The first issue of this report was published in 2010. This second issue provides the necessary updates as well as some additional material. This report is analyzing close proximity communications technologies – Near Field Communications (NFC) and TransferJet; as well as their market characteristics, applications, advantages and limitations.

1. NFC is finding various applications where it has a significant role as an independent technology; or it is used for initiation of communications channels in other technologies environments (physical browsing is a new intuitive human-computer interfacing paradigm for mobile users.)  Services, such as information retrieval and distribution, peer- to - peer communication, payment or ticketing, and professional applications (such as in health care, homeland security and others) can be initiated by simply touching an object with a user’s personal device (or even bringing two devices close to each other without touching). It is expected that one of the most important application will be an integration of NFC technology into cell phones to transfer them into devices that may eventually replace credit cards, badges, readers of various data in hospitals and similar applications. The concept of a “wireless wallet” is discussed in details, as well as a concept of m-payments with its advantages and issues.

The report contains a detailed survey of NFC equipment vendors; and estimating of the market developing (2011-2016).

2. A part of the report is devoted to the introduction of the emerging technology –Sony’s TransferJet. Though it cannot be classified as NFC, the same actions are required from users of both technologies – bringing the source and the receiver close enough to each other. TransferJet allows broadband speeds of transmission; but such speeds decrease very fast with the increase of the distance between devices.  Sony and other major vendors already introduced or are in the process of introduction TransferJet products (Sony has already showcased the second generation of TransferJet chips); Practel, Inc added this technology and its market analysis into the company’s research portfolio; and further issues of the report will follow the technology progress.

Intended Audience

This report is useful for technical and marketing staff of organizations involved in the developing of short-reach communications markets and applications. It addresses NFC and TransferJet communications technologies applications and marketing features.

For systems vendors, integrators and others, the report provides an analysis and assessment of competing products currently available as well as an estimation of the overall opportunities in the coming years. The end users can gain a more thorough understanding of products’ market and capabilities as well as the economics of using combinations of NFC with other technologies to improve operational efficiency.

TABLE OF CONTENTS

1.0 Introduction 
1.1 General 6
1.2 NFC Specifics 6
1.2.1 Example: NFC and Health Care 7
1.3 TransferJet 8
1.4 Report Structure 8
1.5 Methodology 8
1.6 Intended Audience
 
2.0 Near Field Communications 
2.1 General - Principle 10
2.2 Characteristics 12
2.3 Standards 14
2.3.1 General 14
2.3.2 ECMA - Near Field Communication Interface and Protocol (NFCIP-1) 16
2.3.2.1 ECMA-352 - NFCIP-2 17
2.3.3 ISO 17
2.3.4 NFC Forum 17
2.3.4.1 General 17
2.3.4.2 Specifications 18
2.3.5 NFC and ETSI 22
2.3.5.1 Single Wire Protocol 23
2.3.6 European Consortium (StoLPaN) 24
2.3.7 Summary 24
2.4 Security 25
2.5 Comparison 26
2.5.1 Bluetooth 26
2.5.2 RFID 27
2.6 Applications 28
2.6.1 General 28
2.6.2 Primary Users 28
2.6.3 NFC and Mobile Phone 29
2.6.3.1 Examples 31
2.6.3.2 Danger 31
2.6.4 WPAN Applications 32
2.6.5 Payment and Ticketing 33
2.6.6 Smart Poster 33
2.6.7 NFC and Wi-Fi 34
2.6.8 NFC and UWB 34
2.6.9 Trials and Services 35
2.6.10 NFC and Health Care 38
2.7 NFC Market 38
2.7.1 General 38
2.7.2 Market Drivers 39
2.7.3 Estimate 40
2.8 Vendors 45
Alvin 45
Apple 46
Arygon 46
Broadcom 47
Gentag 48
G&D 49
Infineon 50
Innovision (Acquired by Broadcom in 2010) 51
Inside Contactless 53
Cambridge Consultants 56
Legic 56
Motorola 57
NEC 58
NeoWave 58
Nokia 60
Nexperts 61
NXP 63
Reslink 64
STMicroelectronics 66
Stollmann 67
Toppan Forms 68
Twinlinx 69
UPM Raflatac 71
Venyon 71
VivoTech 72
Wireless Dynamics 74
Zenius 75

3.0 Sony: TransferJet 
3.1 General 77
3.2 Basis 77
3.2.1 Goal and Development 77
3.2.2 Technology 78
3.2.3 Major Features 78
3.2.4 ECMA 79
3.3 Applications and Industry 80
3.3.1 Sony 80
3.3.2 Toshiba 81
3.3.3 Allion 82
4.0 Summary of Major Trends 83
5.0 Conclusions 85

LIST OF FIGURES

Figure 1: Spectrum 14
Figure 2: Standardization 15
Figure 3: NFC ECMA and ISO Standards 16
Figure 4: NFC Forum Activities 22
Figure 5: Mobile Phone with NFC 30
Figure 6: TAM: Cell Phones & Accessories Sales (Bil. Units) 41
Figure 7: TAM: Cell Phones and Accessories Sales ($B) 41
Figure 8: TAM: NFC-enable Cell Phones Global Sales (Units Million) 42
Figure 9: TAM: NFC-able Cell Phones Sales ($B) 42
Figure 10: NFC-able Cell Phone Rate of Penetration (%) 43
Figure 11:  TAM: Global NFC ICs Sales (Units Bil.) 43
Figure 12: TAM: Global NFC ICs Sales ($B) 44
Figure 13: NFC Market Geography 44
Figure 14: TransferJet Communication Channel 78
Figure 15: TransferJet Applications 80

LIST OF TABLES

Table 1: NFC Features Comparison 11
Table 2: NFC History 12
Table 3: NFC Development 13
Table 4: NFC Modes of Operations 13
Table 5: Bluetooth and NFC 27
Table 6: Examples: NFC-enable Cell Phones 31
Table 7: NFC-based Payment Systems -Trials 37
Table 8: TransferJet Major Characteristics 79