Released on = May 11, 2006, 6:18 am

Press Release Author = Visiongain

Industry = Telecommunications

Press Release Summary = San Francisco, CA and London, UK; 11 April 2006: Service
providers and handset manufacturers need to develop and promote a software platform
standard that will enable RFID to move beyond current niches into wider deployment.
That is one of the findings of visiongain's latest report, "RFID Report 2006-2011:
Opportunities and challenges with cellular RFID".

Press Release Body = DoCoMo's FeliCa architecture, a platform on which to develop
applications that operate using it, embodies such an approach, reducing the burden
and cost for cell phone manufacturers and improving the flexibility for retailers
and other vendors.

The study found that 62% of all handsets shipped in 2011 will have tag and/or reader
capability, up from less than 1% in 2006. This growth will be driven by falling
costs attributed to the integration of NFC chips into mobile devices.

The capability however, does not imply that applications are available. Cell phones
can easily power active RFID tags as well as readers, but the lack of applications
is slowing the cell phone manufacturer response, which necessitates software
platform standards. While there may not be any one killer application, scores of
targeted applications can be constructed from these modules to quickly and cost
effectively implement solutions.

"The good news is that point solutions fit well in the cellular market," says
visiongain analyst and the report's lead author Nancee Ruzicka. "Cell phones that
can be outfitted for payment, admission, fares and facility access are being tested
in many markets."

"The logical extension of both RFID tag and reader technology is into cell phones,
PCs and PDAs, and the industry is beginning to market some of these options. One
quarter of the world\'s population is mobile and it represents the largest
opportunity for wide deployment of NFC-based contact-less tag and/or reader
applications," says Ruzicka.

The study also found that RFID reader and tag manufacturers will benefit from the
Gen2 standard, which is expected in mid-2006. RFID's evolution has been marred with
several false hypes, but visiongain expects the standardisation of Gen2 to galvanise
the market, although there are still questions regarding global interoperability,
especially in China, which is part of many supply chains.

"Gen2 is the standard that the world has been waiting for," says Ruzicka. "Gen2, due
to its global acceptance and pending approval in mid-2006, has emerged as the global
exception for tags and readers that transmit radio signals. While acceptance is not
universal, there is momentum for changing some of the individual regulations that
have impeded progress in countries outside of North America," says Ruzicka.

In 2006, RFID is still scarce at the pallet or box level and nearly non-existent at
the item level except for some high-value items, livestock, pets, and a few drugs.
While technology deployments seldom happen on schedule, there is an obvious absence
from the market on the part of many manufacturers, retailers, shippers, and
governments.

"There are some good reasons for this. While most companies believe that RFID is an
inevitability, they are not entirely sure of the logistics regarding deployments,"
says Ruzicka.

"The industry believes that the next step is widespread deployment for asset
tracking and supply chain management, using item-level tagging. While that may be
the next logical step, the impact on the access network, storage, and processing
will dwarf any requirements the enterprise IT industry has ever contemplated," adds
Ruzicka.

"The companies best suited to an early RFID deployment are SMBs that have not made
large investments in integrated supply chain or asset management. Those businesses
do not require expensive integration efforts or retrofitting to take advantage of
RFID," concludes Ruzicka.

This report gives a top-level analysis of the RFID market, including pertinent
issues such as spectrum, interoperability, scalability, costs and pricing, security
and privacy. In addition, it discusses the potential for RFID in the mobile cellular
space, looking at integration issues on the network and handsets sides, as well as
strategies that can be adopted by mobile operators, handset makers and other players
in the mobile value chain.

ENDS

Notes for Editors
If you are interested in a more detailed overview of this report, including the
Executive Summary, charts and images, please send an email to
sara.peerun@visiongain.com or phone Sara on +44 (0) 20 8767 6711.

About visiongain
Visiongain is one of the fastest growing and most innovative independent media
companies in Europe. Based in London, UK, visiongain produces a host of
business-2-business conferences, newsletters, management reports and e-zines
focusing on the Telecoms, Pharmaceutical and Defence sectors. \'Visiongain has a
global client base, with offices in London and San Francisco.

Visiongain publishes reports produced by its in-house analysts, who are qualified
experts in their field. Visiongain has firmly established itself as the first
port-of-call for the business professional, who needs independent, high quality,
original material to rely and depend on.

For more information on visiongain, please visit the website:
www.visiongainintelligence.com


Web Site = http://www.visiongain.com

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