Mar

20

2008

(1) Comments

Free Mobile Phone, Courtesy of your bank

02:12PM by Wayne Lam

This interesting NFC-enabled GSM phone surfaced on the FCC website recently.  More interestingly though is its branding: Citibank.  Apparently, after the utter failures of name-brand MVNOs like ESPN, Amp’d Mobile, Disney & Voce, the next wave of mobile virtual network operators will come from more mundane companies such as your bank.  The device does offer a compelling design - by combining your bank card and your cell phone, you can now leave your home with one less thing in your wallet!

It is still unknown as to how this device and subsequent wireless service will be introduced to the general public.  It has a dual band GSM radio and therefore will work on either AT&T or T-Mobile’s network.  However, the bigger question is whether or not Citibank be the mobile virtual carrier.  More likely, Citibank will partner with AT&T to offer a special wireless service to its bank customers.

From the FCC filings, we know that this device is manufactured by Mobicom.  This fact suggest that the device is intended to be a low cost unit which Citibank would likely subsidize and give away for a nominal cost - if not for free.  We are gradually seeing more and more point-of-sales credit/debit card readers with NFC capabilities in retail outlets but they are by no means ubiquitous.  Nevertheless, the infrastructure for mobile commerce is being built. 

Will this type of mobile payment really take off? It’s hard to tell with the limited information we can glean from the FCC filings.  The key to its success will rest on how much more value this service will bring to consumers and how willing they will be to give up their current handsets for devices like this.  The answer maybe just pure economics.  If the devices is given away for free and the service subsidized by the bank, Citibank will likely pick up a significant chunk of the low-end mobile market.

aikyrie said on 03/30/08 11:13PM