Wave Systems Corp. (fka WAVXQ)

[goin fishn]

The Trusted Service Manager (TSM) market:

http://www.tmcnet.com/usubmit/2011/06/14/5571558.htm


This is where Wave appears to be aiming



NEW YORK, June 14, 2011 /PRNewswire via COMTEX/ -- Reportlinker.com announces that a new market research report is available in its catalogue: Trusted Service Manager (TSM) for NFC Market 201 http://www.reportlinker.com/p0553789/Trusted-Service-Manager-TSM-for-NFC-Market-201.html?utm_source=prnewswire&utm_medium=pr&utm_campaign=Phones_and_PDA Executive Summary NFC (Near Field Communication) technology allows to perform secure transactions (typically payments) on a mobile phone benefitting from its user interface (keyboard and display) as well as from its communication capabilities. The industry has been developing NFC technologies for years, and has set up multiple pilot projects around the world.

NFC allows to bring together customer needs in their relation with from Mobile Network Operators (MNO), financial institutions, transport operators, and other Service Providers (SP).

Now, early 2011, all the NFC stakeholders are coming together, evolving from a multiplicity of pilots to the roll out of large-scale multiple-partner nationwide projects. These projects involve many separate entities, thus need a separate entity to manage the user services and rights. This is the role of the Trusted Service Manager (TSM).


Transport is to play a leading role in the adoption of NFC services as transport payments bring frequency of use, along with an infrastructure that generally already accepts contactless transactions. At the same time, banks will develop huge efforts in pushing for the adoption of NFC as it brings a natural extension to their contactless infrastructure development along with the opportunity to propose additional payment-related services.

Trusted Service Managers operate the interface between all stakeholders in a NFC project: they run the technical and commercial relation between Mobile Network Operators, financial institutions, and other Service Providers to download, provision, and maintain applications in the end-user handset.

The secrets (keys, codes, user-related data, ...) necessary to perform secure transactions are kept in a Secure Element in the customer handset. This Secure Element may have different form factors: it may be included in the SIM card, be removable (microSD card), or be embedded in the handset. The Secure Element form factor has important implications in terms of business. The entity controlling the Secure Element is in a prominent position to actually control the customer relation. Secure Elements in the form of SIM cards give Mobile Network Operators a better control on the NFC application, whereas Secure Element in the form of microSD cards give control to their issuer, generally a bank. Also, embedded Secure Elements bring power to the handset manufacturers.

The TSM operator is in charge of downloading application, and all security related data into the Secure Element. For this reason Trusted Service Managers are at the center of the NFC ecosystem. Several entities are vying to become the preferred option for a Trusted Service Manager. In NFC applications, Mobile Network Operators, or MNO groups, often run TSMs, as they are in control of SIM-card based Secure Elements. In some other applications, banks, or bank consortia, run Trusted Service Management operators as they are the major stakeholder in the project,
and control the Secure Element. Trusted Service Managers are also often run by Trusted Third Parties providing technical operation to manage the applications and their security in the Secure Element for each customer as well as ensuring a clear role separation between all stakeholders. In all cases, Trusted Service Management Operators operate platforms delivered by Trusted Service manager platform vendors.

Major TSM players come from a variety of backgrounds: major smart card vendors have developed a TSM offer, as their natural set of customers is composed of MNOs and banks. Mobile network operators, as they manage the customer relationship with their subscribers, are developing a TSM offer. Also payment processors see in the TSM business an opportunity to develop their services. Having developed the right skill combination to serve all stakeholders in the NFC ecosystem, several companies are positioning themselves as TSM specialists.

Smart Insights anticipates a breathtaking development of NFC markets with close to 800 million NFC devices sold in 2015, and about 450 mobile network operators worldwide proposing NFC services. At the same time, more than 4000 Service Providers will be involved in NFC projects.

This fast NFC adoption rate will trigger a EUR 1.83 billion business for TSM platform operators, as most of their revenue will come from per-user fees, which will grow with the general public adoption of the technology. TSM operators will also benefit from fees linked with the number of Service Providers. On the other hand, TSM platform vendors will benefit less from the wide adoption of the technology. Globally, Smart Insights anticipates combined revenue of TSM platform vendors and TSM operators will reach EUR 2 billion by 2015.