8. Distributed Management in a Virtual Private Network Performance data archiver 1 Performance data archiver 3 Performance data archiver 2 Network Provider 1 Network Provider 2 Network Provider 3 Performance data collector (Customer site 3) Performance data collector (Customer site 1) Performance data collector (Customer site 2) (X.160, X.161, X.162) are for a network run by a single operator ITU Mediacom 2004- 24 April 2001

  9. Extending the Information Boundaries Across Administrative Domains • Existing: • Exchange of trouble tickets using X.790, X.791(EURESCOM projects for private lines) • Accounting Data Interchange Format (IETF/ETSI TIPHON) • Needed: • Networks using frame relay, ATM to transport IP traffic • DWDM and optical networks ITU Mediacom 2004- 24 April 2001

  10. Some Issues for Business to Consumer Electronic Commerce • User interfaces and their ergonomics • Ease and uniformity of transactions on a world-wide (as for telephone calls) • Accuracy of microbilling and capability to verify and contest the billing accuracy • Multiple channels to merchant sites (text, audio, image, etc.) • Payment in the buyer's currency • Identification with biometrics • Use of telephone cards (ubiquity, accuracy) ITU Mediacom 2004- 24 April 2001

  11. Application 1: The Minitel Model and its Reincarnations • Network of users and merchants federated by the operator or network provider (intermediary) • Each operator identifies and authenticates its subscribers and federated merchants or content providers • Operator may also collect the payment and payback the suppliers after getting its commission • NTT DoCoMo with i-Mode for mobile networks • Telia for wireline operations • ISP's are also getting involved ITU Mediacom 2004- 24 April 2001

  12. Evaluation • Advantages • ease of identification and authentication • useful for small amounts • no need to introduce new means of payment • Disadvantages • proprietary protocols (merchants and buyers must have the same operator) • limited to a single currency ITU Mediacom 2004- 24 April 2001

  13. Possible ITU Work Items for Application 1 • Ensure world-wide usage by removing currency dependency • use of "minutes on the network" as an exchange currency for micropayments • Latch on settlement agreement among telephone operators • Each operator identifies and authenticates their subscribers • this would be also a cost-effective solution (banks do not have a network going to individual homes to offer an economical solution) ITU Mediacom 2004- 24 April 2001

  14. Application 2: Pre-paid telephone cards • Prepaid telephone card are widely used • Many operators with non compatible cards • Accuracy of accounting is questionable for small operators • This may be a hindrance to the use of the "minutes on the network" as a universal microcurrency • ITU work items may address some of the issues ITU Mediacom 2004- 24 April 2001

  15. application 1 application 2 ...... application n virtual machine Integrated Circuit Card Operating System Integrated Circuit Card ITU Work Items for Application 2 • Multi-application cards can also include telephone cards payment • Two competing operating systems • Multos ( Mondex and MasterCard) • JavaSoft (Sun et Visa) • Which one is more suitable for micropayment applications for telephone and the Internet? • ITU Recommendations may be needed ITU Mediacom 2004- 24 April 2001

  16. Application 3: Biometric Identification • Acquired characteristics • Handwritten signature (500-1000 octets) • Voice print (1000-2000 octets): Bacob with technology from Keyware Technologies (http://www.keywareusa.com) • Keystroke dynamics • Innate characteristics • Photo image (100-800 octets) • Fingerprint (500-1000 octets) • Iris scan (256 octets) • Retina (35 octets) • Shape of the hand (9 octets) ITU Mediacom 2004- 24 April 2001

  17. Biometric Revenues* • Total revenue: • $58.4 K in 99/est. $110 K in 00 • $ 7K in 99 /est. $14K in 00 for financial applications • Techniques • digital finger prints 34% • hand geometry 26% • face recognition 15% (check cashing/gambling casinos) • iris/retinal recognition 11% • speaker recognition 11% • signature recognition 3% * excluding automatic systems for finger prints used by governments - Source International Biometric Group ITU Mediacom 2004- 24 April 2001

  18. Possible ITU Work items for Application 3 • Criteria for evaluation of vocal identification systems (performance with call quality, resistance to attacks, etc.) • Reference data for algorithm development • Standard format for file storage, etc. • Other players • Association for Biometrics (http://www.afb.org.uk) • IBIA (International Biometric Industry Association) (http://www.ibia.org) • Bundesamt für Sicherheit in der Informationtechnik (BSI – Federal Information Security Agency) (http://www.bsi.bund.de) ITU Mediacom 2004- 24 April 2001

  19. Application 4: Multimedia connection of a User to a Call Center • Voice and data interactions are simultaneously needed: • Complex transactions • Verification of user's identity before payment approval • PSTN will be used for voice calls for sometime • Needed: • a way to multiplex voice and data calls on the same subscriber line (on xDSL) • a method to account for possible ways for connecting the PSTN to IP networks (see TIPHON project of ETSI) ITU Mediacom 2004- 24 April 2001

  20. Person-to-Person Payments • Internet auctions revealed the need for a trusted third party for one-line transactions among complete strangers • Examples: PayPal.com , eMoneyMail • Systems require subscription to open accounts • Telephone companies are well positioned to extend the service to • multiple countries • a more open network (e.g., multiple operators) • ITU Recommendations are needed for architecture and performance characterization ITU Mediacom 2004- 24 April 2001

  21. Summary of Suggested ITU Work Items • Business to Business • Exchange of performance and fault management information across administrative domains • Business to Consumer • Universal method for micropayments latching to telephony settlements • Telephone cards: accuracy and interoperability • Identification with speech • Traffic Multiplexing • Person to Person • Focus on on-line auctions ITU Mediacom 2004- 24 April 2001

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