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2011. 5 PowerPoint Presentation

2011. 5

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2011. 5

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  1. NFC(Near Field Communication) Based Smart Mobile Life Service Action Plan of Korea 2011. 5 Korea Communications Commission Jin-Bae, Hong

  2. 1. Introdcution NFC (Near Field Communication) was Hot Keyword at MWC 2011 NFC Based Mobile Payment for Public Transport NFC Based Mobile Credit Payment

  3. 1. Introduction(Cont) Evolving from the voice and data oriented service to the life service Widely available smartphones, bi directional communication (NFC) based payment technologies Global IT companies entering the service markets Requests for development of basis for NFC based ‘Smart Mobile Service’ Established action plan  Standard of NFC based mobile application service  Common infrastructure for NFC based mobile payments  Development of NFC based application services

  4. NFC Based MobileSmart Life 2. Trends of NFC (Cont) Data Allows you to conveniently exchange the information/transaction by putting your mobile phone close to a detector The NFC based Mobile Smart Life Service: classified into mobile payment service and application services Voice Entertainment SMS Healthcare 화 Parking lot Ticketing Mobile Payment Application Services Smart Coupon P2P Payment Door Lock Menu Order Smart Guide ※ Mobile credit card, e-Money, P2P credit transfer, Mobile coupon, Membership, etc

  5. Comparison of NFC and other services 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. QR Code NFC RFID Used to read object information in one direction  the limited services such as distribution and history tracking. A type of two dimensional bar code. It reads the data with a digital camera or special scanner This technology enables bi directional communication between two terminals which are within 10cm away.  wide range of applications

  6. Forecast of Global Market 2. Trends of NFC (cont) Usage of Mobile Payment NFC Market NFC Based Devices (Unit : million) (Unit : hundred million dollar) (Unit : million) 3,572 11,300 2,763.3(85.9%) 1,100% 3,700 152.4(8.3%) 316 Mobile payment 2010 2014 NFC market (2014) 2011 2015 < Ref: IR Market Research, 2010 > < Ref: Gartner, 2010 > < Ref: H.I. Business Partners, 2011 >

  7. Status of NFC based mobile service in Korea and abroad 2. Trends of NFC (cont) Technological Trends Service & Infrastructure 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 domesticUSIM makers will develop the NFC based USIM and deliver them to the domestic mobile communication service providers. Infrastructure is in the early stage Major companies such as Apple and Google aggressively make efforts to pre-empt the global market. - (Apple) NFC basede-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 b r o a d D o m e s t i c

  8. Significant Implications 2. Trends of NFC (cont) Requests for wide spread infrastructures The domestic common infrastructure needs to be implemented to prevent duplicate investments on smart mobile payment service and promote early wide-spread availability. To expand user base for smart mobile payment service, the spreading and publicity for availiabilty of domestic terminals with smart mobile payment function are required. Need to discover NFC application services Using the NFC mounted terminal as a payment machine, we need to make various 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 advertisements. Getting ready to lead the next generation NFC market Strengthen the security of smart devices, so that they can manage and use various 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 companies to enter the global market.

  9. 3. Vision Leading the NFC based smart mobile life services NFC Equipped Terminals: 60% NFCMobile Payment Machine : 70% Usage of Mobile Payment: 60% Construction of the infrastructure for new Mobile Smart Life services Discovery and Propagation of Mobile Smart Life application services Leadership in the next-generation Mobile Payment and services market • Project • Vision • Goal • (2015) • ① Common Infrastructure • ② NFC-Equipped Teminals • ③ Standardization of Service ① P2P Payment ② Personal Authentication ③ Smart Information/Ad ① Security Technology ② Smart Wallet Technology ③Testbed

  10. Common Infrastructure and Standard 4. Action Plan Early wide spreading of the mobile payment infrastructure and preventing duplicate investment by implementing a common infrastructure. Set up standard for various application services in addition to mobile payment. - 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. Common infrastructure for NFC based mobile payments Operation committee KCC, Telco, Credit Card Companies, VAN, KISA, ETRI, and MOIBA, etc. will participate in it. ` Infra Tech development Standard Pilot - 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 services. ② (Application standard development) Need to develop standard for highly competitive NFC services  ITU has to play more active role

  11. Terminal 4. Action Plan (Cont) 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 Terminal to be launched - Formulating and recommending the guideline for NFC equipped phone Terminal launched - combine alternative technology < NFC Sticker> < RF Case> NFC … < NFC & RF Incluide SIM>

  12. Support NFC based application services 4. Action Plan (Cont) Use with a built-in credit card or ID to support use for payments, tickets Card emulation Credit Payment /Credit Transfer Mobile Payment Mobile Ticket Access Control Receipt Detects the tag information to provide customized ads/information. Reader … One Touch Calling Service Information Service (Smart Album/Smart Poster/Smart Station) Direct communication between NFC mobile phones to support credit payment/wiring/file exchanges Peer to peer Business Card Exchange/File Transfer P2P Payment Mobile Coupon

  13. Leading the next generation mobile payment and application service markets 4. Action Plan (Cont) Security technology development Smart Wallet 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. 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 platformS/W development TestBed implementation Build pre testing environment for the compatibility and service performance of NFC service and terminals before entering the commercial market.

  14. 5. Expected Benefits Advance of NFC related technology and service Provide global competitiveness The NFC industry will generate $950 million in productions, $320 million in added values, and 5,707 jobs for the next 5 years Economic Effects Various application services will bring convenience by integrating on-line and off-line services into mobile phones Convenience of users Technical Effects

  15. Thank You