Intelligent Transport System (ITS) in BMTC Bangalore, India 2015

2 BMTC Operations 6,521 Buses 6250 Schedules 5.2 Million Passengers Daily Routes 76,636 Bus Trips 12.9 lakh Service Kms

Improving Transport Sector value chain through Technology Key Stakeholder Issues Increasing Congestion Non-Uniform Infrastructure Utilization Increasing Pollution Levels Increasing Congestion Rash Driving Lack of real time, accurate information Unreliable Service Manual ticket & toll collection Increasing Pollution Levels Forced reliance on private vehicles Manual ticket & toll collection Increasing Congestion Inadequate Incident Mgmt. Systems Declining Vehicle utilization & productivity Declining Profitability Unreliable Service

Elements we seek to transform Service Reliability Citizen Centricity Revenue Management Organization al Capabilities Real-Time Rolling Stock Tracking Improved Incident Management Service Excellence Predictive Maintenance Real Time Information Systems Online Journey Planners Customized Travel Products Mobile App Business Intelligence Capabilities Operational Flexibility Alternate Revenue Streams Optimized Business Processes Smart Ticketing Operations Fare Service Integration Open Loop Platforms Optimized Fare Structures

Intelligent Transport System (ITS)

Largest scale deployment of ITS in terms of infrastructure like 10,000+ Electronic Ticketing Machines and Vehicle Tracking Units Largest impact to citizens as BMTC has a ridership of approximately 5.2 million (Bangalore has a population of 9.6 million) 1 st BMTC ITS ITS is being implemented in Bangalore by Bangalore Metropolitan Transport Corporation (BMTC). First ITS imple- mentation in urban transport in India Intelligent Transport Systems (ITS)

GPS based Vehicle Tracking Systems (VTS) Live tracking of buses on GIS maps Location, time & speed monitoring Generate alerts for non-adherence to schedule performance. Incident management through two way communication system Generation of various graphical, tabular and spatial reports on important parameters Intelligent Transport Systems (ITS)

Electronic Ticketing Machines (ETM) Intelligent Transport Systems (ITS) Online revenue monitoring Automated and secure ticketing Reduce tamper and pilferage Spot issue of tickets and manage inventory of pre- printed tickets

Passenger Information Systems (PIS) Intelligent Transport Systems (ITS) Real-time information on Estimated Time of Arrival (ETA) for buses Service and other alerts for commuters Streaming advertisements and multimedia content at bus stations

Challenges Intelligent Transport Systems (ITS) Resistance to change with respect to transitioning from existing as-is scenario to post ITS scenario. Verification and digitization of existing schedule and route information taking into considerations all the changes with respect to current traffic conditions. Designing a comprehensive training plan which is flexible and not orthodox while accommodating the schedules of 12,000+ conductors. Conducting training camps instead of classroom training.

Challenges Intelligent Transport Systems (ITS) Infrastructure forms the key component of the physical environment and as such for the ITS project. Infrastructure readiness is one of the critical factors which if not addressed adequately will have an adverse impact on the outcome of the project. Choosing the right GPS based Vehicle Tracking Unit (VTU) is critical as the accuracy of the reports generated by the Vehicle Tracking System and the ETA predicted by the Passenger Information System entirely depends on the data transmitted by VTU. Any custom developed algorithm to calculate the Estimated Time of Arrival (ETA) of a vehicle will require historical data which will build up over time. Absence of such data at the beginning can cause the ETA predications to be less accurate.

Benefits Intelligent Transport Systems (ITS) Induce Operational Excellence Provide real time information on revenue and bus operation Monitor and track service adherence and performance Improve efficiency and decrease operational costs Revenue Management Integrate, automate and secure ticketing Facilitate fare-service integration through smart cards 1 2

Business Intelligence Automate data compilation & report generation to build a reliable MIS Act as a one stop shop for all ITS data viewable through a web application Utilize analytical (BI) tools to plan, analyze and appraise service Improved Citizen Services Provide reliable real time information on arrival and departure of buses, bus routes to commuters through different media Manage and handle incidents and accidents Increase convenience and safety to commuters and crew Reduces accidents as traffic would be managed efficiently by improving communication between vehicles. Environmental benefits associated with public transport as ITS would increase ridership and reduce personalized motorized vehicles on roads. Sustainable mode of transport Improves mobility for users to travel. 3 4 Benefits Intelligent Transport Systems (ITS)

DIGITAL MONEY AT BMTC

Smart Card Initiative Plug revenue leakages due to pass misuse Increase adoption of monthly/daily passes Improve commuter experience Enable common mobility across various modes BMTC has embarked on converting paper based season tickets / commuter passes to Smart cards with e-Money. Primary Objectives

INNOVATION !! BMTC has adopted an Financial Institution based approach for implementation of solution  Financial Institution (FI) engaged for implementation of EMV enabled smart card solution for BMTC smart card  Almost zero cost to BMTC on cards infrastructure. FI funds cost of Clearing house and card Capex and Opex, in lieu of access to BMTC commuter base  Smart Cards used for other merchant transactions on which BMTC gets a declared commission  FI pays to BMTC – a) royalty fee, b) ~100% transit revenue from cards, c) per transaction commission for merchants outside BMTC  FI maintains the system as long its engaged  FI promotes the card through advertisements and freebies to incentivize commuter to use the BMTC card for purchases across merchant outlets

Smart Card Based Fare Collection System Commuters Bank issues Pre-paid Co- Branded Travel Card City Buses Bus/Metro terminal parking Fare collection BMTC hired a Financial Institution (FI) to issue a Pre-paid EMV enabled Travel card to its customers (transit commuters) The EMV* technology based smart cards can be accepted within network of transit operator’s terminals. The Transit Operators fare acceptance terminals would need EMV enabled card readers The same card can be used on network of other payment methods like Visa/MasterCard/RuPay/Amex at any merchant outlet Model is convenient for a commuter as Transit Card acts as an ‘eWallet‘ that can be used for all payment needs as single media Model also aids customer to gain loyalty points for usage of cards on transit or non transit network. BMTC hired a Financial Institution (FI) to issue a Pre-paid EMV enabled Travel card to its customers (transit commuters) The EMV* technology based smart cards can be accepted within network of transit operator’s terminals. The Transit Operators fare acceptance terminals would need EMV enabled card readers The same card can be used on network of other payment methods like Visa/MasterCard/RuPay/Amex at any merchant outlet Model is convenient for a commuter as Transit Card acts as an ‘eWallet‘ that can be used for all payment needs as single media Model also aids customer to gain loyalty points for usage of cards on transit or non transit network. Shopping malls/ retails stores etc., Banks Central Clearance House 2 3 Fare deduction instruction 5 Levy Transaction charges on merchant & Bank earns Revenue 6 Bank pays back fixed loyalty & share non-transit transaction revenue with transit operator Fare collection Retail Purchases (Non-Transit transactions) 1 4 Fare Distribution to transit operators

How is it Unique?  Set the ground for the new National Common Mobility Specifications  Interoperable with EMV standards  Brings best practices of payments and financial services industry to public transport  New business model as compared to existing models adopted  Business Model leverages BMTC customer base to significantly substitute investments  Introduction of Financial Institutions (FI) as service provider instead of Card agencies and IT service providers  FI willing to fund and setup smartcard design, distribution, clearing house, card customer services  Reduces risk on technology and vendor lock-in in the services model

What is the Value it offers?  Common mobility enabled with the smart ticketing of BMTC.  Substantial financial benefits to BMTC vis-à-vis existing Mode  Reduced CAPEX (Potential savings of ~ INR 200 Cr to BMTC – Planned outlay for smart card solution)  Potential Revenue Generation through card transactions outside transit network  Receive royalty from FI  Limited Operational overhead as FI offers Card operations and customer services  Reduced Cash management - Promotion of electronic cash  Wider utility of card (doubling up as CC/Debit card) promotes wider acceptance among travellers  Allows multiple card products in market proven for EMV based transactions  Can be extended to other transit operators for the purpose of Common Mobility  Reduce vendor and technology lock-in

Challenges in adoption of Digital Money  Cash is king for many  Farmers, small traders  Digital money inclusion needs elaborate outreach and awareness  ‘Ticketing’ experience in buses is lot different from POS payment experience  Crowd Management  Behavior change – Conductors, Commuters  100% Enforcement is costly, not ‘customer friendly’.  Technology can be an enabler, so long as it works  Connectivity in a moving bus with current infrastructure in cities  Ticketing Terminal battery life - 14-hour service, tickets  Behavior change - easy to blame it on technology  Technology itself is changing  Mobile ticketing as next frontier – the potential and practical difficulties in transit environment

THANK YOU !!