Apple created ibeacons utilizing Bluetooth low-energy (BLE) technology, offering a new

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1 Angela Hart Linda Huber Mia Gao Wenting Mai Laura Werthmann Abstract: Apple created ibeacons utilizing Bluetooth low-energy (BLE) technology, offering a new method to interact with customers utilizing their smart devices. Locally-placed beacons allow companies to send messages to consumers phones if the user has downloaded the corporation s application, allowed certain permissions, and has their Bluetooth on. Unlike GPS, beacons are more specific, being able to identify a person s location within inches. Currently, retailers, stadiums, airports, museums, and offices can use beacons. Consequently, companies can track a person s location and data via the application, using ibeacon technology. The beacon device itself cannot store information, but allow third parties to access content. ibeacon technology is still not ideal and needs to be streamlined for future use. Key Words and Phrases: ibeacon, ibeacons, beacon, Bluetooth, BLE, smartphones, smart devices, iphone, Apple, context-aware, location-aware, computing, GPS, Estimote, and sociotechnical

2 Beacons are a Bluetooth positioning technology that was introduced by Apple in ibeacon technology uses Bluetooth low-energy proximity to transmit a unique identification number which can be received by the phone s application or software installed on nearby smart devices. Beacons are a part of the larger context-aware category, which will emerge as the third great wave of modern digital technology. Context-aware computing will revolutionize the way we work, live, and play (Townsend 345). i This includes additional context-aware and locationaware technologies (Figure One). Context-aware computing relates to the user within their environment, it adapts according to the location of use, the collection of nearby people, hosts, and accessible devices, as well as to changes to such things over time (Shilit). This is demonstrated by a proximate selection, in which local objects or other devices are made more accessible. For example, factors require location naming, surroundings, known users, and a set of places all described through weighted choices by location or names, bandwidth, and virtual listings (Shilit). ii ibeacons provide a new way for mobile users to interact with their local environment via their smart devices. ibeacon compatible devices include iphones (4S, 5, 5S, 5C), ipads (ipad Mini, ipad, ipad Air), and the ipod Touch. iii Beacons are the devices that transmit the signal to a device s BLE specification and is used to create BLE chipsets which are then installed into beacons. BLE communication comprises of advertisements of small packets of data which are broadcast at regular intervals through radio waves. BLE broadcasting is a one-way communication method; it simply advertises its packet of data. These packets of data can then be picked up by smart devices nearby (How ibeacons Work). The beacon enables the smart device to perform actions when in close proximity to the ibeacon. iv Beacons are highly accurate ranging from ten feet to one thousand feet (Marcellin). A user must

3 already have the proper application downloaded to their device, as well as granted permission to the company to send messages, prior to receiving messages using the ibeacon technology (Figure Three). v For instance, smartphone apps can approximately find their user s relative location to an ibeacon in any given room. By utilizing a low-energy Bluetooth connection in conjunction with locally-placed sensors, commonly referred to as beacons, ibeacon technology allows companies to interact with consumers in a new manner. Although the term ibeacon is typically applied to the entire system of communications between a beacon and an application, ibeacon technology refers to Apple s patented protocol for information transfer via BLE. In order for a BLE advertisement to be an ibeacon signal, the data sent by the beacon must follow Apple s patented format. Apart from an ibeacon prefix, this format has four main components; a proximity UUID, a Major and Minor string, and Tx Power. The Universally Unique Identifier, UUID, is application specific. For example, all beacons used by Macy s to speak to the Macy s app would share the same UUID. vi The Major denotes a specified subset of the larger family. For instance, all the Macy s beacons may be in one particular store. The Major value further specifies a specific ibeacon and user case (Gilchrist). This information tells the app which specific Macy s store you are in. The Minor further specifies which specific beacon the smartphone is picking up. The Minor value allows further subdivision of the user case (Gilchrist). The app using the beacons would use this information to help determine which specific part of a store the user is in. For example, it could be the department within a store or a particular area of a theme park (Gilchrist). Tx Power records data about the signal strength between the beacon and the scanning device in order to calculate more precisely the user s distance from a given beacon. This signal strength is translated into three general zones, immediate, near, and far.

4 Essentially, beacons are the physical devices, which send location information to a user s phone, ipad, or ipod. Beacons function by transmitting a one-way signal that can be picked up and read by nearby smart devices. This one-way signal is known as an advertisement, which is used to trigger an advertisement on a user s phone (Figure Two). In Bluetooth terminology, a user s phone is a scanner looking for a beacon s advertisements. ibeacon and BLE beacons are not capable of tracking consumers if they have not granted permission to receive notifications. Since beacons continuously broadcast unique identification information, they are relatively easy to track. Additionally, information is passed from the cloud to the application, and is not stored in the process. Unfortunately, the Bluetooth sniffer application can determine beacon s signatures and easily spoof them. Since ibeacons are numerically labeled to associate certain devices with particular locations, if someone were to learn the number, they could clone the device. Now, the network-technology headquarter, Cisco, is finally providing a beacon management service to beacon users. Swedberg Corporation mentioned Cisco s new service saying, Using Cisco s Connected Mobile Experience (CMX 10.0) software and Wi-Fi access points fitted with Bluetooth Low-Energy (BLE) modules, the dashboard (part of the company s CMX 10.0 platform) can calculate the locations of Bluetooth beacons and place them on an indoor map (Enis). The indoor map will assist users to verify the location of the beacons determining when the device was placed or if they were placed too close to each other. In addition, users will be notified if unauthorized parties installed any beacons. The Fayetteville Free Library (FFL) in New York recently began experimenting with five BluuBeam devices, four of which will be used to duplicate event notifications and other news on area-specific digital signage. The fifth unit will be positioned to send notifications to people

5 outside the library. FFL Executive Director, Sue Considine, said, For instance, in the café, daily specials; in the children s area, what s happening there that day; in the Fab Lab, things that have been made (Enis). Patrons can then easily save information that they are interested in, or forward a message to a friend (Enis). BluuBeam founder, Chris Zabaleta, added that giving library users an easy way to forward this info to their friends could also help a library expand its marketing effort to non-library users within the community (Enis). Within the socio-technical system, the fundamentals of ibeacon technology are still being established (Figure Four). Apple s ibeacon protocol was simply the first step. Now, beacon hardware is being manufactured by numerous companies, such as Estimote, and implemented by varying companies, such as Virgin Atlantic and McDonald s. Companies are using ibeacons to indicate special deals to customers in the hopes of increasing sales. For example, McDonald s used ibeacon to advertise special deals for McChicken Sandwiches and their ten-piece Chicken McNuggets. The sale of McChicken Sandwiches raised eight percent and the sale of McNuggets raised seven point five percent. Additionally, Major League Baseball parks want to incorporate ibeacon technology to enhance their game-day experience (Ortutay). Currently, Virgin Atlantic implemented ibeacons in their Heathrow Airport in order to offer passengers promotional offers while they are inside the terminal (Figure Five). Similarly, ibeacons are meant to guide passengers towards security gates and provide e-boarding passes on mobile devices (Frith). Additionally, the Antwerp Museum has implemented ibeacons in order to enhance their exhibits. The Rubens House uses ibeacons to send visitors information based on their current location within the vicinity of the wing. American Eagle Outfitters is also using ibeacon technology in their one hundred performing stores. Craig Gilchrist said that he developed an application for AuntieM using ibeacons to offer customers royalty points as they

6 make their purchases. This particular application offers people passing by the stores targeted advertising. Citizens Bank Park also implemented beacon technology to enhance visitors experiences (Seravalli). Using ibeacon micro-location technology, when a fan arrives at a concession stand, a rewards card could pop up on his or her screen. It could keep track of purchases, if scanned at the register, offering one free hot dog after the purchase of ten during the season (Seravalli). Another potential use of ibeacons is to have beacons on bracelets or on a necklace when accompanying a minor, or a person with disabilities, could help staff identify that particular passenger in a crowd in case they need special attention (Marcellin). According to Giulio Coraggio, The Internet of Things will generate in the retail sector (in) the United States $329 billion in revenues by 2018 (Coraggio). Retail companies, as well as other corporations, are encouraged to learn more about their customers and customize the consumer experience. This is commonly referred to as me-tailing, which refers to the ability for retailers to collect data in real time about their customers from different sources such as mobile and in the future wearable technologies (Coraggio). Currently, an ibeacon sticker is being developed for user s to place on themselves and allow their information and location to be collected in the hopes to personalize their daily experience. Future uses of ibeacons include proximity marketing. According to Craig Gilchrist, Offer complete customized marketing when a customer enters your store combined with information about their previous purchases (Gilchrist). Also, home automation may be a potential use. For instance, someone could pull into their driveway and the porch lights would instantly turn on at the car s presence. Estimote is one of the leading companies, which manufacture ibeacons to provide location-aware devices. Their devices are designed to be aesthetically pleasing offering beacons

7 in various colors (Figure Six). Estimote developers created a unique edged-rock design in the hopes that people would recognize their particular ibeacon device. Wojtek Borowicz, from Estimote said, This is something very important to us. The beacons are kept eye-catching and visible so that people can be sure we (Estimote) care about your security, and about your privacy (Borowicz). Thus, when consumers enter a venue and see a recognizable ibeacon device, they feel secure granting the corporation permission to use the technology. The hope is that when people see an Estimote beacon, they recognize the company, brand, and functionality of the device, comprehending that this is a sensitive technology that can access their location data. Estimote even offers silicon covers for beacons that are placed outside in order to ensure the device is able to function in rain or snow. If a company utilizes the silicon casing, replacing the battery may be more difficult if not impossible. Thus, when the battery dies, the company will need to purchase a new ibeacon device rather than just replace the existing battery. Unfortunately, Estimote does not sell to consumers, making their beacons commercially unavailable at the current time. Corporations can purchase three Estimote ibeacons for $ Additional companies creating beacons include Roximity and RedBear. The ibeacon s low cost and range opportunities means that mass deployment is a highly cost-effective way of communicating with customers at airports and one that completely side steps the high cost and more complicated passenger personalization opportunities through the use of biometrics (Marcellin). Individual ibeacon devices cost between $9.99 and $19.99 (Marcellin). In order for users to understand ibeacon technology, the functionality and information involved needs to be more transparent because, at this time, there are several privacy and security concerns that are relevant to beacons. The applications on the smart device using

8 ibeacon technology can collect intricate information. This includes someone s purchase history as well as a person s location, including how long they were in a particular place. According to an article, Apple Guides Shoppers inside Stores with ibeacon, by Barbara Ortutay, many shoppers have shown a willingness to be tracked if there s something in it for them (Ortutay). Due to the one-way signal, ibeacons cannot track a person s information. A user s device scans for nearby ibeacons, which acts as a location marker, which can be read by your phone. Beacons could be placed in unauthorized locations and can be disabled or easily moved. Users may not know they are being tracked. Countermeasures to ensure safety may be to camouflage ibeacon towers so that they blend into their surroundings. According to Wojtek Borowicz, from Estimote, ibeacon is a standard, it s just a communication protocol (Borowicz). It s a type of format for data and the ibeacon itself does not provide any kind of security so each beacon vendor, if they want their platform to be secure, they need to provide their own security measures for this data to be protected. Because, if you do not do this anyone who s in range of your beacons would technically like listen to them and either build your solution on top of your beacons in some other places they can access your beacons and change their IDs vii (Borowicz). Beacons are still being implemented and streamlined; thus, it falls on the company to implement security protocols to protect users. Thus, ibeacons utilize BLE technology to offer a new method for companies to interact with customers. Locally-placed beacons allow corporations to send messages to consumers phones if the user has downloaded the corporation s application, allowed certain permissions, and has their Bluetooth on. At the moment, retailers, stadiums, airports, and museums are using beacons in this manner. Consequently, companies can track a person s location and certain data via the application, using ibeacon technology. The beacon device itself cannot store information, but allow third parties to access content. This privacy concern needs to be more transparent to

9 the user in order for them to understand both the positive and negative aspects of this interaction. Currently, ibeacon technology is still not ideal and needs to be streamlined for future use. It may be some time before beacons are implemented on a wider scale. Future research questions may include: What are the privacy implications of ibeacon stickers? What are the advertising and economic models for ibeacon technology in retail stores? Will ibeacon technology enhance a customer s experience once fully developed and implemented? Or will ibeacons be an example of a Norman Door? Can one universal application be developed to communicate with beacon devices?

10 Appendix Figure One Bluetooth low-energy allows beacons to create greetings for individual locations. Close range interaction, such as near-field communication, occurs when customers opt-in to their devices in order to take part in the technological aspects being offered. Macro location-aware technology, such as a global positioning system, captures the macro-location of a person, but not the precise location. Figure Two

11 The Bluetooth signal is sent out, the phone receives the information and then proceeds to communicate with the company s broader network. Gilchrist, Craig. Learning ibeacon. Birmingham: Packt, Print. Figure Three These are the steps required to download and activate the beacon signal in conjunction with a user s phone. Turn Bluetooth on, download the company s application, allow tracking-location data, and allow notifications.

12 Figure Four These are just a few examples of a socio-technical system involving ibeacon technology. Neil Rustage, Distribution Director of Tactus, said, ibeacon technology is going to revolutionize retail-tailoring location-based content, ensuring the right message is delivered. With Tactus point of sale (POS) units being installed by major retailers across the UK, we want to ensure our customers know exactly what they re getting.

13 Figure Five This is one example of an Estimote beacon communicating with a passenger in an airport via ibeacon technology. "ibeacons and Airports: Results from a Real-World Test." Tnooz. N.p., n.d. Web. 30 Apr Figure Six These beacon devices inspired our color selections for designing our project. Estimote wants consumers to be able to notice the device and feel secure in knowing that it is a known company with the customer s best interests in mind. "Thanks to Estimote, Your Apps Will Always Know Where You Are." Brit + Co. N.p., n.d. Web. 30 Apr

14 Bibliography "How ibeacon Works - PassKit Mobile Wallet Engagement Enablers PassKit.com." Mobile Wallet Engagement Enablers PassKitcom. N.p., 04 July Web. 30 Apr Berthiaume, Dan. Retailers Take Advantage of ibeacon. Drug Store News. 20 Aug Web. 6 Apr < Enis, M. (n.d.). Beacon Technology Deployed by Two Library App Makers. 6 April 2015, < Etherington, Darrell. Estimote Launches Indoor Location Service Using ibeacon Tech. TechCrunch. 24 Sept Web. 3 Apr < Frith, David. "Beacon Signal a New Way for Mobile Wallets." The Australian 19 Aug Web. Gilchrist, Craig. "Learning ibeacons." Personal interview. 10 Apr Gilchrist, Craig. Learning ibeacon. Birmingham: Packt, Print. Guerrini, Federico. A Smartphone App Helps Blind People Navigate The London Tube With Beacons And Bluetooth. Forbes. Forbes Magazine, 3 Apr Web. 7 Apr < Hazas, Mike, James Scott, and John Krumm. Location-Aware Computing Comes of Age. Computer 37.2 (2004): Web. Kamenec, Kara. How Apple s ibeacon Could Upend Retail Shopping. PCMAG. 24 Oct Web. 6 Apr < MacCarthy, Mark. "Privacy and ibeacons." Personal interview. 17 Apr Marcellin, Frances. "Will ibeacon Technology Transform the Passenger Experience?" Airporttechnology.com. 15 Dec Web. <

15 Ortutay, Barbara. "Apple Guides Shoppers inside Stores with ibeacon." 8 Dec Web. < =wapart>. Rouse, Margaret. geofencing (geo-fencing). Whatis.com: Network Hardware Glossary. August Web < Schilit, Bill, Adams, Norman, Want, Roy. Context-Aware Computing Applications. IEEE Workshop: Mobile Computing System and Application. December 8-9, Web. Socha, Witek. "Estimote ibeacons." Personal interview. 13 Apr Solmecke, Christian. "The Legal Issues Surrounding the ibeacon." Wilde Beuger Solmecke. 16 July Web. < Swedberg, C. (n.d.). Hotels, Retailers Try Cisco s Beacon-Management System. RFiD Journal. Tilley, Aaron. Apple ibeacons Find Their Way Into McDonald s. Forbes. Forbes Magazine, 18 Dec Web. 7 Apr < Townsend, Anthony. "Locative-Media Artists in the Contested-Aware City." The MIT Press 39.4 (2006): Print. Vivion, Nick. ibeacons and Airports: Results from a Real-world Test. Tnooz. 11 Mar Web. 4 Apr < Want, Roy. Near Field Communication Pervasive Computing: Smartphones. IEEE CS (2011) Web. i A sensor needs to measure and record the item of interest (Townsend 345). The ibeacon device can be considered the sensor in this sense. ii In a broader sense, context-aware computing can function apart from and within the Internet of Things as the things category generates more information through many outlets. iii ibeacon is essentially a protocol for information transfer between these beacons and ios and OS devices. Apple itself does not make dedicated beacons, but recent ios and OS devices all of which have the capability to act as beacons.

16 iv In Location-Aware Computing Comes of Age, Mike Hazas represents location through a hierarchical semantics system. When referring to space, or the environment, the user might be navigating on a road, building, floor, or room. The location-aware computing software within the smartphone that helps Bluetooth LE navigate ibeacon s sensors and information is part of the broader context-aware computing realm. v Craig Gilchrist said, You d be familiar with the permission dial up that says this app is about to launch your current location, and that permission grants you access to your physical location, and ibeacons. When you say yes to that app, and, you are also giving permission to ibeacons and for us to collect data and later process and develop the information as it comes in contact with ibeacons for us as developers to collect your information as, um, as a way to collect for content analysis because it s under the umbrella of collecting information (Gilchrist). vi The unique identifier isn t hidden and it s broadly available and you can actually see if you know and understand the ibeacon signature. And supplied by Apple, which anybody can do by signaling to their app Apple has a program identified on their iphone all your manufacturers can produce beacons and so that our people in our development company can then buy beacons, infrastructures, and build solutions for these beacons. So it benefits them if I program a trait and then it tells you that really secret, and if that really secret beacons can be reached; if I signed up for it, maybe many have; someone would be glad that I have you checked off a box that says, I won t tell anyone what your signature is but anybody can sign off up, on the box, you know what the signature is, you know what they re looking for. So they can pass the beacon and the theory how Apple is perceived is that the U.S. developers are configurating these beacons somehow with union and union ideas but realistically anyone can sign up for the icloud off the Bluetooth and Bluetooth profile so they know and understand they can find out what the union market is and that s exactly what these guys did (Gilchrist). vii Taking into account certain security issues, companies can randomize their beacon number to prevent cloning. During an interview, Borowicz said, If you are like super alarmed about security, this is something that can be solved for randomizing the new ID. This is, like, the upper security that most of major, uh, vendors, uh, of beacons have already done. This is something that we are building on now. So, if you want, you can enable several batteries for, uh, to secure your ID so that your icloud or backup system or servers will, uh, manage for you the randomizing of the IDs of your beacons and our [] for developers will take care of like resolving this idea for like understanding your apps, so you don t have to think about it too much. This is something that could be a problem, like, if you are using beacons from a vendor who does not have any security measures implemented. But, as I said previously, most of like your major vendors have already fixed and this is like, uh (Borowicz).