Near Field Communication in Japan

1
Near Field Communication in Japan

• Jason Edwards
• February 2007

2
Introduction to NFC

• What is NFC?
• Short range wireless technology
• mainly aimed at usage with mobile phones
• To date most commonly used for contactless
  payments
• Could dramatically change the way consumer
  devices interact with each other
• Currently 14 mobile network operators,
  representing 40 of the global mobile market back
  the ongoing development of NFC technology

3
Consumer demand for technology

• Industry trend has become convergence and
  device functionality becoming blurred
• Huge wireless market in Japan, with over 95 of
  urban Japanese subscribers having a mobile phone
• Consumers are driving the demand for feature rich
  mobile phones

4
Uses of NFC
Source Near Field Communication and the NFC
Forum The Keys to Truly Interoperable
Communications
5
Advent of NFC

• Japan has been the driving force behind NFC
  systems.
• Services introduced in Japan since 2004
• Digital Wallet Services currently installed in
  32M wallet phones and as many 120M contactless
  cards (Source silicon.com, Jo Bes 20/045/06)
• Mobile digital music (Chaku-Uta Full)
• Portable TV
• NTT DoCoMo launch of iD credit card brand in
  November 2005 allows its customers to make
  payments using their handsets.

• NFC makes life easier
• Easier to access public transport
• Easier to pay for goods
• Easier to share information

6
Future of NFC

• "By 2011, more than 30 of cellular handsetssome
  450 million unitswill incorporate NFC
  capabilities that will be used not only for
  payments at points of sale and remotely, but also
  to access information from smart objects.
  Source Stuart Carlaw ABI Research - 2006
• Nokia to release first NFC enabled phone in Q1
  2007
• Japan driving toward a ubiquitous network society
  where technologies that will create a society in
  which it is possible to connect to the network
  anytime, anywhere, with anything and by anyone

7
New communication opportunities

• Quantum shift in marketing spend with 60 of
  spend now in channels not even used 5 years ago
• 5 years ago media mix spend was 80 traditional
  channels and 20 online channels
• Now 40 traditional channels, 40 online
  channels and 20 new generation channels such as
  SMS, MMS, IVR

8
Mobile Marketing

• In 2005, revenues from mobile advertising in
  Japan grew by 60, generating a 200 million
  market within four years
• Growth of location based marketing
• when a retailer detects that a loyal customer is
  near a store, it can send news of a promotional
  offer directly to the customer's handset
• DoCoMos consumer behaviour prediction technology
  uses RFID technology to predict customer
  behaviour in shopping malls, showrooms and
  amusement parks and use this prediction to offer
  targeted messaging
• Introduction of HSPDA trial in Tokyo looks to
  provide even higher quality marketing mediums
  such as images and short video clips

9
Corporate demand for technology

• Consumer demand for advanced functionality
  handsets also opened opportunity in the corporate
  environment for changing the way employees work
  and access information
• Development of enterprise applications for the
  mobile workforce has increased workplace
  flexibility for employees and helped corporations
  become more efficient in their operations and
  supply-chain