Smart card technology has truly revolutionized the way we access daily needs and is behind the SIM card, the key to a GSM network.

Over two billion smart cards are expected to be in circulation world-wide by the year 2000. The booming smart cards represent a vast and untapped source of opportunities for various businesses to take advantage of. Similar in size and shape to a credit card, smart card stores and processes information on a chip (i.e., an integrated circuit/microprocessor) embedded in the card. Smart cards, with subscriber’s personal information like emergency health information, even biometrics such as voice prints and fingerprints, and travel preferences, are now extensively used for ATM/electronic cash, debit/credit payments, information management, storage for medical/insurance information, "frequent-user" points in loyalty programs, and a host of other useful applications, with a far-reaching impact. Recognizing this, consortia of banks, credit card companies, telecom operators, transit authorities, and even government bodies are already developing smart card programs.

In a world moving towards one-to-one marketing, smart cards hold the capability to customize and better serve the individual needs. Smart cards also provide more privacy and security in electronic transactions—accessing payments and information services. And unbeatable convenience!

The smart cards used in GSM cellphones are called SIM, i.e., Subscriber Identity Modules. GSM technology brought about a revolutionary transition from analog non-smart card-based mobile communication to a smart card-based digital one which enabled the subscriber to be identified by his card and not by his cellphone. SIM card, when inserted into a cellphone, acts as a "key" into the network, using a highly secure identification process. There can be single application (only mobile usage) or multi-application cards (see box).

This application of smart card has made the subscription and the cellphone independent of each other permitting the GSM subscriber to move anywhere, even across nations (i.e., roaming), just with the card. It also introduced network authentication process and a higher level of security through a subscriber programmable Personal Identification Number (PIN). The International Mobile Subscribers Identity (IMSI) is transmitted over the air which cannot be cloned, a major problem with the analog networks. Also, the subscriber is authenticated through an algorithm stored on the SIM card before a call is set up. Once the subscriber is authenticated, speech, data, and control information are encrypted to ensure privacy, the key for encryption algorithm being securely stored in the SIM. Also with the card providing a new intelligent interface to the cellphone, additional services like Flexible PIN Management, Abbreviated Dialing Numbers (ADN), and Advice-of-Charge could be provided.

With GSM Phase I and Phase II standards, SIM card worked as slave to the phone. However, with Phase II+ standard, it, called "pro-active SIM", takes over as master, because it can run its own applications and direct cellphone to perform certain actions.

Network operators are looking for and requesting new service features all the time. Many more new features have been included in the GSM Phase II+ and other developments are going on continuously. The following are some of the new features.

Over-The-Air-Customization (OTAC). This feature provides a means of updating the contents of SIM card via the Short Message Service (SMS) without the need to send the cellphone to service centre for reprogramming. This functionality enables updating/reconfiguration/invalidating/rehabilitating of application data fields in the card and adding/removing application(s) from the card by the operator. It allows more powerful features like:

• Downloading of numbers to the mobile for abbreviated dialing.
• Remote recharging of pre-paid SIMs.
• Remote phone book loading.
• Adding new numbers to closed user group.

SIM Application Toolkit. It permits SIM to send commands (received over the air) to the handset. An operator can decide if and how to use the toolkit to add value to the service offered. Barclaycard offer (discussed previously in this column) introduced jointly with Cellnet in the UK in May 1997 was one of the first applications. The year 1998 can be truly called the year of SIM toolkit. SIMs can store and run complementary applications like loyalty and co-branding schemes.

The 3 Volt Specification. This specification for SIM and cellphone is going to substantially reduce the size and weight of the cellphone.

Bigger Memory. EEPROM has grown from 3 kb in Phase I to 16 kb in Phase II+ and ROM from 6 kb in Phase I to 20 kb in Phase II+.

Speed Enhancement. It is being made possible by the introduction of larger chips with more storage capacity, which increases the time taken to read all the data out of SIM. Therefore, a transmission speed faster by about five or six times than the current one is being defined by GSM for SIM and cellphone, though it may be optional.

Mutual Authentication. This feature is being considered for future multi-application cards.

SIM Lock. It limits the use of handset to one specific subscriber or a group of subscribers.

JavaCard. Java’s growing popularity as secure, multi-application environment, and supporting applications portability between compatible cards and downloading of applets over the network has led to the development of JavaCard. This is an Application Programming Interface (API) to cut the cost of application development and increase productivity.

There are many other features possible:

• Pictorial languages (like Indian languages) for display.
• Service numbers: an additional SIM data field for an unchangeable number which allows the user or operator to store a personalized, special, hot-line,

• Barred numbers: a user can bar certain types of numbers like certain country/area codes or specific numbers (open to discussion).

GSM has truly exploited the advantages of the smart card technology to help operators stay ahead smartly by service differentiation and take advantage of affinity-co-branding programs using SIM.

It makes our lives far easier and more secure than Alibaba could even think of!