Industry Research Featured Article
September 10, 2007
ABI Predicts an Increase in Low-End NFC Handsets
According to a recent study from ABI Research (News - Alert), “Near Field Communications (NFC): Leveraging Contactless for Mobile Payments, Content and Access,” emerging NFC technology will be available across a wide range of mobile phones: from high-end smartphones to low-end handsets.
The research firm says that despite the additional cost and complexity of adding NFC (Near Field Communication) to mobile handsets, this technology will not remain only in the most expensive handsets, as is often the case with cutting-edge features. The increase in application of NFC technology is driven by operators and their NFC application partners -- including financial services companies, retailers, and transportation operators.
ABI Research has analyzed the NFC market, and forecasts that by 2012, of the nearly 300 million NFC handsets to ship worldwide, nearly 18 percent will be low-end NFC handsets.
Senior Analyst, Jonathan Collins points out that NFC makes mobile handsets more useful for subscribers and multiple service providers. He said that because of this, unlike earlier short range wireless additions -- such as Bluetooth -- the benefits of NFC will be pushed to a broad range of subscribers: not just the biggest spenders and early adopters.
The research firm explains that while moving closer to their first NFC handset orders, mobile operators are aware that more NFC-enabled phones in use will make their new contactless services all-the-more attractive to other businesses, which look to benefit from NFC. Through Near Field Communications, people will be able to pay at local coffee stores, hamburger joints, on the city subway, and many other places with a mere wave of the mobile handset.
Credit card issuers will thus be able to bypass the process of manufacturing and mailing out new cards. This technology allows events and transportation companies to save on printing and checking tickets; and permits retailers to better serve and target their customers with promotions. Ongoing trials around the world are helping to shape the resolution of some issues while testing mobile subscriber acceptance.
Anuradha Shukla is a contributing writer for TMCnet covering call centers, CRM and information technology.
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