Near Field Communication (NFC) was high on the agenda at the Mobile World Congress in Barcelona this year. On March 14, Telenor together with GSMA and the Research Council of Norway will be hosting a free NFC event at Fornebu to share industry highlights, experiences and recommendations.
Cooperation is a key to success in the new NFC ecosystem. At the NFC event at Fornebu key players in the industry will share their views on how they plan to utilize NFC services, GSMA will present what they have done to promote NFC services, and Telenor will share the lessons learned from recent trials. The event will take place in Auditorium Voice, Telenor Expo, Fornebu, free of charge. Demos of NFC services will be shown.
Facts about NFC
NFC is a two-way communication technology based on radio-frequency identification (RFID). The main difference between RFID and NFC is the operating distance, which for NFC is set to approximately 10 centimetres.
NFC services are easy to use and may be efficient in many fields, such as;
- Payment; Instead of paying with cash or a payment card you can just tap the mobile phone with NFC onto a payment terminal to pay.
- Tickets; Mobile phones with NFC can replace traditional paper tickets and contactless cards used in public transportation. Cinemas, theatres, stadiums, concert halls and other arenas are also likely to replace their tickets with NFC tickets.
- Access control; access to offices, homes, hotel rooms, events, cars, PCs, W-LANs and access to other places where one normally would use a key, a card, a PIN-code or a password can be possible using a mobile phone with NFC.
- Information exchange; using a NFC mobile phone you can read NFC-stickers for getting information. The stickers can be placed in price tags, smart posters, on bus stops etc. Pairing two NFC- phones, you can exchange money, business cards, facebook profiles or engage in a gaming session.
Telenor wants to be a part of the NFC ecosystem
Telenor can provide real value in the new ecosystem with regards to its customer base, trusted brand, and technology assets in SIM as the Secure Element and its unique Over The Air (OTA) distribution capabilities. Telenor views SIM based NFC services as the best way to ensure security, standardization, interoperability, interaction, scale and a good end-to-end customer experience.
Telenor is ready to take a multi-operator and a multi-service approach, being highly dependent upon other partners, including competitors. Mass market adoption is the goal, and that is unlikely to happen if there is only one mobile operator or one bank who delivers the NFC services. Clear and well defined business models are important to ensure revenues to all contributing parties.
It will take some time before NFC based services are available to the mass market in Norway. This is due to several reasons; immature business models, few NFC enabled handsets, few NFC enabled POS/turnstile terminals. Telenor will therefore take a step-by-step approach for developing NFC enabled services, starting with the Tap2Pay project.
Tap2Pay – a first move
During the summer of 2011, around 250 of Telenor’s and DnB NOR’s customers tested paying via mobile in Doorstep’s”Tap2Pay pilot”. A dozen locations in Oslo, Norway took part in the test. Tap2Pay was a success, and over 80% of the users were satisfied with the solution.
The Tap2Pay “next step” project will establish real NFC services for consumers and merchants in 2013. The solution will have more functionality than the Tap2Pay pilot and will include payment cards, loyalty cards and tickets. The solution will be scalable and can be further developed as the market matures.
NFC City testing NFC services
NFC City is a user-led innovation project partly funded by The Research Council of Norway over the VERDIKT programme. The project is managed by Telenor and includes eight partners: Telenor, Cominor, DNB, Doorstep, FARA, National Institute for Consumer Research, Troms County Council, and the University of Tromø. The project started in 2010 and will run through mid-2014. A number of NFC services will be developed and tested. Project Manager is Senior Researcher Sigmund Akselsen.
For more information, please contact
Viktoria Erngard in Telenor Group
Elisabeth Falck in Telenor Norway