Still waiting...
NFC capable handsets are of course an integral part of the eco system but there are other vital ingredients in the "NFC soup" like the Secure Element (SE). Usually we include three different form factors for the SE, namely Embedded (secure chip in the handset, not removable), Secure Digital card (removable) and the UICC (a.k.a SIM card). All of these are available and is not the obstacle for the roll out of commercial NFC services so why does it not happen? Well, it seems that the majority of the Mobile Network Operators (MNO) would like to use the SIM cards as the SE. (To enable that scenario the handset must support the SIM as the SE and those are still not available off the shelf as I discussed in the previous blog submission). But why is it important for the MNO to promote the SIM as the SE? The obvious answer is that they own and control the SIM and instead of only being a costly authentication token to allow billable access to the network they foresee a possibility to have it as a new revenue source. Leasing space on the card for "tenants" like credit/debit cards issuing banks or transit companies is one possibility. Another one which is often part of the MNO's business models is the ability to charge for application download, update, block/unblock, recharge etc. These services can be done Over The Air (OTA). This ability is the core in easy distribution and management of services for the MNO's subscriber. It gives the user a possibility to buy for instance a bus ticket whenever and wherever they are without the hassle of finding the ticket machine and get it downloaded OTA to the SE of the NFC enabled handset. This service can be so attractive so the subscriber might be willing to pay for it... Or?
6 comments