suica – keeping a stable operation and expanding services

Suica～ Keeping a Stable Operation and Expanding Services ～

East Japan Railway CompanyHajime Yamada

Outline of JR East

*Numbers are as of FY ended March 31, 2015 $1 =120JPY

GreaterTokyo Area

Railway Network: 7,457 km

No. of Trains: 13,000 /day

No. of Passengers: 17 million /dayOperating Revenue: $ 23 billionNet Income: $ 1.5 billionNo. of Employees: 73,329Suica in circulation:over 50 million

Daily station passengers

0100,000200,000300,000400,000500,000600,000700,000800,000

Shinjuku

Ikebuku

Shibuya

Shinaga

waShin

Akihaba

Kitasen

adanob

aba Ueno

Yuraku

choTac

hikawa

Hamama

tsucho Osaki

Tamach

anoKam

Outline of JR East

High-Speed Intercity

Metropolitan Regional

Use Case ofSuica Card and mobile Suica

Touch and Go !

R/W : Reader/Writer

Just Touch the Suicagently on the R/W of the Ticket Gate

1. The processing time of fare transaction has to be within 200ms.2. The RF communication distance has to be over 85mm.

Gates are designed to be capable of 60 passengers per a minute.

Suica card 200ms

Our Requirement

The Rush Hour Traffic Simulation of Tamachi Station in Yamanote Line

神田

御徒町

上野

鶯谷

日暮里

高田馬場

新大久保

新宿

有楽町

新橋

浜松町品川大崎五反田

渋谷

原宿

代々木

恵比寿

秋葉原

田町

東京Tokyo

ShinjukuShibuya

Tamachi

Passenger Flow Simulation

Smooth flow of Passengers Disruption ofPassenger flow

47 people/min 32 people/min

If the performance is poor, passengers are piled up on the platforms. Dangerous! ⇒ High performance is mandatory.

Passenger Flow Simulation

Use case of Card

Card Only

Ticket HolderWallet 17

Use Case of CardPassengers don’t want to worry about:- how to hold card face, up and down- interference caused by the fingers, coins, notes, other smart cardsCard performance is affected by the following items:

- passenger touches the card surface by hand or finger,1. Antenna condition is changed by the influence of a dielectric2. Magnetic field is disturbed by users own hand

- passenger inserts the Card into the wallet or the bag3. If card is put on many coins, the magnetic field is disturbed4. If card piles other contactless cards, resonance frequency move and received power is decreased. 18

Keeping a Stable Operation

Suica System Control Center

On March 1st 2007Suica System Control Center was established.

On Dec. 1st, 2006 just 0:00 am in the midnight, more than 1,000 ticket gates went down because of the program bug.One of the engineer, who happened to work in the office, got the information and collaborated with other engineers.They took measures andrecovered the ticket gates at 4:20 am.(3,000 people affected) To Expedite the trouble shooting

2) The Ticket Gate is automatically checked every early morning at the Suica Control Center.

1) The update data is downloaded to the ticket gates every night.

Midnight Check for Ticket Gate

SuicaDevelopment Strategy

4.Integrationwith external networkscompanies

3.Tie-ups with other companies

Suica Development Strategy

2. Expanding electronic money

IC railway ticket1. Expanding Suica holders

Point exchangeprogram

Auto-top up

Increase Suicamember stores

Suica settlement through the internet

mobile SuicaCombining Suica with credit cards

Mutual use with othertransportation companiesTicket reservation and purchase via mobile phones

life styleservices 23

1. Expanding Suica HoldersMutual Use with otherTransportation Companies

IC Card Ticketing Service Spread all over Japan

（Nagoya City Transportation and Meitetsu）（Fukuoka City Transportation）（ＪＲ Kyushu）（ＪＲ Hokkaido）（Nishitetsu）

（Private railway in Kanto）（ＪＲ Tokai）（Private railway in Kansai）（ＪＲWest）（ＪＲ East） JR East disclosed the specifications for the IC card ticketing service to other transportation companies. 10 transportation IC cards have been born within past 12 years since Suica service started.

Mutual Usage of 10 Transportation IC Cards

Mutual Use of 10 Transportation IC Cards Any of these 10 Transportation IC cards…can be used in transportation such as railways, subways, buses, taxies and so on. can be used for purchases of tickets at ticket vending machines in the stations.can be used as e-money.can be topped up in any areas.can show the usage history on display and in print.

100%200

2002/0

2003/0

2004/0

2005/0

2006/0

2007/0

2008/0

2009/0

2010/0

2011/0

2012/0

2013/0

2014/0

2015/0

IC Usage Rate at the Gate

90.1% July, 2015

2. Expanding Electronic MoneyIncrease Suica Member Stores

Suica e-Money

Convenience Store

Station Buildings

e-Money Terminals for Various Shops Drink Vending Machine（For Suica Use Only)

Parking Fare Adjuster

Coin LockerTicket Vending Machine

In-town

In-station

Convenience Store Restaurant Super Market

Shopping in-plane Coffee Shop Fast food Drug store

Parking Clothing store

Amusement Bookstore

Vending machine Hotel

School Parking

Hospital

Convenience store Restrant Vending machine

Store in-station Fast food Coin locker

Coffee shop Station building

Shopping in-train

E-money service started in Mar.‘04

Event Discount store

Net Shopping

Suica e-Money

In-station In-townTransaction(as of Aug.2015)

In-town67%

In-station33%

ConvenienceStore64%

ConvenienceStore55%

Vendingmachine23%Vendingmachine37%

other13%other8%

The places where e-Money is used these days

In-town

1. We began to expand e-Money into “In-station” first, then into “In-town”. But “In-town” is twice the transaction of “In-station” nowadays.2. Because of Aug.,many people seem to buy drinks fromvending machines.

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

220,000

240,000

260,000

280,000

300,000

320,000

'04/3 9 '05/3 9 '06/3 9 '07/3 9 '08/3 9 '09/3 9 '10/3 9 '11/3 9 '12/3 9 '13/3 9 '14/3 9 '15/3

Suica e-Money TransactionsMAX 5.22 million transaction / day(Aug.7, 2015)Aiming at 8 million tran./day by 2020

Available at over330,000 locations(as of Feb. 2016)

“Rich” and “Thin” Client e-money systemRich

e-MoneyServer e-MoneyServer

“Rich” Client(High Cost) “Thin” Client(Low Cost)

data center- Application- KeyThin ClientCenter Server

data center

shop- Application- Key

via Network

2012年1

月201

2年4月

2012年7

月201

2年10月

2013年1

月201

3年4月

2013年7

月201

3年10月

2014年1

月201

4年4月

2014年7

月201

4年10月

2015年1

月201

5年4月

2015年7

月201

5年10月

TOTALThin Client

Number of Thin Client Terminal

3. Tie-ups with other CompaniesCombining Suica with Credit Cards

View Suica Card

“Auto top-up” service at the ticket gate has been started in Oct. 2006.

We have coupled Suica with the VIEW credit card in June 2003.

Front Reverse

International Brand

Our In-House Credit Card

Suica Commuter Pass

Auto Top-up Service

For example, when the balance becomes less than ¥3000, ¥5000 will be added automatically at the gate.40

The Number of View-Suica Holders

Sales Volume$1,500Million ( FY2015.3)

View-Suica Holders4.6 Million ( FY2015.3)

2007年

1 月20

4月20

7月20

2008年

1 月20

4 月20

7月20

2009年

1 月20

4 月20

7月20

2010年

1月20

4 月20

7月20

2011年

1月20

4 月20

7 月20

2012年

1月20

4 月20

7 月20

2013年

1 月20

4 月20

7 月20

2014年

1月20

4月20

Number of the Cards set for Auto Top-upNumber of the cardsset for Auto top-up:3.16 Million（As of August 31, 2015)

Auto top-up service started for View-Suica from Oct. 2006 for personalized Suica from July 2009 for mobile Suica from Mar. 2010

Suica Tie-up Strategy: Combining Suica & Credit

Bic CameraJAL Enable Suica to be used in

variety of situationsAeon

View Suica CardSuica Card

Airlines

Mass electric appliance stores

Mizuho,Yokohama, MTU, MS, JP

4. Integration with External Networksmobile Suica

Hundreds of handset for mobile Suica

mobile Suica ｰ A Combination of Suica and Mobile PhonesMobile phone+ Communications

Screen display

Jan. 2006 mobile Suica service debutOct. 2006 Online payment service started

Mar. 2007 Interoperation in Metropolitan area startedMar. 2008 Shinkansen express ticket service started

mobile Suica service history

Mar. 2010 Auto top-up service started

FeliCa IC

Jul. 2011 Available for smart phones (AndroidTM) Jul. 2011 Available for smart phones (AndroidTM) 47

Stored Fare / e-Purse (Recharge,Remaining Value, Transaction Logs)Commuter Pass (Buy, Renew, Cancel)Quick Charge

1st class seat (Green Car) (Buy, Cancel)JR East Shinkansen Express TicketLink to JR Central Shinkansen Express Ticket Reservation SystemUser Menu

Top Menu

Top-up

Online top-up by credit cards by money transfer from bankaccounts by MNO accounts

Top-up at storesby cash

Auto top-upat passenger gatesby credit cards

Top-up at the ticket vending machinesby cash

Everywhere(Over The Air) at stores at stations49

Get on Train by mobile SuicaLocal Train

Get on 1st class car

Purchase and1st class ticket download Validation of1st class ticket

Check-out: with Fare Payment or Commuter Pass

Check-in withSF or CommuterPass Conductor inspects Suica(sometimes)

Get on Train by mobile SuicaShinkansen (High Speed Train)

Reservation, Purchase and e-ticket downloadCheck-in

Check-outGet on Shinkansen 51

Increase of mobile Suica Holders

3.68 millon holdersAs of Jan.28 2016

02006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Jan.28, 201610 years anniversary

The Sales Volume of mobile Suica

FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013

Shinkansen ticketFirst Class ticketCommuter PassAuto Top-up(SF)SF (e-money)

7.4％ of Railway Operations Revenues

Mobile Suica

Million

Ikebukuro StationShinjuku Station Tokyo Station

(100yen⇒US$1)The top station of the recharged e-Money amount is Shinjuku. However the recharged e-money amount through the Mobile Suicais almost 4.3 times as much as that of Shinjuku.

The Comparison of Recharged Suica e-Money

As of FY2012

4.3 Times of Shinjuku

1. The RF communication distance has to be over 85mm.2. Gate has to be capable of 60 passengers per a minute.

mobile Suica

Test for mobile Suica

RF Performance Test

Every mobile FeliCa has this mark at the most sensitive position.

8580：4035302520151050 -40 -30 -20 -10 0 +10 +20 +30 +40[ mm ]

X-axis

Z-axisMeasurement Points

RF Performance Test

3 mm height

Along X-axis, there are 3 consecutive columns with communication failure within 3 mm height.⇒ This handset does not pass the test.

OKFail

RF performance test

Lesson Learned on Battery Low Mode

Battery Low Mode:Not enough power as mobile phone but some power to drive NFC chip 60

Lesson Learned on Battery Low Mode

Requirement• 24 hours Suica availability after a mobile phone turned off• No issue over 10 years operationCustomer adoption• Well received• First 2 years, 10 calls per month asking about Battery Low Mode• Quite infrequent those days

What we arechallenging now

What we are challenging nowTo solve the issues for Tokyo Olympic & Paralympic in 2020To find useful information by analyzing Suica Usage DataTo harmonize our infrastructure with NFC Forum specifications

So many foreigners will arrive at Narita/Haneda airport.1. Very long waiting line may be formed to buy Suicacards at Narita/Haneda airport station. Is it possible to sell Suica cards abroad in advance?

Issues to be Solved for Tokyo Olympic & Paralympic in 2020

05,000,000

10,000,00015,000,00020,000,00025,000,00030,000,000

Foreign visitors to Japan

2. Very long waiting line may be formed to refundthe deposit and the balance of the Suica cardat Narita/Haneda airport station.How about issuing the no refund Suica card?

This special Suica will be sold with no deposit. Users can donate the balance at Narita/Haneda airport. 3. It is rather troublesome to recharge the Suica card

at the ticket vending machine because of theunfamiliar operation.One idea is to develop a Suica card having a free

Issues to be solved for Tokyo Olympic & Paralympic in 2020

4. At the present it is impossible to recharge the Suicacard using a credit card issued in a foreign country.We have to negotiate the commission fee with thecredit card companies.

Issues to be solved for Tokyo Olympic & Paralympic in 2020

We are making every effort to provide service satisfactory for customers.

Analyzing Suica Usage RecordsThe Case of “Suica & N’ex”

Combines an original design Suica card and a reduced price round trip ticket for the Narita Express (N'EX)2007-2014

(1) We have not recognized so far:Analyzing Traveling Patterns and Findings

Where do foreign tourists go with Suica?

Where do foreign tourists stay?

Do they take N’EX for the return trip as well?68

(2) Finding from Suica dataAnalyzing Traveling Patterns and Findings

ShinjukuHarajukuShibuya

Roppongi Yuraku-cho 21.2%

Mitaka

Tsukiji Market

Popular Destination

9 km9 km9 km9 km9 km9 km9 km9 km9 km

池袋

表参道

上野

御徒町5.0%

浅草

秋葉原 18.0%

東京14.1%

有楽町 21.2%

新橋 13.7%

汐留

築地 4%

築地市場 15.1%赤羽橋駅

台場 7.1%

お台場海浜公園4.9％

※ ％はIDiの割合

舞浜

吉祥寺

三鷹

新宿

原宿

渋谷

自由が丘

恵比寿

六本木

下北沢

9 km9 km9 km9 km9 km9 km9 km9 km9 km

Ikebukuro

25.3% Asakusa

Akihabara 18.0%

Tokyo14.1%

Yurakucho21.2%

Shimbashi13.7%

Tsukiji-shijo15.1%

Daiba7.1%

※ ％はIDiの割合

Maihama

Kichijoji

Mitaka

Shinjuku

Harajuku

Shibuya

Jiyugaoka

Roppongi

Popular Destination

We utilize the results from analysis such as・・・- Where should we install broadcast equipment thatspeak in foreign languages in high priority?- Where should we recommend those foreigners to visit? 69

We want to have a following world in the future;1. We can offer “mobile Suica service” to the foreigners visiting Japan with a mobile-phone of their home country.2. People with Japanese mobile-phone can get on the public transit in foreign countries, like a “mobile Suica” in Japan.To realize this world, the specifications of NFC chip have to be harmonized and mobile-phones have to be made as a global model.Of course, JRE’s infrastructure should be harmonize with NFC Forum specifications.

To harmonize with NFC Forum spec

Mobile FeliCa Technical Communications Committee (モバイルFeliCa技術連絡会）

From April, 2015

e-Money providers

Already Harmo-nized in Japan

Mobile FeliCa RF Performance Certification

Already harmonized in Japan

e-Money providers

In the future

In the long term we are preparing to design our instruments to be compliant to NFC Forum specifications.72

The core business of JR East1st : Railway Business

High-speed, Metropolitan, Inter-city, Regional2nd : Life-style Service Business

Shopping Centers, Hotel, Retailing, Restaurants3rd : Suica Business

--- establishing as a 3rd core business now ---(1) Expanding Suica to all railway networks(2) e-Money(3) Suica Information Business

Thank you for your kind attention.

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