T-Mobile To Introduce NFC Mobile Payment System In 2011


Deutsche Telekom, our T-Mobile mothership announced out of Mobile World Congress today plans to roll out a mobile payment system using NFC technology in 2011-2012. Following up on its joint venture with Verizon and AT&T announced last November, T-Mobile will use ISIS mobile payment systems in a number of devices later this year and into next year.

While this announcement in and of itself is interesting, what was even more interesting was the name dropping the Deutsche Telekom execs did during their press conference. Name dropping Apple is sure to perk up the ears of everyone in attendance and combined with pre-existing rumors of Apple including NFC technology into the next generation iPhone, it’s likely we could see that come to pass with iPhone 5. Of course Deutsche Telekom already carries the iPhone in a number of international markets and the iPhone remains the white unicorn here for T-Mobile USA fans. We should note the press release that follows below makes no mention of Apple so we’ll chalk this up to an executive wanting to feel important and name dropping something we didn’t know and he did.

Samsung will jump on board during the second quarter of this year along with LG and RIM following up in the third quarter. Deutsche Telekom hopes that NFC technology can replace cash in such areas as public transportation and supermarkets. Those of you who might be skeptical of replacing cash with your mobile device can rest assured multiple security measures will be in place including protection against theft or loss. What exactly those measures are are unknown, however we imagine they’ll be closely reported as the actual rollout of NFC capable devices nears.

Phonescoop and Engadget

Deutsche Telekom at Mobile World Congress 2011

Feb 15, 2011

Growth field of mobile Internet: focus on customer experience

First EU-wide flat rate for data roaming

Networks as a basis for the 4G experience

Mobile payment and mobile advertising ensure growth

Deutsche Telekom continues to emphasize the growth field of mobile Internet. The company is presenting numerous new products and services for this area at the Mobile World Congress in Barcelona. The focus here is on a great customer experience. From March, Deutsche Telekom will start its data roaming offer “Travel & Surf”, and will offer Internet access from EUR 1.95 per day in all European Union countries. Deutsche Telekom customers can, if they are travelling in the EU, benefit from the first real flat rate for data roaming. For EUR 14,95 a week, virtually unlimited surfing in the EU will be available as of this summer.

During 2011, the company will introduce new services in the fields of mobile payment and mobile advertising. In the hardware area, Deutsche Telekom will focus on smartphones which everyone can afford and, with the “move by T-Mobile”, is providing a competitively-priced Android smartphone which strengthens the trend towards mobile data traffic in the lower price segment.

“Key to all our innovations is to always provide our customers with a great experience. This will give us a strategic competitive advantage,” says Edward R. Kozel, Chief Technology and Innovation Officer of Deutsche Telekom. “In order to increase our speed of innovation, we will be working even more intensively with partners and streamlining in-house processes.”

Networks as a basis for 4G experience

The volumes of data transferred in the networks continue to grow because customers are using increasingly diverse and more complex applications in the telecommunications networks. Deutsche Telekom is well-equipped for this development. “The data traffic in our European networks has increased sevenfold in the last three years,” Kozel continues. “With our Telco plus strategy, we are getting Deutsche Telekom in shape for the gigabit society and ensuring future growth.”

A basis for the new customer experience is the extensive expansion of mobile communications networks. In the USA, large parts of the T-Mobile network have already been expanded with HSPA+ to speeds of up to 21 Mbit/s. The aim is to reach 42 Mbit/s during the course of the year. At the same time, the availability of HSPA+ to customers in Europe is being massively increased. Deutsche Telekom’s customers in Germany, Poland, Austria, Greece, Bulgaria and Montenegro can already get 21 Mbit/s mobile Internet access in most locations. In Germany and Austria, the available speed will be doubled to 42 Mbit/s in 2011. Czech Republic, Croatia, Slovakia and Macedonia will upgrade their networks to 21 Mbit/s later this year.

“For us, 4G primarily means a flawless user experience for our customers across various technologies,” says Kozel. “The key feature of the 4G experience is that our customers will always automatically be able to use the fastest connection currently available, on state-of-the-art, high-performance, intuitive devices. It won’t matter whether this connection is based on WiFi, LTE or HSPA+.”

Promising an even faster and more user-friendly mobile Internet experience for its customers, Deutsche Telekom is significantly expanding its offering of WiFi public access points for wireless Internet. Finally, new apps for the major smartphone platforms make using the hotspots vastly easier.

Strategic fields of mobile payment and mobile advertising ensure further growth

With the start of Deutsche Telekom’s “Mobile Wallet” in 2011, the cell phone will become a virtual wallet. Deutsche Telekom customers will in future only have to hold their cell phone to an appropriate reader in order to pay for goods, buy tickets for events or regional transport or take part in bonus programs. A new technology – Nearfield Communication (NFC) – is making this possible. As a result, no change at ticket machines and defective magnetic strips on cards will be a thing of the past. The area of payment systems is an important growth driver for Deutsche Telekom and the company will continue to expand it internationally.

Deutsche Telekom is already active in mobile advertising in more than ten European markets. In order to strengthen the international position even further, new formats and channels are set to be developed this year, while marketing will begin in additional countries. T-Mobile USA will also launch the first offerings on the North American market in 2011.

The technology behind these offerings is a new globally standardized platform that meets all core requirements while also allowing the integration of local features. To integrate additional advertisers and information providers, Deutsche Telekom is now working in partnership with mobile advertising specialists, Vienna based Out There Media. The goal is to be one of the leading providers of mobile advertising in every Deutsche Telekom market.

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  • MIKEEEEE

    does this mean that t-mo wants me to dump my beloved DEFY after only less than a year for another piece of hardware just so i can pay someone electronically?

    i got a better idea.

    keep my DEFY ’til another uber good phone comes along or a ruggedized tablet to augment my DEFY.

    • http://pulse.yahoo.com/_VGQMRQOQYPZHFOGRIZ53F646KU Not ice_fusion.

      “does this mean that t-mo wants me to dump my beloved DEFY after only less than a year for another piece of hardware just so i can pay someone electronically?”

      no.

  • Smithwicky

    I am just ready to use my NFC capabilities on my NS

  • Smithwicky

    I am just ready to use my NFC capabilities on my NS

  • Tyrone M Jackson

    Great. Just what we need – another weak security system that makes it even easier for bad guys to steal your money.

  • Anonymous

    ah but do i want to wait till Q3 for a new phone… And will it be worth it and viable when it comes out… (Probably not so I dont think Ill wait…)

  • http://cosmicbreeze.tumblr.com/ DtheArtist

    Sounds cool :) . Only thing is it says whether it’s WiFi, LTE, or HSPA+ for the 4G, high-performance, & security part. But, the Nexus S has the NFC chip if I’m not mistaken & it’s only HSPA 7.2 So…. O_o (???)

  • Anonymous

    I wonder if Walmart will support this payment system. If they don’t then it’s useless to me cuz thats where 90% of my shopping money goes(groceries, household stuff).

    • Anonymous

      I think this is Europe only… for now anyway.

  • Anonymous

    I wonder if Walmart will support this payment system. If they don’t then it’s useless to me cuz thats where 90% of my shopping money goes(groceries, household stuff).

  • Ldominguez1986
    • Anonymous

      Nothing to do with a US iPhone.

  • Anonymous

    I don’t understand the need for this. If you want an electronic means of replacing cash, wouldn’t you just use your debit/credit card? Granted, you have to swipe your card instead of tapping your phone on the reader, which would save you 1 second. Besides, does that mean that your phone bill will be a few hundred dollars because you paid for your groceries with your phone? Are they going to ding you with a service fee for using NFC (granted card processing has fees also, which you don’t see)?

    Now using NFC for coupons and other rewards is a good idea. That beats trying to pull up coupons on your phone to show the cashier, or clipping coupons.

    • http://pulse.yahoo.com/_VGQMRQOQYPZHFOGRIZ53F646KU Not ice_fusion.

      They already have debit cards out there that you tap instead of swipe. I think this is more about an all-in-one device rather than people carrying around multiple cards and bulking up wallets (or whatever).

      All in all, some people (general populace) seem to be really be excited by this type of stuff.

  • ATL Guy

    I wonder if they don’t have debit and credit cards on planet t mobile?

  • Amdivoff

    Replace credit cards? Hell yeah, as long as I can define the card to link to my NFC I’m good. I’d rather carry my phone then having my wallet with I’d and tons of cards. Thieves only need your Id and cards to go shopping. You can’t password protect you wallet but you can your phone. Even the SGS2 has face recognition. I already see NFC credit machines integrated with the slider where I live. If you say why replace credit cards you haven’t been the victim of a purse Snatcher that goes around town until the card is canceled. I’m sure phones capable with nfc will require remote wipe maybe by text even?

    • Anonymous

      I’ve never had a purse snatched from me.

  • http://rickb928.myopenid.com/ rickb

    Some points; NFC actually isn’t new. If you use a MasterCard/Visa/Amex that you wave or tap at a reader already, it’s essentially NFC. Same principle of payment, just a different chip technology. It can link to a card account, or to a specific NFC account you can preload or whatever. Speed is not the issue, but for small purchases this can be very slick, like at a sporting event or McD’s. Technically, you could stick on an NFC chip inside your phone’s battery compartment and do the same thing, so the carriers are very hot to include this in phones and beat the market in stick-on NFC. And lock you into their service, or course. Fraud and risk are allegedly reduced. No PIN usually. There will be fees, mostly paid by merchants like your card fees now. I would expect to see cases and holsters with shielding to offer you the ‘safety’ of not getting hacked by a walk-by NFC gizmo that snarfs your chip details, but trust me, unless there is a major revolution in the technology, you will be slapping the would-be snarfer for fondling you, it has to be that close. And NFC has NOTHING to do with HSPA, 4G, GSM, CDMA, LTE, nothing at ALL. It is a separate gizmo. Speed of your phone has nothing to do with it. You could stick an NFC chip on your forehead and it would work, you’d just have a sore back.

  • Anonymous

    So, where’s this mythical T-Mobile “Pyramid”?…

    • Magenta Magic

      Are you the guy that posts about OTHER articles on every article that has nothing to do with said article? :-P

      • Anonymous

        Sounds like me!

    • Magenta Magic

      Are you the guy that posts about OTHER articles on every article that has nothing to do with said article? :-P

  • Getreal

    Awesome!!! NO MORE CREDIT CARDS!!! or privacy…

    I am going back to cash.

  • Tmoisslow

    The QualComm chipset is awesome but not an event until there is backhaul.

    This is just a joke.

  • http://twitter.com/ingram1225 William Ingram

    screw iPhone it’s not MY white unicorn… rather a decent working android smartphone under tmo is MY white unicorn.

  • Vibrant Addict

    Well I’m pretty glad to see that I should hold off on upgrading my phone. With news of dual cores, and now quad cores for this year, tagged along with NFC, and possible 84mbps 4G…I think I’m waiting till the second half of 2011, early 2012 to get a: quad core NFC 84mbps 4G full HD 3D phone? Say that 3 times fast

  • Vibrant Addict

    Well I’m pretty glad to see that I should hold off on upgrading my phone. With news of dual cores, and now quad cores for this year, tagged along with NFC, and possible 84mbps 4G…I think I’m waiting till the second half of 2011, early 2012 to get a: quad core NFC 84mbps 4G full HD 3D phone? Say that 3 times fast

  • http://twitter.com/SaykredCow Suraj Ithikatt

    haha