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Bluetooth Seminar. Università degli Studi di Milano May 25, 2004. Seminar Agenda. Accenture Presentation 15’ Bluetooth Technology and Market overview 30’ Bluetooth at work: Micropayments concepts 30’ Questions & Answers 15’. Seminar Agenda. Accenture Presentation 15’

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Bluetooth seminar

Bluetooth Seminar

Università degli Studi di Milano

May 25, 2004


Seminar agenda

Seminar Agenda

  • Accenture Presentation15’

  • Bluetooth Technology and Market overview30’

  • Bluetooth at work: Micropayments concepts 30’

  • Questions & Answers15’


Seminar agenda1

Seminar Agenda

  • Accenture Presentation15’

  • Bluetooth Technology and Market overview30’

  • Bluetooth at work: uCommerce concepts 30’

  • Questions & Answers15’


Who is bluetooth

Who is “Bluetooth”?

  • Harald Blaatand “Bluetooth” II

  • King of Denmark 940-981

  • Ericsson erected this Runic stone in hometown of Jelling

    • Harald is holding a mobile phone and notebook

    • Harald united Denmark and Norway

    • Harald brought Christianity to the Danes


What is bluetooth

What is Bluetooth?

  • Bluetooth is not a company

  • Wireless RF standard

  • Radio System

    • Hardware

    • Software

    • Interoperability requirements

  • Commitment from over 2,100 companies

  • Operates in 2.45 GHz unlicensed frequency


Bluetooth seminar

Who is promoting Bluetooth?

The Bluetooth SIG (Special Interest Group)

9 Promoters

182 Associates

2100+ Adopters

IEEE 802.15 WPAN = Bluetooth


Architecture

Application Layer

Presentation Layer

Session Layer

Transport Layer

Network Layer

Data Link Layer

Bluetooth

Physical Layer

Architecture

Bluetooth & Open System Interconnection (OSI) Model


Core capabilities

Core Capabilities

  • Bandwidth

    • 721 kbs realized maximum data transfer

    • Simultaneous voice and data transmission

    • Support up to 7 connected devices

      • Piconets and Scatternets

  • Power

    • ‘Client devices’ - 2.5mW @ 10 meters

  • Interference

    • FHSS on 1600 Channels

  • Security

    • PIN and 128 bit key


Interference

Interference

Interference

  • Bluetooth supports Frequency Hopping Spread Spectrum (FHSS)

  • 1600 channel hops/sec on 79 channels

  • Avoids interference better than 802.11b that supports Direct Sequence Spread Spectrum (DSSS)


Security

Security

Key elements to Bluetooth security framework

  • Frequency hopping – helps prevent a third party from “listening in” on a communication between two devices (1600 hops/sec over 79 frequencies)

  • Security entities

    • Unique device identifier – 48 bit address

    • Private authentication key (128 bit)

    • 128-bit random number (frequently changing)

    • Private encryption key – 8-128 bit

    • PIN

    • Link Key (128 bit)

      • Used for authentication

      • Parameter for deriving encryption key

  • Each packet uses a different encryption key pair

    • If one packet is cracked, a new packet 625ms later

  • Due to national restrictions, keys may be shorter than 128 bits

  • Additional application-level security can be implemented


Expectations and reality

  • Initial Hype

  • World Peace

  • Huge markets overnight

  • Today’s Reality

  • Many players

  • Interoperability issues

  • Poor quality

Expectations and Reality

What should the mobile device do at the beach?


Bluetooth adoption history

Ubiquitous

Networked

Standalone

Bluetooth Adoption History

1.5b

Devices

$5/chip

Q3 2001

2003

2006+

Time


Common issues

Common Issues

  • Sometimes, it just doesn’t work

  • Low bandwidth for some applications

  • Interoperability

  • Crowded RF Spectrum


Wireless standards

Wireless Standards

High performance,

higher cost

100000

WLAN

802.11

  • No solution can fill all needs

  • Complementary devices and technologies

WPAN

802.15 Bluetooth

10000

1000

User Data Rate (Kbits/s)

100

10

RFID

1

10

100

Low performance,

Lower cost

Range (meters)


802 11b bluetooth

802.11b & Bluetooth

What should the mobile device do at the beach?

Bluetooth

802.11b

  • Applications

  • WLAN

  • Applications

  • Intercom, Headset, LAN, Car

  • Characteristics

  • Bandwidth

  • Power

  • Chip cost

  • Interference

  • Mature (3rd Gen.)

  • Characteristics

  • Discoverable Technology

  • Bandwidth

  • Power

  • Chip cost (theoretically)

  • Interference

  • Very Immature


Rfid vs bluetooth

RFID vs. Bluetooth

RFID is gaining acceptance as a quick, convenient payment option, mostly in fast service industries (gas stations, fast food restaurants).

  • Bluetooth can be positioned in similar industries to serve multiple back office payment systems. More payment options are available with Bluetooth and the user is not constrained to ‘one device, one payment system’.

  • Bluetooth devices can easily be updated to add retailers that were not originally associated to the user.

  • Sign up for service via RFID requires the mailing of the RFID hardware needed before the quick mobile payment method is available for usage. Bluetooth sign up and initialization would be more efficient because the user’s mobile device would act as a unique identifier. Both options assume you carry the RFID or mobile device at the Point of Sale.

  • Bluetooth could facilitate the use of online payment systems, such as, Qpass or Paypal, and therefore not add another back office system. RFID uses a payment method connected to the proprietary RFID reader system.

  • RFID has a short transmission range and requires more proprietary hardware readers to cover the service area. Bluetooth has a larger range, 10 meters (100 meters with power boost), to easily cover required service areas. However, this may cause other usability issues for Bluetooth.

  • RFIDs require more equipment than necessary to conduct a transaction and are only useful at participating vendors. Each Bluetooth device has the potential to be used as a payment/identification vehicle.


3g bluetooth

3G & Bluetooth

  • Lowering the Price of Admission to High BandWidth Services

  • Traditional Carriers

  • New Competitors

  • Defining Characteristics

  • Licensed vs. Unlicensed RF Bands

  • Location Based Services vs. Proximity Based Services


Global impact

Global Impact

  • Market Sentiment

  • Europe and Asia Ahead

  • US Lags


Bluetooth seminar

Industries In the News

  • Hospitality

    • Starwood, Holiday Inn, Venetian Resort, Classwave, Registry Magic

  • Airlines

    • SAS, Sabre, Bluetags

  • Retail

    • Strio, Classwave

  • Automobile

    • Nokian Tyres, Clarion, AMI-C, Zucotto

  • Communication

    • O2, BT, AT&T Wireless, Vodafone, Orange, Taiwan Cellular and Telefonica del Sur (Chile).


Seminar agenda2

Seminar Agenda

  • Accenture Presentation15’

  • Bluetooth Technology and Market overview30’

  • Bluetooth at work: uCommerce concepts 30’

  • Questions & Answers15’


Introduction video

Introduction Video

  • Launch the Video of the Mobile Service Link Prototype


What is ucommerce

What is “uCommerce”?

Extending eCommerce beyond the static terminal of the PC to anytime, anyplace, anywhere


What does u mean

What does “U” mean?

  • Untethered – Not constrained by hardwires of traditional computing

  • Ubiquitous – Taking place where a person wants

  • Unbounded – Not limited to traditional definition of commerce


Bluetooth ucommerce

Bluetooth + uCommerce

  • Originally created as a cable replacement system by Ericsson

  • Capable of much more

  • Allows commerce and applications to be placed in once inaccessible places

  • Enables the uCommerce vision of anytime, anyplace, anywhere through proximity based computing


Internet micropayments to the real world

Internet Micropaymentsto the Real World

  • Imagine you can pay for beverages from vending machines, taxi fares or even supermarket shopping using your mobile phone

  • Imagine, as well, that the vending machine products and prices all appear automatically on your mobile’s display, so that all you have to do is type in your secret PIN code to authenticate the transaction. All products in the future could be customised to “hijack” your mobile phone as their interface to offer you services as you walk within range

  • All purchases and payments remain simple and secure and, more importantly, you don’t need to carry loose change around any longer. You don’t need to collect separate bills either, since your payment provider will send you a detailed bill at the end of the month


Internet micropayments to the real world1

Internet Micropaymentsto the Real World

  • The following two slides describe two variations of an architecture that could enable this concept using today’s existing and emerging technologies:

    • the first variant is based on SMS over GSM and is currently restricted to European implementations

    • the second variant makes use of the Internet as a globally available communications medium.

  • Let’s see how Internet micropayments can be ported to the real world...


Internet micropayments to the real world architecture 1

Consumer’s bank account

8

7

5

4

3

2

1

6

Payment Provider

Internet Micropayments to the Real World - Architecture (1)

Bluetooth-enabled vendors

Payment Provider bills Consumer

Mobile phone transmits grant of payment via Bluetooth to Vendor

Vendor and Payment Provider settle bills at the end of each cycle

SIM Toolkit Application on mobile phone sends SMS with transaction information through Network Operator to Payment Provider

Taxis

VendingMachines

Supermarkets

& Stores

Vendor device advertises its offer via Bluetooth to mobile phones in range and transmits its public key for later encryption

Billing (either prepaid or at end of cycle)

Payment Provider sends grant of payment encrypted with Vendor’s public key via SMS

Settlement

Payment Provider logs transaction and adds it to the consumer’s bill or deducts consumer’s prepaid account

Advertising & Public Key

Bluetooth

Encrypted grant of payment

Consumer selects article and authenticates with personal PIN code

Encrypted grant of payment

SMS over GSM

Summing up

or deducting from

prepaid account

Selection &

Authentication

Transaction Info & Public Key

Consumer’s mobile phone


Internet micropayments to the real world architecture 2

1

8

7

3

5

4

2

6

Internet Micropayments to the Real World - Architecture (2)

Vendor and Payment Provider settle bills at the end of each cycle

Bluetooth-enabled vendors

Settlement

Payment Provider

Encrypted grant of payment

Mobile phone transmits selection and authentication information via Bluetooth to Vendor

Summing up

or deducting from

prepaid account

Internet or GPRS

Taxis

Authentication Request:

Transaction Info & Public Key

VendingMachines

Payment Provider verifies request and sends encrypted grant of payment back to Vendor via Internet or GPRS

Payment Provider logs transaction and adds it to the consumer’s bill or deducts consumer’s prepaid account

Supermarkets

& Stores

Vendor device advertises its offer via Bluetooth to mobile phones in range and transmits its public key for later encryption

Billing (either prepaid or at end of cycle)

Advertising & Public Key

Bluetooth

Accept

Transaction and authentication information is sent via Internet or GPRS to Payment Provider

Payment Provider bills Consumer

Consumer selects article and authenticates with personal PIN code

Selection &

Authentication

Consumer’s bank account

Consumer’s mobile phone


Real world service portal

Real World Service Portal

  • Imagine you can virtually meet up with a ‘new-friend’ who lives a long way away, using the Coke machine around the corner.

  • You select a beverage from your mobile phone's menu and type in your secret PIN code to authenticate the purchase. Subsequently, your phone prompts you to enter the name of your friend. Within seconds the vending machine connects you to a vending machine on the other side of the world where your friend is also enjoying a drink and you can both talk for free, enjoying the refreshment of your cold drinks. All you have to do is stay within 100 metres of the vending machine.

  • Let’s see how a real world point of sale can turn your mobile phone into a service portal...


Real world service portal architecture

Bluetooth-enabled Vending Machine

Real World Service Portal - Architecture

Bluetooth-enabled Vending Machine

Voice over IP Communication

Internet or GPRS

Transaction Authentication

& Settlement

Transaction Authentication

& Settlement

Vending Machine advertises its offer via Bluetooth to mobile phones in range

Summing up

or deducting from

prepaid account

Payment Provider first sums up micropayments or deducts them from prepaid account, then settles with Vendor and bills Consumer at end of cycle.

Vending Machine transfers authentication information over Internet or GPRS to Payment Provider. Upon reception of grant of payment it releases the purchased good and connects the consumer via Voice Over IP to the consumer at the other vending machine

Billing

Advertising & provision

of free communication

Bluetooth

Bluetooth

Provide free communication

Purchase

Selection and authentication

Consumer selects to buy and partecipate to the meeting, authenticates and choices sex,age of communication participant

Consumer’s mobile phone

Consumer’s friend’s mobile phone

Consumer’s bank account


Seminar agenda3

Seminar Agenda

  • Accenture Presentation15’

  • Bluetooth Technology and Market overview30’

  • Bluetooth at work: uCommerce concepts30’

  • Questions & Answers15’


Seminar agenda4

Seminar Agenda

  • Back-up slides


Protocol stack

Protocol Stack

Bluetooth Protocol Stack

Applications

TCP/IP

ATcom

OBEX

PPP

TCS

RFComm

SDP

L2CAP

HCI

Audio

Link Manager (LM)

Baseband

Bluetooth Radio


Protocol stack definition

Protocol Stack Definition


Alternatives to bluetooth

Alternatives to Bluetooth


Ad hoc networking

Ad-hoc networking

  • Piconet

  • 1 master, up to 7 active slaves

  • Up to 255 inactive slaves

  • All devices in a piconet hop on same pattern

  • Scatternet

  • Scatternet = 2 or more connected piconets

  • Master or slave device can be connection

  • Piconets in scatternet are not sync-ed to same hopping pattern


Bluetooth piconet

Slave

Slave

Slave

Master

Slave

Slave

Slave

Slave

Bluetooth Piconet


Bluetooth scatternet

Slave

Slave

Slave

Slave

Slave

Slave

Slave

Slave

Master

Master

Slave

Slave

Slave

Slave

Slave

Slave

Piconet

Piconet

Master

Slave

Slave

Slave

Slave

Piconet

Slave

Slave

Slave

Bluetooth Scatternet


Bluetooth network access point

Cordless

Phone

Mobile

Phone

PDA

Laptop

PDA

Internet

Access

Point

Access

Server

LAN (Ethernet)

Bluetooth Network Access Point


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