Analyst's Comment: GSMA Announces World's Leading Mobile Operators Will Introduce NFC Services

By Sjb Research, PRNE
Sunday, February 20, 2011

MONMOUTH, Wales, February 21, 2011 - The world's leading mobile network operators have announced today that
they are committed to introducing near field communication (NFC) services in
a number of countries around the world from 2012.

Sarah Clark, author of 'NFC Business Models' ( explains what the announcement
means and why the operators have joined together to make the announcement:

"NFC phones are set to revolutionise the way we decide what products to
buy, where we choose to buy them and how we choose to pay," says Sarah.

The new NFC phones contain a high security chip known as a secure element
which acts like an electronic version of your wallet and can be used to
replace everything from credit cards and loyalty cards to bus and train
tickets, library cards, door keys, coupons and even cash.

These chips can be built into mobile phones and other devices by the
manufacturer, they can be integrated into SIM cards issued by mobile networks
to their subscribers and they can be added to existing phones via special
microSD cards or stickers issued by banks and other organisations.

"Whoever provides a consumer with a secure element can then generate new
revenues by leasing space on the chip to other businesses that also want to
offer next-generation mobile services to their customers," Sarah explains.

"In the GSMA statement issued today, the mobile operators make it clear
that they plan for NFC services to be delivered using the SIM as the secure
element, placing operators in control of NFC services - and future revenue

"The announcement does not necessarily mean, however, that these leading
operators have now found an answer to the need for a business model for the
launch of commercial NFC services," she adds. "Rather, this announcement
signals the operators' realisation that they need to work together in order
to deliver the same global reach that a rival offering from handset
manufacturers and others would provide."

"Essentially, they are involved in a bid to grab land - and a significant
share of revenues - ahead of expected rival proposals from the likes of
Google and Apple. The move is likely to prove to be good news for consumers
and for businesses such as retailers, transport operators, travel firms,
brands and others looking to take advantage of the arrival of NFC services
since there will be competing offers on the table and that should lead to
lower prices."

The full announcement from the GSMA is available to view on the
association's website (

About the 'NFC Business Models' research report:

'NFC Business Models' provides companies looking to benefit from the
arrival of near field communication technology with the information needed to
understand the issues, identify their options and develop a strategy for
success. Further information is available at


    Mike Clark, publisher at SJB Research
    Tel: 01341-760123 (International: +44-1341-760123)
    Mobile: 07941-111217 (International: +44-7941-111217)

Mike Clark, publisher at SJB Research, Tel: 01341-760123 (International: +44-1341-760123), Mobile: 07941-111217 (International: +44-7941-111217), mike at

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