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Joe D.
I'm going to go out on a limb here and say we hear about a settlement with Virgin within the next 30 to 45 days. Just a hunch, but I do know that aside from the court proceedings, they will be meeting very soon.
I still believe what I posted in Post #13 here on I-HUB way back when this board was first started as follows:
http://www.investorshub.com/boards/read_msg.asp?message_id=2308311
All the Best, JP
RFID gets active & smart...
http://www.infoworld.com/article/04/08/09/HNwherenet_1.html
All the Best, JP
Are you hungry?
http://www.we-make-money-not-art.com/archives/002321.php
From a dedicated long...
All the Best, JP
Microsoft should be worried now!
Courtesy of a fellow Long...
http://www.pcworld.com/news/article/0,aid,116910,00.asp
What MSFT squashed years ago, by the ability to “lose control”, stands to now bite them in the butt today.
With Google now introducing keywords into their toolbar, they stand to generate more revenues by charging the owners of these keywords. In a sense, Google will now control your browser even more and pose even more of a threat to MSFT… and yes MSFT should be worried.
This was all tried years ago by a company named RealNames (formerly Centraal). Originally financed by Network Solutions (SAIC was the parent company at the time)idealab! Capital partners, Goldman Sachs, Hambrecht&Quist, Draper Fisher Jurvetson (just to name a few)..to the tune of $87m. What started out as an add-on to search engines, is now becoming the way search engines focus their revenue models.
RealNames was in the business of selling keywords that allowed users to travel the Web by typing in a keyword instead of a URL. RealNames substitutes keywords for complicated Internet addresses. Owners of URL’s would pay RealNames for the rights to keywords ($500/yr). The difference in this is people would be navigating instead of searching.. If you are searching you would type in books, if youre navigating (know where you want go ) you would type in Amazon. The reason Google is so good is because it navigates so well. They can understand what youre trying to look for better than most search engines. Search engines try to do both now. You will soon see how this differs and how corporations differentiate the two in their ad spending.
In June of ’99 Microsoft announced a 2 year licensing and marketing agreement with Centraal (RealNames). Owners of URL’s would pay RealNames for the rights to keywords ($500/yr). RealNames would then pay MSFT to enable that keyword-to-URL translation in Internet Explorer. “With over 200m URL’s, the RealNames service is a major step in making it easier for consumers to navigate the Web andd for businesses to leverage their brands online using common language”..Keith Teare, Pres of Centraal (RealNames).
From Rob Bennett, group product manager for Consumer and Commerce Group at MSFT…”MSN advertisers can now extend the power of their brands online using product names and advertising slogans, while consumers will be able to use familiar names instead of complex URL’s to quickly locate exactly what they are looking for”.
October ’99 RealNames files to go public by raising $80.5m.
December ‘’ Google announces they will integrate RealNames keywords in their search ability. A keyword would put the keyword owners site at the top of their search results list….(could this be how their AdSense was started?)
March ’00 Microsoft takes a page from AOL’s “keyword” system and announces they are taking a 20% stake in RealNames. Their logic is they want to make surfing the Web as easy as typing a single word. Microsoft also announces they will begin working with the Internet Engineering Task Force (IETF) to develop an Internet Keywords standard..
Interesting that MSFT in int’d in creating a “standard” after they have ownership of RealNames now. Also after Google announced a deal w/ RN, MSFT decides to take a stake in the company.
Oct ’01 Versign (now owner of NSOL), signed a deal w/ RealNames to sell keywords through the company’s network of domain names. At the time VRSN had 32m domain names in their registries and manages the naming registry for nearly 90 global registrars.
According to Keith Teare, VRSN committed to a plan to give every .com, .net and .org customer 5 free promotional Keywords for 30 days. This would have resulted in widespread awareness and great revenue boost. Verisign’s registrar channel would have a virtual limitless number of Keywords to sell worldwide.
May ’02 RealNames shuts down. Microsoft chooses not to renew their agreement. After 3 consecutive growing quarters and dramatic keyword growth, MSFT decided to end agreement.
Some prominent cos had taken a liking to RealNames. Ebay had hundreds of the companys keywords for individual pages within its site. Sony, which registered the keywords for all of its 10,000 pdts with RealNames. So you can see one company can offer a tremendous amout of keywords being registered.
Keith Teare, CEO of RealNames gave his explanation to the termination. MSFT’s chief motivation in not renewing with RealNames seems to be a desire for complete control over the user experience, especially to help it direct users to MSFT-owned content. He also suggests that a MSFT patent for “Flexible Keyword Searching” indicates that the company is planning a rival keywords system that it can completely control.
The “revocation rate” of sold RealNames by MSFT was a tiny 0.14% between July 01 and March 02, suggesting the user experience was good otherwise MSFT would have had more names cancelled.
Teare goes on to explain the reasons MSFT gave to him why they terminated their relationship. It wasn’t about the money, even if RN paid their obligations , MSFT wouldn’t renew. MSFT doesn’t believe in “naming” they believe in search. MSFT controls search 100% (although I think the Google gang would laugh at that), and they could never CONTROL naming. The URL and DNS are broken, but to fix would be a big job and their would never be a clear reward for MSFT. The plan to put 120m keywords out there would be their worst nightmare. It would be out of their CONTROL.
RealNames had a great idea but failed because they didn’t leverage the keyword and they were too dependant on MSFT.They failed because they stayed in the “electronic world”. Phase 1 of the Internet, is the ability for electronic devices to communicate w/ other electronic devices. Phase 2, is when everything gets connected to the Internet and becomes ubiquitous (thanks Howard Rheingold and his Smart Mobs book). PC’s and cellphones wont be the only way to retrieve info from the Internet, but every barcode, phone number, RfiD tag will offer a hyperlink to the owners site.
No longer is MSFT Explorer the only game in town. No longer is the PC the only way to surf. Google, Linux, Symbian, Palm are all offering ways to avoid the dependance on MSFT products.
RealNames sold a keyword (1 application) to one method of information retrieval (MSFT browser). Instead of selling Nike a keyword to a website, what if Nike registered the word NIKE, all of its barcodes, the spoken word NIKE and eventually the RfiD tags Nike has? So Nike could turn on every box of shoes, every Nike poster, direct the user to www.nike.com if they typed in “Nike” in their pc, cellphone or said “NIKE” and let the user be directed to wherever Nike wanted them to go.
Instead of limiting the user to the computer for info, you can now go to the physical world and retrieve data. Imagine every Sony Camcorder, in every retail store is in a sense a keyword now. If Sony was willing to register all 10,000 products to just direct a pc user to their site, how much would they pay “turn on” every one of those 10,000 products in the world? How much is this worth?? Instead of being limited to retrieving this info from a MSFT browser, every cellphone now becomes a portable dynamic information retriever..
What will happen is …PRODUCTS/OBJECTS CONTROL THE BROWSER, not browser control the products/objects..Think about that, marketing guys will have a field day with this. What brand mgr wont register their brandname or Trade Mark to have this power.
Now this looks like deja-vous all over again. A recent marketing alliance w/ SAIC (former owner of NSOL) http://www.neom.com/corporate/press/2004/20040518.jsp
and the latest “Go-Window” product launch http://www.neom.com/corporate/press/2004/20040708.jsp
appears to be the development of a keyword/barcode/word type offering from NeoMedia Technologies www.neom.com and www.paperclick.com . One of NeoMedia’s patents allows any machine-readable identifier (barcode, RfiD tag, word, number, voice) to be directly linked to targeted Web-based information sources.
From ChangeWave MicroCap Research report..
ANOTHER INTERNET LAND RUSH?
Remember Network Solutions, who operated the Internet domain registration system? They were owned by SAIC -- a billion-dollar, privately held technology company. They sold Network Solutions to VeriSign for $12 BILLION.
Well, guess what? We think SAIC and NEOM are working together to form the NEXT Network Solutions -- a place where you can register your bar codes to connect to a URL you own. This keyword ownership business is THE REASON to own as much NEOM as you can.
ALL consumer marketing companies with half a brain will want to do the same because -- and this is the big part -- owning your barcode URL takes you exactly to where the marketer wants. NOT to Google or a search site that has 10-12 different options.
NEOM/SAIC will be selling the process of typing or scanning in the keyword ChangeWave, allowing us to determine where that keyword takes the customer. This system will compete directly with Google’s AdSense keywords.
Now with Google’s new feature to its toolbar, the stakes get higher. If Google does elect to charge owners of these keywords more, for directing traffic to their sites, what happens if NeoMedia starts to offer a “word/barcode/RfiD/voice” registry to all owners of these keywords?
For example, if youre Nike and Google wants to charge you more for the word Nike and the direction of the user, wouldn’t you be thrilled with the idea of having a Nike barcode, typing “N-I_K-E, or saying “Nike” be an option for you instead? Every box of Nike shoes, every Nike poster, Nike T-shirt, Nike logo in any magazine, the word Nike is a Nike website and becomes a way to direct your potential customer to your site. Doesn’t that seem like a lot more effective advertising?
With Google I can direct every PC user w/ the word Nike…or with NeoMedia I can direct every PC and cellphone user with the word Nike or with every one of my products everywhere in the world at any time.
I think every brand manager will want to register barcodes, words, Trade Marks, Rfid tags for the ability to “turn-on” their products and make them interactive.
In an interview w/ a German newspaper, Bill Gates said “With cell phones, we will be able to read bar codes to retrieve information about a certain product” Was Bill Gates reading Smart Mobs? He should listen to the guys in the trenches like Robert Scoble.
Is NeoMedia ready to launch a registry for this ability?
All the Best, JP
Personalizit...
I misseed that in the 10QSB. Where did you see this? Thanks, JP
Ditto Joe...
Also, nice chart shaping up as of late:
http://www.stockta.com/cgi-bin/analysis.pl?symb=NEOM&num1=5&cobrand=&mode=stock
I like the way this stock has been performing as well. It seems to be consolidating well; which means that we could head North quickly on just the slightest amount of good news. All the Best, JP
MSFT story unfolding...
NEOM's official introduction to NEOM:
http://www.wirelessmoment.com/2004/07/microsofts_robe.html
MSFT comments on NEOM's technology:
http://abcnews.go.com/wire/Business/ap20040729_1448.html
MSFT Taking active role with NEOM technology:
http://www.informationweek.com/story/showArticle.jhtml?articleID=26100620&tid=5979
MSFT Patch...
SEATTLE (Aug. 5) - Microsoft Corp. is close to releasing the biggest update ever for the Windows operating system, aiming to plug holes that have led to massive security problems for computer users the world over.
Microsoft senior product manager Matt Pilla said late Wednesday that it is expected to release the update for Windows XP, called Service Pack 2, "in the coming days."
He would not be more specific. Microsoft has previously said it expected to release Service Pack 2 this month, after delaying the release to improve compatibility between the new security functions and other applications.
Microsoft's Australian arm inadvertently put out a news release early Wednesday saying the system had been completed, but the company later said that was a mistake and that it is still in the final stages of development.
The update comes in response to a series of Internet viruses and other attacks that have slowed businesses and hurt consumers.
Service Pack 2 bolsters security on a number of fronts. Among the changes, it automatically turns on a firewall to better guard against attempts to infiltrate personal computers.
The update also fortifies protections on the Internet Explorer browser and offers tougher policing against e-mail-borne attacks. And it provides a user with much more information about what programs are trying to contact the computer, and gives the user more chances to accept or decline.
It creates a "Windows Security Center" to help monitor an array of security programs - including those from outside companies that offer other safeguards, such as antivirus protection.
Because the update is so big, Microsoft is urging users to turn on an automatic Windows update feature that can slowly download it onto computers without interrupting normal computer use.
Users also can choose to download the security functions all at once, and eventually will be able to request CD copies of it as well.
Microsoft is bulking up phone support and will offer Web-based support to help users adopt the new system.
Analysts say the system is a great improvement, but they warn it won't solve the problem of Internet-based attacks.
"There's always a question of what else will come along," said analyst Joe Wilcox of Jupiter Research. "Microsoft's problem is there's only so much you can do to retrofit."
08/05/04 02:48 EDT
Wall @ $0.09...
If we break it, we will rise much higher gang. All the Best, JP
Forbes & NEOM...
From a dedicated fellow Long. Check out the last paragraph closely.
http://www.siliconvalley.com/mld/siliconvalley/9310681.htm
All the Best, JP
Le Bon Ton, Diamond & DonBalon...
Eme at: JPetroInc@aol.com
All the Best, JP
Le Bon Ton Roule...
Great post. How does it feel to be in the "tube" of the technology wave? We're all invested in this thing and its happening in RT. As this story unfolds, its a rush to see it transforming itself into reality.
NEOM will have the corner on this market and those that want to exploit this new mass marketing tool called PaperClick and Go Window will pay dearly to use The Bridge. We are all standing at the threshold of a great paradigm shift which will revolutionize the way communicate.
NEOM will not only change the way we communicate, it will change the way we look at communicating.
All the Best, JP
Microsoft looks away from Windows for growth
http://www.usatoday.com/tech/techinvestor/techcorporatenews/2004-07-29-microsoft-analysts_x.htm
This post was referred by a dedicated NEOM Long. All the Best, JP
Blogging moving main stream...
Bill Gates quoted:
http://www.cnn.com/2004/TECH/biztech/07/29/bizblogs.reut/index.html
Camera phones making companies photo-sensitive
http://www.technewsworld.com/story/35169.html
All the Best, JP
DonBalon...
Nice post. All the Best, JP
A little chip that will change your life
http://www.microsoft.com/BusinessSolutions/Supply%20Chain%20Management/Highlights/scm_chip.mspx
TrenStar & MicroSoft in RFID JV
http://www.microsoft.com/resources/casestudies/casestudy.asp?CaseStudyID=15454
To Tag or Not to Tag...
EAN International
http://www.ean-int.org/
MicroSoft connection
http://www.microsoft.com/presspass/press/2003/Jun03/06-10AutoIDPR.asp
EAN/UCC - Uniform Code Council
http://www.uc-council.org/
Microsoft's RFID Council
http://www.microsoft.com/presspass/press/2004/apr04/04-05microsoftrfidpr.asp
MicroSoft's RFID partners...
http://www.microsoft.com/Resources/Retail/RFID.aspx
The 1st XML-Enabled RFID Printer/Encoder
http://biz.yahoo.com/prnews/040726/cgm019_1.html
Microsoft enters the RFID market:
http://www.informationweek.com/story/showArticle.jhtml?articleID=23901978
Surf's up...
here in Belmar, NJ. We've got some nice 10-15 mph NE winds blowing this morning and kicking up the tide, 4 - 6 footers. A little chop but maybe she'll glass by tomorrow. Let's get stoked and catch some waves. All the Best, JP
Phil...
It's not I my friend. I'm just waiting and watching like everyone else here on the NEOM I-HUB boards for something to shake loose. I'm hopeful the the merger with BSDS/Triton is right around the corner from here. All the Best, JP
Nice news out today gang...
You know the more I think about it, the more I like the financial decissions made thus far by Chaz & Chuck across the board. NEOM needed revenue streams outside of dilution with Cornell, which would have become an eventual floorless death spiral left unabated. With 14 FT employees and all the activity which has currently presented itself to NEOM, we need revenue to sustain ourselves untill we reach key milestones in our development process. While I sure don't like Cornell or the dilution factor, I do believe that revenue is accruing. However I suspect that we will not know the exact dollor values until the formal filings are released within the next 30 days.
What do we all want? We want a consistently rising share price without recurring pull backs, correct? We will not see a sustainable share price until NEOM can legally "recognized" revenue; meaning it is recorded as capital turned into shareholder equity. Until then however, I suspect we will continue to remain sluggish and somewhat range bound.
The good news is that we are well on our way to accomplishing this. In addition to the NMRP revenue stream, another one which we have not heard a dollar figure on is the definitive agreement reached with AirClick this past May, 04. AirClick is now paying royalties for end user licenses for 6,958 devices. As you recall, the devices were manufactured by Symbol Technologies (a NeoMedia licensee) and purchased by AirClic for resale to AirClic customers. This settlement is prorated back to May 2001..."NeoMedia signed a worldwide agreement which gave Symbol the right to grant licenses to itself and third parties under NeoMedia's intellectual property for a fixed fee per device."
Also, Success posted an nice article regarding Check 21. We know that Rely-Co is working hard to connect us with the industry veterans to introduce and deploy our patented technology, all before Check 21 Standards become mandatory here in the US. This all has to happen by this October 04.
We know that PaperClick supports MICR (magnetic ink character recognition) technology, with codes on checks scanned and transmitted through a secure electronic gateway into the payments system, and then through the Internet or an institution's intranet. PaperClick provides quick and accurate access to audit trails of checks in keeping with the Mission of Check 21.
We also know that NEOM has signed a teaming agreement with IPSO (www.ipso-inc.org), which is an integrator of proprietary solutions developed by its provider companies for its financial institution members and a leader in meeting Check 21 Standards.
Remember this: "Teaming with IPSO is a great opportunity for NeoMedia and our PaperClick technology platform to make valuable inroads within the financial community and the emerging Check 21/IRD marketplace. With more than 7,600 Banks and 5,000 Credit Unions in the U.S. required to accept IRDs as of October 29, 2004, PaperClick codes on IRDs can be instrumental and valuable in establishing control and authenticity of the documents."
We also have very strong tie's and a good working relationship with Chris Dowdell, IPSO's president and also chairman of the Accredited Standards Committee X9B (www.x9.org). "Both organizations have worked to establish a standard for IRDs which will serve all businesses involved with the U.S. Payments System. IPSO has accepted the challenge of providing a robust, efficient and cost-effective infrastructure for IRDs," he said. "We believe PaperClick can be instrumental in helping deliver an important and reliable platform and capability for the validation of IRD authenticity to our member companies and all financial industry participants in the transaction life-cycle."
So there are two (2) in-place operations or "revenue centers" to offset the dilution agreement with Cornell. These two aspects of NEOM, i.e. Micro Paint Repair and AirClick licensing fees are very powerful equations in providing viable and recurring revenue streams for NEOM.
Now add all the European action, i.e. Digital Rum, 12-Snap, Light, 7 World Wide, Big Gig, VodaFone working on test trials of camera phones deploying PaperClick, etc.
Coupled that with our American counter-partners SRP, SST, CSI/NMRP, INTEL for development, role out and marketing of the Camera Phone embedded chip and the soon to be announced acquisition of BSDS/Triton for a global billing service and Real Time demographics for a Point-n-Click Service Activation center; not to mention Brand Partners (Coke, DuPont, Lays, Unilever, McDonalds, Crest, Safeway, Proctor & Gamble, 20th Century Fox, Tango, Budweiser, Walkers, American Airlines, etc.) on both sides of the pond and we really have a dynamic prospect in NEOM.
PS: Dont forget Virgin, AirClick, L-Scan and Scan-Buy. B&P is one of the most powerful and seasoned patent attorney law firms in the US. And they representing us. We're in good compoany here. Retired did say it was going to be an exciting Summer.
All the Best, JP
Personalizit...
Nice find on Symbol. Its sounds as though they have worded their advertisement with PaperClick technology without directly mentioning NeoMedia. Good job. All the Best, JP
Good analysis...
"I have Been Saying All Along MSFT & NEOM. May have a connection coming in the near future. This connection may come because of the Lawsuit between Virgin and NEOM, All IMHO"
Excellent analysis from Just-A-Broker, you have picked-up on what many here have not seen right before their very eyes.
With todays release, NEOM has officallly debuted their technology to the world, not only to major Manufacturers, i.e. Audiovox, Kyocera, LG, Motorola, Nokia, Panasonic, Samsung, Sanyo, Sony/Ericsson, MC DoCoMo, etc. but also to major Service Providers as well; i.e. T-Mobile, ATT Wireless, Nextel, Cingular, Verizon, Sprint PCS, Voicestream, VodaFone, etc.
They have hit two birds with one stone, and the beauty of it is that they don't have to sell their technology, the buyers are coming to them. All the pieces are falling into place.
It has taken since 1995 to be able to make todays announcement and INTC is the cohesive force for the chips to make all this happen faster, smarter, pervasive and ubiquitious.
Congradulations to Chuck, Chaz and all NEOM Longs. Special thanks to Retired! All the Best, JP
DiamondTech...
Nice find, ship that one to Chaz. All the Best, JP
Happy 4th Everyone...
May you all have a healthy, safe and happy 4th of July this holiday weekend. Looking forward to greater things to come. All the Best, JP
Thanks Personalizit...
You did a great service to an even greater man. No hard feelings, eh? All the Best, JP
Ooops...
My post #2742 should have contained this link as follows:
http://www.wirelessmoment.com/2004/07/intel_researche.html
Thanks Jen.
From a fellow Long:
This web link is chock full of information. Go to work gang. All the Best, JP
http://www.investorshub.com/boards/read_msg.asp?message_id=2308311
Personalizit...
Obviously I have offended you regarding SeaBiscuit. I did not know she contacted the SEC regarding NEOM's PR's. However, with that said, there are certain Universal Principals at work here. I'm sure that whatever negative she choose to put out there, will come back as a positive in the long run. Its know as Cause & Effect. Its something similar to Retired's Memorial Plaque about one simple candle dispelling total darkness.
I have come to learn that the way in which I choose to see things defines me, and its all about choice my firend. And I fail at being the kind of person I want to be daily, but I get back up and start all over anew. Who was it that said "love your enimies?" There was a profound reason why he said this...because love is like that candle.
I hope you choose to remain here. We all would suffer a great loss if you chose to leave. Please reconsider. Again no harm ment. All the Best, JP
Just spoke with Retired's step father...
It was a very cordial conversation. He wanted to know all about NEOM. After about 15 minutes of questions and answers, he indicated that it was his and Rich's mother's intention to take a personal stake in NEOM by acquiring more shares out of respect for Rich's passion for NEOM. He sounded very sweet and kind. I suspect that his parents are up there in years. I told him that we all expressed our personal sympathy for their loss and we all held a mutual passion for this little company which will one day roar with the lions. All the Best, JP
Great insite MudRez...
I like your style. All the Best, JP
Don...
Nice catch on Lights web site and M-BarGo kicking off the I-Coupon with Jackson Stores ands others to follow. I suspect NEOM is in the mix. All the Best, JP
Amazing...
We don't even have the PC Bar Code scanning protocol which links a cell phone to the BP's web page deployed to the masses yet and already the Smart Label may make it obselete. Go figure.
Who was it that said every 18 months technology becomes obselete? All the Best, JP
Cellphones used as debit cards in South Korea
Since the now long gone past--when WAP would be the next big thing--that the 'vending machine transactions using cellphones' idea is recurring on mainstream media articles about wireless applications. Another one just came through the wires reporting a service where cellphone users in South Korea can use their devices as debit cards.
Instead of handing over credit or debit cards that get swiped, users type their passcode on the phone keypad, point the device at a special receiver on a checkout counter and press a key. It's as simple as operating a TV remote.
Cell phones now debit cards in S. Korea
VIJAY JOSHI
Associated Press
http://www.siliconvalley.com/mld/siliconvalley/news/editorial/6997882.htm
http://www.google.com/search?sourceid=navclient&q=debit+cards+korea
SEOUL, South Korea - Kim Won-jung walked up to a vending machine and bought an orange drink. But rather than insert coins, she paid with the press of a cell phone button.
Kim's Samsung handset has a debit card inside, and pushing its "hot key" beamed the information to complete the transaction.
"My brother really envies me for all the cool things I do with my phone," said Kim, 22, a math major at the Sookmyung Women's University in Seoul.
In one of South Korea's latest efforts to establish itself as a technology trendsetter, the country's three telecom giants, major credit card companies and several banks have been working for a year to enable Koreans to pay for everything from groceries to gasoline by cell phone.
"Korea is far ahead in the use of such technology, and it probably leads the world, not just Asia," said Daisuke Okabe, a mobile phone culture specialist at Yokohama National University in Japan, where phone payment schemes remain largely in trial mode.
If the technology makes sense anywhere, it's here.
Almost every teenager and adult has a wireless handset: There are 33.2 million cellular subscribers in the country of 48 million. And unlike the rest of the world - with a few notable exceptions - the cell phone is in Korea a lot more than a tool for talking.
Kids surf the Internet. Parents transfer money. Some play the lottery, others book movie tickets and millions snap pictures.
So why not make the phone a full-fledged wallet?
"We are conditioned to think that a credit card is a plastic rectangle," said Cho Eun-sang, a senior manager at Harex Infotech, among the first companies to develop the technology. "But it is actually the data on the strip at the back, and data can be stored anywhere."
Instead of handing over credit or debit cards that get swiped, users type their passcode on the phone keypad, point the device at a special receiver on a checkout counter and press a key. It's as simple as operating a TV remote.
The phone shoots the card data in an infrared beam or radio waves. No signature is necessary. For small payments at vending machines, the passcode isn't even required.
Transmissions are encrypted and secure, and subscribers who lose their phones can get them disabled within seconds by informing the credit-card company.
Phone owners can apply transactions to either credit or debit accounts.
An entrepreneur widely credited with spurring mobile payments is Park Kyung-yang of Harex Infotech. He has made millions manufacturing key chains with embedded radio-frequency chips.
Commissioned in 1997 by U.S. oil giant Exxon Mobil Corp. to embed key chains with stored-value radio frequency ID chips so they could pay for gas, Park asked himself: Why restrict them to gasoline fill-ups?
"I figured a mobile phone was the most logical instrument to place the card in," he said.
Harex and South Korea's second-largest mobile phone company, KTF, have also collaborated with Sookmyung Women's University to also let students use their phones as identification cards.
The phone's "hot key" can open doors and parking lot gates on campus, register for courses, borrow books at the library or post notices on the campus Web site.
Getting the payment-by-phone idea off the ground was not easy. It required cooperation from three industries that don't always see eye-to-eye - banking, credit cards and telecommunications.
Park said executives laughed at him when he first approached credit card companies - with a TV remote strapped to his cell phone to demonstrate how it would work.
Credit card companies were loath to cooperate so closely with telecoms because that would require sharing valuable customer information and transaction commissions. The card companies figured they already had the entire country in their grip, with an average of four cards issued for every working person. But after extended negotiations, they finally agreed, acknowledging the inevitable march of technology.
The mobile phone companies, on the other hand, were hungry for new services. Their markets were saturated. All three major providers are now on board.
SK Telecom, the country's largest mobile phone operator, says it has sold 280,000 phone handsets capable of carrying the payment chips - although only about 30,000 customers have inserted them. KTF says it has sold 400,000 payment-capable phones but has only 20,000 subscribers.
One encumbrance is the need for each carrier to have card readers at retail outlets. SKT says it has already installed 300,000 card readers at stores and outlets nationwide and expects 400,000 by year's end to cover 75 percent of all payment points in the country. KTF expects to install 300,000 card readers by next year.
Industry officials acknowledge that they need to market the service better - and were hampered by bad timing: The launch came as the industry was hit with a $13 billion wave of defaults that forced companies to stop issuing new cards.
Mobile phone companies are hopeful that once the crisis is over, customers will flock to the service. A marketing blitz is planned to help spur them.
Lee Jong-hyun, an assistant manager at SK Telecom's mobile-finance division, envisions cell phones that also contain club memberships, a driver's license, ID card, airline frequent flier card - essentially everything people carry in their wallets.
"In the future you only will have to carry one handset," Lee said. "It will be your window to the world."