Devices which use smartcard technology are already used to control who can use a cellphone. In others words, the pin number you enter when you turn the device on, tells the SIM card you are a legitimate user.

The other exciting feature of the SIM card is that it tells the network who you are so that you can be billed. So if I use my SIM card in your phone I get billed, not you.

Aladdin essentially uses these features of the SIM and the GSM network.

To use Aladdin you first point your Web browser to an Aladdin-protected Web site. It is quite easy to protect a site with Aladdin by moving your files into a protected directory.

The Aladdin service then challenges you with a page that says "This site is Aladdin protected - please use your cellphone to dial the following number 19xxyyzz).

The xx portion of the number identifies which Aladdin service you are using, the yy number identifies the Web site and the zz number identifies the specific Web session on the site;

You dial the number you are prompted for and your SIM card's caller line identity is transferred to the Web site via the Aladdin service and the GSM network. This takes about three seconds.

The Web site uses the caller line identity to say "Ah, Ronnie has just called" and you are granted or denied access.

Aladdin then manages the state of the Web server by permitting you to view any number of pages (a time limit can be enforced). The parameters are configurable by the host site.

You can use Aladdin to verify someone's identity without having to remember and type passwords and user names. In short, you can charge the user for access to online information.

Remember that whenever you make a phone call, you get billed by the network - the xx portion of the Aladdin number could reflect the amount you pay, R1 if you dial 1901, R2 if you dial 1902 and so on.

The result is that we can effectively charge micro-payments for online content providers and companies wanting to sell products on the Internet. These micro-payments are sometimes as low as a few cents, represent mass transactions and are evident in our daily routines.

In addition to providing rock-solid authentication, Aladdin supports the first truly transparent workable micropayment infrastructure in the world.

How do micropayments compete with credit card transactions? Well they don't really.

The banks that acquire and process credit cards have a lower limit on the transactions that they will process. In other words below R10 the banks do not want you to pay with your credit card because it costs them too much to process the transaction for the revenue that they get.

However, the cellular billing infrastructure is well suited to micropayments and Aladdin utilises this infrastructure to bill a user's cellphone account directly. Calls last a few seconds, charges are minimal and online vendors can earn revenue without the need for a billing infrastructure.

Aladdin technology will work across all GSM networks (in South Africa this means MTN and Vodacom).

You will dial an 083 prefix if you are a Vodacom subscriber, but you will still be able to use the service and authenticate yourself or pay for goods.

You could even use a Telkom phone to connect to the service, but Telkom subscribers do not go through the credit worthiness checks that cellphone users do, so for risk reasons this service may not proliferate.

What does it cost?

The costing model is being finalised at the moment, but tariffs will probably vary from around 20c to a few rand.

The other exciting thing is the introduction of prepayment cards for GSM.

In other words, the Aladdin service could operate on a debit card basis - prepay and when it runs out, it runs out . . .

This technology represents a revolution in transaction processing. Aladdin, which has recently received a worldwide patent, is even more exciting when one considers that every cash register can be connected to the Internet. So can every vending machine, parking meter, ticket dispenser and so on.

So, don't be surprised if the next time you visit your local supermarket the cashier says "How do you want to pay? Cash, credit card or cellphone?"

Cellphones are pervasive, easy to use, safe and, hey, we live in a wired world.

So surf, shop and be merry.

For more information go to www.mtn.co.za/aladdin/

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