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ABI Research Sees Three Critical Years for Near-Field Communications


Oyster Bay, NY, November 3, 2005 -- Near Field Communications (NFC) applications will transform consumer commerce, connectivity, and content consumption, beginning with trials through 2006 and volume deployments into 2007, according to a new study from ABI Research.

NFC, a short-range contactless communications protocol, enables easy-to-use, secure Bluetooth and Wi-Fi connectivity between devices. It provides high-bandwidth content acquisition and transfer, contactless payment capability, and smart object interaction. That means, for instance, interactive advertising posters and kiosks, instant ticketing, and transmitting audio, video, and pictures. NFC brings convenience to increasingly connected digital consumers.

Near-Field Communications (NFC) details NFC''s global business applications, market players, and opportunities.

According to Erik Michielsen, the firm''s director of RFID and ubiquitous networks, the story of NFC''s growth from "infancy" to "young adult" status will play out over three years.

2005, he says, has seen the groundwork laid. The NFC Forum industry association now counts 60+ members, and this year has demonstrated the critical ability of many players -- wireless carriers, handset OEMs, application developers, payment processors, infrastructure providers, content owners, card issuers, banks, and merchants -- to collaborate.

"2006 will be a year of trials and trial data digestion," says Michielsen. "NFC standards, licensing, and interoperability will solidify. Commercial NFC products will reach market."

By 2007, the research indicates, higher-volume NFC deployments will be common, first in wireless handsets, then in other kinds of consumer electronics, from PCs to cameras, printers, set-top boxes, and more.

However, certain conditions are essential to NFC''s success. Michielsen states "Open, interoperable, standards-based NFC environments are critical to stabilizing NFC ecosystem working relationships and commitment, especially with wireless carriers seeking clarity on NFC business benefits. 2005 and 2006 NFC trials will be important to help them understand how the numbers add up."

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