Select Committee on Transport Written Evidence


Memorandum from the Alco Group Ltd (TPT 02)

  1.  ALCO is a strategic consultancy in ICT. One of its founders, Chris Oulds was the TfL (then London Transport) Project Manager during the development of the Oyster Card. Alan Leibert was an editor on the design of the ITSO Specification, the first General Manger of the ITSO organisation and is currently a consultant to ITSO. In addition, he is currently an editor on the European standards committee developing the pan-European equivalent to the ITSO smartcard transport ticketing system.

  2.  On the issue of integrated ticketing, rail has long had an integrated ticketing system managed by the Rail Settlement Plan (RSP) division of the Association of Train Operating Companies (ATOC). However, the same cannot be said for buses; indeed the deregulation of buses has meant that competition positively works against integrated ticketing. The Government's strategy of using ITSO as a way to promote integrated ticketing would be fine if the strategy was supported by a fully proven product and by the management activities of the ITSO organisation; however since neither is the case the strategy falls down. Why should rail operators with a perfectly adequate ticketing system pay out millions of pounds to implement smartcards to achieve the same result (for them)? Why should bus operators support their competition by agreeing to integrated, multi-operator ticketing?

  3.  While ITSO, as defined and implemented, meets all the requirements of the DfT, the transport industry and passengers, take-up has been slow as a result of poor management of the development of ITSO by both its organising body and the DfT which has resulted in it taking far too long to be completed. This in turn has led to lack of confidence by operators that "it will ever happen". In addition, the lack of ITSO in-house testing before it was made available to the operators and their implementers has acted as a positive disincentive to early adopters.

  4.  One knock-on effect of the long gestation of ITSO is that new technologies are overtaking ITSO; examples being the growing use of the mobile phone as the prime user interface, Near Field Communication (NFC) to allow mobile phones to replace smartcards, and contactless payment cards to be used directly as pay-as-you-go tokens. A number of operators and local authority transport planners are now considering whether to leapfrog ITSO straight to these.

  5.  Experience in London, where Oyster was an efficiently developed, implemented and tested project, shows us that smartcard ticketing is very acceptable to passengers, works well and speeds up throughput of passengers, including reducing bus boarding times. However, it must be remembered that the London environment is essentially a closed system and does not parallel the competitive multi-operator environment in the rest of the country; and Oyster was designed specifically to meet this requirement.

  6.  The current Scottish implementation of ITSO is of very limited assistance at present as it is solely for concessionary fares at the moment and is still in its deployment phase. Essentially it is acting as a test-bed for ITSO.

  7.  Wales and Scotland have both gone the route of a national, free concessionary scheme and it is hoped that England will follow this same path. In order to properly manage concessionary travel spanning the English and Scottish border and the English and Welsh border, as well as properly to support multi-modal travel, the use of an ITSO smartcard scheme is essential, subject to ITSO getting "its house in order" as discussed in paragraph 3 above.

February 2007





 
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