1. November 19, 2003 New Media Development Association “Overview of Basic Resident Registration Cards and its Future” Japanese Activities on Smart Cards

2. 1 Who is the NMDA? lNon-profit and an auxiliary organization of Japanese Ministry of Economy, Trade and Industry lEstablished to develop the Hi-OVIS (the world first interactive information optical visual system) in 1972 Refer to “City of Light: The Story of Fiber Optics” by Jeff Hecht, Oxford University Press 1999 lTo promote the spread on New Media and to contribute to the realization of the information society lAs a R & D platform with companies to establish the information society technologies –Development and deployment of advanced smart card systems as an information infrastructure –Technological development of electronic administrative agencies (E-Government systems) –Development and operation of content rating and filtering on the Internet

3. 2 Sapporo city Fujisawa city Yokosuka city Tajimi city Yamagata city Komagane city Yamato city Tama Area (6 cities) Aizu -Wakamatsu city Joetsu city Toyoda city Tsu city Ikeda city Habikino city Maikata city Hanshin north district Okayama city Shimonoseki city Kochi city Kurume city Kitakyushu city Tagawa district, Fukuoka prefecture Okinawa north district Areas Selected for Smart Card Deployment Experiment -Project body: METI (Ministry of Economy, Trade and Industry) -Project budget: 17000M Yen (about 140M US$) -Project purpose: Trial of Smart Cards for public and private uses -Trial Card Number: 1200K smart cards and 8500 R/Ws -Selected area: 21 pilot sites -Trial period : Fiscal 2001 and continued until March 2002

4. 3 Effects of Integration of public and private applications in the project The number of cards planned to be distributed The number of cards distributed (during the project period) Distribution ratio (%) Public sector application programs only 479,000207,00043.2% Both of public and private sector application programs 335,000246,00073.4% Public sector application programs provide services for municipalities, whereas private sector application programs provide services for private entities (semi-public joint ventures are included). Application programs for electronic settlement for (local) governmental services, and senior pass (for municipal subway) are included in the category of public sector application programs, whereas regional currency is included in private sector application programs.

5. 4 The reasons why this result was obtained in the smart card deployment project This is because there are fewer chances to use public sector application programs for residents in local areas, resulting in poor acceptance for these application programs. Good acceptance was seen among residents for coupon/royalty service systems because the benefits were clear. There was a good acceptance for public/private sector application programs, due to promotions of experimental use of smart cards, which were conducted, not only through local government ’ s PR magazines or posting at city halls but also in areas close to everyday life such as local shopping malls.

6. 5 Community (living area / economic community) Transport facilities Residents Shopping malls Administrative agencies Educational institutions Organization of the Community Data Center Hospitals E-commerce Medical services Settlement Document management Authenticaion Application Settlement Shared by public/private services Functions used by private services Functions used by public services Smart card issuance management Internet Smart Cards Application E-commerce Medical services Outsourcing Authenticaion Document management Integration of functions Provides information/services to communities with Internet mobile phones Outsourcing

7. 6 1. The Resident Registration Network System

8. 7 1.Provide public service procedures linked between municipalities 2. Provide info to identify oneself to administrative organizations stipulated by ordinances 3. Utilize the resident registration card To improve resident services, simplify public services and make them more efficient 3 Action plans Purpose of Resident Registration network law

9. 8 Outline of the Resident Registration Network System Launched in Aug 2002 and arise great dispute about privacy issue some cities still do not join in the network despite of legal violation

10. 9 Applications of Resident Registration Cards Health, Medical Care and Welfare Social Education Payment of Charges for Public Facilities Individual Certification by Local Government Issue of Certifications Royalty service Makiuchi, Katsuya Citizen Card Resident Registration Network Reservation of Public Facilities Resident registration cards were issued from all of local governments after August 2003 when residents request to issue. Based on bylaw of local governments, cards can be used to many public applications. Details for such applications will be determined by each local governments.

11. 10 Inter-operability between Local Governments Inter-operability of Smart Cards Local Government A Citizen Local Government B Citizen card Issuing card Communication Server Prefecture... Information Process Organization Request Copy of Resident card Citizens can receive the local government’s services in the other local government using the Citizen Cards.

12. 11 2. Contact-Less IC card deployment center (CLIC)

13. 12 Contact-Less IC card deployment center (CLIC) New Media Development Association (NMDA) organized “Contact-Less IC card deployment center “(CLIC) at 1st May, 2003 for promoting to spread contact-less IC cards (smart cards). NMDA has much experience to develop and give service on smart cards, especially contact-less smart cards. Newly organized CLIC center is a fruit of these experiences. CLIC will provide following services continuously, - installing public applications into the Resident reg.cards - evaluation compatibility between smart cards and R/Ws - technical consultations such as multi-application, privacy..

14. 13 Why CLIC was established ISO/IEC14443 type B interface is obligatory and dual interface cards are permitted for citizen cards. LASDEC which is a responsible organization on citizen cards issues only dual interface cards and there is no issuance organization in Japan. Development and deployment of contact-less smart cards have been our purpose of works.

15. 14 Features Supported by companies which produce chips, cards, R/Ws and issuance machines Issuance machines are a small scale type and suitable for small quantity and multi ordering All of issuance machines are controlled by a server which manages ordering specifications from local governments

16. 15 Issue terminals & Card Printers Braille Embosser Issuance Server Multi-Vendor IC card Issuance System Local Government Jyu-ki cards Issuance commission ・・・ Printer Cards manufactured by different companies CLIC

17. 16 card issuance center inter-operability verification center CLIC Contact-Less IC card deployment center Equipment - Card issuance server 1 - Desktop card printer 4 (2 types) - Braille embosser 1 - Reader/Writer 9 types - Smart card 8 types

18. 17 Issuing the Resident registration cards Cities and villages control issuing of the Resident registration cards. They can entrust issuing cards (installing the Resident reg. applcation) to third parties, such as Local Authorities Systems Development Center (LASDEC), CLIC, etc. LASDEC can be entrusted issuing cards from only small/medium cities, the population under 30,000. The card is minimum specification. Every cities can ask CLIC to issue the cards. The additional specifications are available, such as various card design, various applications and others. LASDEC (population is under 30,000) Local government Cards manufacturer Residents Control issuing Resident registration card Utilize the resident registration card Issuing and operating of Resident registration cards entrust (manufacturing the Resident registration cards) CLIC (no limits) order cards deliver cards Preparation of issuing by local government - Equipment - Organization - Security Issue by other bodies Issue by local government issued cards

19. 18 Necessity for ensuring compatibility between IC cards and proximity coupling devices Proximity Coupling Device Company A Company B Company C Company D Company E Proximity IC Card Type A Proximity Coupling Device Type B Interface for type A Interface for type B Compatibility among manufacturers and among model types Coexistence of multiple model types Proximity communication interface implementation specifications Drafted and established by NMDA Communication range:Around 0 ～ 10mm Usage: Specification includes provisions for placing IC cards on a proximity coupling devices and for inserting IC cards into slots. Efforts for Improved Interoperability of Contactless IC Cards Based on ISO/IEC14443 Standards Based on ISO/IEC14443 Standards Proximity IC Card

20. 19 Compatibility between Proximity IC Cards (PICC) and Proximity Coupling Device (PCD) and Proximity Coupling Device (PCD) Ｓｐｅｃｉｆｉｃ ａｔｉｏｎ： ■ Ｓｔｅｐ１ RF power and signal interface Tests ・ Development of the standard evaluation TOOL based on ISO/IEC 10373-6 ・ Test evaluation by the manufacture company ・ Comprehensive evaluation based on NMDA specifications ■ Ｓｔｅｐ２ Function Tests(Combinations) ・ A functional test is carried out in all combination to a PICC and PCD ・ The commands test for functional evaluation is carried out

21. 20 Functional Compatibility Cross-test Common interface module Command response module Evaluation software Common interface ＡＰＩ（ＤＬ Ｌ） Card A APDU set Card B APDU set Card C APDU set Card D APDU set Card E APDU set Reader/writer (PCD) driver Reader/writer (PCD) Common API R/W Common Interface Spec. Card Ａ ＡＰＤＵ Card Ｂ ＡＰＤＵ Card Ｃ ＡＰＤＵ Card Ｄ ＡＰＤＵ Card Ｅ ＡＰＤＵ ＩＳＯ / ＩＥＣ１４４４３－２，３， ４ Implementation Spec. ＵＳＢ，ＲＳ２３ ２Ｃ ＰＣＤ s ｖｅｎｄ ｅｒｓ Ｃａｒｄ vender ＮＭＤ Ａ

22. 21 Cross-test between Proximity IC Cards and Proximity Coupling Devices Proximity IC Card Vender Proximity Coupling Device Vender NTT Communications Corp. NTT DATA Corporation TOSHIBA Corporation Hitachi,Ltd. Matsushita Electric Industrial Co.,Ltd. Matsushita Electric Industrial Co.,Ltd Maxell Seiki,Ltd. TOPPAN PRINTING Co.,Ltd. NEC Infrontia Corp. NEC TOKIN Corp. Fujitsu,Ltd. SANKYO SEIKI MFG.Co.,Ltd.

23. 22 Model numbers and venders of IC cards whose operation have been confirmed by compatibility verification have been confirmed by compatibility verification NTT Communications PICC vendor NTT DATA TOSHIBA Hitachi Matsushita Electric Industrial Maxell Seiki TOPPAN PRINTING HT-2998-H1B3DJ Ｅ１６Ｒ１ ０Ｎ Ｅ１６Ｒ０５ Ｎ Model number Ｘａｉｃａ－ α ＣＱ－３００ ６ BN-1M2N004A1 IE-32(MU2)JUKI Ｓｍａｒｔｉｃ ｓ－ＡＤ Card Platform Native Ｊａｖａ Ｃ ａｒｄ Native ＭＵＬＴＯ Ｓ Memory size １ＭＢ ５１２Ｋ Ｂ ３２Ｋ Ｂ Memory type ＦＬＡＳ Ｈ ＥＥＰＲＯ Ｍ Interface Combination Contactless

24. 23 3. Possibility of smart cards

25. 24 NICCS framework NICCS: the Next generation Ic Card System Study group Permit to add/delete AP Status Issue card Request AP add/delete AP download/delete ApplicationA B CH: card holder CI: card issuer SP: service provider Hot-list Smart card Application Card OS Application A Application B Application C Application Fire-wall

26. 25 Japanese pilot project using smart cards Commerce Libraries Administration City Hall Medical Services City Center Shopping mall Hospital Pharmacy Culture Cultural Promotion Foundation IC Citizen ID ＩＣ Citizen ID Network Authentication Card management Data Center IC Medical Expenses Grant Application Services IC library Services IC Coupon/Point Services Citizen IC Citizen ID IC Shopping Mall Coupon/Point Services Automatic Certification Issuance Service Nursing Services Nursing Support Services Citizen IC Citizen ID Health Center Citizen (example1)

27. 26 theater ticket service Stores/Stations/ Shopping Mall Cinemas, Theaters, Public facilities 6. Insert IC card into R/W and enter the facility using theater ticket services. IC カード IC IC Card 5. Settlement processing based on transferred information Financial institutions Management Center 4.Control/Management of settlement and utilization status records 3. Transfer of theater ticket purchase information 2. Insert IC card into R/W to buy theater tickets/verify transactions IC カード IC Smart Card 1. Insert IC card into R/W, request theater ticketing services, and download application. Japanese pilot project using smart cards (example2)

28. 27 Japanese pilot project using smart cards (example3) Wide area services Sapporo Area Osaka Area IT City point service e-value coupon service IT City post pay service Point volunteer service

29. 28 2000 MHLW 2003 NPA Ministry of Public Management, Home Affairs, Posts and Telecommunications METI 200420022001 ＩＴ Equipped Cities Card Residential Registers Network System Studies on Driver ’ s License Card Studies on Care Insurance and Health Insurance Card Residential Register ’ s Card Project continues by local government Widespread use of Contact card Credit Card Commerce Standard Established Widespread use of Contact card Transportation Suica Card (Felica Based) Payphome Mobile Usim with contactless card Contactless Telephone Card Bank Card JR EAST USIM/UICC Standard Established Some Trials 2005 Driver ’ s License Card Company ID cards Widespread use of Contact or Magnetic Strip cards Introduction of Contactless Card begin Deployment started at Aug.25, 2003. Rough Roadmap of Smart Card Expansion In Japan ▲ Introduction of IC Credit

30. Thank you For further questions, please e-mail to info@nmda.or.jp