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36Partner to the Digital World

Partner to the Digital World

! Concept of the NFC Technology! Three Modes of NFC Services! NFC Trends! Comparison of NFC and Mobile

RFID Services! Issues in Adopting NFC

NFC (Near Field Communication)

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Concept of the NFC Technology"""" NFC (Near Field Communication) Technology

NFC is a short-range wireless technology which enables

the communication between devices over a short

distance (hands width). ※

# NFC package contains both the connectivity chipand the multi-application chip.

# Payment/Transport application is resident on the chip.

# Personalization done via NFC/OTA.! Over the air connection: CDMA, EDGE/GPRS

"""" NFC Architecture

Baseband

NFC SIMApp.

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Three Modes of NFC Services

NFCNFC Smart Card Short-DistanceCommunication Mobile RFID

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Three Modes of NFC Services"""" Card Emulation Mode

# Transportation# Entertainment# Customer loyalty & bonus programs# Payment schemes# Access control# Digital Rights Management

Compatible with today’s field proven contactless infrastructure

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Three Modes of NFC Services"""" Example of Card Emulation Mode: Contactless Payment

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# Synchronize Calendar# Share/Transfer Content

! Business cards, Pictures, Video Clips# Easy Network Set-up and Configuration

! Bluetooth, WLAN# Smart Key for Automotive

! Hands-free calling in the car! Configure seat position or music preferences

Three Modes of NFC Services"""" Peer-to-Peer Communication Mode

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Three Modes of NFC Services

# Product, Services, and Event Information! Intuitive and easy to use

# Configuration / Personalization! Customized to customer’s needs

# More Effective Advertising! Target-oriented

# Real-Time CRM

"""" Reader Mode: Similar to Mobile RFID

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Card Emulation Mode

Three Modes of NFC Services"""" Philips categorizes 4 ‘Touch &’ Services

# Touch & Go, Touch & Confirm, Touch & Connect, Touch & Explore

P2P Communication Mode

Reader Mode

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NFC Trends – Standardization"""" NFC Forum: http://www.nfc-forum.org/specs/

# 130 Members as of Sept. 2007.

"""" Standard on Four Tag Types# Specs for four separate, interoperable NFC tags

! Two are based on the ISO 14443 A standard→ Memory size: 96 Bytes and 48 Bytes→ Communication speed: 106 Kbps

! One is based on the ISO 14443 B standard! One is based on Sony’s FeliCa technology

"""" Standard on Data Exchange Format

"""" Standard on Record Type Definition

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NFC Trends – Market"""" Orange

# Performed pilot tests from 2005 $ Rollout NFC services from early 2008# Possible services

! Ticketing service: bus and tram fares, movie ticketing (Veolia Transport)! Retail payment and loyalty points services (LaSer) ! e-Portal service (Clear Channel)

"""" Other Mobile Telcos’ Pilot Test# Vodafone, Germany (2006)# Mobilkom Austria (3Q, 2007)# SingTel (4Q, 2007) # O2 Ireland (1Q, 2008)# Telstra with National Australia Band and Visa International (1Q, 2008)

"""" Market Expectation: ABI Research# 290M handsets by 2012 (+20% of the global mobile handset market)

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NFC Trends – Products

Nokia 3220 Nokia 6131 BENQ T80

eNetMouseSanDisk NFC SD Card

SDiDTM 1010

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Comparison of NFC and Mobile RFID Svc.

~135KHz(ISO 18000-2)

13.56MHz(ISO 18000-3)

(ISO 7816, 14443)

433.67~434.17MHz(ISO 18000-7)

908.5~914MHz(ISO 18000-6)

(4W EIRP, FHSS/LBT)

Access

Control

Smart card

Inventory

Container

(Active RFID)

Logistics/

Distribution

Frequency bands newly assigned for RFID/USN in 2004

NFCUHF

mobileRFID

Data Rate

Noise/Environment

Tag SizeLarge

Robust

Low

Small

Sensitive

High

• Bidirectional communication• Short range (~10cm)

• Unidirectional communication• Long Range (~70cm) with 0.1W

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Issues in Adopting NFC: Four Impediments"""" Low number of NFC-enabled cell phone models

"""" Lacking number of mobile operators conducting NFC trials

# absent of the standard API# costly and unscalable

"""" Lack of an NFC application program interface (API)

"""" Benefits from contactless payment # It enables contactless payments at locations beyond just the point-of-sale

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Issues in Adopting NFC: Business Strategy"""" Making Bigger Pie rather than Taking the Initiative

# Booming up the NFC market by joining the people concerned as much as possible! Network Service Providers (ISPs, Mobile Telcos)! Application Service Providers ! Financial Service Providers (Card companies, Banks, Security company)

# Strengthen its main business area in the NFC market

"""" Consider NFC as a Means of Service Initiation# NFC technology as itself can not be a revenue resource for service provider# Important to develop diverse NFC-triggered applications# Standardize NFC-related API

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