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Home > Communications > Wireless > Networking
Advances in Near Field Communications--Contactless Identification and Interconnection Technologies (Technical Insights)
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| Published Date:
March 2007
Published By:
Frost & Sullivan
Page Count:
88
Order Code:
R1-5755
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This Frost & Sullivan research service titled Advances in Near Field Communications provides an insight into the development and market potential of this technology around the globe. It includes a roadmap into the future of this technology and the applications enabled by it. In this study, Frost & Sullivan's expert analysts thoroughly examine NFC and its commercialization based on industry inputs from multiple stakeholders.
Technology Overview
Marriage of Mobile Telephony and Contactless Technology Ushers in the Next Generation in the Mobile Industry
In the evolution of mobile phones as an ubiquitous computing paradigm, near field communications (NFC) has emerged as yet another avenue to market new services and products via mobile telephony to the consumer. NFC is a short range wireless connectivity technology that is inherently secure because of its operating distance of less than 10 centimeters. "Although the technology is based on radio frequency identification (RFID) standards, the difference lies in the use of radio frequency waves for longer range communication and peer to peer connectivity for NFC communications," according to the analyst of the study. "NFC is more about putting the user or consumer always in charge of their environment while transacting with this technology for e-commerce, digital rights management, and information exchange."
The NFC standard is complementary to established wireless networks such as Bluetooth and Wireless Fidelity (Wi-Fi). This standard is making its impact by addressing some of the concerns plaguing longer range wireless protocols, while also providing the requisite horsepower for e-commerce, transit and ticketing applications. The goal of this standard is to simplify the user experience with consumer electronics by using the power of touch - a simple wave or touch that establishes a connection between two NFC-compatible devices.
Support for Contactless Infrastructures and Peer to Peer Mode of Operation Likely to Hike the Benefits of this Technology
Contactless infrastructure in the United States and Europe is enabling the rapid adoption of NFC for mobile payments at points of sale and transport, whereas, a mixed application trend is evident in Asia Pacific. It is estimated that one third of all mobile phones will be NFC-equipped in a span of three to five years and 2008 will be the tipping point as far as commercially viable volumes are concerned. The service discovery component of NFC enabled by over-the-air (OTA) downloads is a vital feature of mobile-based NFC as this allows a multiapplication, multiservice single platform environment to flourish.
Also, if a user’s card is lost or stolen, the mobile operator can easily block or cancel the application OTA or through a financial service provider. On the flip side, however, certain uses of NFC will only make sense if there is adequate infrastructure, that is, enough NFC-enabled phones and NFC forum-compliant devices to support it. "For instance, smart posters will require some penetration via the mobile phone to make its use case compelling," explains the analyst. "But as more and more use cases are developed, the drive for the technology will become more evident from the end-user perspective."
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