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By Pia Heikkila, 26 June 2001 16:35

NEWS BT Ignite's latest smartcard deal has been branded a waste of money by those who claim to be in the know. The company has just signed a £3.3m contract with Bracknell Forest Council, which will see it provide the infrastructure for a wide-ranging smartcard system. People living in the area will be able to use smartcards for a variety of services, such as paying for school dinners and in car parking meters. But smartcard experts have labelled this a waste of money. Neil Stewart, chief executive of smart SIM provider Aspect, said the council could have saved millions had it looked at alternatives, such as wireless payment systems. "The mobile phone is a self-contained smartcard system the handset functions as a reader and the SIM can work as a smart chip. The council should have considered alternatives. It could have saved millions," he said. Citizens of Bracknell Forest Council aged between 16 and 19 are the main target group for the scheme. They can earn points for school attendance as well as gain access to local youth clubs with the card. But critics say there is no guarantee the youngsters will adopt the card. Pekka Honkanen, vice president of wireless security specialist Smartrust, said: "Youngsters have a culture of using mobile phones rather than plastic cards, and the success of smartcards is never guaranteed. The council should have offered an alternative to its members." In such a mobile phone-based system, small payments can be added to a phone bill or even covered by buying additional units on a pay-as-you-go card, according to Esa Paaso, marketing director of Voicebit, a mobile services provider. He said: "The council could have offered an alternative payment method for the e-cash. It's plain silly. People will have to send a cheque to the council to load the card first." But the council is adamant its investment adds value. Gordon Mitchell, chief executive of Bracknell Forest Council, said: "Not every citizen has a mobile phone yet. We live in the present, not in the future." Peter Stanton, business development manager at BT Ignite, said: "We are looking into providing citizens with wireless alternatives, but these are a long way off."