Apple and the NFC race

There have been rumours about Apple including NFC capability in both iPad 2 and iPhone 5. Just to be clear about this, Apple has no choice in the matter if they are to sell a high end device. This is not at all the same as LTE. LTE is a network with is currently under consideration by most mobile operators and some have started running trials. Coverage is bad, the chips are still in their first generation meaning that if you want backwards compatibility you have to include a 2nd chip, and at the end of the day all you get with LTE currently is faster data speeds. That might be great for iPad but is hardly anything for the iPhone. Considering that the coverage is currently horrible and Apple revises hardware annually it is no wonder that LTE is not being considered for the upcoming iteration. Actually it probably won’t be considered for the next one either.

NFC however, has been around for many years. The problem was that noone seemed to care about NFC and various IC manufacturers had their own implementation. Well the smart card manufacturers (mostly of Europe) have come to an agreement and there is an NFC standard and an organization that does nothing but promotes the technology. Various pilots were completed and the response is overwhelmingly positive. Telcos and financial institutions are all onboard and have mostly come to an agreement as to the revenue split and all is about to explode. Apple has no choice other than to include NFC. The 2nd half of 2011 will be marked by multiple operators around the globe releasing NFC enabled SIM cards and devices simply have to be ready for them. The way NFC will go forward is with a SIM embedded NFC application that uses the antenna provided with your phone. Now that most likely does not mean the same antenna as the one you use to connect to the telco but the phone has to be NFC enable too. Apple sells premium devices and the NFC cards will first go to premium users so there is nothing to think about and Apple simply follows the needs of the market.

There is however one issue about NFC that is important. See you don’t have to use NFC only for payments. Yes it is a painfully slow connection and you will not be transferring files over it any time soon. However, cleverly designed applications can use NFC for some quite innovative and cool things. And if Apple wants to have the competitive advantage over Android, they simply have to allow developers full access to NFC. Unlike what Google would like you to believe, there is no issue with security. Payment applications are stored on the SIM itself. What that means is that the only way you can access that data is with the SDK that was used to program the SIM. Well I don’t know much but I know this, you can write SIM programs in a way that noone has access to their data and not only that but most of them are exactly like that. Also data out of the SIM for the payment applications would be encrypted and you cannot decrypt AES on the fly on any mobile that will be released in the next 10-15 years.

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