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)

37Partner to the Digital World

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.

38Partner to the Digital World

Three Modes of NFC Services

NFCNFC Smart Card Short-DistanceCommunication Mobile RFID

39Partner to the Digital World

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

40Partner to the Digital World

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

41Partner to the Digital World

# 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

42Partner to the Digital World

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

43Partner to the Digital World

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

44Partner to the Digital World

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

45Partner to the Digital World

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)

46Partner to the Digital World

NFC Trends – Products

Nokia 3220 Nokia 6131 BENQ T80

eNetMouseSanDisk NFC SD Card

SDiDTM 1010

47Partner to the Digital World

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

48Partner to the Digital World

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

49Partner to the Digital World

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