IEEE Technology and Society Magazine - Fall 2013 - 28

In 2010, location-based mobile ads provided by
McDonalds and Navteq in finland to people within a
certain range of 82 McDonald's chains (for a cheeseburger at 1€) recorded a click-through ratio of 7%, 10
times the mobile app average [14].

NFC Commercialization
To commercialize NfC, the technology must be
described in terms of understandable elements, and
business models must take into account the interests
of key players, including a trusted service manager to
resolve conflicting interests. In addition, NfC must
provide technical features that facilitate consumer
adoption.
The one-chip combination solution facilitates consumer adoption by preventing price increase in the
chipset product, which explains the dynamic relationship between the technical characteristics of the NfC
chip and the end user.
End users' preference for a smartphone could be
a determining factor of NfC diffusion. If the iPhone
becomes a dominant device for NfC usage, Apple
could have an advantageous position in the NfC
market because of the technical characteristics of its
devices. In addition, the secure element contributes to
better consumer adoption.
Whether the service provider is an mobile network operator, a financial card player, or a platform
provider, it is important to have a useful consumer
database, network experience, and service/application
experience in the payment and areas beyond payment.
TSMs play the role of resolving end user's concern
about security and coordinating interests of mobile
network operators and financial players. In the relationship between the end user and service characteristic, security can be an additional consideration factor
for payment services, and auto control is critical for
other services.
The emergence of new business models indicates
that mobile advertisement can flourish through NfC.
In the past, offline advertisements were extended to
Web and mobile advertisements were anticipated.
Small LCD and low consumer interest, however, limited mobile advertisements from generating revenue.
Local-based-services, although expected to enhance
the profitability of mobile advertisements by combining location and mobility, also failed. With NfC,
however, information on mobility, location, and consumption pattern can create opportunities and provide
growth momentum for mobile advertisements. NfC's
application will extend beyond the payment market,
and we can expect to see new business models. With

information on location and consumption patterns, the
currently stagnating mobile advertisement business is
expected to grow.
Although NfC can be characterized as technology
push, the key to success is satisfying players' interests
and realizing user accessibility [4]. Technology push
alone cannot achieve successful commercialization of
NfC; a user-oriented ecosystem created through provider competence and user participation is also necessary for successful commercialization.

Author Information
Sungbum Kim is a Professor with the Department of IT
Convergence, Kumoh National Institute of Technology,
Daehak-ro 61 (yangho-dong), Gumi, Gyeongbuk 730701, Republic of Korea. Email: it89@kaist.ac.kr.
Taeyong Yang is a Professor at the Graduate School
of Innovation and Technology Management, Korea
Advanced Institute of Science and Technology, 335,
Gwahangno, Yuseong-gu, Daejeon 305-701, Republic
of Korea. Email: tyang@kaist.ac.kr.
Dongwook Kim is with the Korea Telecom
Advanced Institute of Technology, Technology Insight
Team, 17, Umyeon-dong, Seocho-gu, Seoul, 137-900,
Republic of Korea. Email: Dongwookdw.kt.com.

References

[1] J.O.Y. Pigneur, "An assessment of NfC for future mobile payment
systems," in Proc. 6th Int. Conf, Information and Communication for
Mobile Business (ICMB2007), 2007.
[2] K. finkenzeller, RFID Handbook: Fundamentals and Applications
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[3] N. Park et al., WIPI Mobile Platform with Secure Service for Mobile
RFID Network Environment Advanced Web and Network Technologies,
and Applications, H. Shen et al., Eds. Berlin/Heidelberg, Germany:
Springer, 2006, pp. 741-748.
[4] G. Madlmayr, J. Langer, and J. Scharinger, Managing an NFC Ecosystem, Barcelona, 2008.
[5] http://www.google.com/wallet/.
[6] http://www.fiercemobilecontent.com/story/isis-ceo-mobile-paymentsmaking-good-progress-no-specifics-yet/2011-02-01.
[7] A. Zmijewska, "Evaluating wireless technologies in mobile payments - A customer centric approach," in Proc.Int. Conf. Mobile Business (ICMB'05) (Los Alamitos, CA, U.S.A.), 2005, vol. 4, pp. 354-362.
[8] http://www.nfcworld.com/2011/05/23/37611/visa-unveils-mobilewallet-plans/.
[9] K. Bagchi, P. Kirs, and f. López, "The impact of price decreases
on telephone and cell phone diffusion," Information and Management,
2008, vol. 45, no. 3, pp. 183-193.
[10] R. Want, "Near field communication," IEEE Pervasive Computing,
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[11] GSMA London Office, 1st floor, Mid City Place, 71 High Holborn,
London WC1V 6EA, United Kingdom. Mobile NFC Services, 1.0 ed.,
feb. 2007, 1st rev.
[12] Z. Antoniou and S. Varadan, Intuitive Mobile User Interaction in
Smart Spaces via NFC-enhanced Devices, 2007.
[13] f. Kneissl, R. Rottger, U. Sandner, J. Leimeister, and H. Krcmar, "Alli-touch as combination of NfC and lifestyle," in Proc. NFC 2009, 2009.
[14] http://www.mobilemarketingwatch.com/navteq-locationpoint-campaigngains-7-ctr-for-mcdonalds-6061/.

IEEE TECHNOLOGY AND SOCIETY MAGAZINE

fALL 2013

http://Dongwookdw.kt.com http://www.google.com/wallet/ http://www.fiercemobilecontent.com/story/isis-ceo-mobile-payments http://www.Proc.Int http://www.nfcworld.com/2011/05/23/37611/visa-unveils-mobile http://www.mobilemarketingwatch.com/navteq-locationpoint-campaign

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