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Green light for NFC!

Week 06, 2011

Handsets are coming too: NFC is included in Android 2.3 Gingerbread, Samsung and LG have announced they would massively include NFC functionalities in their handsets, and Research in Motion will deliver NFC handsets this year. More announcements are anticipated, such as a clear position from Apple, Nokia, and others. But we all think that once the trend is started, nothing can stop it.

For years, the industry said NFC was not starting up because handsets were missing. Now this issue is about to be over.

Interestingly, some questions are still far from being solved: the mobile network operators consider they want to deliver payment applications thanks to a SIM card integrating a secure element, while handset vendors integrate the Secure element directly in the handset, and organizations such as Visa are coming with alternative solutions like a microSD card based secure element. These technical aspects have huge business model implications, as the one who controls the secure element actually controls the NFC secure applications. And the control of NFC applications drives the business model.

So we’ve got all the green lights ahead of us. But shall we find the ignition key? And shall we have fuel to sustain a healthy development of a global NFC ecosystem?

Thierry Spanjaard

Chief Editor

Smart Insights