What’s up with near-field communication?

Last updated Dec 5, 2008 — 604 views

Although Near Field Communication (NFC) offers significant benefits for mobile phones, only one NFC-enabled handset has reached market to date, reports market analyst ABI Research. So what’s NFC?

Basically, NFC is a low-power, short-range communications technology that operates at 13.56 MHz, bidirectionally transfers data at up to 424 Kbps, and is limited to a range of about 20 cm.

While NFC’s extremely short range would seem to be a major disadvantage in comparison to WiFi or Bluetooth, the inherent security of such a short communications path makes NFC’s transactions inherently secure, and constitutes the basis of a number of unique applications and capabilities, the NFC trade association contends.

A three-part NFC whitepaper published by Innovision Research & Technology lists the following example of how NFC can provide automatic, secure communications between two mobile phones:

“With NFC, setting up the connection is simply a matter of touching their phones together. There’s no need for the users to get their phones to scan the local area to locate and then identify the other’s phone, no need to enter passcodes or other settings, and no risk that they establish a connection with the wrong device.”

The Innovision whitepaper contains the following introduction to NFC:

“NFC is a short-range, standards-based wireless connectivity technology, based on RFID technology that uses magnetic field induction to enable communication between electronic devices in close proximity. It provides a seamless medium for the identification protocols that validate secure data transfer. This enables users to perform intuitive, safe, contactless transactions, access digital content and connect electronic devices simply by touching or bringing devices into close proximity.
NFC operates in the standard unlicensed 13.56MHz frequency band over a distance of up to around 20 cm. Currently it offers data transfer rates of 106Kbps, 212Kbps and 424Kbps, and higher rates are expected in the future.

For two devices to communicate using NFC, one device must have an NFC reader/writer and one must have an NFC tag. The tag is essentially an integrated circuit containing data, connected to an antenna, that can be read and written by the reader.

There are two modes of operation covered by the NFC protocol: active and passive. In active mode, both devices generate their own radio field to transmit data. In passive mode, only one device generates a radio field, while the other uses load modulation to transfer data. The NFC protocol specified that the initiating device is responsible for generating the radio field in this case.

The passive mode of communication is very important for battery-powered devices like mobile phones and PDAs that need to prioritize energy use. The NFC protocol enables such devices to be used in power-saving mode, so that energy can be conserved for other operations.”

ABI Research principal analyst Jonathan Collins notes that “NFC’s benefits are obvious if the technology is ubiquitous, but it will not reach that level of acceptance without a rethinking of the way to engender NFC demand in a piecemeal fashion.”

Although significant progress has been made on NFC standardization and infrastructure over the past five years, adoption has lagged, ABI says. Despite many trials involving many companies from multiple industries, only one NFC handset is commercially available, according to the market research firm.

“What has been lacking is a short-term, realistic view of the potential for NFC in small and targeted rollouts, either by customer segment, bundled application, or regional capabilities,” Collins explains.

“A new wave of companies and products has emerged, eager to harness the potential of NFC in a range of applications and services that are often quite niche, but that can use NFC today to create value and drive efficiencies,” continues Collins.

These applications are not, however, in the mobile phone space. Instead, according to ABI, most NFC ICs are currently going into other types of devices and peripherals. Factors delaying the broader incorporation of NFC technology into mobile phones has been the wireless operators’ need for “additional trials and … further development of business relationships enabling support for NFC payment and ticketing services.”

ABI’s recently published report on Near Field Communication outlines the current status of the technology and the potential for adoption by a range of players across multiple industries over the next five years. It also outlines key steps and intermediate approaches that can be adopted ahead of the start of mass rollouts and deployments.

Innovision’s NFC whitepaper is available for download in three parts from the NFC Forum website. Click below to download each of the whitepaper’s three sections in PDF format:




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