The approx 75 page report, NFC microSD card – Stepping Stone or Standard?, is authored by two leading thinkers on the subject: Dr Nick Spencer, senior consultant and Tim Jefferson, managing director, The Human Chain.
Their research – to be finalised during the GSMA Mobile World Congress in Barcelona from 15-18 February 2009 – details the potential role of NFC-enabled microSD cards in driving the future development of the NFC market.
“NFC-enabled microSD cards have the potential to offer full functionality, so we are exploring this in more detail in the report,” says Dr Spencer.
Trials of the technology have already demonstrated its basic technical viability, but there are still questions about how it will meet the needs of the developing NFC market.
“The rollout of NFC-based services has been hampered by the classic ‘chicken and egg’ situation faced by the mobile industry, that services can’t be launched on any commercial scale because there isn’t a suitable range of NFC-enabled mobile phones available,” says Dr Spencer. “As the challenges around the value chain – such as the role of the banks, card issuers, trusted service managers and mobile operators and the associated business cases – are being resolved, the next hurdles are the commercial launch of services and customer take-up. One has to bear in mind that the range of features, the size and the look and feel of the mobile phone itself are big factors in a consumer’s purchasing decision; arguably, the choice of network is secondary, assuming it can meet the requirements of coverage and quality of service.”
The Human Chain report makes the case for NFC capability to be integrated alongside the raft of other features that customers expect on mobile phones, such as multimedia functionality. But it also highlights the challenge of delivering it to a market where customers may be unaware of this nascent technology – or are unlikely to go out of their way to purchase an NFC-enabled phone until there is a sufficient spread of stable, attractive and easy-to-use services that make use of that capability.
“Handset suppliers need the assurance of demand before they will commit to the high development and deployment costs that can only be justified if the devices can be manufactured in sufficiently high volumes,” says Mr Jefferson. “This certainly explains the delay in bringing a wide range of phones to the market, making the development of new opportunities slow and frustrating.”
The report gets right to the heart of the major issues associated with microSD cards. Using their expert knowledge, the authors:
- Describe the various types of NFC-enabled microSD card and their key features;
- Outline their current development status;
- Examine the key market players;
- Consider when services will be launched;
- Assess the business drivers and how well the current generation of devices match up to these drivers;
- Examine the technology’s implications;
- Assess the user experience, including how it will differ from using an integrated NFC- enabled mobile phone;
- Detail the issues that still need to be resolved;
Address the fundamental question about the role of the NFC-enabled microSD card – will it be an interim step ahead of the introduction of fully integrated NFC phones (a stepping stone) or will it become established as a long-term option for NFC services (a standard)?
“We’ve decided to finalise the report during the GSMA Mobile World Congress so it contains news about the very latest developments in the sector,” says Mr Jefferson.
To discuss this market with one of the Human Chain’s consultants during the Congress, please contact: Tim Jefferson on +44 (0) 7836 660419 or timj(at)thehumanchain.com
NFC microSD card – Stepping Stone or Standard? can be purchased from The Human Chain. Further information and online ordering facilities are available at: www.thehumanchain.com/publications.htm.
