UK NFC digital wallet Joint Venture announced
FeaturePosted by Seth Planck
June 16th, 2011 at 2:54 PM Filed Under Latest News, Press Release
Four UK mobile operators form a UK NFC digital wallet Joint Venture, here we go again
UK NFC digital wallet Joint Venture announced - ruh roh, and they would have gotten away with it if it wasn’t for us pesky kids! The UK NFC digital wallet Joint Venture is unnamed at this time, but we are dubbing it Osiris. Yes, the Isis effect (similar to the Lynx/Axe effect only there is little benefit to using it and it is certainly not sexy) is about to hit the UK as the mobile carriers NFC digital wallet Joint Venture, Telefonica (O2), Orange, T-Mobile and Vodafone announce their intention to go into business together and form a joint venture.
UK NFC digital wallet Joint Venture, The sale:
As with its colonial cousin, Isis, the UK NFC digital wallet Joint Venture is focusing its sales message on pushing mass market adoption and providing marketing and education. According to the press release announcing the UK NFC digital wallet Joint Venture it is designed to accelerate mass market adoption of near field communications technologies. It is also intended to promote the use of digital wallets and is said to create a”single platform for sales, delivery and payment.”
The newly appointed CEO of Everything Everywhere, Tom Alexander, commented:“This groundbreaking new business will unlock the true potential of commerce in the wire-free world.”
“This is not just something that is unique in the UK, but a JV that will create a model that many countries around the world could follow.”
“And for partners operating in these industries, having a one-stop shop to deal with will make things quicker, easier and more efficient. This Joint Venture will further reinforce mobile as the essential 21st century device at the heart of people’s daily lives.”
“Everything Everywhere, Telefónica UK and Vodafone UK will continue to develop their own competing products and services tailored to their own customers, which will be based on the open platform infrastructure provided by the JV.”
“The JV will provide a single contact for advertisers, marketing partners, retailers and banks making it far easier to create m-commerce products and services. The JV will be open and available to all industry participants, maximising benefits to consumers.”
Questions left not answered in regards to UK NFC digital wallet Joint Venture’s all inclusive nature:
- Does this mean Visa and its newly purchased digital wallet system will be embraced with open arms by the UK NFC digital wallet Joint Venture?
- Does Google get a seat on the board of the UK NFC digital wallet Joint Venture?
- Will there be open API’s and an SDK provided by the UK NFC digital wallet Joint Venture that competitors outside of the four carriers can utilize free of charge to create their own competing products and services?
- Will the SIM cards be locked to carriers inside of the four founding members of the UK NFC digital wallet Joint Venture, or will they be completely unlocked so that a customer can utilize any cellular providers services?
UK NFC digital wallet Joint Venture founding members Guy Laurence, Ronan Dunne & Tom Alexander
UK NFC digital wallet Joint Venture, The crux of the matter:
It is about about adding ad revenue, generating profit to their bottom lines and locking up digital wallets to be used for members of their own UK NFC digital wallet Joint Venture. If you read the press release below you will notice how most of the document is actually aimed at the revenue generating aspects of the JV and is less about the consumer benefits. You may also note that the consumer benefits stated are vague at best.
This quote from the UK NFC digital wallet Joint Venture press release says it all: ”This will enable consumers to transfer their entire physical wallet into a new secure, SIM-based wallet regardless of which NFC enabled mobile device, or mobile network they are using,”
Security concerns brought up by the UK NFC digital wallet Joint Venture announcement
The four companies that make up the UK NFC digital wallet Joint Venture are proposing that customers’ digital wallets are stored on and transferred via their SIM cards. We have some questions we would love the UK NFC digital wallet Joint Venture to clarify about the secure nature of these SIM cards. We have to assume whatever assurances are given that SIM cards can be hacked like most other technologies. The difference being though is that SIM cards are very easy to get out of a phone. The MicroSD cards that are hitting the market have built-in secure elements that negate some of the concerns, but it is very unclear how the UK NFC digital wallet Joint Venture intends to approach security.
- Will the UK NFC digital wallet Joint Venture provide remote wipe facilities as SIM cards are very easy for anyone to remove from a phone?
- Will the UK NFC digital wallet Joint Venture reimburse any losses to a customer which occurs as the result of a stolen SIM or phone and subsequent hacking of the SIM?
- Are the UK NFC digital wallet Joint Venture, SIM cards tamper proof and offer the same security as an embedded NXP chip secure element in a phone?
- What is the UK NFC digital wallet Joint Venture security plan for allowing authorized use to be unencumbered but secure enough to not allow unauthorized use?
NFC Rumors view on the subject of the UK NFC digital wallet Joint Venture
First, we want to say that here at NFC Rumors we have a passion for NFC and the changes it is set to bring to everyday life. We support any efforts to market the technology to the masses and think all education efforts are valuable so that consumers can understand this next wave of convergence that we are about to experience. We are a little different to other NFC news sites because we give you our educated opinions for you to agree with or disagree with, and if we can stimulate conversation around this major shift in technology and the issues that come from the introduction of NFC, we feel we have done our job. However, we must admit when we think of a joint venture, we think of Baskin Robins and Dunkin Donuts, or PizzaHut, KFC and Taco-bell sharing a location to bring down costs and offer more choice to consumers. We are struggling to see how cellular carriers that are colluding to lock markets in anti-competitive moves that put out genuine competition helps the consumer at all, in any way. The UK NFC digital wallet Joint Venture is starting to smell like an old boys’ network to us.
In conclusion, we hope to see Oftel and the Competition Commission take a closer look at the UK NFC digital wallet Joint Venture proposed by the heavy hitting quartet of mobile carriers in the UK. We also suspect that Google may be looking at its options and could file suit as the UK NFC digital wallet Joint Venture appears to be cloning Google’s business model it recently set forth with its Google Wallet and Google Offers programs. It appears at this time that the UK NFC digital wallet Joint Venture is set to benefit a few companies and ultimately will not help the economy at large. We have seen joint ventures like the UK NFC digital wallet Joint Venture before in the form of SimPay venture which collapsed in 2005 following the withdrawal of founder member T-Mobile. This time there is more at stake though, and for this initiative to work it will need marketing agencies, banks and credit card providers to get on board. It will also be interesting to see what another UK network 3 thinks to this JV. We will be keeping our beady eyes on the UK NFC digital wallet Joint Venture and will bring you updates on this JV.
Posted 16 June 2011 / Corporate
Ground breaking venture promises to accelerate the development of innovative mobileservices for consumers and business customers
Creation of a single ecosystem for m-commerce helping advertisers, retailers and banks to reach consumers through their mobile phones Consumers will be able to replace their physical wallet with a secure mobile wallet using Near Field Communications (NFC) technology to pay for goods and services Consumers will also benefit from relevant offers and coupons, delivered direct to their phone Everything Everywhere, Telefónica UK and Vodafone UK to provide start-up investment Everything Everywhere, Telefónica UK and Vodafone UK today announce plans to create a standalone m-commerce joint venture (JV). The new entity, the first of its kind in the UK, will bring together the expertise and technology of the UK’s leading mobile operators, enabling the rapid development and delivery of new mobile marketing and payment services.
The JV will provide a single contact for advertisers, marketing partners, retailers and banks making it far easier to create m-commerce products and services. The JV will be open and available to all industry participants, maximising benefits to consumers.
The JV is subject to competition clearance and is aiming to launch before the end of the year.
Enabling mobile payments
The JV will deliver the technology required for the speedy adoption of mobile wallet and payments. This will enable consumers to transfer their entire physical wallet into a new secure, SIM-based wallet regardless of which NFC enabled mobile device, or mobile network they are using.
Companies and organisations that provide anything from credit, debit and loyalty cards to membership cards and transport tickets will be able to create secure mobile versions of their products. Consumers will be able to use their mobiles to pay for goods, services and travel using contactless technology (NFC) with one touch of their phone, or online via mobile or PC.
Enabling brands to reach consumers on the move
The new business will also provide a single contact point for advertisers, media agencies and retailers looking to reach consumers on their mobile phones. The JV will enable them to book advertising space and create campaigns as well as provide offers, coupons and loyalty cards which can be stored on the phone and redeemed in shops. For consumers, the JV means that they will be able to receive discounts and offers from brands that are relevant to them and that they want to receive.
Everything Everywhere, Telefónica UK and Vodafone UK will continue to develop their own competing products and services tailored to their own customers, which will be based on the open platform infrastructure provided by the JV.
Tom Alexander, CEO of Everything Everywhere, commented: “This groundbreaking new business will unlock the true potential of commerce in the wire-free world.
“The benefits will be felt across the whole industry, allowing people to manage their money and make payments using their handsets, helping advertisers reach their customers on the move, and helping banks provide their clients with an easy and convenient way of making payments.
“And for partners operating in these industries, having a one-stop shop to deal with will make things quicker, easier and more efficient. This Joint Venture will further reinforce mobile as the essential 21st century device at the heart of people’s daily lives.”
Ronan Dunne, Chief Executive Officer of Telefónica UK, said: “We are seeing an explosion in the m-commerce market. Mobile advertising spend alone has more than doubled in two years as consumers embrace marketing on their handsets because it is now relevant to them and provides a great customer experience.
“The mobile marketing and payments market is extremely fragmented. By creating this new business we will underpin this nascent market, providing real size and scale, allowing consumers to benefit from new and innovative services, like the mobile wallet, and giving them more of the things they value, through offers and deals that are truly relevant to them. At the same time business customers will reach a vastly increased audience, utilising a single platform for sales, delivery and payment.
“This is not just something that is unique in the UK, but a JV that will create a model that many countries around the world could follow.”
Guy Laurence, Chief Executive Officer of Vodafone UK, said: “Since Vodafone made the first ever call just 26 years ago, mobile phones have transformed people’s lives. Along the way, the mobile phone has become the one item people really cannot be without. It is the first thing they reach for in the morning and the last thing they check at night. Over recent years it has integrated new gadgets such as digital cameras and music players as they have become popular. The new generation of smartphones is even taking on desktop PC by providing internet on the move and removing the need to be in the home or office.
“Currently people take their mobile, wallet and keys when they leave home. In the near future, people will now start leaving their wallet at home, and in the mid term their keys may also be integrated into their mobile as NFC allows the mobile to act as a digital access card. The joint venture is the next phase in realising that ambition.”
ENDS
Notes to Editors
1 Customer data will not be provided to external companies, retailers, merchants or advertisers, and will only be used where customers have given their consent
UK NFC digital wallet Joint Venture company profiles:
[cb type="company"]France Telecom[/cb]
[cb type="company"]Deutsche Telekom[/cb]
[cb type="company"]Vodafone[/cb]
[cb type="company"]O2[/cb]
Above are the company profiles of the founding members of the UK NFC digital wallet Joint Venture. If you have an opinion on whether the UK NFC digital wallet Joint Venture is anti-competitive or good practice use the comments below to have your say as we are sure the right people will see them.