Project History

For several years the subject matter of mobile commerce has been the field of view of the Infocommunication Union (ICU). The ICU’s activity in this field can be divided into several stages.

Stage 1

Research: international experience analysis, examining the opportunities of mobile payments in Russia (2004 – 2006)

Research works were initiated by the Infocommunication Union in February 2004 (Resolution of the 3G Association Council (transformed into the Infocommunication Union). By the end of the year 2005 research on developing the system project of the electronic payment platform for mobile networks (“Payment Platform” research) was completed. During the year 2006 the Infocommunication Union had been testing the model of the developed platform in Mobile TeleSystems and Delta TeleCom networks. In the end of 2006 theoretical and practical research results were submitted to the Ministry of Information Technologies and Communications of the Russian Federation.

The final report on “Payment Platform” research was approved by the Ministry on December 14, 2006. At the same time a decision was taken at the Ministry to set up an Interdepartmental working group for mobile payments (Working group). The ICU’s representatives were included into the Working group.

Stage 2

Universal Payment Platform (UPP) Concept development (2007)

In February 2007, following the Working group’s recommendation, the ICU started developing Universal Payment Platform Concept for paying for goods and services by mobiles (“Payments” research).
In June 2007 the ICU’s initiative received the State Duma’s support. At the round table, dedicated to the mobile commerce legal regulation (June 28, 2007) the participants underlined the importance of developing the UPP, as it would lead to significant reduce of the cash payments and would let the state control mass electronic payments efficiently.
The FSUE Leningrad Branch Scientific Research Institute of Communication (LBSRIC) performed the executor of the UPP Concept project, PC ANK and LCC Mobile Payments Systems were the co-executors. The Concept development process included fundamental research work, Russian and international legislation analysis, terminology and diverse UPP models development, etc. The UPP Concept was presented and discussed repeatedly on the ICU meetings and the Working group’s sessions.
For the sake of research convenience and ensuring its practical implementation on September 27, 2007, the ICU Council made a resolution to set up the Mobile Payments Project.
On October 16, 2007, the Collegium of the Ministry of Information Technologies and Communications approved of the UPP Concept. The Collegium members made a resolution to organize the Interdepartmental working group for drawing up suggestions on the Russian legislation amendments and recommended the ICU to continue research work and launch an experimental zone of mobile commerce.
In November 2007 the final report on elaboration of the UPP Concept was approved (“Payments” research).

Stage 3

Mobile commerce experimental zone deployment (2007-2008)

In November 2007 the Mobile Payments Project started the experimental zone launch. The main aim of this research stage was to examine legal and technical interactions among the mobile commerce market participants, to study the opportunities of new technologies’ application and to examine the definite business-models and the technical solutions.

By the middle of the year 2008 the experimental zone represented a conglomeration of three supplementary fragments. Each fragment’s participants (MNOs, banks and processing companies) deploy independent research in one or several prospective directions. The companies’ activity coordination, data collection and analysis, creation of the Russian mobile commerce ecosystem are carried out by the Mobile Payments Project.
During the year 2008 the Mobile Payments Project continued to study the international experience in mobile commerce through the active informational exchange with the international organizations of the telecommunication market. In February 2008 the Project held a round table “Mobile payments and mobile commerce: development perspectives in Russia and in the world” where the representatives of international organizations (GSMA, Cyphermint Inc., Giesecke & Devrient GmbH) participated.
In April 2008 the results of the ICU’s practical research on the experimental zone construction were directed to the Collegium of the Ministry of Telecom and Mass Communications of the Russian Federation and got its approval. The Collegium members recommended the ICU to continue the research, making a special focus on the NFC technology application, and to work out suggestions on the organization of the Common centre for mobile commerce coordination.
In July the ICU Council approved of the independent MNOs’ and banks’ research results in the experimental zone fragments and the recommendations for the NFC technology application. At the moment, these documents and the suggestions on the organization of the Common centre for mobile commerce coordination are submitted to the Ministry of Telecom and Mass Communications of the Russian Federation for consideration and estimation of the realization opportunities.