SIM Applications The benefits for wireless application providers, operators, and users A Gemplus Paper October 2004

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Table of contents 1. Introduction ..........................................................................................................3 2. Applications for Daily Life.....................................................................................3 3. Benefits of the SIM...............................................................................................4 4. Opening the SIM to Independent Developers .....................................................5 5. SIM’Xplore: A Helping Hand for Application Providers ........................................5 6. Conclusion............................................................................................................6

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1. Introduction

Do you know that one billion GSM mobile phone subscribers in the world carry a SIM i card is in their hands? The SIM card is a standardized computing platform. It is present in every handset and enables fast and safe data portability from phone to phone.

As a element within all phones, the SIM card brings the combined advantage s to deploy applications widely and ensure a common application behavior.

These applications help drive revenues for application developers and reduce costs for mobile operators. They range from basic SIM Toolkit (STK) menus that dramatically increase the visibility and uptake of mobile services to more

sophisticated Java applications that leve rage key SIM assets.

For wireless users, the SIM is transparent: it brings convenience and is hardly noticed. For operators, the SIM enables to easily deploy applications to all subscribers. For application providers, it is a standard environment present in every handset, regardless of brand, age , or available features.

SIM cards and mobile handsets alike have increasing memory space and computing power. Their combined assets provide a unique environment to bring security and portability to innovative feature-rich applications.

2. Applications for Daily Life

Daniel Mendoza lives and works as a sales representative for a pharmaceutical company in Barcelona, Spain. Daniel utilizes his phone mainly to keep in contact with his customers, colleagues, and family. He is a heavy data user and utilizes most of the applications stored on his SIM and managed by his operator:

• Immediate access to weather forecasts and traffic information helps him optimize his travel time ,

• Instant messaging enables Daniel to stay in touch with his friends and children even when he is away from his PC,

• Location based services helps him locate the upcoming gas stations while on the road,

• Access to the Internet and his company intranet helps him research information on products and services and increase his work performance,

• While traveling abroad, Daniel’s phone automatically selects a roaming network that make him benefit from the best possible roaming rates and plans,

• Daniel’s call management application enables him to send messages or call back the people who tried to reach him during his meetings or after he was out of reach.

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3. Benefits of the SIM

When users subscribe to a wireless service, they receive a SIM card that is the heart and soul of the phone. The SIM was established in the early 90’s by the GSM standard . It enable s mobile network operators to identify and authenticate subscribers. Mobile operators have quickly used SIM cards beyond authentication to improve the relationship with their subscribers. Operators now program them with selected applications to propose a common customer experience to their subscribers. They even rely on SIM card s to monitor parameters related to subscribers’ behavior and handset configuration.

3.1. Operator Benefits

Mobile operators own and manage SIM cards to control subscriptions and access to services.

However, many service providers would like to share this preferential relationship with users in order to deliver mobile services directly.

The SIM opens the subscription to new services while the operator can keep the focus on:

• Brand management: Subscribers could gradually become more loyal to their handset manufacturers and service providers (games, news, ring tones or multimedia aggregators) rather than to their mobile operator. Operators can fully control the SIM cards and the applications they host. They can deliver the expected

user experience, at a limited cost, regardless of the handsets.

• Service adoption: Subscribers can hardly be aware of every available mobile service. Mobile operators can highlight the services that best fit each subscriber’s needs via the SIM. Operators save on advertising via direct mail or SMS and can even expect higher adoption: SMS services on the SIM have 5 to 10 times higher adoption than other SMS services.

• Managing complexity: Many users find the use of new services difficult as handsets provide access to services, such as MMS, email, WAP etc. Operators can rely on the SIM to better identify devices, automate device configuration, and ease the access to new services.

3.2. Application Provider Benefits

For application providers, the SIM represents the ideal platform to develop an application that will run similarly on all handsets and all networks. SIM cards still have limited capacity and power: they should not be compared with phones and flash cards. However, they bring additional benefits to application providers, such as:

• Security. The SIM can securely store parameters such as the subscriber’ s personal information or authentication keys. It can also verify a PIN, generate a signature or encrypt data, for applications

such as mobile banking. It can also protect the right s to use a handset application.

• Unified customer experience. The SIM can run pop-up menus to which the subscribers react. Such menus would otherwise be hard to deploy on various handsets with as many software versions as they are models of phones.

• Standard environment. Application developers immediately benefit from their experience in Java or WML languages when they develop on Java SIMs or Dynamic SIM Toolkit (D-STK).

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4. Opening the SIM to Independent Developers

Over the years, SIM suppliers have custom-built most of the SIM applications for operators , partly because of proprietary and resource -constrained SIM environment.

Today, application providers can take full advantage of the SIM benefits for their applications when they use open development environments based on Java Card and Dynamic SIM Toolkit.

SIM suppliers now focus on the SIM infrastructure and remote management services. They have transformed the SIM into a powerful platform to host multiple applications

and enable complete application lifecycle management. The SIM applications can be provisioned and updated remotely with Over-The-Air (OTA) and Java technologies. They can be triggered by remote and local events to provide contextual menus to subscribers.

Application providers and SIM suppliers can now combine technical innovation and market focus and take full advantage of the SIM benefits.

Application providers can benefit from portability, security, and an easier application distribution model.

5. SIM’Xplore: A Helping Hand for Application Providers

Gemplus reaches to application providers to facilitate the deployment of SIM applications. Its SIM’Xplore partner program aims to help application providers with:

- Communication Gemplus promotes the applications of its SIM’Xplore partners to network operators through trade shows, web sites, and publications. Gemplus encourages its partners to share information on application development, distribution, and usage to identify the best practices that operators can build upon.

- Development support Gemplus continuously enhances the SIM application development with software development kits and the use of industry standards. Application developers who already develop Java or WAP applications have the required knowledge to develop on SIM cards.

- Training Gemplus offers training sessions on the development of SIM applications. Once the training is over, Gemplus’s

regional offices maintain a tight relationship with application developers to provide them with the necessary support and advice on application development.

- Promote standards Gemplus promotes the use of the standards defined between mobile operators, SIM vendors, and handset manufacturers. Gemplus advises application providers to rely on industry standards to ensure free access to technology and a full compatibility of their SIM applications in all handsets and on all SIM cards.

- Ease the deployment by mobile operators Operators select wireless applications based on ROIii and the ease of deployment. SIM’Xplore partners know how to communicate on the ROI and they can now rely on Gemplus to improve the deployment of their application with a faster, efficient, and more reliable integration into a specific operator SIM card .

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6. Conclusion

Application providers can now implement part of their application on powerful Java SIM cards that bring security, portability, and ease of deployment to all subscribers.

As the leading SIM card provider, Gemplus has set up the SIM’Xplore program to help

application providers take advantage of the SIM, its open development environment, and Gemplus’s expertise and worldwide network of support and operator relations.

About Gemplus

Gemplus International S.A. (Euronext: LU0121706294 -- GEM) and (Nasdaq:GEMP) is the world's leading player in the smart card industry in both revenue and total shipments (source: Gartner-Dataquest (2003); Frost & Sullivan, Data monitor.)

Gemplus offers an exceptional range of portable, personalized solutions that bring security and convenience to people's lives. These include Mobile Telecommunications, Public Telephony, Banking, Retail, Transport, Identity, WLAN, Pay-TV, e-government, access control and a wealth of other applications.

Gemplus' revenue in 2003 was 749 million Euros.

Contacts Bertrand Michaux – Director Value-Added Solutions - Gemplus Email: bertrand.michaux@gemplus.com Phone - +33 442 36 5000

Gemplus: beyond smart

www.gemplus.com For more information on the SIM’Xplore program: www.gemplus .com/partners/wireless i Subscriber Identity Module ii Return on Investment