Nfc Near Field Communication

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Near Field Communication in the real world
Turning the NFC promise into profitable, everyday applications

Innovision Research & Technology plc

Near Field Communication in the real world – part I

Contents
1 2 2.1 2.2 2.3 2.4 3 3.1 3.2 3.3 4 4.1 5 Introduction ................................................................................................ 3 Technology and standards in line ............................................................ 4 An application enabler.................................................................................. 4 Commercial drivers ...................................................................................... 4 How NFC works ........................................................................................... 5 International standards and co-operation..................................................... 5 Touching people’s lives in new ways ...................................................... 7 Service initiation ........................................................................................... 7 Peer-to-peer ................................................................................................. 8 Payment & ticketing ..................................................................................... 8 Chips in everything?................................................................................ 10 Small, and inexpensive, is beautiful ........................................................... 10 Glossary.................................................................................................... 12

Page 2 of 13

Near Field Communication in the real world – part I

1

Introduction
Now that international standards have been agreed and published for Near Field Communication (NFC), the market is set for widespread adoption of the technology in a whole range of applications. Innovision sees three key areas of application for NFC: service initiation, where the technology is used to ‘unlock’ another service (such as opening another communication link for data transfer); peer-to-peer, where NFC is used to enable communication between two devices; and payment & ticketing, where NFC will build on the emerging smart ticketing and electronic payment infrastructures. The initial mass-market applications of NFC are likely to build on existing communications infrastructure and user behaviour, where the user benefits are most compelling, the business case is strongest, and the commercial risks are lowest. This implies a need for low-cost NFC integrated circuits (ICs) that can be applied to a broad range of uses cost-effectively in a way that is compatible with the broadest range of devices and reader infrastructure. This paper sets out Innovision’s view of emerging NFC applications, technology and markets, and describes how the company’s existing technology and development expertise is being adapted to help ensure successful take-up of the technology.

Page 3 of 13

Near Field Communication in the real world – part I

2

Technology and standards in line
The technology that NFC is based on – Radio Frequency Identification RFID – is nothing new. However, it is only recently that the technology and standards have reached a point where a whole host of real-world applications are now not only technically feasible but also commercially viable. Now the opportunity is here to develop and roll out profitable applications for NFC that enhance users’ everyday lives, based on technology that is cost-effective enough for the mass market and that meets internationally-agreed standards. What is it about NFC that will open up these new applications and what are the latest industry developments that are making this possible?

2.1 An application enabler
The real beauty of NFC lies in its role as an enabling technology that opens up various forms of communication and transaction in a very comfortable, user-friendly way. In the same...
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