MELBOURNE, AUSTRALIA: Telcos need to better flaunt their ability to transport, collect and aggregate large amounts of information to grasp a bigger share of the rising machine-to-machine (M2M) opportunity, says Ovum.
The latest forecast from the world’s largest telecom analyst firm projects that the cellular M2M market will bring in a total of $252 billion for the 2015–19 period, presenting an attractive revenue opportunity for operators that choose to invest in their existing capabilities.
Ovum’s cellular M2M forecast* foresees global connections growing 162 percent over the next five years to reach 530 million. Asia and Oceania will have the most connections (over 200 million by 2019), followed by Europe and the Americas.
According to Ovum, operator revenue share of the total cellular M2M market stands to rise to $25 billion by 2019. As of 2013 operator revenue was largely comprised of managed connectivity (43 percent) and network-level data transport (36 percent). However, with figures anticipating the largest revenue opportunity to be within other layers (integration is expected to account for almost 50 percent of total M2M revenue in 2019), operators need to look beyond connectivity to reap the bigger rewards.
“Over the past few years, as the hype around Internet of Things has taken off – driven by some wildly exaggerated forecasts – we’ve seen operators take a gentle approach to M2M. Staying within their main expertise, most have taken on management of the connectivity layer, yet as conventional wisdom tells us, only minor returns will be made here,” says Jamie Moss, senior analyst at Ovum.
“Instead, operators need to leverage their other capabilities, namely their ability to aggregate large amounts of data around their customers. We’re seeing device and application management become the new focus in M2M, and the ability to collect vast amounts of data will be of considerable value. Data itself has intrinsic worth, but it is the business decisions made based on the aggregation and analysis of that data that are the greatest source of value for enterprises and their connected service provider partners.”
As the M2M opportunity continues to develop, so will the business models that operators are adopting to gain a greater share of the revenue. Ovum’s research into the cellular M2M market has highlighted five key models. Some operators are developing end-to-end services internally as an offshoot of their own supply chain needs. Others are crafting bespoke, end-to-end solutions for individual enterprise partners, although this remains the exception.
An increasingly common strategy involves outsourcing to acquire M2M specialisation, which is being done in three ways. Some operators have acquired dedicated M2M service providers to own that intellectual property, resell those services into other markets and use the assets acquired to develop new services. Others have partnered with specialists from other markets, working in unison to deliver connected, value-added variants of existing services. Lastly, some operators have opted to license suites of third-party M2M services from aggregators.
“Ultimately M2M is all about the enterprise partner (not ‘customer’) of the operator. M2M is a market with unique dynamics, where the aim of the operator is to become embedded in the long-term business strategy of the enterprise, not to simply be their current service provider. In order for the M2M market to realise its potential, operators must educate enterprises in the utility that connectivity brings. Enterprises should never have to become experts in connectivity, however, as that knowledge is part and parcel of the managed service that the operator must provide for them,” concludes Moss.
Tuesday, September 2, 2014
Maxx Mobile launches MX200 phone with power battery
INDIA: Maxx Mobile, one of India’s largest brands of mobile phones and accessories has launched a new feature phone, the MX200 with a 5200mAh battery in the Power House category.
Maxx Mobile designed this handset to cost just Rs. 1,848/- (online price), but offers exciting features such as long lasting battery life, a powerful torch and rugged body for all terrain weather conditions.
The MX200 comes with a 2.4 inches screen, and extra powerful 5200 mAH battery giving 10-11 hours of talktime which is best suited for areas with increased power cuts. It can be used as a powerbank to charge other mobiles. Taking a closer look at the technical specifications of the phone, it has an expandable memory upto 8 GB, digital camera, dual SIM support and 3 languages to choose from -English, Hindi and Gujarati.
It also supports Bluetooth, GPRS, FM Radio and multimedia capabilities like video recorder and player, audio player etc. It is available in 2 colors, full black and orange with black. MX100 is available online at Infibeam at a price of Rs.1,571/- and MX 200 at Rs.1,848/-. It will soon be available on other portals also.
Maxx Mobile designed this handset to cost just Rs. 1,848/- (online price), but offers exciting features such as long lasting battery life, a powerful torch and rugged body for all terrain weather conditions.
The MX200 comes with a 2.4 inches screen, and extra powerful 5200 mAH battery giving 10-11 hours of talktime which is best suited for areas with increased power cuts. It can be used as a powerbank to charge other mobiles. Taking a closer look at the technical specifications of the phone, it has an expandable memory upto 8 GB, digital camera, dual SIM support and 3 languages to choose from -English, Hindi and Gujarati.
It also supports Bluetooth, GPRS, FM Radio and multimedia capabilities like video recorder and player, audio player etc. It is available in 2 colors, full black and orange with black. MX100 is available online at Infibeam at a price of Rs.1,571/- and MX 200 at Rs.1,848/-. It will soon be available on other portals also.
Aculab announces series of workshops on fresh approach to telephony application development
MILTON KEYNES, UK: Aculab, a leading provider of deployment proven telephony products to the global communications market, today announced a series of workshops designed to help telephony application developers do more for less effort and reduce the time to market for new solutions.
Aculab has a deep understanding of the challenges and concerns faced by developers in today’s rapidly changing market. In an effort to deliver its message to as many developers and telephony professionals as possible, Aculab is embarking on a global tour.
Between October 2014 and February 2015, Aculab’s hands-on code-in-the-whole workshops will be stopping off at 17 worldwide locations, from the golden sands of Dubai to the Golden Gate Bridge and from the catwalks of Milan to the canals of Amsterdam.
Aculab has a deep understanding of the challenges and concerns faced by developers in today’s rapidly changing market. In an effort to deliver its message to as many developers and telephony professionals as possible, Aculab is embarking on a global tour.
Between October 2014 and February 2015, Aculab’s hands-on code-in-the-whole workshops will be stopping off at 17 worldwide locations, from the golden sands of Dubai to the Golden Gate Bridge and from the catwalks of Milan to the canals of Amsterdam.
Monday, September 1, 2014
Lava unveils ‘Made for selfies’ smartphone Iris X5
NEW DELHI, INDIA: LAVA International Ltd announced the launch of LAVA Iris X5, as the successor of its hugely popular Iris X1. The smartphone is a perfect combination of superlative camera performance and a graceful design. The phone is especially designed to meet the needs of the selfie generation. Running on Android 4.4 KitKat, the Lava Iris X5 with its brilliant features and design is a real treat at a price of Rs. 8,799.
The Lava Iris X5 has a 5.0 MP BSI+ Auto Focus Front Shooter with LED Flash for low-light imaging that enables clicking perfect selfies with extraordinary detailing at any given time of the day. It comes laden with a wide-viewing angle shot which allows users to capture pictures up to 84 degree with the front camera. In addition to this, the phone has an 8.0 MP Auto-Focus rear camera with exceptional imaging quality, making LAVA X5 a must have for all the shutterbugs.
The smartphone offers a great viewing experience with its 5’’ HD (1280 * 720) IPS Full Lamination LCM rich display that produces sharp images. The In-plane Switching (IPS) etched in the phone enhances color reproduction resulting in a bright display.
The Iris X5 is powered by 1.2 GHz Quad Core and 1 GB RAM that promises seamless application performance and multitasking, supported by a 2100mAh battery providing ample back up for multimedia payback, talk-time and stand-by. With an OGS 5-Point touch, the phone offers a smooth touch experience. Additionally with the width of 71.5mm and thickness of 7.7 mm, the smartphone become easy to handle.
The device comes with 8GB of internal memory that is expandable up to 32GB via micro-SD card. On connectivity front, the dual SIM Iris X5 is facilitated with 3G connectivity apart from Wi-Fi, Bluetooth v3.0 and micro- USB v2.0.It offers OTG support to enable file transfer through USB drive on the move. The device has a Dual MIC for active noise cancellation that promises a crystal clear calling experience.
The Lava Iris X5 has a 5.0 MP BSI+ Auto Focus Front Shooter with LED Flash for low-light imaging that enables clicking perfect selfies with extraordinary detailing at any given time of the day. It comes laden with a wide-viewing angle shot which allows users to capture pictures up to 84 degree with the front camera. In addition to this, the phone has an 8.0 MP Auto-Focus rear camera with exceptional imaging quality, making LAVA X5 a must have for all the shutterbugs.
The smartphone offers a great viewing experience with its 5’’ HD (1280 * 720) IPS Full Lamination LCM rich display that produces sharp images. The In-plane Switching (IPS) etched in the phone enhances color reproduction resulting in a bright display.
The Iris X5 is powered by 1.2 GHz Quad Core and 1 GB RAM that promises seamless application performance and multitasking, supported by a 2100mAh battery providing ample back up for multimedia payback, talk-time and stand-by. With an OGS 5-Point touch, the phone offers a smooth touch experience. Additionally with the width of 71.5mm and thickness of 7.7 mm, the smartphone become easy to handle.
The device comes with 8GB of internal memory that is expandable up to 32GB via micro-SD card. On connectivity front, the dual SIM Iris X5 is facilitated with 3G connectivity apart from Wi-Fi, Bluetooth v3.0 and micro- USB v2.0.It offers OTG support to enable file transfer through USB drive on the move. The device has a Dual MIC for active noise cancellation that promises a crystal clear calling experience.
Friday, August 29, 2014
Telstra and Telkom Indonesia sign joint venture
AUSTRALIA: Telstra and Telkom Indonesia finalised a joint venture (JV) agreement to provide Network Application and Services to Indonesian enterprises, multi-nationals and Australian companies operating in Indonesia.
Network Application and Services (NAS) support business continuity, operational efficiency and productivity improvement and protect business information, allowing enterprises to focus more on their core business and end customers.
Telstra Global Enterprise and Services Group executive, Brendon Riley, said the joint venture brings together two of the region’s leading telecommunication and enterprise service providers in a strategic partnership to deliver NAS for enterprises operating in Indonesia.
“The JV is an important step in Telstra’s Asia strategy and aligns with our aim to build new growth businesses that leverage the strengths of our unique NAS capabilities. We are excited to build a new market of enterprise solutions with Telkom,” Riley said.
“By partnering with Telkom Indonesia in the fast growing NAS market we leverage local expertise, a respected brand and service capabilities. The JV will deliver locally supported managed data network and security services, as well as cloud and unified communications services.
“The JV will offer an integrated end to end service, unique in the Indonesian market, by enabling NAS to be bundled with Telkom’s connectivity and sold through Telkom Indonesia and Telstra’s enterprise sales’ teams,” Riley said.
"We believe the JV NAS will grow significantly not only because of the partnership with Telstra, but also considering Telkom’s capabilities in network and data centre, as well as Telkom's strong position in the enterprise market segment which is the target market of NAS," said Arief Yahya, CEO of Telkom.
The JV will be led by CEO Phill Sporton. He was most recently executive director, Customer Service Delivery, for Telstra, leading a team of over 15,000 people across three continents.
Network Application and Services (NAS) support business continuity, operational efficiency and productivity improvement and protect business information, allowing enterprises to focus more on their core business and end customers.
Telstra Global Enterprise and Services Group executive, Brendon Riley, said the joint venture brings together two of the region’s leading telecommunication and enterprise service providers in a strategic partnership to deliver NAS for enterprises operating in Indonesia.
“The JV is an important step in Telstra’s Asia strategy and aligns with our aim to build new growth businesses that leverage the strengths of our unique NAS capabilities. We are excited to build a new market of enterprise solutions with Telkom,” Riley said.
“By partnering with Telkom Indonesia in the fast growing NAS market we leverage local expertise, a respected brand and service capabilities. The JV will deliver locally supported managed data network and security services, as well as cloud and unified communications services.
“The JV will offer an integrated end to end service, unique in the Indonesian market, by enabling NAS to be bundled with Telkom’s connectivity and sold through Telkom Indonesia and Telstra’s enterprise sales’ teams,” Riley said.
"We believe the JV NAS will grow significantly not only because of the partnership with Telstra, but also considering Telkom’s capabilities in network and data centre, as well as Telkom's strong position in the enterprise market segment which is the target market of NAS," said Arief Yahya, CEO of Telkom.
The JV will be led by CEO Phill Sporton. He was most recently executive director, Customer Service Delivery, for Telstra, leading a team of over 15,000 people across three continents.
Thursday, August 28, 2014
Telstra extends Whispir Conversation Platform to global businesses
AUSTRALIA: Telstra announced the launch of the Whispir Conversation Platform, a cloud-based enterprise service that allows organisations to quickly reach and communicate with customers, employees and the community via SMS, voice, web, email, mobile data and social media networks.
Nathan Bell, Telstra Global Enterprise and Services, director of Marketing, Portfolio and Pricing said that Telstra currently offered the Whispir Conversation Platform to many of its enterprise and government customers in Australia and would be using this experience to deliver the service to new international customers.
“In less than two years, Whispir’s customer base has quadrupled to more than 1.6 million users and with today’s expansion, we see significant growth opportunities for this service, particularly when delivered over Telstra’s global network extending to more than 2,000 Points of Presence.
“From a major bank using the platform to communicate with staff about IT incidents, critical events and business continuity to a rail operator sharing targeted information about their train network with a local community, or a HR department coordinating the flow of information to job seekers in their network, Whispir can be used across complex operational environments within any industry and organisation, big or small.
“This is just one of many cloud-based applications now integrated into our global network and available on-demand, enabling customers to respond quickly to changing business priorities and better anticipate challenges ahead,” he said.
Nathan Bell, Telstra Global Enterprise and Services, director of Marketing, Portfolio and Pricing said that Telstra currently offered the Whispir Conversation Platform to many of its enterprise and government customers in Australia and would be using this experience to deliver the service to new international customers.
“In less than two years, Whispir’s customer base has quadrupled to more than 1.6 million users and with today’s expansion, we see significant growth opportunities for this service, particularly when delivered over Telstra’s global network extending to more than 2,000 Points of Presence.
“From a major bank using the platform to communicate with staff about IT incidents, critical events and business continuity to a rail operator sharing targeted information about their train network with a local community, or a HR department coordinating the flow of information to job seekers in their network, Whispir can be used across complex operational environments within any industry and organisation, big or small.
“This is just one of many cloud-based applications now integrated into our global network and available on-demand, enabling customers to respond quickly to changing business priorities and better anticipate challenges ahead,” he said.
Friday, February 21, 2014
Deutsche Telekom fleshes its Smart City credentials
ENGLAND, UK: Deutsche Telekom has announced a series of smart city initiatives ahead of the start of Mobile World Congress.
Emeka Obiodu, principal analyst at Ovum comments: “The standout initiative is its pilot project to provide a parking guide system for motorists in the Italian city of Pisa. Deutsche Telekom will integrate a number of parking spaces within a sensor-based parking management system in Piazza Carrara in the city center.
"The co-operation also includes a big data service, which analyzes historical traffic data to optimize the flow of traffic. Similarly, Deutsche Telekom will present the Smart Stadium solution, a connected and integrated concept for large events. The solution aims to create a more intense fan experience and simplify operational processes for major events.
“These announcements show the intensity of developments in the smart city ecosystem and we expect many more solutions to be on show in Barcelona. In our report, “Smart City Case Study: Santander, Spain”, Ovum drew attention to the plurality of available business models, especially with either the city council itself, or a service provider (such as a telco) as the prime customer for a "smart city as a service" solution.
“Deutsche Telekom clearly sees its role as the ‘service provider’ who is helping to nurture the smart city ecosystem. Yet, Ovum believes that there is scope for more, complex and nuanced, business models, especially in those environments where local governments have neither the budget nor the degree of centralized authority to be the ringmaster in a smart city implementation.”
Orange liberates Libon
Orange has announced the next phase in the evolution of Libon, the OTT communications service developed by Orange Vallée that offers VoIP, SMS and voicemail.
Eden Zoller, principal analyst, comments: “Orange has leveraged its patented OpenChat technology to introduce a new instant messaging (IM) feature to Libon that allows users to IM all their contacts including those with rival messaging services. All that is required to support a Libon chat session is for contacts to have a mobile phone, tablet or PC with an HTML5 browser.
"Libon users send contacts a chat link that the contact opens to commence an IM session. The chat link is locked to the Libon user’s device. The new version of Libon is available now for iOS devices, with an Android version due for release by the end of March. Orange says the new IM feature signals that the next phase of Libon’s development is all about messaging, and going forward it expects to add video capabilities to the mix.
"Libon has been in development since 2011, with the first iteration (2012) focused on voicemail while the major innovation in 2013 was on VoIP in the shape of Libon-to-Libon calling, and Libon-out. The introduction of messaging will aim to make the service stickier with the consumer, will complete the communication service and will also help it to grow organically across a large potential subscriber base. Even though Libon’s service offers interoperability across social messaging players and provides a value added VoIP proposition to their users, gaining market share will still remain a challenge in a market inundated with social messaging players with constantly evolving suite of services.
“Libon is available in over 100 countries for iOS and Android devices and its user base is growing , although it is tiny compared to OTT rival WhatsApp that has around 430 million users worldwide. OTT social messaging services are experiencing rapid growth – Ovum’s forecasts show that during 2013 there were a total of 1.2 billion OTT social messaging subscribers generating a total of 27.4 trillion messages. But this growth in OTT social messaging is at the expense of mobile operator offered SMS messaging.
"Ovum estimates that mobile operators have lost $32.5 billion from SMS revenue in 2013. Orange argues that the benefits Libon brings to operators can off-set the cannibalisation impact it might have on network based communication services. Libon will also aim to grow revenue through mobile broadband access subscriptions and grow its presence in the OTT communications space.
"Orange evidences the benefits Libon can bring by pointing to Sosh, its low cost fixed and mobile brand that includes an international calling plan that incorporates Libon. Orange says Libon has increased Sosh’s in-bound international call traffic by 21 percent, and increased Average Use Per User (AUPU) by 250 minutes, while use of competing services all declined (from less 10 percent for Skype to less 79 percent for Viber) .
“Going forward, Orange is aiming to license Libon to other operators outside of the Orange group that do not have the resources of time to develop their own OTT communications service. Orange says it will be announcing operator partnerships of this kind during 2014. Orange has also announced that it is positioning Libon as the group’s consumer application for all Joyn enabled services across the Orange footprint.
"Orange plans to launch Joyn across its operations and is currently running Joyn trials in Luxembourg, Poland, Romania and Slovakia with more countries to follow in 2014. Libon will replace the ‘Joyn by Orange’ applications available in France and in Spain today. This step allows Orange to continue with their commitments to the RCS platform as well as grow their foot print in the OTT communications space.”
NFC based cloud payments a further boost by card scheme support for HCE
Visa and MasterCard have formally thrown their weight behind Hosted Card Emulation (HCE), a technology for hosting m-payment and digital wallet capabilities in the cloud rather than on the Secure Element (SE) in a device, an approach that is highly disruptive to the SIM centric NFC model favoured by operators.
Eden Zoller, principal analyst at Ovum comments: “MasterCard has announced that it will publish a specification for HCE NFC payments, while separately (but on the same day -19/02) Visa said it will incorporate support for HCE payments into the Visa Ready program.
“The build up to Mobile World Congress is also seeing technology providers announce their support for HCE based cloud payments, including a solution developed by m-commerce platform provider Proxama and security specialist Cryptomathic. We expect to see further HCE related announcements at main event next week.
“The backing of Visa and MasterCard is a significant endorsement for HCE that without the support of the major card schemes would not be able to flourish. The technology received another major boost last November when it Google revealed that HCE had been baked into the latest version of the Android OS (Android 4.4, or KitKat). This is highly significant for the future of cloud based digital payment implementations enabled by HCE, as Android based devices now dominate smartphone shipments.
"Both Visa and MasterCard have readily acknowledged that support integration of HCE into Android was a key motivation in their decision to embrace the technology. However, even the rise of HCE does not necessarily mean that the future of NFC is guaranteed, as there are wider issues for NFC related to consumer and merchant acceptance. For more details please see the Ovum report Mobile Proximity Payments and the Prospects for NFC.
“The prospect of a mobile proximity landscape dominated by cloud based deployments is not a scenario that operators relish. Mobile operators are driving NFC implementations based on the SE embedded in SIM cards, because this gives them maximum control over service provisioning, the m-commerce business model and revenue flows. The model and terms imposed by operators can be restrictive for third parties, notably the SIM rental model adopted by some operators.
"Under the SIM rental model third parties gain access to operator NFC SIMs in return for a “rental fee”, but have limited control over service provisioning, the user experience or the customer relationship. The lack of flexibility with models of this kind do not sit well with other m-commerce stakeholders such as banks, application developers, merchants and OTT players, which all want control over their own service destiny. It is a key reason why an increasing number of merchants are shunning operator controlled wallets and are seeking m-commerce solutions that bypass operators.
“This is where HCE come into play. HCE effectively severs the dependency of NFC payments on an SE embedded in an NFC device or SIM card, in preference for a virtual SE on remote servers in the cloud. This implementation supports a more open model for NFC deployments and makes service provisioning much easier for banks, issuers, developers and other third parties. This has the potential to open up the NFC market up to more innovation and competition, but at the expense of mobile operators.”
Emeka Obiodu, principal analyst at Ovum comments: “The standout initiative is its pilot project to provide a parking guide system for motorists in the Italian city of Pisa. Deutsche Telekom will integrate a number of parking spaces within a sensor-based parking management system in Piazza Carrara in the city center.
"The co-operation also includes a big data service, which analyzes historical traffic data to optimize the flow of traffic. Similarly, Deutsche Telekom will present the Smart Stadium solution, a connected and integrated concept for large events. The solution aims to create a more intense fan experience and simplify operational processes for major events.
“These announcements show the intensity of developments in the smart city ecosystem and we expect many more solutions to be on show in Barcelona. In our report, “Smart City Case Study: Santander, Spain”, Ovum drew attention to the plurality of available business models, especially with either the city council itself, or a service provider (such as a telco) as the prime customer for a "smart city as a service" solution.
“Deutsche Telekom clearly sees its role as the ‘service provider’ who is helping to nurture the smart city ecosystem. Yet, Ovum believes that there is scope for more, complex and nuanced, business models, especially in those environments where local governments have neither the budget nor the degree of centralized authority to be the ringmaster in a smart city implementation.”
Orange liberates Libon
Orange has announced the next phase in the evolution of Libon, the OTT communications service developed by Orange Vallée that offers VoIP, SMS and voicemail.
Eden Zoller, principal analyst, comments: “Orange has leveraged its patented OpenChat technology to introduce a new instant messaging (IM) feature to Libon that allows users to IM all their contacts including those with rival messaging services. All that is required to support a Libon chat session is for contacts to have a mobile phone, tablet or PC with an HTML5 browser.
"Libon users send contacts a chat link that the contact opens to commence an IM session. The chat link is locked to the Libon user’s device. The new version of Libon is available now for iOS devices, with an Android version due for release by the end of March. Orange says the new IM feature signals that the next phase of Libon’s development is all about messaging, and going forward it expects to add video capabilities to the mix.
"Libon has been in development since 2011, with the first iteration (2012) focused on voicemail while the major innovation in 2013 was on VoIP in the shape of Libon-to-Libon calling, and Libon-out. The introduction of messaging will aim to make the service stickier with the consumer, will complete the communication service and will also help it to grow organically across a large potential subscriber base. Even though Libon’s service offers interoperability across social messaging players and provides a value added VoIP proposition to their users, gaining market share will still remain a challenge in a market inundated with social messaging players with constantly evolving suite of services.
“Libon is available in over 100 countries for iOS and Android devices and its user base is growing , although it is tiny compared to OTT rival WhatsApp that has around 430 million users worldwide. OTT social messaging services are experiencing rapid growth – Ovum’s forecasts show that during 2013 there were a total of 1.2 billion OTT social messaging subscribers generating a total of 27.4 trillion messages. But this growth in OTT social messaging is at the expense of mobile operator offered SMS messaging.
"Ovum estimates that mobile operators have lost $32.5 billion from SMS revenue in 2013. Orange argues that the benefits Libon brings to operators can off-set the cannibalisation impact it might have on network based communication services. Libon will also aim to grow revenue through mobile broadband access subscriptions and grow its presence in the OTT communications space.
"Orange evidences the benefits Libon can bring by pointing to Sosh, its low cost fixed and mobile brand that includes an international calling plan that incorporates Libon. Orange says Libon has increased Sosh’s in-bound international call traffic by 21 percent, and increased Average Use Per User (AUPU) by 250 minutes, while use of competing services all declined (from less 10 percent for Skype to less 79 percent for Viber) .
“Going forward, Orange is aiming to license Libon to other operators outside of the Orange group that do not have the resources of time to develop their own OTT communications service. Orange says it will be announcing operator partnerships of this kind during 2014. Orange has also announced that it is positioning Libon as the group’s consumer application for all Joyn enabled services across the Orange footprint.
"Orange plans to launch Joyn across its operations and is currently running Joyn trials in Luxembourg, Poland, Romania and Slovakia with more countries to follow in 2014. Libon will replace the ‘Joyn by Orange’ applications available in France and in Spain today. This step allows Orange to continue with their commitments to the RCS platform as well as grow their foot print in the OTT communications space.”
NFC based cloud payments a further boost by card scheme support for HCE
Visa and MasterCard have formally thrown their weight behind Hosted Card Emulation (HCE), a technology for hosting m-payment and digital wallet capabilities in the cloud rather than on the Secure Element (SE) in a device, an approach that is highly disruptive to the SIM centric NFC model favoured by operators.
Eden Zoller, principal analyst at Ovum comments: “MasterCard has announced that it will publish a specification for HCE NFC payments, while separately (but on the same day -19/02) Visa said it will incorporate support for HCE payments into the Visa Ready program.
“The build up to Mobile World Congress is also seeing technology providers announce their support for HCE based cloud payments, including a solution developed by m-commerce platform provider Proxama and security specialist Cryptomathic. We expect to see further HCE related announcements at main event next week.
“The backing of Visa and MasterCard is a significant endorsement for HCE that without the support of the major card schemes would not be able to flourish. The technology received another major boost last November when it Google revealed that HCE had been baked into the latest version of the Android OS (Android 4.4, or KitKat). This is highly significant for the future of cloud based digital payment implementations enabled by HCE, as Android based devices now dominate smartphone shipments.
"Both Visa and MasterCard have readily acknowledged that support integration of HCE into Android was a key motivation in their decision to embrace the technology. However, even the rise of HCE does not necessarily mean that the future of NFC is guaranteed, as there are wider issues for NFC related to consumer and merchant acceptance. For more details please see the Ovum report Mobile Proximity Payments and the Prospects for NFC.
“The prospect of a mobile proximity landscape dominated by cloud based deployments is not a scenario that operators relish. Mobile operators are driving NFC implementations based on the SE embedded in SIM cards, because this gives them maximum control over service provisioning, the m-commerce business model and revenue flows. The model and terms imposed by operators can be restrictive for third parties, notably the SIM rental model adopted by some operators.
"Under the SIM rental model third parties gain access to operator NFC SIMs in return for a “rental fee”, but have limited control over service provisioning, the user experience or the customer relationship. The lack of flexibility with models of this kind do not sit well with other m-commerce stakeholders such as banks, application developers, merchants and OTT players, which all want control over their own service destiny. It is a key reason why an increasing number of merchants are shunning operator controlled wallets and are seeking m-commerce solutions that bypass operators.
“This is where HCE come into play. HCE effectively severs the dependency of NFC payments on an SE embedded in an NFC device or SIM card, in preference for a virtual SE on remote servers in the cloud. This implementation supports a more open model for NFC deployments and makes service provisioning much easier for banks, issuers, developers and other third parties. This has the potential to open up the NFC market up to more innovation and competition, but at the expense of mobile operators.”
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