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    TSM market to be worth 330m euros annually by 2015

    “NFC is a nascent industry in which all participants want to set up the conditions and obtain the greatest market share during the early stages,” new analysis from Frost & Sullivan has found. “However, NFC commercialisation will not take place if such approaches are taken.”

    Frost & Sullivan

    ANALYST: DRM and mobile marketing could be sources of growth for TSMs

    A new analysis of the TSM market by Frost & Sullivan predicts that NFC Trusted Service Managers (TSMs) will be generating annual revenues of €330 million by 2015 and that the market will see a compound annual growth rate of 74% between 2010 and 2015.

    “During the early stages of NFC, the main core services of TSMs will have a technical character; however, as NFC matures, TSMs will evolve and fulfil a business enabler role,” ‘Trusted Service Manager — The Secure Bridge Between NFC Stakeholders’ finds. “Life cycle management of applications and management of the secure element are anticipated to remain the main sources of revenue.”

    “Regardless of the technology that supports NFC or the business model chosen by market participants, the need of having a trusted service manager in the middle to moderate the technical aspects of their relationship will persist,” Frost & Sullivan continues. “Eventually, TSMs may evolve and become responsible for the management of commercial relationships between participants of the NFC market.”

    “Multiplicity of secure element form factors, interoperability among consortia and low end-user awareness are still issues that are affecting the uptake of NFC and, thereby, the trusted services market,” the analysts add. “NFC is a nascent industry in which all participants want to set up the conditions and obtain the greatest market share during the early stages. However, NFC commercialisation will not take place if such approaches are taken.”

    “NFC handset availability will stop being a restraint and will, instead, become a driver for the NFC services market, and thereby, for the trusted services market with 2011 and 2012 expected to be key years in NFC handset deployment,” explains Frost & Sullivan research analyst Mario Fernandez. “Moreover, the increasing number of collaborations between mobile network operators and service providers will constitute one of the major catalysts for trusted services market in NFC.”

    “Payment and transportation applications will push the market during the next five years,” Fernandez adds. “Provisioning of platforms for digital rights management and mobile marketing are markets that have not been explored by TSMs, but they could become, if well addressed, a source of tremendous growth.”

    “It is important that none of the NFC participants pushes for a single type solution, but rather that all participants firstly focus on standardising the market,” Fernandez concludes.

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