White Paper on CDMA Enabled Wireless PoS solution

July 2007 For restricted circulation only - 1 -

White Paper
On:





CDMA Enabled
Wireless Pos Solution









White Paper on CDMA Enabled Wireless PoS solution
July 2007 For restricted circulation only - 2 -




EXECUTI VE SUMMARY

With a mission to lead the financial revolution in
India towards payment service for consumers and
business accounts, Venture Infotek provides world-
class technology, industry experience, expertise and
excellent service to the customers and business
partners.

Venture Infotek believes in understanding the
dynamics existing in the Indian market, ensuring the
precise use of technology to enhance the
development of requisite infrastructure, knowledge
and operational methodologies to compete in the
global marketplace.

To maintain our tradition of being technology savvy
as well as customer centric, we at Venture Infotek
today seek to provide a reliable, efficient, cost
effective and scalable solution of CDMA enabled
wireless PoS operation across India, which we
believe would go a long way in achieving our
mission of Changing the way India Transacts

This document is intended to throw light on the
need, process flow, technical highlights, and other
such details related to the proposed CDMA
enabled wireless PoS solution.

This document is intended as a reference guide to
our clients, technology partners, merchants and all
other parties involved in providing as well as
availing the concerned CDMA enabled wireless
PoS solution.






In the pages that follow we begin with getting a
clear understanding of the need for a CDMA
enabled wireless PoS solution. Whereby we seek
answers to the fundamental question of What
purpose would this solution solve?


We then move on to see the value proposition of the
solution offering to the acquiring banks as well as
the merchants. And finally take a look at the
procedure for getting started, ongoing maintenance
measures and commercials involved.


For further information please contact:

Mr. Deepak Ananth
Asst. Vice President Products & Solutions Group
Venture Infotek Global Pvt. Ltd.
701, Interface 11
Malad (West)
Mumbai - 400 064
Tel: + 91-22-40424000 Ext: 4025
Fax: + 91-22-40424400
Email: deepak.ananth@ventureinfotek.com














White Paper on CDMA Enabled Wireless PoS solution
July 2007 For restricted circulation only 3







TABLE OF CONTENTS


1. Overview ............... 3

2. Pos Solution offering .3

3. Call flow ..4

4. CDMA Connectivity Diagram 4

5. Technical highlights of CDMA Solution 5

6. POS terminal Compatibility 5

7. Value proposition to Acquiring Banks 5

8. Value proposition to Merchants ...5

9. Risks / Drawbacks 6

10. Getting Started .6

11. Maintenance .6

12. Daily Checklist .6

13. Commercials .7

14. Service Provider tie-ups 8

15. Glossary 8




Copyright 2007 by Venture Infotek Global Pvt. Ltd. No part of this document may be used reproduced in any manner
whatsoever without written permission except in the case of brief quotations embodied in critical articles and reviews.

White Paper on CDMA Enabled Wireless PoS solution
July 2007 For restricted circulation only 4

1. OVERVI EW

This document in intended to throw light the need,
process flow, technical highlights, and other such
details related to the proposed CDMA Enabled
Wireless POS Solution.



This document is intended as a reference
guide to our clients, technology partners,
merchants and all other parties involved in
providing as well as availing the concerned
CDMA Enabled wireless POS solution.

Venture Infotek reserves the right to alter the
Contents of this document at its sole
discretion without having to inform any third
party.



2. POS SOLUTI ON OFFERING

HOW IT WORKS:

1. Merchant should have a CDMA ready POS
Terminal, a CDMA phone and the corre-
sponding data cable (cable used to connect
the CDMA phone with the POS terminal to
communicate).

2. Merchant to opt for one of the tariff schemes
From the CDMA Service Provider.

3. The POS terminal must be connected to
the CDMA enabled wireless phone via the
RS-232C using the data cable, for it to
carry out POS transaction.

4. Once a card is swiped on the POS termi-
nal, the CDMA phone establishes a TCP/IP






connection to the Venture Infotek switch host
via the CDMA Network.

5. Merchant enters the transaction amount and
presses the Enter key

6. Authorization is sought the normal way and
the charge slip gets printed.

7. Thereafter, the connection gets terminated/
Disconnected.

HIGHLIGHTS:

This offering eliminates the use of PSTN
Line (normal land line) and VPN Network
& PSTN dial-in concentrators.

Reduces cost of POS terminal to remote
locations with the CDMA Network spread.























White Paper on CDMA Enabled Wireless PoS solution
July 2007 For restricted circulation only 5






3. CALL FLOW


1. When a card is swiped on the PoS terminal,
it initiates a data call with the CDMA
network.

2. After authentication the user as a PoS
Terminal for VI, PoS is assigned an IP
Address and a PPP session is established
With the LNS that is dedicated to VI






3. Using the destination IP address of the VI
switch the transaction data is sent from the
terminal through the CDMA network to
Venture Infoteks Switch/Host via the IP link
Implemented either on FTTB or thru radio
(backhaul)

4. After the transaction gets completed, the
PoS application disconnects the call and
Returns to normal mode


4. CDMA CONNECTI VI TY DI AGRAM

































White Paper on CDMA Enabled Wireless PoS solution
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5TECHNICAL HIGHLIGHTS OF CDMA SOLUTION

The conventional POS connectivity user the
Wired telephone connection. Whereas the
FWP/FWT or CDMA Mobile Phone uses
the non wired CDMA network. This
translates into high availability.

Reduces inter exchange failure and
Interconnect failures.

Last mile backhaul over radio link from the
CDMA Service Provider to VI with
redundancy.

Secure transaction uses tunneling, firewall
and data encryption on IP link for every
transaction. Also every terminal is
authenticated with a user id and password.

CDMA based security on the Air interface.

The core switching elements provide
features like secure authentication of
mobiles that prevents access to any
cloned/fake terminals.

Switching Elements using optical fiber
network in a ring architecture, thereby
providing fault tolerance and rerouting
capabilities in case of any equipment failure
or fiber breach



6. POS TERMI NAL COMPATIBI LI TY

Presently, this solution is supported only on the IP
terminals. The following terminals (make / models)
are tested and found to be compatible with the
CDMA solution by Venture Infotek







Axalto MagIC 5100

Axalto MagIC X1000

Ingenico E0710

The above listed terminals have been tested for
CDMA compatibility.

Venture Infotek is currently in the process of testing
all other terminals (brands & models) for CDMA
compatibility.


7. VALUE PROPOSITION TO ACQUIRING BANKS

Deploy on-line terminals on nationwide
basis through CDMA Mobile network
providers with wide coverage including
small towns and cities

Quick and easy to deploy

Provides true mobility to merchants. Viz:
Applications such as traveling salesmen,
exhibitions, etc

Broadcast Fraud Alerts / Special scheme
SMS to merchants

Highly scalable at short notice

High availability as the transaction runs on
highly reliable CDMA Network

8. VALUE PROPOSITION TO MERCHANTS

Lower operating call charges per
transaction ( more than 50% cost reduction
per transaction )


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Value added feature of receiving broadcast
SMS alerts from Banks / Customers

Mobility of PoS terminal offers greater
convenience and comfort to the customers

On-line connectivity even in smaller cities

Less risk

Ability to accept all cards

The CDMA instrument can be used for
personal use when not in use with the
terminal

Attractive rental scheme(s) of CDMA
Service Providers allowing merchant to
choose the equipments and air-time tariff
scheme based on the volume, nature of
business and other such parameters

Wide coverage within the country


9. RISKS / DRAWBACKS

Any failure of mobile will results in non-
transaction with the terminal.

Any failure of data cable or RS232 port of
terminal or mobile with also result in non-
transaction

Low/No signal means delay/no connectivity

Terminal mal functioning

Downtime of LNS and Backhaul






10. GETTING STARTED

a. Bank to purchase or hire (as per agreement
with Venture Infotek) either of the three
CDMA compatible PoS terminals

a. ME should have a CDMA mobile phone or
CDMA enabled FWP and data cable

b. The POS terminal must be connected to
the CDMA enabled wireless phone via the
RS-232C data cable

c. At he point of installation request to VI,
the bank must specify in the request form
that CDMA application has to be
downloaded onto the terminal

d. VI will then configure the customized
CDMA software for the ME terminal and
install the same at the ME location.


11. MAINTENANCE

Venture Infotek will continue to look after
the maintenance and day-to-day support
requirements of the hardware and software
of the PoS terminals as well as the relevant
Transaction Processing and Management
services as per agreement with banks.

Maintenance of the CDMA mobile phone
and data cable will be looked into by the
CDMA service provider opted for by the
merchant.









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12. DAI LY CHECKLIST

PREVENTIVE MAINTENANCE TO ENSURE
SMOOTH FUNCTIONING OF SYSTEM:


CDMA mobile phone or FWP must be
checked for battery charge level at regular
intervals so as to ensure that it does not
run out of charge and hence disrupt ongoing
transaction operations.















Perform daily Terminal Health Checks
Test transactions for end-to-end
connectivity.

Check for loose connections or broken
contacts.




13. COMMERCI ALS


STARTUP COSTS


I NCURRED BY

APROX. COST

Either of the three CDMA compatible PoS
terminals



Acquiring Bank

Rs. 12,000/-

CDMA mobile phone /
CDMA-enabled FWP / FWT

Merchant

Merchant to choose from
Multiple scheme available
With CDMA service providers
as per his specific requirement


RS-232C data cable


Bank / Merchant
( As per agreement )


Rs. 1,200/-
( Low cost data cables
are also available)






White Paper on CDMA Enabled Wireless PoS solution
July 2007 For restricted circulation only 9



RECURRING COST


I NCURRED BY

APROX. COST

Monthly tariff to CDMA service provider
(Cost per transaction is cheaper than local
dialup. Cost saving of more than 50% of
existing call charge )


Merchant

Subject to the tariff rates
As specified by the WLL/
CDMA service provider
opted by the merchant


Monthly service charges to VI
( No additional charges for enablement of
wireless PoS )


Bank

As per current PoS agreement
with Venture Infotek


14. SERVICE PROVI DER TI E-UPS

PRESENT CDMA SERVICE PROVIDER

Presently, Venture Infotek has tied up with Reliance
Infocomm to use their CDMA Network
Service. This Network Supports the
Reliance India Mobile (RIM), their FWP
and FWT devices

A separate compatible RS232 cable needs to be
procured along with the Reliance India Mobile as
Well as FWP or FWT devices for connecting the
device with the POS terminal.

GOI NG FORWARD

Venture Infotek proposes to avail the services of
other CDMA Network Service Providers for its
CDMA based Wireless POS Services at its sole
discretion without having to inform any third party.






15. GLOSSARY

AAA - Authorization, Authentication
and Accounting

CDMA - Code Division Multiple Access

CUG - Closed Uses Group

FTTB - Fiber To The Building

FWP - Fixed Wireless Pone

FWT - Fixed Wireless Terminal

IP - Internet Protocol

L2TP - Layer 2 Tunneling Protocol

LNS - Layer 2 Network Switch

PPP - Point-to-Point Protocol

PoS - Point of Sale

RADIUS - Remote Access Dial in
User Service.
RAN - Radio Access Network