Motorola Mobility, Inc. v. Apple, Inc.

Filing 93

Defendant's MOTION Defendant and Counterclaim-Plaintiff Apple Inc.'s Claim Construction Brief by Apple, Inc.. (Attachments: # 1 Declaration of Christine Saunders Haskett, # 2 Exhibit 1, # 3 Exhibit 2, # 4 Exhibit 3, # 5 Exhibit 4, # 6 Exhibit 5, # 7 Exhibit 6, # 8 Exhibit 7, # 9 Exhibit 8, # 10 Exhibit 9, # 11 Exhibit 10, # 12 Exhibit 11, # 13 Exhibit 12, # 14 Exhibit 13, # 15 Exhibit 14, # 16 Exhibit 15, # 17 Exhibit 16, # 18 Exhibit 17, # 19 Exhibit 18, # 20 Exhibit 19, # 21 Exhibit 20)(Pace, Christopher)

EXHIBIT 13

111111111111111111111111111111111111111111111111111111111111111111111111111
USOO5577100A

United States Patent

[19]

Patent Number:
Date of Patent:

[11]

McGregor et al.

[45]

MOBILE PHONE WITH INTERNAL
ACCOUNTING

[75]

Inventors: Donald S. McGregor; Gregory M.
McGregor, both of Danville, Calif.

[73]

Assignee: Telemac Cellular Corporation,
Danville, Calif.

[21]

Appl. No.: 381,704

[22]

Filed:

OTHER PUBLICATIONS
Nokia Service Manual, 10111000, Nokia Mobile Phones,
Inc., copyright 1991 and 1992, chapter 5.

Jan. 30, 1995

Int. Cl.
U.S. CI
Field of Search

[56]

H04Q 7/32; H04Q 7/34
379/58; 379/59; 455/33.1
379/58,59,61,
379/62,63

References Cited
U.S. PATENT DOCUMENTS
3,459,882 8/1969 Gabriel et al
3,531,586 9/1970 Bass et al.
4,518,824 5/1985 Mondardini
4,706,275 1111987 Karni1
4,839,829 6/1989 Freedman
4,860,341 8/1989 D' Avello et al
4,951,308 8/1990 Bishop et al.
4,958,368 9/1990 Parker
4,965,821 10/1990 Bishop et al
5,046,188 9/1991 Molnar
5,109,401 4/1992 Hattori et al.
5,127,041 6/1992 0' Sullivan
5,138,650 8/1992 Stahl et aI
5,144,649 9/1992 Zicker et al. ..
5,148,474 9/1992 Haralambopoulos et aI
5,297,191 3/1994 Gerszberg
5,297,192 3/1994 Gerszberg
5,301,223 4/1994 Amadon et al
5,303,297 4/1994 Hillis
5,325,418 6/1994 McGregor et aI.

178/5.1
178/6
179/6.3
379/144
364/519
379/91
379/91
379/91
379/58
379/94
379/58
379/59
379/61
379/59
379/111
379/59
379/59
379/58
379/63
379/59

~

[57]

ABSTRACT

A mobile phone system with a mobile phone having internal
accounting capabilities for realtime call debiting to account
for the billing parameters of a mobile phone unit that is
operated in a multi zone communication network with a
complex rate structure, the mobile phone unit having an
internal processor with accessible internal memory for storing the accounting program and call data for each call, a
clock and circuit means for activating and deactivating the
phone, the accounting program including an updatable rate
table and a complex billing algorithm for calculating the
account status on the fly including multiple rate structure
factors such as long distance calls, international calls with
country independent local charges, charges for roaming per
day and/or roaming per minute, and call surcharges, where
the account status of the mobile phone is calculated in real
time for decrementing a debit account or calculating an
account charge on demand, the mobile debit phone having a
signal for alerting the user of account status which is
preferably a display of real time account status, the mobile
phone system including a communication system for activating and programming a new phone unit over the airways
and upgrading the account status in rate table in the phone
unit over the airways.

33 Claims, 1 Drawing Sheet

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11

380/23
235/380
379/58

Primary Examiner-Curtis Kuntz
Assistant Examiner-Nay Aung Maung
Attorney, Agent, or Firm-Bielen, Peterson & Lampe

6

46J

Nov. 19, 1996

5,335,278 8/1994 Matchett et aI.
5,359,182 10/1994 Schilling
5,386,455 1/1995 Cooper

[54]

[51]
[52]
[58]

5,577,100

-

-48

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u.s. Patent

5,577,100

Nov. 19, 1996

FIG. 1
70

66\
36

SPEAKER

ANTENNA

RF

t--

0

TRANSCEIVER

64~ CLOCK

68-.1

72

.---1 KEY PAD V 76

..-----1

56~

AUDIO

CONTROLLER

DTMF

r-----,

78~

BATT
PACK

DISPLAY

58~

ROM

RAM

FIG. 2

I ---

v

60

V- 33

MIC.

5,577,100
1

2

MOBILE PHONE WITH INTERNAL

system of this invention is adapted for analog or digital
cellular telephones, radiophones in personal communication
service networks (PCS' s) and other wireless communication
systems where it is desirable that call accounting be done on
the fly.

ACCOUNTING
BACKGROUND OF THE INVENTION
This invention relates to a mobile phone system with a
mobile telephone accounting protocol for mobile phones,
and in particular to cellular phones and radio phones that are
capable of moving from one transmission station to another
in a communication network. In particular, the mobile
telephone accounting protocol is adapted for a mobile debit
phone in which the communication traffic with the service
provider is minimized to expand traffic handling capacity of
the service provider by accomplishing the accounting procedures within each mobile phone unit. The mobile telephone accounting protocol is similar to that described in
U.S. Pat. No. 5,325,418, which is incorporated herein by
reference. In the referenced patent, an accounting system is
described which has particular application to a rental phone
system or a controlled phone system, such as an intracorporate system where periodic calculation of phone
charges are made prior to receipt of billings from public or
switched service providers. In such systems, phone call data
is stored in the mobile phone unit and charges are calculated
by a host processor after a dialogue is established between
the host processor and the phone unit. This system requires
that a communication link be established between the host
processor and the mobile phone unit and may require that the
phone unit be physically connected to the host processor.
Although debit systems with internal debit and credit
memory for cordless phones have been previously proposed
such systems do not account for the particular complexities
of mobile phone systems wherein multiple service providers
may be involved in a communication network and the
mobile phone is allowed to move or roam across defined
zones or cells within a particular service area or across
multiple service area. In such situations, the location of the
mobile phone making the call is as important for billing
calculations as the location of the phone or stations being
called. This added complexity complicates billing procedures for mobile phones and increases the communication
session required for remote debit systems, thereby adding to
airway traffic.
In addition to the objective of eliminating an accounting
session with a service provider for each call made, the
mobile phone with internal accounting capabilities greatly
expands the potential customer base by enabling persons
with inadequate credit to obtain mobile phone service by the
use of a pay-as-you-go debit account. In this case, the credit
risk is avoided by prepayment of service and call charges,
and where credit is extended permits the credit to be
provided by an entity other than the service provider, for
example by the seller of the phone, or by a billing service
that provides credit or pre-paid accounts for mobile phone
users.
The mobile phone unit of this invention can be used with
a mobile phone rental system as described in reference U.S.
Pat. No. 5,325,418. Because the mobile phone unit itself
includes the accounting capabilities, the rental system can be
greatly expanded, allowing the return station to have minimum system hardware, and indeed, requiring only the
ordinary equipment necessary to clear an account, collect the
charges and store the returned phone for pick-up or return to
an initiating station. The mobile phone unit itself calculates
the charges on the fly and provides a cumulative account
record for review at the return station. The mobile phone

5

SUMMARY OF THE INVENTION

10

15

20

25

30

35

40

45

50

55

60

65

The mobile phone system with mobile phones having
internal accounting of this invention relates to wireless
communication systems having mobile communication
devices, particularly mobile telephones that are part of a
wireless communication network. In particular, the invention relates to a mobile communication device, such as a
mobile telephone unit that includes an internal accounting
protocol for internal calculation of communication charges
on the fly. Such mobile telephone units or mobile phone
units are typically cellular telephones in a cellular phone
network, radio telephones in a personal communication
service network or other communication system where the
communication device is moveable from place to place and
requires a complex accounting system for calculating calling
charges in real time or on the fly.
Although the primary intended use of the mobile phone
system of this invention is intended for mobile debit phone
units, where real time calculation of phone charges is
necessary to limit phone use or to immediately bill for phone
use where the billings of public switched service providers
and involved wireless service providers are not yet available.
A real time accounting system carried internally in the
mobile phone unit greatly expands the potential customer
base for such units and coupled with certain activation and
deactivation features allows a new segment of business to
become involved in the mobile communications industry.
Because credit responsibility can be shifted from the service
provider, retailers, billing services, and a host of intermediate entities can be integrated between the phone user and the
service provider. Additionally, the service provider can
expand its customer base by providing mobile debit phones
to its customers with a pre-paid phone credit or with a
preapproved credit limit that will deactivate the phone unit
if credit is exceeded or credit is not extended by the airway
activation and credit transfer procedures that form a part of
this mobile phone system. In this manner, the credit risk is
limited to an acceptable predefined level.
The accounting system that provides these features is
carried internally in the mobile communication device, for
convenience, hereafter called the mobile phone unit. The
accounting system includes a complex billing algorithm
with a multiple factor accounting protocol to account for
local charges, roaming charges when the mobile phone unit
moves from one zone to another, long distance charges,
international charges including country independent local
charges, and surcharges which may be per call or rate based.
The complex billing algorithm can be expanded to accommodate special charges of service providers or called stations or special discounts or premiums for data transfer calls.
The complex algorithm is stored within the phone unit,
together with a rate schedule. The rate schedule may be
periodically updated by a wireless communication with a
host or service provider.
It is to be understood that the mobile phone unit with
internal accounting can be implemented into existing wireless communication networks without substantial modification to the network and can be implemented into most
existing mobile communication devices with minimal modification, primarily by internal reprogramming of the device.

5,577,100

3

4

A mobile phone unit such as a cellular telephone currently
includes an internal processor and sufficient internal
memory to incorporate the programming and data storage
necessary to accomplish the real time accounting. The
complex algorithm providing the multiple factor accounting 5
protocol is sufficiently compact that storage and processing
of the call data is enabled in real time with sufficient
accuracy to account for multiple charges from multiple
service providers even for a roaming phone unit. The
accounting protocol enables internal tracking of phone usage 10
with activation and deactivation of the phone unit to insure
unauthorized usage is prevented. The accounting protocol
further includes an encryption system to permit activation
and licensed use of the phone unit, and account credit
transfers on the fly over the airways.
15
These and other features of the mobile phone system with
internal accounting in the mobile phone units will become
apparent upon consideration of the Detailed Description of
the Preferred Embodiments that follows.
BRIEF DESCRIPTION OF THE DRAWINGS

20

FIG. 1 is a perspective view of the components of the
mobile phone accounting system of this invention with part
of the system shown schematically.
25
FIG. 2 is a schematic view of the basic internal components of a mobile phone unit.
DETAILED DESCRIPTION OF THE
PREFERRED EMBODIMENTS

30

Referring to FIG. 1, the mobile phone accounting system
of this invention is designated generally by the reference
numeral 10, and illustrates a stand-alone, tracking and
accounting unit 12 that may be used by a rental agency or by
35
a mobile phone dispensing center such as a retail store, or a
center associated with a wireless service provider.
The tracking and accounting unit 12 includes a central
processing unit 14 that combines a data entry keyboard 16
coupled to a controller or data processor 18, which in tum 40
is coupled to a monitor 20 having a display screen 22 for
tracking data entry and review. Also connected to the
processor 18 are peripheral components including a printer
24, here with a continuous paper roll 26 for printing statements, receipts, customer and service provider contracts, 45
and the like, and a credit card reader 27 for credit verification.
Included in one embodiment of the tracking unit 18 of the
mobile phone accounting system is direct couple, interlink
receiver 28, shown with an installed hand-held, mobile 50
phone unit 30. The interlink receiver 28 structurally forms a
boot 32 into which the cellular phone unit 30 is inserted for
direct, electronic coupling of the phone unit 30 and the data
processor 18 of the central processing unit 14. As many of
the accounting functions of the accounting system are pre- 55
ferred internally in the phone unit 30, satellite processors for
activating and programming phone units require only a
personal computer with a modem and a bus connect to the
connection port of the phone unit.
In the arrangement of FIG. 1, the interlink receiver 60
functions as a terminal interconnect allowing for direct
"hard wire" communication between the data processor 18
and the mobile phone unit 30 through the connection port of
the phone unit 30. Programming and activation of the phone
unit 30 can be accomplished by the processing unit 14 65
through the interlink receiver with minimal security procedures. The processing unit 14 is particularly useful in

opening new customer accounts and includes the necessary
data base format for assigning a phone to a user and tracking
the assigned phone as described in detail in co-pending
application, entitled, "MOBILE PHONE DISTRIBUTION
SYSTEM," Ser. No. 08/265,373, filed 23 Jun. 1994.
The mobile phone unit 30 is preferably a contemporary
unit with an LCD display screen 32 for display of phone
numbers, account data, and other numeric or alphanumeric
data. Additionally, the phone unit 30 includes one or more
light emitting diodes 34, to signal a user with color coded
lights during a call that an impending deactivation of the
phone unit 30 is near. The phone unit 30 includes conventional circuitry and firmware to perform the customary
communication, transmission and reception function, as
shown in FIG. 2. The phone unit 30 has a transceiver
antenna 36 for wireless communication, and as described
hereafter, can be activated and programmed over the airways.
In the embodiment of FIG. 1, the central processing unit
14 includes a modem 38 that is linked to a transmission
station 40 for establishing a wireless communication link to
a phone unit 30a, shown with its antenna extended for
reception. The transmission station 40 may be part of the
mobile phone system common to the central processing unit
14 and owned by the system provider, or may be owned by
an external service provider and part of the external communications network that includes the public switching
network.
In this mode of operation, the central processing unit 14
communicates via hardwire, possibly through a public service network to the RF transmission station 40 for remote
processing between the central processing unit 14 and the
mobile phone unit 30a. Alternately, a low level transceiver
42, preferably with control circuitry located within the
interlink receiver 28, provides for RF communication with
the phone unit 30a within local range. This feature is useful
in retail centers where it is desired that the central processing
unit 14 be located in a computer room and sales clerks
communicating with a customer, communicate to the central
processing unit through one or more floor terminals with
limited processing capabilities for security reasons.
Since the mobile phone unit 30 includes the necessary
accounting functions to internally maintain a user's call
account, at least within a a rental period or within period of
periodic polling by the central processing unit 14 during off
hours, the unit 30 and a transaction station 44 need only
verify the validity of a money transfer or credit transfer.
When functioning as a debit phone, the phone can continue
to operate until the account is exhausted, without contact
with the system provider. The transaction station 44 shown
in FIG. 1 includes an interlink receiver boot 46 in which is
installed a mobile phone unit 30b. The transaction station 44
includes a cash receiving slot 48 for receiving cash for
increasing the internal pre-paid account of the phone. The
transaction station 44 also includes a card slot 50 for
receiving pre-paid phone cards or credit cards and a key pad
51 for data entry. Verification of the value of phone cards and
credit card may be accomplished by a stand alone transaction station 44, however, to prevent fraud it is preferred that
a transaction station 44 having a card reader be connected by
a communication line 52, as shown, to credit verification
center, here the central processing unit 14 via the modem 38.
The phone card is a discardable credit card-like device
having a magnetic strip coded with a pre-paid amount and
can be sold independently of the phone system. To prevent
reuse of dispensed cards by reprogramming the magnetic
strip, the card is voided upon use, and the card serial number
is centrally logged as void.

5,577,100

6

5
Similarly, to provide an opportunity for a credit card
verification, the use of a direct communication line 52 to the
modem 38 or alternately to a local credit agency is preferred.
The transaction station 44 also incudes a key pad 54 allowing a user to select the amount to be added to the internal 5
account in the phone. In this manner, where the mobile
phone user desires to increase his phone use account amount
without a dialogue with the system provider, there is an
opportunity to do so. The call data in the phone unit is
dumped to the transaction station or cleared to permit the 10
accumulation of new data related to the upgrade account.
Alternately, where an account has been established with the
system provider, which may be an entity different from the
wireless service provider with whom the system may contract, the mobile phone user may request an increase in the
internal debit account by contacting the system provider 15
through the airways as shown by the phone unit 30a in FIG.
1.
Referring to FIG. 2, a generalized electronic schematic is
shown of the typical mobile phone unit 30 used in the system 20
here described. The phone unit 30 includes a processor 56
that acts as a controller to coordinate the functions of the unit
30. The processor 56 has an associated memory comprising
an EPROM chip 58 which stores the firmware that forms the
core operating code of the unit and one or more RAM chips 25
60, that provide programmable memory and may include
command codes as well as data storage, for example for
logging the call data. Also, closely associated with the
controller is a clock chip 64, which provides a timer for
calls. In the preferred mobile phone unit 30, the clock chip 30
is a real time chip that provides time and date for improved
call logging and for greater flexibility in phone use plans.
Use of a real time clock chip is not required for the described
mobile phone accounting system, but allows for full use of
the logging and tracking features. Additionally, certain fea- 35
tures such as deactivation of the phone of a set date is
accomplished using a real time clock chip. Call counters and
cumulative time limits for deactivation may be served by a
timer chip.
Airway communication is provided through the antenna 40
36, which is connected to an RF transceiver connected to the
processor 56 and to an analog audio circuit 68 with an ear
phone output 70 and a microphone input 72. The audio
circuit 68 is also connected to the processor 56 for audio
output of touch-tones, warning signals and the like. The 45
phone unit 30 includes DTMF decoder chip 72 and a keypad
76 for data entry, such as telephone numbers, and DTMF
signals for code dialogues with the central processor over
the airways. Preferably, the phone unit 30 includes a LCD
display screen 33 as noted and a series of green, yellow and 50
red LEDs 34 to visibly warn of a forced termination of a call
because of loss of credit of the like, with yellow providing
a five minute warning light, for example. Audio warnings
are transmitted through the earphone 74. The phone unit 30
is powered by a battery pack 78.
55
Ordinarily, by displacing certain features in a manufacturer's stock phone unit, such as the storage of frequently
called numbers in a cellular phone, the RAM is sufficiently
large to accept the complex billing algorithm and the command set necessary to convert a cellular phone to a real time 60
billing phone. Where the existing RAM is inadequate,
modification by installation of additional RAM or ROM will
allow incorporation of the conversion code and data. For
example, in a newly designed phone, the new auxiliary
firmware in including parts of the complex billing algorithm 65
and much of the command set, could advantageously be
allocated to ROM, with changeable data such as the rate

tables and call log allocated to RAM. Alternately, all wireless auxiliary firmware and changeable data can be allocated
to existing RAM or added RAM.
The phone unit 30 when received from the manufacture
includes a fixed ESN (electronic serial number) unique to
each phone. To be functional, the phone unit is programmed
and this may be accomplished individually, as described in
U.S. Pat. No. 5,325,418 or in batch mode as described in the
referenced application. The existing ESN and GIM (group
identification mark) are read and stored and the NAM
(number assigned module) is run, assigning the MIN
(mobile identification number), SID (site identification number) and other parameters to activate a phone unit for general
use. The MIN is the assigned telephone number for the unit
and should be one of the last numbers assigned, if step
programming is accomplished to preserve a working inventory of available MlNs. Step programming may be desired
where a batch of phones are programmed and assigned to a
service provider identified by SID, which then assigns a
phone to a customer at the service provider's location.
Customarily, the phones are programmed by installing the
phone unit in an interlink receiver 28 in the central processor
unit 14 or at a remote terminal connected to the central
processor unit. The phone unit 30 can alternately be activated and programmed on the fly by use of the paging
capabilities of the phone unit via the DTMF signals as
described hereafter. This feature allows remote programming of the phone over the airways via the transmission
station without the necessity of the direct connection of the
phone port connector to the central processor unit 14.
In the mobile phone system of this invention where the
mobile phone unit has internal accounting capabilities, the
phone unit is programmed with the code responsive to the
command set, the complex billing algorithm, the license
code and other parameters allowing the phone unit to be a
periodically polled unit, for example, in a rental environment, or a debit unit, where account status can be determined
and upgraded on the fly. The following table, Table I, lists
the command set. The command set is suitable for most
modem cellular type phones and it is understood that
modifications may be required for phone units of different
types or different manufacturers. As noted, certain commands may not be operational where the hardware includes
a clock chip that does to provide real time and date, and
suitable modification is required.
.
TABLE I
DESCRIPTION
BASE COMMANDS
RD_PHONE_~BER

RD_PHONE_CALLS
RD_PHONE_TIME
WR_PHONE_TIME
RD_PHONE_RTB
LOCK_PHONE
UNLOCK_PHONE
RD_CALL_COUNTER
RD_COMMAND_STATUS
RESET_CALLS_MEMORY

Read the telephone's phone
number
Read the telephone's call
data activity storage
Read the current time from
the phone
Set the current time of the
phone
Read the phone's software
revision number
Lock the phone from use
Unlock phone for use
Read the number of calls
made during the period
Read status of last command
issued
Reset/erase the call activity
storage data

5,577,100
7

8

TABLE I-continued

TABLE II-continued

DESCRIPTION
RESET_CALLS_COUNTER
RESTRICT_ILLEGAL_CALLS
ENABLE_ALL_CALLS

REGISTRATION

Reset the call counter to 0
Restrict all illegal calls
Deactivate the call
restriction
Read the phone's electronic
serial number
Write NAM parameters to
the phone
Read the current NAM
parameters from the phone
Store a small amount of data
in the phone
Read the small amount of
data from the phone
The date at which the phone
will no longer function
Read the lock data from the
phone
System provider registers
itself for use with the phone.
(Password is transmitted)

DEBIT COMMANDS

DO_CALL_TRACKING
NO_CALL_TRACKING
DO_DEBIT_MODE
NO_DEBIT_MODE
ENABLE_AIR_ACTNATION

Write debit configuration
data to the phone
Read the configuration data
from the phone
Write the maximum dollar
amount the phone can be
used
Read the maximum dollar
amount from the phone
Turn on call tracking
Turn off call tracking
Turn on debit mode billing
Turn off debit mode billing
Turn on over the air debit
activation of funds
Turn off over the air debit
activation of funds

OTHER RESPONSES
ACK
NAK

Acknowledgement
Could not understand
HOSTIPP or Invalid LRC

OTHER INTERACTIVE
COMMANDS USING THE
PHONE KEY BOARD
Update, over the air, the
current additional dollar
amount and date of expiration referencing the
Telephone License Number
View the current dollar
amount left for debit
If for some reasons the
"over the air" updating
of the debit data cannot be
successfully completed, the
user can be given a license
number to manually type in
using the keypad via
this function

A suggested protocol for the command set in Table I uses
the acronyms in the following table:
TABLE II
Acronyms

Description

HOST

A systems operator's Personal
Computer will be considered
the host
The phone unit will be

PP

Acronyms
5
DB
CB
CTI
ACK
10

NAK

BCD

Description
considered the Phone Peripheral
A DataJ!yte
A Command Byte
A c::ellular_'I'eleph()ne
Interference
An A,c_knowle,dgf:l11ellt from the
phone unit
The PP or HOST did not
understand the last set of
data retrieved
Binary Coded Decimal

15

The host computer comprises the central processing unit
14 of FIG. 1 or a satellite computer that is preferably
connected to the central processing unit 14 which acts as a
hub for system wide coordination of accounting and tracking
information. The host computer, which may be a typical
20 higher end PC communicates to the phone units via a bus
using a standard Asynchroneous RS-232 serial port at 9600
band, no parity, 1 stop bit, 8 data bits or a customized
interface tailored to a particular manufacturer's phone unit.
Where programming the initial activation of a phone unit
25 over the airway, the initial dialogue is accomplished using
DTMF signals. A factory phone has limited calling capability, typically 911 for emergency. The factory phones are
preprogrammed to allow an additional dedicated 800 number, the number of the system provider service center. Once
30 the connect is made by voice dialogue, the phone is switched
to page mode and the service operator initiates the STMF
code program. The ESN is checked by the HOST and if
verified as an authorized phone for assignment by the HOST,
the NAM parameters are programmed to the phone unit
(PP). The programming of the phone as an internal account35 ing phone is also accomplished using DTMF signals.
Because of security reasons, it is preferred that the phone
unit programmed through the bus by direct connection as
previously described.
A suggested data format for the command set listed in
40
Table I is set forth in the following paragraphs:
RD_PHONE_NUMBER
HOST and PP Interaction:
HOST sends CB to PP
45 PP sends DBS+LRC (Longitudinal Redundancy Check)
Data From Phone:
DBs is an ASCII string representation of the MIN. ego
5108382400
LRC Calculation
50 The LRC, Longitudinal Redundance Check, is calculated by
the following algorithm:
b = OXOO
LOOP 1=0 to length of data
55

b=b XOR data[l] .
LRC=b

The LRC is used when any data bytes, DB, are sent to the
PP or form the PP
60
RD_PHONE_CALLS
HOST an PP Interaction:
HOST sends RD CALLS COUNTER to PP
PP sends back DB for the call counter to HOST
HOST sends CB to PP
65 PP sends back all call data to HOST followed by an LRC
byte (Longitudinal Redundancy Check) (The bytes coming back would be number of calls *17+1 for the LRC)

5,577,100

10

9
WR_PHONE_TIME
HOST and PP Interaction:
HOST sends CB+DB(4)+LRC to PP (The LRC would
include the CB )
PP sends back an ACK to HOST
5
Data sent to phone:
The CB, RD_PHONE_TIME, is sent followed by 4 bytes
containing the MMDDHHMM in BCD. The month, day,
hour and minute are each in the form of a BCD byte
Example:
10
eg.. for Jan. 1, 1980 at 1 pm the DB would look like
01011300 where 01, 01, 13 and 00 are all bytes
RD_PHONE_TIME
HOST and PP Interaction:
HOST sends a CB to PP
15
PP sends back a DB(4)+LRC to HOST
Data sent form phone:
The data sent from the phone is identical to the data sent to
the phone in WR_PHONE_TIME
Example:
.
eg.. For Feb. 2, 1999 at 2:12 pm the DB bytes would look 20
like 02021412 etc.
RD_PHONE_RTB
HOST and PP Interaction:
HOST sends a CB to PP
PP sends back its firmware revision number in some format 25
relevant to the phone+LRC
Data sent from phone:
TBD. Specific to the manufacturers phone
LOCK_PHONE
When the phone is in "locked" mode, the phone should
30
display the word "LOCKED" on the main viewing screen.
The phone is completely deactivated while in this mode
until the HOST issues the UNLOCK_PHONE command.
The purpose of this mode is to secure the phone in
between rentals or debit-rentals. While in this mode, it
prevents users, or employees, from stealing air time. Also, 35
if the phone is stolen while in this mode, the phone is
worthless. This worthlessness provides a sense of security
for the supplier of the phones.
HOST and PP Interaction:
HOST sends a CB to PP
40
PP send back an ACK to HOST
UNLOCK_PHONE
This mode is just opposite the LOCK_PHONE or
"LOCKED" mode. In this mode, the phone is completely
usable:
. 45
HOST and PP Interaction:
HOST sends CB to PP
PP sends an ACK to HOST
RD_CALL_COUN1ER
This comment allows the HOST to read the current number
of calls that have been made on this phone during this 50
rental. From there, the HOST can use this as data to
present to the user and use this data to determine the
number of bytes the phone will send when issued the
RD_PHONE_CALLS command.
55
Host and PP Interaction:
HOST sends CB to PP
PP sends DB(2)+LRC to HOST
The two data bytes are 16 bits from most significant bit to
least significant bit. These two bytes represent the number
of calls that have been made on the telephone. The last, or 60
third byte, is and LRC.
RD_COMMAND_STATUS
At any point during the PP interrogation by the HOST, the
HOST can issue this command byte, CB, to determine the
state of the last command sent. Even though ACK's and 65
LRC's are used, this provides a general status check on
the PP.

HOST and PP Interaction:
HOST sends CB to PP+LRC
PP sends back DB(2)+LRC to HOST
Data Sent From PP:
The DB byte sent from the phone can be used to diagnose
internal problems that have occurred in the phone. If the
last command and the current state of the phone is good,
the DB should be OxOl. The rest of the bytes values can
be left up to the manufacturer to decide what phone
specific information can be returned via this byte.
RESET_CALLS_MEMORY
If the DO_CALL_TRACKlNG has been turned on during
a rental period, the phone will have been storing call data
in memory blocks of 17 bytes per call. This commence is
used to either clear the memory or simply reset a pointer
in memory to the call data.
HOST and PP Interaction:
HOST sends a CB to PP+LRC
PP sends an ACK to HOST
RESET_ILLEGAL_CALLS
The service provider has created a small algorithm that lets
a phone perform call restriction. This feature allows the
service provider to disable segments of the numbers or
whole numbers right at the source; the phone.
HOST and PP Interaction:
HOST sends a CB+DB(63)+LRC to PP
PP sends an ACK to HOST
Data Sent From Host:
KL = Key length, digit count to use for the search
KEY = The actual digits for the search
ODS = Offset from the end of the digit string to
search

1 byte
7 bytes
1 byte

Total:

9 bytes

The total number of numbers to block is 7 which gives us
. 7*9=63 bytes of configuration data.
ENABLE_ALL_CALLS
This command disables the call restriction feature. If this
command has been issued to the phone, then step 2.0 and
2.1 are executed in the call restriction algorithm. On the
other hand, if the RESTRICT_ILLEGAL_CALLS is
issued to the phone with the configuration data, the phone
would be placed in call restriction mode.
HOST and PP Interaction:
HOST sends CB to PP+LRC
PP sends ACK to HOST
RD_TELEPHONE_ESN
The HOST requests the ESN and the phone transmits the
ESN to the HOST. The ESN is the only non changeable
part in the NAM that phones can be tracked by.
HOST and PP Interaction:
HOST sends CB to PP
PP sends DB(x)+LRC to HOST
Data Sent to HOST:
The data that is sent to the HOST is dependent on the format
the manufacturer is using.
WR_NAM
Writing the NAM via the HOST provides some benefits
which are:
1. Miss-programming by employees which leads to bad
service;
2. Fraud prevention in that the phone can only be programmed via this command; therefore, this deters an
individual from simply stealing a rental phone and getting
service somewhere else;
3. Safely and effectively moving hones from place to place;
and

5,577,100
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12

4. No training is required at the rental/debit site to activate
the telephone.
The following are a general list of parameters that would
need to be programmed in an analog cellular phone:
MIN, Mobile Identification Number
SID, System ID (A side is a while the B side is an even
number)
GIM, Group Identification MarklID (Typically 0-15)
LUM, Local Usage Mark (0 or 1)
EX, Min Class (0 or 1)
ACCOLC, Access Overload Class (O+last digit of the MIN)
LOCK, The User's Lock Code
SS, The System Select (A-Only, B-Only, or Standard A-B/
B-A mode)
ICPH, Initial Paging Channel (334 B, 333 A)
HOST and Interaction:
HOST sends CB+DB(X)+LRC to PP
PP sends ACK to HOST
Data Sent To PP:
The NAM data is somewhat standardized, however, each
phone manufacturer usually has a built in protocol for
doing just this.
RD_NAM
The RD_NAM, or read NAM, function just the opposite of
WR_NAM or write NAM. Again, this is typically already
setup in a manufacturers phone.
HOST and PP Interaction:
HOST sends CB to PP
PP sends DB(X)+LRC to HOST
WR_SCRATCH_PAD
This "scratch pad" memory is a segment of memory that the
system provider can use to store important information in
the phone. This information can be credit information,
rental information or multi-site drop off information. By
having the ability to store a small amount of data in the
phone, the system provider can open the doors to many
new features. This also provides the system provider with
the ability to allow for future updates in the software that
can take advantage of this memory. Any size up to lK,
1024 bytes is adequate.
HOST and PP Interaction:
HOST sends CB+DB(X)+LRC to PP
PP sends an ACK to HOST
RD_SCRATCH_PAD
This is just the opposite of WR_SCRATCH_PAD. With
this command, the phone would send the "scratch pad"
memory to the HOST.
HOST and PP Interaction:
HOST sends CB to PP
PP sends DB(X)+LRC to HOST
WR_LOCK_DATE
Creates the ability to tell the phone to shut off at some date.
HOST and PP Interaction:
HOST sends CB+DB(3)+LRC to PP
PP sends an ACK to HOST
Data Sent To PP:
The data date format is slightly different in that it contains
no time information and does contain year information.
The BCD format YYMMDD.
Example:
JuI. 21, 1968 would be 680721
RD_LOCK_DATE
This is just the opposite of WR_LOCK_DATE. This is
used to verify or find out what the current lock date is in
the phone.
HOST and PP Interaction:
HOST sends CB to PP

PP sends DB(3)+LRC to HOST
Data Sent To Host:
The data DB(3) is a date in the format described in
WR_LOCK_DATE.
REGISTRATION
This REGISTRATION command acts as a security feature
for the phone manufacturer and the system provider.
Before any HOST and PP interaction can occur, the HOST
must send this command followed by the password. From
that point on, any command issued should work. If this
command has not been issued, then the PP should not
respond to any HOST commands.
HOST and PP Interaction:
HOST sends CB+DB(l6)+LRC to PP
PP sends DB(16)+LRC to HOST
Data sent to PP
The data password may be a default password selected by
the system provider.
Data sent to HOST:
The data in then echoed back to the HOST. This helps show
the relationship between the system provider and a customer such as a telephone vendor.
WR_CONF_DATA
This is the configuration structure that contains all the
necessary parameters for providing a debit service. This
data includes items such dialing information, relates and
other· configuration information, including the complex
billing algorithm that permits internal accounting within
the phone unit. Once this data is in place and the
DO_DEBIT_MODE command is given, the phone will
begin using this information to process call charges.
RD_CONF_DATA
This command will read back the configuration data that was
written by WR_CONF_DATA.
HOST and PP Interaction:
HOST Sends a CB to PP
PP sends DB(X)+LRC to PP
Data From Phone:
This data (DB(X) is the size of the data structure discussed
in WR_CONF_DATA. This may vary depending on
implementation and phone restrictions. Following the
data, there should be an LRC.
WR_DOLLAR_AMOUNT
This command is used to update the current dollar limit in
the phone. Since this is a single command there stands
great risk for fraud. So there is a bit of extra data that helps
deter fraud built in.
HOST and PP Interaction:
HOST sends CB+LICENSE NUMBER+LRC to PP
PP sends all ACK to HOST
Data sent to phone:
The HOST will send a CB then a valid license number
followed by an LRC. This license number is the same
license number that is transmitted "over the air" to the
phone or manually imputed via the key pad.
RD_DOLLAR_AMOUNT
This command returns the current dollar amount in the
phone.
HOST and PP Interaction:
HOST sends a CB to PP
PP sends DB(2)+LRC to HOST
Data sent to host:
The DB(2) data in the two bytes of dollar data with the Most
Significant bit first and Least Significant bit last.
Example:
DB(2)=00 02 which would translate to the value 2.
DO_CALL_TRACKING

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13
This command turns on the call tracking feature. If the
phone is in call tracking mode, the phone will save, see
the RD_PHONE_CALLS command, all calls made so
that they may be used to bill the user at a later time.
HOST and PP Interaction:
5
HOST sends a CB to PP
PP sends an ACK to HOST
NO_CALL_TRACKlNG
This command turns on the call tracking feature. This
command is useful when the supplier of phones wishes to
leave a phone out in the field for long or indefinite periods 10
of time. This command might be used in setting up debit
phones at the factory or distribution center so that they
would be ready for the retail market.
HOST and PP Interaction:
15
HOST sends a CB to PP
PP sends an ACK to HOST
DO_DEBIT_MODE
This command tells the phone to begin the processing and
using the WR_CONF_DATA and WR_DOLLAR_
AMOUNT's data. When this mode is active, the phone 20
begins to watch each phone call during debiting money's
as the phone is in use. Based on the configuration data
supplied by WR_CONF_DATA the phone would decrement the WR_DOLLAR_AMOUNT each minute as
the phone is in use.
25
HOST and PP Interaction:
HOST sends a CB to PP
PP sends an ACK to HOST
NO_DEBIT_MODE
This command tells the phone not to do debit processing.
30
This will most likely be used whenever a customer wants
to track calls of a user on a periodic basis as in a rental
situation. Again, if call tracking is on and this command
is issued, calls are only tracked and the phone should lock
when the memory is full.
35
HOST and PP Interaction:
HOST sends a CB to PP
PP sends an ACK to HOST
ENABLE_AIR_ACTIVATION
The reasons the commands ENABLE_AIR ACTIVATION and DISABLE_AIR ACTIVATION is for a cus- 40
tomer that doesn't want over the air debit activation for its
client users. By turning off the air activation, the customer
has less room for fraud. This feature old also be used in
creating a value added telephone or different models of
the same phone etc..
45
HOST and PP Interaction:
HOST sends a CB to PP
PP sends an ACK to HOST
DISABLE_AIR_ACTIVATION
When this command is sent to the phone, the phone will no
longer accept debit updates via DTMF tones. The only 50
Id th
.
d"
th
h
way a pone cou
en receIve an up ate IS VIa e
keypad or via a self-service transaction station.
HOST and PP Interaction:
HOST sends a CB to PP
PP sends an ACK to HOST
55
When the foregoing command set has been implemented
to establish the interface protocol between the HOST, here
the central control unit 14, and the PP, here the mobile phone
unit 30, the phone unit is programmed to respond to the
HOST and to limited user commands as noted. The com- 60
mand set allows for a communication dialogue between the
central control unit or its surrogate, and the phone unit.
When the WR_CONF_DATA command is executed, the
phone unit is loaded with the necessary data and code,
including the complex billing algorithm to enable the phone 65
unit to function as a debit phone upon entering and execution
of the DO_DEBIT_MODE command.

14
The complex billing algorithm factors the multiple variables of a telephone call from a mobile phone into a billing
equasion that virtually mirrors the factors considered by
public switched network providers and involved wireless
service providers, (of which there may be more than one
involved in a single call). The resultant call charge accurately approximates the summation of real charges that will
be billed by the involved providers enabling an instant
calculation of charges. Naturally, any error bias is programmed to favor the accounting system provider to minimize potential under billing. By incorporating a rate table in
the phone unit 30, dialogue with the system provider, which
may be a separate entity from the wireless service provider,
is thereby avoided. Since the rate table used by the complex
billing algorithm may change at any time, the mobile phone
system of this invention provides for over the air updating of
the internal rate table in each phone unit at the initiation of
the system provider. Each phone unit may be polled and
updated by the system provider during off-hours. Preferably,
the updated rate table is coded when the user applies for an
increase in the internal phone account. In describing the
complex billing algorithm, the acronyms in Table III are
used.
TABLE III
Acronyms
BIT
BYTE

I bit of data
8 bits of unsigned type

!NT

16 bits of unsigned type

BYTE[#]

Is a # of Bytes

DECIMAL
RECORD

Up to 32 bits

(Used as a flag)
(Uke an unsigned char
in C langnage)
(Like an unsigned
short int in C
language)
(Like a storage
buffer)
(Uke a float in C/
Just a decimal number)

A collection of the above
types

The call record configuration structure that enables the
billing data to be established for calculation of charges is set
forth in TABLE N.
TABLE IV
RECORD of configuration data {
/fThis data will tell the phone how to bill calls in any
country in the world
BYTE
Maximum International Digits
BYTE
Minimum International Digits
BYTE
Maximum Long Distant Digits
BYTE
Minimum Long Distant Digits
BYTE
Maximum Local Digits
BYTE
Minimum Local Digits
BYTE[?]
International Access Code
BYTE[?]
Long Distance Access Code
BYTE
Is long distance access code always
required?
BYTE[?]
Third party prefix/Operator/Calling
Card Digits
//Locator Information
!NT[5]
5 Home Sills of the phone (Provides
seamless roaming etc ... )
!NT[5]
5 Home area codes of the phone (Provides
computability in congested areas)
/lRate Information
DECIMAL
Base access per minute charge (Applies to
all calls)
Additional long distance per minute
DECIMAL
charges
DECIMAL
Additional International per minute
charges
DECIMAL
Additional roaming per day charges

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15
TABLE IV-continued
DECIMAL
DECIMAL

Additional roaming per minute charges
Additional operator assistance charges,
calling card or third party billing, or
call surcharge for call content

/lOther Information
BYTE
Base billing delay
BYTE[3j
By YYMMDD date, the phone will lock and
display "DATE - LOCKED"
BYTE[7]
Non billed area code (Expanded to handle
7 digit long distance for third worlds)
BYTE[3]
YYMMDD is the last date this phone was

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roaming on

BYTE[5j[11]
INT[20]

A block of 5 non billed phone numbers to
call (ie ... 911 and any other user defined)
A block of 20 random numbers [1000,9999]
if value for license number decoding

The configuration data for the foregoing record fields is
explained as follows:
Maximum International Digits-This is the maximum
length of a country's country code. For instance, the USA
has a country code of 1 while Venezuela has a country
code of 58. If these were the only two countries in the
world, then the maximum international digits would be 2.
This isn't the case and we typically have this set at either
3 or 5 depending on the billing demand.
Minimum International Digits-This is the minimum length
of a country code. this will, in almost all cases, be set to
1.
Maximum Long Distance Digits-This is the maximum
length of a city's area code. This varies greatly in third
world countries. Here in the USA this will always be set
at 3 because all area codes are a length of 3. However,
some countries area codes range from 1 digit up to 5 or
more digits.
Minimum Long Distance Digits-This is just the opposite of
the maximum for long distance. Again, for the USA this
will always be set to 3 but will vary outside the USA.
Maximum Local Digits-This is the maximum length of
digits it takes to call a local number. Here in the USA it
is fixed at 7. However, this varies greatly in other countries.
Minimum Local Digits-This is the minimum length of
digits it takes to place a local call. This varies greatly even
if you are in the USA. This can be used to create different
effects in billing. However, because of the scope of the
debit phone, this will most likely always be set to 0 or the
USA only. (0 would account for an incoming call)
International Access Code-This is the required prefix that
must be dialed to place a directly dialed international call.
From the USA a customer would dial 011 +country code+
city/area code+local digits in order to place an international call. This varies greatly from country to country. A
length of 7 in the description above provides the system
provider with the capability of serving places like the
Caribbean. They require a standard 7 digit number as a
prefix to. (This is just an example of place in the Caribbean)
Long Distance Access Code-This is the digit or digits that
are required for a user to dial in order to place a long
distance call. From the USA, the user would dial a 1+,
sometimes called one plus dialing. In other countries, this
varies from a simple 0 to some lengthy digits eg.. 108 for
the Philippines.

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Is Long Distance Access Code Required-In some cellular
systems, it is not required that you dial the long distance
access code in order to place a long distance call. In San
Francisco, for example, if one were to call Utah information, all one would have to do is dial 801-555-1212,
1-801-555-1212 would also get to the same place. If the
long distance access code is required, it will help the
accuracy of the billing algorithm.
Third Party Prefix/Operator/Calling Card-this essentially
is the digits that must be dialed to reach the operator. In
the USA, 0 is the digit necessary to reach the operator. It
also is the digit necessary to place a collect call or credit
card call.
Billing Delay-After X seconds have passed, billing will
begin. Since the phone does not know exactly when the
call has been connected, we have to approximate this
connection. If the call lasts under this X seconds, then the
user is not billed for the call. However, if the call lasts X
seconds, then the user is billed from the time they hit SND
to END or the call is dropped.
Home SID-This is the cellular system ID this phone is
assigned to.
Home Area Code-This is the area code of the cellular
phone number or MIN, Mobile Identification Number.
Base Access Per Minute Charge-This rate is added to every
telephone call made. This is the base rate for the telephone
call. The only way this rate would not be added in is if the
Billing Delay had not been reached.
Additional Per Minute Long Distance Charge-This rate is
added upon the Base Access rate when the call placed is
classified as a long distance call.
Additional International Per Minute Charge-This rate is
added upon the Base Access rate when the call placed is
classified as an international call.
Additional Roaming Per Day Charge-This rate is added
upon the Base Access rate when the call is a roaming call
and this charge has not been already been applied today.
Additional Roaming Per Minute Charge-This rate is added
upon the Base Access rate and possible the Additional
Roaming Per Day Charge when the call is a roaming call.
Additional Operator Assistance Charge-This rate is added
upon the Base Access rate when the call starts with the
Third Party PrefiX/Operator digit(s) or is a surcharge for
call connects identified as data transfer calls or the like.
Lock Date-This is the date the phone will no longer
function on. The phone will display "DATE-LOCKED"
and will not be able to be used until it is reprogrammed
via the HOST or a license number.
Non-Billed Area code-This is an area code or number that
is to be billed. This would be set to 800 for the USA.
(NOTE: Only the long distance part of the charge is not
billed)
Last Date Phone Was Roaming-This is used to store the
last date the customer was charged Roaming Per Day. If
a call is roaming and today isn't equal to the Last Date
Phone Was Roaming, then the Roaming Per Day Charge
would apply.
Non-Billed Numbers-This is a block of at least 5 numbers
of 11 digits in length that provides the flexibility not to bill
for certain phone numbers called. Numbers like 911 or
other special numbers such as *18 for roaming. Any
Non-Billed Number can also be dialed even if the phone
is out of money or locked. This way, if the user's phone
runs out of money in debit mode, the user can use that
very phone to call a Non-Billed Number, such as customer
support, to increase their credit on the phone.
Random Number Block-This is a block of numbers ranging from 1000-9999 that are used in decoding license
numbers.

5,577,100
17
The basic complex billing algorithm calculates the call
charges for the basic categories of local calls, longs distance
calls, international calls and roaming calls. As the algorithm
allows compounding of categories, the call types are a
complex of factors, for example, incoming roaming long
distance call. The algorithm is easily expanded to handle
other categories, for example data transfer calls, for which
deductions or surcharges may apply. In classifying a call, the
following factors are considered which covers virtually all
situations:
Local Call-If the call digit length is less than or equal to the
Maximum Local Digits and the call digit length is greater
than or equal to the Minimum Local digits, then this is a
local call.
Long Distance Call-First, long distance calls are the most
cumbersome to classify because there are so many possibilities. However, this can be boiled down to a few tests.
If the number starts with the Long Distance Access Code,
then subtract the length of the Long Distance Access
Code from the length of the call digits. (ie.. If I dial
1-510-838-2400 the length is 11-1=10)
If the NEWLY calculated call digit length is less than or
equal to (the Maximum Local Digits+the Maximum
Long Distance Digits) and the call digit length is
greater than or equal to (the Minimum Local Digits+the
Minimum Long Distance Digits) then:
If the call does not start with the Long Distance Access
Code and the Long Distance Access Code Required
flag is set to yes, then this call is not a legitimate long
distance call. (This is helpful in third worlds)
The following special cases are considered:
Is a Call Roaming?
If the SID the phone is currently in when the call is placed
is not equal to any of the 5 Home SIDs, then the call is
roaming.
Third Party PrefiX/Operator Assisted Calls
If any call begins with the Third Party Prefix, then the call
is not to be billed at all.
. Billing Delay
If a call lasts under the Billing Delay seconds, then the call
is not to be billed at all.
Date Locking
If the current date is equal or greater than the current Lock
Date, the phone should lock and display "DATELOCKED"
The following examples provide an overview on the
manner calls are calculated:
M = Number of minutes the call lasted
L = Local Call Per Minute Charge
LD = Long Distance Per Minute Charge
IT = International Per Minute Charge
RD = Roaming Per Day Charge
RM = Roaming Per Minute Charge
Local=M*L
Long Distance = M * (L + LD)
International = M * (L + IT)
Iocoming Call = M * L
Local Roaming Call = M * (L + RM) + RD (If RD has
not been applied today)
Long Distance Roaming = M * (L + RM + LD) + RD (If RD
has not been applied today)
International Roaming = M * (L + RM + IT) + RD (If RD
has not been applied today)

18

5

be that if a user gets a dropped call or some unexpected
end of a call, the system provider wants to be able to
bill the call as close to it can to the number of minutes
the user actually talked. The phone updates the debit
amount every minute on the minute during a call. So,
for a local call, the minute by minute calculation might
be as follows:
Total Charge=Total Charge+L

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Once a call has been classified, as close to pressing SND 65
as possible, the charges described above need to be
tracked on a minute by minute basis. One reason might

The user should be notified by a tone or set of tones in the
earpiece and on the phone's screen or by the warning
lights if there is less than 5 minutes of air time left at
the current rate of use.
The mobile phone system of this invention allows over
the air activation and dialogue with the phone unit 30 using
DTMF signals and the paging capability of a mobile phone
with a receiver decoder. The current allowable dollar amount
in the internal account of the phone unit can then be
upgraded over the air. During the DTMF dialogue between
the central processing unit of the system provider and the
user's phone, the encrypted license number of the user's
phone is transferred and verified. The user's account is
checked to determine if upgrade is warranted or is flagged as
a credit risk. The upgrade amount is encrypted and keyed to
the encrypted license number and transferred to the user
together with any update of the rate schedule.
When the user exhausts the amount in the internal account
in the phone unit 30, the phone unit is locked, and the display
33 shows "EMPTY-LOCKED." The phone unit 30 is placed
in paging mode enabling customer service to be paged for an
account upgrade.
Similarly, when the use period expires, the phone unit 30
becomes locked and the display 33 shows "DATELOCKED," and is placed in paging mode. Where the user
has a low account balance, he voluntarily enters page mode
and contacts customer service for an account increase.
If desired, the phone unit when in involuntary paging
mode can have restricted paging function, allowing only
contact to the service center and receipt of a license number.
This disables the phone, even as a pager and deters theft in
the rental environment. Alternately, the phone unit when
locked can retain full paging capabilities.
It is to be understood that all of the data security issues are
not here addressed and the security measures to be implemented depends on the environment of use, and the position
of the system provider in the service network. Upgrades are
phone specific and are verified internally in the phone using
parameters unique to the phone unit. The license numbers
after verification, are not stored or known to the user except
in encrypted form.
The mobile phone system of this invention provides
substantial flexibility by the features described. Phone retailers can sell and activate phones on site without special
equipment. Furthermore, phones with internal accounting
allow for prepayment of service and call usage charges
permitting the retailer to make credit judgment or cash sales
independent of the service provider. Additionally, the task of
the system provider can be assumed by the retailer, the
service provider or an independent entity that assumes the
risk or provides for only cash prepayment transactions.
While, in the foregoing, embodiments of the present
invention have been set forth in considerable detail for the
purposes of making a complete disclosure of the invention,
it may be apparent to those of skill in the art that numerous
changes may be made in such detail without departing from
the spirit and principles of the invention.

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What is claimed is:
1. A mobile phone system comprising a system provider
having a host processor unit and a plurality of system users
each having at least one mobile phone unit wherein:
the host processor unit has communication means for
selectively establishing a communication link with
each mobile phone unit; and,
each phone unit includes a processor, a clock chip,
memory associated with the processor, program means
including a complex billing algorithm and rate data for
internally calculating call charges as calls are made,
wherein the phone unit includes internal accounting
means for generating a debit account with an account
amount in the phone unit and decrementing the account
amount in the debit account in real time, and wherein
the system provider has payment verification means
under system provider control for setting a phone use
account amount and communicating the account
amount to the phone unit, wherein the internal accounting means adds the account amount to the debit
account.
2. The mobile phone system of claim 1 wherein the
program means further includes means for storing call
charges as record data in the memory.
3. The mobile phone system of claim 2 wherein the
communication means of the host processor unit has program means for initiating the communication link at a time
controlled by the system provider and activating the communication of the record data of stored call charges from the
mobile phone unit to the system provider.
4. The mobile phone system of claim 1 wherein the host
processor unit includes program means for increasing the
amount of the debit account in the mobile phone unit during
a communication link with the phone unit.
5. The mobile phone system of claim 4 wherein the
mobile phone unit has an RF transceiver and the communication link is established over the airways by RF signals.
6. The mobile phone system of claim 1 wherein the
mobile phone unit has control means for deactivating the
mobile phone unit when the debit account is exhausted.
7. The mobile phone system of claim 6 wherein the
mobile phone unit has paging means for establishing a
communication link with the host processor unit when
deactivated.
8. The mobile phone system of claim 1 wherein the phone
system includes a transaction station wherein the phone unit
has means for establishing a communication link with the
transaction station and upon verification of a set payment
account amount increasing the amount of the debit account
in the phone unit.
9. The mobile phone system of claim 1 wherein the
payment verification means for setting a phone use account
amount and communicating the account amount to the
mobile phone unit has security means for securely communicating the account amount to the mobile phone unit.
10. The mobile phone system of claim 9 wherein the
security means of the payment verification means includes
encryption means for encrypting account communications
with the mobile phone unit.
11. The mobile phone system of claim 5 wherein the RF
signals include security means for securely communicating
the set account amount to the mobile phone unit.
12. The mobile phone system of claim 3 wherein the
communication means for the host processor unit includes
security means for securely activating and communicating
the record data or stored call charges from the mobile phone
unit to the system provider.

13. The mobile phone system of claim 3 wherein the
program means for initiating the communication link at a
time controlled by the system provider has means for
initiating a periodic polling of the mobile phone unit during
off-peak hours.
14. The mobile phone system of claim 1 wherein the
payment verification means under system provider control
includes a transaction station wherein the transaction station
has means for communicating with a system user and the
user's mobile phone unit and verifying the authenticity of a
transaction setting an account amount added to the debit
account of a mobile phone unit.
15. The mobile phone system of claim 14 wherein the
transaction station includes prepayment means for prepayment of a set account amount for adding to the internal debit
account of the mobile phone unit.
16. The mobile phone system of claim 14 wherein the
transaction station includes security means for secure communications between the transaction station and the mobile
phone unit.
17. The mobile phone system of claim 16 wherein the
security means includes direct electronic coupling of the
mobile phone unit with the transaction station.
18. The mobile phone system of claim 1 wherein the
mobile phone unit has communication means for communicating in a communication network through a wireless
service provider.
19. The mobile phone system of claim 18 wherein the
wireless service provider and the system provider comprise
a single entity.
20. The mobile phone system of claim 18 wherein the
wireless service provider and the system provider comprise
different entities.
21. The mobile phone system of claim 1 wherein the
mobile phone unit includes a visual display and the program
means generates a visual display of current debit account
status in the visual display.
22. The mobile phone system of claim 1 wherein the
mobile phone unit is a hand-held device with the complex
billing algorithm and rate data retained in the memory of the
hand-held device.
23. The mobile phone-system of claim 1 wherein the rate
data comprises a rate table under control of the system
provider and secure from the mobile phone unit user.
24. The mobile phone system of claim 1 wherein the
complex billing algorithm includes a multiple factor
accounting protocol.
25. The mobile phone system of claim 24 wherein the
multiple factor accounting protocol includes code means for
factoring in call charges based on the location of the phone
unit in a multi-zone communication network.
26. The mobile phone system of claim 24 wherein the
multiple factor accounting protocol include code means for
factoring in call charges based on the location of the mobile
phone unit when called.
27. The mobile phone system of claim 24 wherein the
multiple factor accounting protocol includes code means for
factoring in call charges based on a location of a party being
called.
28. The mobile phone system of claim 24 wherein the
multiple factor accounting protocol includes code means for
factoring in call surcharges and deductions based on a data
content of a call.
29. The mobile phone system of claim 24 wherein the
multipleJactor accounting protocol includes code means for
classifying calls for calculating call charges based on a
telephone number called from the mobile phone unit.

5

10

15

20

25

30

35

40

45

50

55

60

65

5,577,100

21
30. The mobile phone system of claim 1 wherein the
communication means of the host processor unit has means
under control of the system provider secure from the mobile
phone unit user for periodically updating the rate data in the
mobile phone unit.
5
31. The mobile phone system of claim 24 wherein the
clock chip of the mobile phone unit is a real time clock chip
and the multiple factor accounting protocol includes code
means for calculating call charges based on the time of day
of calls on the mobile phone unit.

22
32. The mobile phone system of claim 31 wherein the
phone unit has circuit means for deactivating the phone unit
at a predetermined time and date.
33. The mobile phone system of claim 1 wherein the
processor system includes multiple host processor units and
a central processor unit with means for communicating with
the host processor units.

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