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2011. 5

Korea Communications Commission

Jin-Bae, Hong

NFC(Near Field Communication) BasedSmart Mobile Life Service

Action Plan of Korea

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NFC (Near Field Communication)

was Hot Keyword at MWC 2011

1. Introdcution

NFC Based Mobile Credit Payment

NFC Based Mobile Payment for Public Transport

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1. Introduction(Cont)

Established action plan Standard of NFC based mobile application service Common infrastructure for NFC based mobile payments Development of NFC based application services

Evolving from the voice and data oriented service to the life service

Widely available smartphones, bi directional communication (NFC) based payment technologiesGlobal IT companies entering the service markets

Requests for development of basis for NFC based ‘Smart Mo-bile Service’

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Allows you to conveniently exchange the information/transaction by putting your mobile phone close to a detectorThe NFC based Mobile Smart Life Service: classified into mobile payment ser-vice and application services

NFC Based Mobile Smart Life

Mobile Payment Application Services

※ Mobile credit card, e-Money, P2P credit transfer, Mobile coupon, Membership, etc

2. Trends of NFC (Cont)

Door Lock

P2P Payment

Ticketing

Healthcare

Parking lot

SMS

Voice

Data

Entertainment

화Smart Coupon

Menu Order

Smart Guide

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2. Trends of NFC (Cont)

The NFC service includes the existing RFID and QR code services provide the NFC service become the center of attention.

Comparison of NFC and other services

RFID QR Code NFC

A type of two dimensional bar code. It reads the data with a digital camera or special scanner

Used to read object informa-tion in one direction the limited services such as distribution and history track-ing.

This technology enables bi di-rectional communication be-tween two terminals which are within 10cm away. wide range of applications

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2. Trends of NFC (cont)

Forecast of Global Market

(Unit : hundred million dollar)

NFC MarketNFC Market

Mobile payment

11,300

3,700

NFC market(2014)

< Ref : IR Market Research, 2010 >

2010

316

1,100%

2014

(Unit : million)

3,572

Usage of Mobile PaymentUsage of Mobile Payment

< Ref : Gartner, 2010 >

NFC Based DevicesNFC Based Devices

< Ref : H.I. Business Partners, 2011 >

2011 2015

152.4(8.3%)

2,763.3(85.9%)

(Unit : million)

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2. Trends of NFC (cont)

Status of NFC based mobile service in Korea and abroad

Technological TrendsService & Infrastructure

Abroad

Abroad

Domestic

Domestic

Infrastructure is in the early stage

Major companies such as Apple and Google

aggressively make efforts to pre-empt the global

market.

- (Apple) NFC based e-ticket patent application and next

generation terminal to introduce NFC payment services.

- (Google) Launching NFC supported terminals and acquiring

key technologies to secure the basis for advancement.

insufficient implementation of the NFC based

infrastructure

- (Payment machine) A small number of terminals can be

updated for smart mobile payment service. Most of them

require replacements.

- (Terminal) smart mobile payment terminal

(SHW-A170K, Galaxy S2 )will continue to expand.

A small number of companies such as NXP occupy

more than 80% of the market in NFC chip/controller.

- (NXP) with more than 80% of the NFC chip market.

Recently, it signed a strategic partnership with Google for

smooth NFC supplies.

- (STMicroeletronics) occupies 80% of the domestic

transportation card market.

5-6 NFC chip and solution companies are emerging.

- (Samsung) Declared its attempt to enter the NFC chip

market. Will start mass production in 1Q of 2011.

- (USIM) The domestic USIM makers will develop the NFC

based USIM and deliver them to the domestic mobile

communication service providers.

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2. Trends of NFC (cont)

Significant Implications

Requests for wide spread infrastructures

Need to discover NFC application services

Getting ready to lead the next generation NFC market

The domestic common infrastructure needs to be implemented to prevent du-plicate investments on smart mobile payment service and promote early wide-spread availability.To expand user base for smart mobile payment service, the spreading and pub-licity for availiabilty of domestic terminals with smart mobile payment function are required.

Using the NFC mounted terminal as a payment machine, we need to make var-ious application services for small retailers and highly mobile street sellers who can’t afford a card payment machine.

Need for advancement and discovery of various application services such as business card exchanges, tourism information and customized advertise-ments.

Strengthen the security of smart devices, so that they can manage and use var-ious payment and authentication information safely.

Establish a test environment for NFC based technology development and new business model verification in order to expand opportunities for small compa-nies to enter the global market.

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3. Vision

Vision

Goal(2015)

Project

Leading the NFC based smart mobile life services

Construction of the infrastructure

for new Mobile Smart Life services

Discovery andPropagation

of Mobile Smart Lifeapplication services

NFC Mobile

Payment

Machine : 70%

NFC Equipped

Terminals : 60%

Usage of Mobile

Payment : 60%

Leadership inthe next-generationMobile Payment and

services market

① Common Infrastructure

② NFC-Equipped Teminals

③ Standardization of

Service

① Common Infrastructure

② NFC-Equipped Teminals

③ Standardization of

Service

① P2P Payment

② Personal Authentication

③ Smart Information/Ad

① P2P Payment

② Personal Authentication

③ Smart Information/Ad

① Security Technology

② Smart Wallet

Technology

③ Testbed

① Security Technology

② Smart Wallet

Technology

③ Testbed

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4. Action Plan

Common Infrastructure and Standard

Early wide spreading of the mobile payment infrastructure and preventing duplicate investment by implementing a common infrastructure.

- In the past, as the service providers and the credit card companies fought against one another to lead the mobile payment market the market promotion was failed.

Set up standard for various application services in addition to mobile payment.

- Spread the NFC related international standards and prepare the standards for various application services and support distribution.

NFC based mobile application service standard development

① (Wide spreading of the international standard) Create various smart mobile application ser-

vices.

② (Application standard development) Need to develop standard for highly competitive NFC ser-

vices

ITU has to play more active role

Common infrastructure for NFC based mobile payments

KCC, Telco, Credit Card Companies, VAN,

KISA, ETRI, and MOIBA, etc. will partici-

pate in it.

Operation committee

Infra PilotTech

development Standard`

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4. Action Plan (Cont)

Terminal

At present, availability of NFC terminal is very low Develop distinguished strategies for new and existing terminals

Implementation of the basis for terminal distribution

Examples of alternative technology

< NFC Sticker > < RF Case >

NFC

< NFC & RF Incluide SIM >

…

Terminal to be launched

- Formulating and recommending the guideline

for NFC equipped phone

Terminal launched

- combine alternative technology

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Direct communication between NFC mobile phones to support credit payment/wiring/file ex-changes

Detects the tag information to provide customized ads/information.

Use with a built-in credit card or ID to support use for payments, tickets

Support NFC based application services

Mobile Payment Mobile Ticket Access Control

Card emulation

Reader

Peer to peer

Information Service (Smart Album/Smart Poster/Smart Station)

Business Card Exchange/File Transfer

…

One Touch Calling Service

Credit Payment/Credit Transfer

Receipt

P2P Payment Mobile Coupon

4. Action Plan (Cont)

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Leading the next generation mobile payment and application service markets

Security technology development Smart Wallet

TestBed implementation

Developing terminal security platform technology

to prevent information leakages caused by loss or

theft, access of unauthorized users to illegal data.

Developing technologies to protect smart phone users

and mobile service from malignant traffic & to prevent

arbitrary manipulations by other users

Security platform S/W development

Developing smart wallet technologies for NFC

based payment and authentication in a smart-

phone

※ Credit card, Public certificate, ID, Personal Information management

Developing domestic smart payment and

integrated authentication technologies for the

growing NFC based business.

Build pre testing environment for the compatibility and service performance of NFC service and terminals before entering

the commercial market.

4. Action Plan (Cont)

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5. Expected Benefits

The NFC industry will generate$950 million in productions, $320 million in addedvalues, and 5,707 jobs for the next 5 years

Convenience of users

Advance of NFC related technology and service Provide global competitiveness

Economic Effects

Various application services will bring convenienceby integrating on-line and off-line services into mobile phones

Technical Effects

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Thank You