Feeds

Dutch delay wireless wallets: T-Mobile waves, doesn't pay

NFC rollout pushed back

Bridging the IT gap between rising business demands and ageing tools

The Dutch consortium which promised to deliver NFC payments to the Netherlands in 2012 will now deliver in 2013, and without T-Mobile, but it's the EU's fault.

The Dutch will spend another year getting EU approval for the planned joint venture, a body comprised of network operators and banks to which ultimate authority for NFC payments in the Netherlands will be ceded. But in the meantime T-Mobile has decided to leave the heavy lifting to others.

T-Mobile was one of the original six, which also included Vodafone and KPN on the operator side, with Rabobank, ABN Amro and ING making up the banking component. The lack of proximity payment infrastructure in the Netherlands has prompted T-Mobile to re-examine the figures and decide that it is better off out of the deal for the moment.

The plan is for the new body to invest heavily in creating that infrastructure, and make the money back on the transaction fees, but T-Mobile Netherlands told NFC Times that it wasn't sure the revenue would cover the required investment.

That's not to say that T-Mobile couldn't join the consortium later, but it won't be involved in the submission to the EU for approval, or the 2013 roll-out that should follow.

Most network operators around the world have given up on the idea of making money directly from proximity payments. In the US, the ISIS platform had that intention, but will now provide a single-point-of-contact for anyone wishing to deploy NFC applications, including companies like Visa and Mastercard (and banks), while the UK operators (with the notable exception of Three) have set up their own equivalent.

Outside the Netherlands, operators intend to make money running coupon schemes and selling advertising space, which is fine when banks are already committed to deploying proximity payment (or are already deploying them, as in the UK), but the Netherlands needs investment to get the infrastructure in place first.

Realising that investment is hard, and that the margins on proximity payments are very slim – which is why T-Mobile has pulled out – the other players still want to get proper EU approval to forestall and challenge on competition grounds, which pushes the project back by a year. ®

The smart choice: opportunity from uncertainty

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.