Università degli Studi di Milano

May 25, 2004

Bluetooth Seminar

2

Seminar Agenda

• Accenture Presentation 15’

• Bluetooth Technology and Market overview 30’

• Bluetooth at work: Micropayments concepts 30’

• Questions & Answers 15’

3

Seminar Agenda

• Accenture Presentation 15’

• Bluetooth Technology and Market overview 30’

• Bluetooth at work: uCommerce concepts 30’

• Questions & Answers 15’

4

• 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

Who is “Bluetooth”?

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• 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

What is Bluetooth?

6

The Bluetooth SIG (Special Interest Group)

9 Promoters

182 Associates2100+ Adopters

IEEE 802.15 WPAN = Bluetooth

Who is promoting Bluetooth?

7

Bluetooth & Open System Interconnection (OSI) Model

Architecture

Physical Layer

Data Link Layer

Network Layer

Transport Layer

Session Layer

Presentation Layer

Application Layer

Bluetooth

8

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

Core Capabilities

9

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)

Interference

10

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 625s later

• Due to national restrictions, keys may be shorter than 128 bits• Additional application-level security can be implemented

11

What should the mobile device do at the beach?

Initial Hype

•World Peace

•Huge markets overnight

Today’s Reality

•Many players

•Interoperability issues

•Poor quality

Expectations and Reality

12Time

Q3 2001 2003 2006+

Devices

1.5b

Standalone

Ubiquitous

Networked

$5/chip

Bluetooth Adoption History

13

• Sometimes, it just doesn’t work• Low bandwidth for some applications• Interoperability• Crowded RF Spectrum

Common Issues

14

Low performance,Lower cost

High performance,higher cost

1

10 100

10

100

1000

10000

100000

WLAN802.11WPAN

802.15 Bluetooth

RFID

Range (meters)

Use

r D

ata

Rat

e (K

bits

/s) • No solution can fill

all needs• Complementary

devices and technologies

Wireless Standards

15

What should the mobile device do at the beach?

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

802.11b Bluetooth

802.11b & Bluetooth

16

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.

17

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

3G & Bluetooth

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Market Sentiment• Europe and Asia Ahead

• US Lags

Global Impact

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• 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).

Industries In the News

20

Seminar Agenda

• Accenture Presentation 15’

• Bluetooth Technology and Market overview 30’

• Bluetooth at work: uCommerce concepts 30’

• Questions & Answers 15’

21

Introduction Video

• Launch the Video of the Mobile Service Link Prototype

22

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

anyplace, anywhere

What is “uCommerce”?

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• Untethered – Not constrained by hardwires of traditional computing

• Ubiquitous – Taking place where a person wants

• Unbounded – Not limited to traditional definition of commerce

What does “U” mean?

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• 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

Bluetooth + uCommerce

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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

26

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...

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Internet Micropayments to the Real World - Architecture (1)

Payment ProviderPayment Provider

Consumer’s bank accountConsumer’s bank account

Blu

eto

oth

Bl u

eto

oth

VendingVendingMachinesMachines

SupermarketsSupermarkets& Stores& Stores

TaxisTaxis

Consumer’s mobile phoneConsumer’s mobile phone

Bluetooth-enabled Bluetooth-enabled vendorsvendors

Ad

vert

isin

g &

Pu

bli

c K

eyA

dve

rtis

ing

& P

ub

lic

Key

En

crypted

gran

t of p

aymen

tE

ncryp

ted g

rant o

f paym

ent

SMS over GSMSMS over GSMTransaction Info & Public KeyTransaction Info & Public Key

Encrypted grant of paymentEncrypted grant of payment

Summing upSumming upor deducting fromor deducting fromprepaid accountprepaid account

Settlement

Settlement

Selection &Selection &AuthenticationAuthentication

11

2233

4455

66

77

88

Billin

g (eith

er prep

aid o

r at end

of cycle)

Billin

g (eith

er prep

aid o

r at end

of cycle)

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

Vendor device advertises its offer via Bluetooth to mobile

phones in range and transmits its public

key for later encryption

Consumer selects article and

authenticates with personal PIN code

SIM Toolkit Application on mobile

phone sends SMS with transaction

information through Network Operator to Payment Provider

Payment Provider logs transaction and

adds it to the consumer’s bill or

deducts consumer’s prepaid account

Payment Provider sends grant of

payment encrypted with Vendor’s public

key via SMS

Mobile phone transmits grant of

payment via Bluetooth to Vendor

Payment Provider bills Consumer

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Internet Micropayments to the Real World - Architecture (2)

Payment ProviderPayment Provider

Consumer’s bank accountConsumer’s bank account

Blu

eto

oth

Bl u

eto

oth

VendingVendingMachinesMachines

SupermarketsSupermarkets& Stores& Stores

TaxisTaxis

Consumer’s mobile phoneConsumer’s mobile phone

Bluetooth-enabled Bluetooth-enabled vendorsvendors

Ad

vert

isin

g &

Pu

bli

c K

eyA

dve

rtis

ing

& P

ub

lic

Key

Accep

tA

ccept

Internet or GPRSInternet or GPRSAuthentication Request:Authentication Request:

Transaction Info & Public KeyTransaction Info & Public Key

Encrypted grant of paymentEncrypted grant of paymentSumming upSumming up

or deducting fromor deducting fromprepaid accountprepaid account

Selection &Selection &AuthenticationAuthentication

11

22

4466

55

33

77

88

Bil

lin

g (

eith

er p

rep

aid

or

at e

nd

of

cycl

e)B

illi

ng

(ei

ther

pre

pai

d o

r at

en

d o

f cy

cle)

SettlementSettlement

Vendor device advertises its offer via Bluetooth to mobile

phones in range and transmits its public

key for later encryption

Consumer selects article and

authenticates with personal PIN code

Mobile phone transmits selection and authentication

information via Bluetooth to Vendor

Transaction and authentication

information is sent via Internet or GPRS to Payment Provider

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

Payment Provider bills Consumer

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

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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...

30

Real World Service Portal - Architecture

Consumer’s bank accountConsumer’s bank account

Internet or GPRSInternet or GPRS

Transaction AuthenticationTransaction Authentication& Settlement& Settlement

Summing upSumming upor deducting fromor deducting fromprepaid accountprepaid account

Blu

eto

oth

Bl u

eto

oth

Consumer’s mobile phoneConsumer’s mobile phone

Ad

vert

isin

g &

pro

visi

on

Ad

vert

isin

g &

pro

visi

on

of

free

co

mm

un

icat

ion

of

free

co

mm

un

icat

ion

Selectio

n an

d au

then

tication

Selectio

n an

d au

then

tication

Bil

lin

gB

illi

ng

Bluetooth-enabled Bluetooth-enabled Vending MachineVending Machine

Bluetooth-enabled Bluetooth-enabled Vending MachineVending Machine

Voice over IP CommunicationVoice over IP Communication

Blu

eto

oth

Bl u

eto

oth

Consumer’s friend’s mobile phoneConsumer’s friend’s mobile phone

Pro

vid

e fr

ee c

om

mu

nic

atio

nP

rovi

de

free

co

mm

un

icat

ion

Pu

rchase

Pu

rchase

Transaction AuthenticationTransaction Authentication& Settlement& Settlement

Vending Machine

advertises its offer

via Bluetooth to mobile phones in

range

Consumer selects to buy and partecipate

to the meeting, authenticates and choices sex,age of

communication participant

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

Payment Provider first sums up micropayments or deducts them from prepaid account, then settles with Vendor and

bills Consumer at end of cycle.

31

Seminar Agenda

• Accenture Presentation 15’

• Bluetooth Technology and Market overview 30’

• Bluetooth at work: uCommerce concepts 30’

• Questions & Answers 15’

32

Seminar Agenda

• Back-up slides

33

Bluetooth Protocol Stack

Protocol Stack

Bluetooth Radio

Baseband

L2CAP

TCSO

BE

X

PPP

TCP/IP

HCILink Manager (LM)Audio

RFComm SDP

Applications

AT

com

34

Protocol Stack Definition

Component DefinitionTelephony Control Specification (TCS)

Bit-oriented protocol which defines the call control signaling for the establishment of audio and data transmission.

Service Discovery Protocol (SDP)Used to query device for available services. Supports the Service Discovery profile.

RFCOMM Serial cable emulation

Logical Link Control and Adaption Protocol (L2CAP)

Supports protocol multiplexing (allowing use of multiple protocols to use Bluetooth services simultaneously) packet segmentation and reassembly and quality of service.

Host Controller Interface (HCI)Provides command interface to Link Manager Protocol and Baseband layers.

Link Manager (LM)The Link Manager handles the setup, authentication, and configuration of links between devices and other protocols.

BasebandThe physical hardware layers and firmware access procedures supporting data and voice transmission. Also known as the Link Controller (LC).

Bluetooth RadioLowest layer of the protocol stack. Defines requirements for radio transceiver to operate in the 2.4GHz range.

35

Alternatives to Bluetooth

System Bluetooth 802.11b IR 3G-UMTS

Frequency 2400-2483GHz 2400-2483GHz .85-.90 um 1.885-2.025 GHz

Communication FHSS DSSS Infrared UMTS

Signal Range Nominal: 0-10M 100M 5M 35KM

Power Consumption

0,1,100mW 100mW 2-5W N.A

Security SAFER+ encryption

40-bit RC4

128-bit WEP

Cyclic redundancy

N.A

AKA 802.15 WPAN Wi-Fi; 802.11 High-rate

Infrared, IrDA

N.A.

Usage WPAN WLAN Point to point Wideband mobile

Bandwidth (raw) 1Mbps 11Mbps 4Mbps 2Mbps

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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

37

Bluetooth Piconet

Master

Slave

SlaveSlave

Slave

SlaveSlave

Slave

38

Bluetooth Scatternet

Slave

Master

Slave

SlaveSlave

Slave

Slave Slave

Slave

Slave

Slave

SlaveSlave

Slave

Slave

Master

Master

Slave

Slave

Slave

Slave

Slave Slave

Slave

Piconet

Piconet

Piconet

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Bluetooth Network Access Point

Laptop

PDA

PDA

CordlessPhoneMobile

Phone

LAN (Ethernet)

InternetInternetAccessServer

AccessPoint