& cplSiteName &

CTIA 2011: Operators Avoid App Syndrome With NFC

Sarah Thomas
3/21/2011
50%
50%

ORLANDO, Fla. -- International CTIA WIRELESS 2011 -- Picture this: Wireless operators, who used to own the applications experience, become disintermediated, and ultimately surpassed, by software giants like Apple Inc. (Nasdaq: AAPL) and Google (Nasdaq: GOOG). Operators are left struggling to find a way back in.

That's the scenario operators hope to avoid with mobile commerce and, more specifically, near field communications (NFC), according to Dave Talach, vice president of global product marketing at VeriFone Holdings Inc.

AT&T Inc. (NYSE: T), Verizon Wireless and T-Mobile US Inc. teamed up in November to form Isis, a joint venture with Barclays and Discover aimed at promoting NFC, which enables transactions over short-range wireless links. Talach says this is the catalyst that kicked off the contactless payments market this year. (See US Carriers Combine Mobile Wallets and Google, Apple Fight Carriers for Mobile Money.)

"They broke the whole chicken-and-egg cycle," he said at a CTIA interview.

VeriFone has been providing retailers with secure electronic payments for more than 10 years, but now it's partnering up with new players including wireless operators and the competitors they're looking to outpace. VeriFone is reportedly working with both Isis and Google on NFC trials. Talach wouldn't confirm either partnership, but hinted at the deals by repeating, "It's safe to assume we're engaged with most major NFC initiatives."

Of course, Talach thinks there is room for several forms of NFC to coexist. But, while he gives the wireless operators a lot of credit for being first movers, there are many followers creeping up fast, including potentially Apple. The challenge for the operators will be to keep the momentum up.

"The carriers are creating structure, but don't rule out an Apple App Store or Android Market phenomenon," Talach said. "To see how NFC will unravel, look at app stores. We need structure from Isis, but we also need more choices."

In this new and competitive market, there are still some topics up for debate and plenty of dissension, something both VeriFone and BlackBerry have experienced lately. (See OS Watch: RIM Battles Carriers for Mobile Money.)

The debates have centered around security and whether the NFC technology should reside in the SIM card or in the phone itself. The answer to this dictates who gets control of the subscriber relationship -- the wireless operator or handset maker/OS vendor. Talach said the market could end up with a neutral secure element in which it doesn’t matter if contactless payments are carried out in the phone or SIM card, or a dual-secure element in which the operators and handset makers share ownership. Either way, there will be more issues around transaction fees and the subscriber relationship to grapple with.

"The battle is not resolved," Talach said. "It will be in flux a lot."

Talach also echoed a sentiment that many have expressed in Monday's Money Over Mobile partner conference at CTIA -- that it's not the payments that make NFC so exciting. It's more about doing payments plus something else, such as receiving a coupon, getting a digital receipt, automatically checking into Foursquare or racking up loyalty points. The first step is getting NFC off the ground, but then it will only get more interesting, Tallach said.

— Sarah Reedy, Senior Reporter, Light Reading Mobile

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
From The Founder
Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Interviews
Heavy Reading: The Web-Scale View

1|18|17   |     |   (0) comments


At Light Reading's 2020 Vision Executive Summit in Rome, Heavy Reading's former chief analyst Patrick Donegan shared insight from the recent web-scale operators report, which featured research on how web-scale operators view the market, the best web-scale companies to ...
LRTV Custom TV
Cisco's Cloud Scale Networking: Automation, Virtualization & Simplification

1|18|17   |     |   (0) comments


Cisco's Sanjeev Mervana outlines the latest innovations in networking technology at CES 2017 in Las Vegas.
LRTV Custom TV
ADVA Talks Innovation & the Future of Networking

1|17|17   |     |   (0) comments


Ray Le Maistre and Christoph Glingener, CTO of ADVA Optical Networking, discuss the current state of the industry, cooperation and collaboration, open innovation and the future of networking.
LRTV Custom TV
Cisco's Infinite Video Platform

1|17|17   |     |   (0) comments


Cisco's Infinite Video Platform allows service providers to deliver broadcast-quality video over IP networks. Infinite video supports many devices, from 4K TVs to tablets to game consoles. Join Cisco's Rajeev Raman for a brief tour and live demo.
LRTV Interviews
Masergy: Ability to Adapt Key for NFV

1|16|17   |   6:40   |   (0) comments


Speaking at Light Reading's 2020 Vision in Rome, Masergy's VP, Global Technology, Ray Watson, said agility is key to providing the mix and match NFV-based services that are driving business for the managed service provider today.
LRTV Interviews
Equinix: The Data Explosion

1|13|17   |   4:16   |   (0) comments


At Light Reading's 2020 Vision in Rome, Eric Schwartz, president of EMEA, Equinix, talked about how Equinix is helping its customers manage the influx of data today, and how it's preparing for a future filled with millions of connected IoT devices.
LRTV Interviews
Heavy Reading: The Changing Data Center Landscape

1|12|17   |   6:05   |   (1) comment


At Light Reading's 2020 Vision event in Rome, Heavy Reading's Senior Analyst Roz Roseboro talks about how virtualization is impacting data center evolution and how that evolution is affecting the relationship between service providers, data center operators and public cloud providers.
LRTV Interviews
Boingo: Prepping for Millions of Devices

1|12|17   |   5:07   |   (1) comment


At Light Reading's 2020 Vision in Rome, Boingo's CTO Derek Peterson discusses how wireless operators will address the needs of low-bandwidth and high-bandwidth apps at the same time, the need for more MHz, the impact of IoT and more.
LRTV Interviews
Comcast Shows Off Gig Gateway at CES

1|11|17   |     |   (1) comment


With its largest presence at CES in years, Comcast took the wraps off its long-awaited gigabit gateway and a new platform for managing the home WiFi network. Light Reading Senior Editor Mari Silbey sat down with EVP Chris Satchell to discuss the latest Comcast advance, and met with VP of Product Strategy and Development Andrea Peiro to walk through a demo of the ...
LRTV Interviews
Colt: End-to-End Key for 2017

1|10|17   |   6:21   |   (0) comments


At Light Reading's 2020 Vision Executive Summit in Rome, Nico Fischbach of Colt said having a multi-carrier, end-to-end service proposition is going to be key for 2017 -- and SD-WAN is instrumental in making it happen.
From the Founder
Cisco's Clemson on Mobile Cloud Video

1|9|17   |     |   (1) comment


Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators. "If you think about where we're going… whether it's a mobile application, or a video ...
LRTV Custom TV
VMware Telco NFV Solutions – Preparing for 5G & IOT

1|9|17   |     |   (0) comments


Shekar Ayyar, EVP & Corporate Strategy/General Manager of Telco for VMware, discusses VMware's Telco NFV solutions role and foundation for the Imminent Arrival of 5G & IOT.
Upcoming Live Events
March 21-22, 2017, The Curtis Hotel, Denver, CO
May 15-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
A Women in Comms Glossary
Sarah Thomas, Director, Women in Comms, 1/18/2017
Is Cable One Beefing Up for Slaughter?
Alan Breznick, Cable/Video Practice Leader, Light Reading, 1/20/2017
Nokia CTO: 2017 Is the Year 5G Gets in the Field
Dan Jones, Mobile Editor, 1/19/2017
TV's Paradox: No HDR Without 4K
Mari Silbey, Senior Editor, Cable/Video, 1/17/2017
Cable Has One Thing Verizon Needs
Mari Silbey, Senior Editor, Cable/Video, 1/17/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading founder and CEO Steve Saunders chats with Sportlogiq CEO Craig Buntin about sports data analysis.
Eyal Waldman, CEO of Mellanox Technologies, speaks to Steve Saunders, CEO of Light Reading, for an exclusive interview about the 100 GB cable challenge, cybersecurity and much more.
Animals with Phones
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.