Near Field Communication: A New Telecommunication Device

Near Field Communication: A New Telecommunication Device

Group 5

Summer Bird, Washington Farver, Kacie Johnson, Mike Muchane, and JonathanWright

Key Words: NFC, Bluetooth, Wi-Fi, RFID

Near Field Communications (NFC) is a short range wireless connectivity standard. It uses a magnetic field induction to enable communication between devices when they are touched together or are in close proximity. It also incorporates the technology of RFID contactless smart cards to support applications such as access, payment, and ticketing. NFC technology will operate on 13.56 MHz and allow for the transfer of any kind of data between mobile phones, PDA’s, PC’s, laptops, and other NFC enabled devices, across a distance ranging from 0-20 centimeters. Researchers are hoping to have speeds fast enough to transfer high quality images. This new brand of technology will greatly impact business to consumer relationships. Contactless payments will allow businesses to serve more customers rather than seeing them leave long lines. MasterCard has already worked with companies such as Nokia and AT&T wireless on a successful trial to incorporate this technology into mobile phones in Dallas, Texas.

NFC uses a combination of a chip, a RF antenna, and software to allow devices to communicate when they are very close in distance to one another at a low cost. NFC fully complies with existing contactless smart card technologies, standards, and protocols such as FeliCa™ (Sony) and Mifare™ (Philips). NFC-enabled devices are interoperable with contactless smart cards and smart card readers conforming to these protocols. The PN511 transmission module is a highly integrated transmission module for contactless communication at 13.56 MHz. It utilizes a prominent modulation and demodulation concept completely integrated for a variety of passive contactless communication methods and protocols at 13.56 MHz. It acts as a smart card when combined with a security controller IC. The passive operating range extends up to 10 cm, but the active operating range extends up to 20cm. Inside those 10 wavelengths is the near field, where what you see are individual electric and magnetic fields. The electric field is not too useful, but the magnetic field can be used for short-range communications.

This technology was jointly developed by Sony and Philips. The reason for the development of this technology is to create a way for wireless devices to share a peer to peer (P2P) network. NFC has its advantages over other communication protocols such as Bluetooth and Wi-Fi. NFC doesn’t require any configuration by the customer (easier to use) unlike Bluetooth. Also, you don’t have to worry about theft of information. Unlike the traditional smart card, NFC enabled devices add another level of security because it can be powered on or off. Also, for higher volume transactions you could use a passcode or a biometric code. Another important factor is cost. NFC will be much cheaper compared to Bluetooth and Wifi.

As stated above NFC will be cheaper than the traditional Bluetooth or Wi-Fi. A chip in a NFC device costs around 20 cents; whereas, it cost $4-5 per radio in a Bluetooth or Wi-Fi. This afford-ability would be a revenue generator for manufacturers. By selling a substantial amount of NFC media devices as compared to more expensive Bluetooths and Wi-Fis, manufacturers could gain revenue from a new, more affordable product. A consumer would be able to afford the less expensive media device and companies with NFC capabilities could gain the services of more consumers who own an NFC media device. NFC hopes to stand out from the rest by being able to connect to many unpowered items such as RFID tags and smart cards. WiFi and Bluetooths require battery power and “power drain” occurs, whereas, a NFC would not face this issue. NFC will also allow new revenue opportunities for mobile companies. A mobile company could charge customers a subscription fee to use certain services. Also, a mobile company could charge fees to retailers for using their services. Another new form of revenue would be to apply service charges for adding value to the electronic cash value stored on a mobile phone via a mobile service.

NFC allows for easy and secure transfer of information which makes it easy to make mobile payments and financial transactions. From a consumer’s standpoint, it would allow consumers to purchase games, music, videos, and software wirelessly without having to deal with purchase lines and cash. It would also allow online reservations for hotels or for purchasing flight tickets. All you would need to do is touch your PDA or mobile device to an NFC computer when checking into a hotel or flight. No receipts or papers would be necessary. Thus, time is saved in these places. Also, a new system of payment and confirmation can be implemented to save these industries time and money. From a business standpoint, NFC will allow for new opportunities to mainstream industries. Marketing, entertainment, and transportation industries would have a new mode of introducing their services and products to consumers. By integrating their services with an NFC mobile company, they could realize new ways to market their products and gain revenue. Some business offering NFC capabilities to their consumers could get access to revenue quicker than traditional cash payment businesses. This would be a competitive advantage over their rival in allowing them to buy more capital or reduce employees who have to work payment positions.

References

Phelps, Richard. (2006).The Convergence of Near Field Communication (NFC), RFID, and Wireless Technologies: Providing an intuitive link between consumer devices.

<http://www.manufacturing.net/ctl/article/CA6289218?spacedesc=latestNews> (March 6, 2006)

Munro, Murdo. (February 1, 2006) Technically Speaking: Near Field Communications <http://www.telecommagazine.com/NewsGlobe/Commentary/Article.asp?Id=AR_1761> (March 6, 2006)

Tech Target. Near Field Communication. (n.d.) Retrieved March 6, 2006, from <http://searchmobilecomputing.techtarget.com/sDefinition/0,,sid40_gci967849,00.html>

Near Field Communication. (n.d.) Retrieved March 6, 2006, from <http://www.nfc-forum.org/home>

Questions about Near Field Communication (Group 5)

1. Communication between devices when they are touched together or brought within a few centimeters of each other is ________.

A. Wi-Fi B. Bluetooth

C. NFC D. RFID

2. Near Field Communication (NFC) was developed by _______________.

A. Philips B. Sony

C. Magnavox D. A. & B.

3. Which of the following is NOT a component of a NFC device?

A. RF antenna B. a chip

C. aluminum D. software

4. The chips used in NFC devices cost approximately _____.

A. $100 B.1 cent

C. 20 cents D. $50

5. NFC will operate on ________ MHz frequency band.

A. 20.39 B. 15.15

C. 10.91 D. 13.56

6. Data will be transferred across a maximum distance of _______.

A. 20 cm B. 40 cm

C. 75 cm D. 100 cm

7. _________ allows for our electronic devices to communicate with one another without wires

A. Wi-Fi B. cell phones

C. antennas D. Bluetooth