IEEE Technology and Society Magazine - Fall 2013 - 22

identifies information in RfID tag and requires power
for the process to take place. In reader/writer mode,
the base station (master) is the handset + USIM pair,
and the transponder is a contactless device such as a
card and tag. Reader mode allows mobile advertising, discount tickets, and smart posters. In P2P mode,
two NfC devices can operate as tag readers for data
exchange. This active mode requires high power consumption because each device needs to generate its
own Rf field.
This technology has the following advantages:
a) there is no need to use the operator's network for
short distances, b) it supports two-way communication including reading and writing, c) it has a quick
initial response, d) it has security measures (i.e.,
encryption) and offers enhanced security compared to
RfID, and (e) it is more suitable than other methods
for mobile economic transactions: there is no need for
an authentication certificate, it collects information
(e.g., receipts and coupons can be stored in the mobile
device), and it allows quick payment.
In addition, to understand NfC technical characteristics in detail, the following section introduces the
constituents of NfC technology: the NfC chip, NfC
devices, USIM card, and the secure element.
NFC Chip and NFC Device
The first component of NfC technology is the NfC
chip, provided by semiconductor firms. These firms
are competing fiercely for hegemony in the NfC
market, and the outcome of the battle will depend on
firms' competence in terms of integration capability
of a one-chip combo. Potential competitors in today's
market are, NXP, Broadcom, Qualcomm, Inside
Secure, Reneasas, Texas Instruments, and STMicroelectronics. Broadcom acquired Innovision, an NfC &
RfID solutions company, and will be supporting NfC
with their own chipset.
NfC chips have already been deployed and several
form factors can be used for NfC transactions. The
types of NfC devices developed will depend on the
type of applications desired such as transport, ticketing, payment, and tracking tags. Nevertheless, mobile
devices will be the dominant vehicles for NfC transactions, as mobile devices possess various features
and offer the advantage of easy portability.
USIM
A subscriber identity module (SIM) card is a module
for processing and storing information (authentication
of a GSM subscriber, basic network information, and
information for additional services). This technology
was developed in Europe for roaming and security.
Major applications provided by the SIM include SIM
roaming, over-the-air (OTA) service, games, mobile
commerce, Web browsing, and location services. It can
22

also function as external memory and store additional
services. A USIM module is not just a 3G version of
a SIM card but rather has enhanced performance with
the following functions: a) security authentication, b)
user credibility, c) multi-application support, and d)
a phonebook. The technical characteristics of USIM
itself are a seed for the converging mobile communication and financial industries.
Secure Element
The secure element stores authentication information
(e.g., secret key and encrypted personal information).
Data should be transmitted to the reader through a
linkage between the secure element and the NfC chip.
Secure elements are classified into two groups on
the basis of whether or not they are removable [4].
UICC and micro SD belong to the category of removable secure elements. UICC includes SIM cards in
the GSM market and USIM in the universal mobile
telecommunications system (UMTS) market. UICC is
typically controlled by the mobile network operator
to authenticate users on their network. The financial
enterprises operating payment services need to collaborate with mobile network operators.
A service provider can use micro SD card to offer
service program separate from that of the mobile network operator and can easily provide a variety of service
programs because SD cards have large capacity and are
detachable. Micro SD cards, however, are ill prepared
for standardized communication with NfC controllers. finally, device manufacturers, when launching
a device, can insert a secure element into embedded
hardware and baseband processors. The type of secure
element will depend on business leaders (mobile network operators, financial enterprises, manufacturers,
etc.). In this case, the provider that leads the NfC market will determine the technical characteristics.
SKT, the dominant mobile network operator in
South Korea, recently announced an NfC product: a
combination of an NfC chip, USIM, and secure element. This new product allows a phone to function
as an NfC device, even though the NfC chip is not
embedded in the phone.

Case Study
In this section, we analyze cases related to NfC players and mobile payment. Critical success factors of
NfC commercialization will be derived from these
case studies and the technical characteristics already
mentioned.
Case 1: NTT DoCoMo's Felica
NTT DoCoMo was the first company to provide mobile
payment and mobile credit card services in Japan. Sixty
million users, that is, 60% of all mobile users, are using
felica-enabled mobile phones. This success of NTT
IEEE TECHNOLOGY AND SOCIETY MAGAZINE

fALL 2013

Table of Contents for the Digital Edition of IEEE Technology and Society Magazine - Fall 2013