Latest News

Phone-wallets for masses still years away 5/16 ciol.com/Global-News The technology which enables small payments from mobile phones by just flashing the handset is likely to reach masses only around 2012, when 1 phone from 5 sold will be equipped with the technology. Consumers will be able to use a phone as a wallet or as an access card simply by waving it over a wireless reader - & in some cases punching a PIN into the phone - similar to how travelers in Tokyo & London access public transport. The technology is ready & Nokia has introduced 4 products using it so far - but the limited offering & high costs are hampering the take-up, which could help transport firms to cut costs & cellphone makers to support prices. ‘When the 20% level is reached it starts to feed itself. That is the critical point,’ Jukka Suikkanen, TeliaSonera, said. Strategy Analytics & ABI Research have forecast the 20% penetration would be reached in 2012. Mikko Saarisalo, Nokia, declined to comment on the outlook for the technology, but said 30% of phones enabled text messaging (SMS) before it took off. ABI Research has forecast 6.5m NFC phones would be sold this year, up 10x from 2007, but the growth is hampered by costs stemming from an extra chip needed in phones for data security. Nokia’s 6131 model sells for 139 euros in Finland, but for the NFC version of the same phone retailers are asking up to 100 euros more. TeliaSonera’s Suikkanen said costs are likely to start falling next year when operators start to add security features to SIM cards, ending the need for another chip. Strategy Analytics said that despite support from all quarters of the industry NFC is likely to remain limited to the trial phase this year. ‘The shortfall is attributed to the slow ecosystem build-out, a ½ hearted effort, even though there is visible progress in overcoming the technical & standardization challenges.’ Last year Nokia & European & Asian carriers - KPN, Maxis Communications Bhd, O2, Orange, SingTel, SKT & Wind - joined 14 mobile operators which initiated the project earlier. Mastercard is involved in the initiative, which is cheaper & much faster than other wireless payment experiments, like those using SMS text messages. China Mobile, Vodafone, Cingular - owned by AT&T & BellSouth - & Telefonica support the common wireless chip format on the mobile phones they distribute for their networks. Together with chip makers NXP & Sony, which pioneered the contactless chip called NFC, companies plan a global standard for electronic wallets in mobile phones.