MOBILE PHONE APPLICATIONS FOR RADIO FREQUENCY
IDENTIFICATION SYSTEMS
Research Seminar on Telecommunications Business II, April 2005
Mikko Jalasto
Helsinki University of Technology
Espoo, Finland
mikko.jalasto@hut.fi
Abstract
The boom of RFID usage -especially in logistics- has
taken down the prices of RFID components and
therefore opened also possibilities for other business
fields to benefit the advantages of RFID. RFID
applications in mobile phone business have not yet been
deployed in other that small scale, but the discussion
around this topic has been really started. The RFID may
enable new things within mobile phone business area
and therefore many parties in this multi billion dollar
business are looking at this direction.
Other significant difference is that information
contained in RFID can be changed along time. E.g.
during some process the object is getting more
information attached into it and can be then followed
better. RFID is also tolerating better dirt and moisture,
so it is more reliable.
Key Words
RFID is only general term for technologies that can
identify object using radio waves and unfortunately
there are quite many different technologies and
standards used now days. The work for getting one
standard is ongoing, but at the moment the technologies
are divided. Choosing of right technology might be
some times difficult and requires specialists that know
also the area where the application would be used.
RFID, Mobile application, RFID business, RFID
application
2.2 RFID components
1. Introduction
The objective of this paper is to study the potential
usage of RFID in mobile phones. The paper will study
the technology behind the RFID and the applications
that are deployed or discussed currently in the RFID
area. The paper will combine the technological
limitations and advantages and combine those with
business prospect. The nature of this paper is not to
provide full understanding of RFID technology, but
rather to introduce reader to the topic and analyze the
relatively new area of mobile phone industry.
2. RFID Technology
2.1 Basic technology
RFID is technology that enables contact less
identification of objects (RFID = Radio Frequency
Identification). RFID can be compared to the commonly
used barcode that has significant role in identification of
objects in business and in our daily lives. The difference
between RFID and barcode is that with barcodes you
have to have visual contact to the object and with RFID
not. The high frequencies RFID technologies offer
transmission ranges up to more than 30 meters,
although wave lengths in the gigahertz range are
absorbed by water (the human body) and therefore has
limitations. The low end frequency RFID does not
enable such a long range, but those can be read even
trough packages which gives big benefits in some cases.
Normally the RFID system contains three main
components, RFID tags, RFID reader and middle wear
system using the RFID data. The basic idea of RFID is
quite simple; you attach RFID tag to the object and you
identify the object later with RFID reader. The RFID
reader is transferring the data to the middle wear system
that can use the data for its own purposes.
The tag is containing an integrated circuit and antenna.
These small units can be attached to the thin plastic or
metallic sticker – as in picture- or integrated to e.g.
wrist straps or smart card. In the most simply case the
tag can be used only once and it does not contain any
power source. These kind of passive tags are relatively
cheap and are commonly used e.g. in grocery industry1.
The information written to the tag might be anything,
but many times the tags contain information concerning
the product or asset to which the tag is attached. As an
example a tag attached to apple juice bottle might
contain the basic product information such as; validity,
ingredients, manufacturer, importer etc. The tag might
also contain the link to the producer home page or the
date when the bottle was put to the self of the shop.
Following pictures illustrate the size and layout of basic
passive tags.2
1
2
Wall Mart and Tesco internet pages
Computerworld homepage
There are also tags that can be rewritten and are
containing internal power source that enables longer
operating range and longer life time. These tags are
called active tags and they might have huge power
supply units and weather and shock proof covers build
around them. These kind sophisticated and bigger tags
can be attached to e.g. container that can be than
followed in the harbor or inside the ship 3.
The
different tags also contain different amount of
information- which has also impact to the price of the
tag. The following table shows the approximate prices
of different RFID tags4:
Tag type
Extra elements
Price
Basic passive
tag
Basic integrated
circuit and antenna
0,15-0,7 €
Rewritable
passive tag with
more capacity
Basic active tag
Rewritable larger
capacity circuit
0,5-5€
Basic elements and
external power
supply
Containing stronger
power supply and
better tolerance to
external effects
5€-50€
Advanced active
tag
On top of tags and readers the RFID solution might
contain separate external antennas that multiply the tag
signals. With this solution you can build local networks
that can deliver e.g. the location information with great
accuracy. Good examples of these kinds of local RFID
networks are Singapore harbor and Lego land
amusement park. In Singapore there are implemented
three dimensional RFID networks which can pin point
any container in real time with close to 100% accuracy.
In Lego land there is build RFID network that follows
the children can locate them if they get lost. The
children are attached with simple RFID tag and the
antennas around the park can collect the childrens
location from longer distance. 6
2.3 Used frequencies
The RFID is always using radio waves to communicate
between tag and reader. How ever the communication is
not always done on the same frequency. The RFID
systems are currently using four different frequency
zones. These frequencies are varying between few
kilohertz and several megahertz and the different
frequencies are used in different applications. The
following table will specify the different frequency
zones and define where those are commonly used.
10€- 300€
The RFID readers have also huge spectrum of different
options. The size and functionality is greatly depending
on the field of application. The reader can be meant
only for reading similar tags from fixed distance or it
must manage simultaneously many different tags at
different ranges. The following pictures demonstrate
different RFID readers5. The first reader is used with
PC and the second can be integrated e.g. to mobile
phone.
Operating
frequency
Advantages
Limitations
Applications
LowFrequency
125kHz134kHz
-Widely
deployed
-Metal
interferes
minimal
-Read range
less than 1,5 m
HighFrequency
13.56 MHz
-Widely
deployed
-Minimally
affected by
moisture
Widely
deployed
-Read range
significantly
longer than
LF and HF
Read range
greater than
all other
standards
-Read range
less than 1,5 m
-Metal causes
serious
interference
- Heavily
affected by
moisture
-Tags close to
each other
cause errors
-Not widely
used
-Complex
implementatio
n
-Antitheft and
immobilizer
systems
-Animal and
container
tracking
Retail product
and asset
tracking
- Access
control
-Pallet,
container and
vehicle
tracking
Ultra-High
Frequency
868MHz928MHz
Microwave
2.45 GHz
Vehicle
access control
2.4 Gaps and problems with RFID
3
Texas Instruments and Savcor One internet pages
The prices of different tags are collected from several
internet sources (see references) and combined in author
specified categories
5
Crossbow Technology and Socketcom internet pages
4
The different standards and frequencies that are applied
in RFID technology are slowing down the wider
spreading of RFID applications. The systems operating
in different frequencies can not work together and this
can be frustrating for the companies working with RFID
and as well for the real end users. Some frequencies –
especially with UHF- are especially difficult due to the
reason that in some counties parts of these frequencies
6
Texas Instruments case study
are already reserved to the mobile phones. There are
also differences between countries in what is the used
power in RFID. In Europe the readers can operate with
0, 5 watts and in US the power in many times higher.
However the standardization is constantly ongoing and
improvements are hopefully on the way. 7
Some materials cause disturbance for RFID readability.
Especially metal and liquids are causing problems in
RFID applications. This area is under heavy study and
many parties are developing RFID standards tolerate
better these materials.
In cases when there are several RFID that has to be read
at the same time there is possibility for effect called
“tag collision”. Tag collision can be managed somehow
with software applications that enable of reading 20 to
1000 tags in second. This is however not enough in
many environments that require faster and more reliable
methods.
3. RFID Applications
3.1 Widely spread applications
RFID solutions are probably most common and well
known in different asset and material tracking
applications. RFID is widely used in supply chain
processes where huge number of packages and pallets
are moving trough warehouses, factories, harbors and
shops. The RFID enables fast and relatively reliable
identification of materials and this is big advantage in
industries where material is moving in constant flow
and the number of individual daily material transactions
is counted in tens of thousands. Biggest boost in
grocery industry was originated by Wall Mart, which
announced that by year 2007 it main suppliers has to
attach RFID tag to every product that they deliver to
Wall Mart shops.8 It is quite likely that RFID will be
replacing the barcodes in future supply chains.
Especially the grocery business is potential leader in
taking the item identification to next century. The only
true question is the price of RFID tags. If the tag price
can not be taken enough down –under 0.05€- we may
not see the real brake trough of RFID.9
The following list presents the
Top five fastest growing RFID application segments.10
No. 1 Point of Sale
No. 2 Rental Item Tracking
No. 3 Baggage Handling
No. 4 Real-Time Location Systems
No. 5 Supply Chain Management
Also important field of application of RFID is the
access control and security applications. In most of the
public and private companies the premises are equipped
with access control systems that track the movements of
personnel and allow the access to only allowed areas.
Car manufactures have long used RFID technologies in
immobilizer solutions that enable the vehicle to be
started only with right key. The key is containing RFID
tag that triggers the vehicle immobilizer off, when
needed.
Newer application of RFID is the location systems
where the target of location is human. These human
tracking systems are used in some prisons, fun parks
and lately even in schools.11 Good example of this is the
Lego Land system, where lost children can be tracked
down immediately. The children are carrying basic
RFID tag that can be located from the park, using the
network of readers and antennas that has been placed
around the park. The human follow-up systems enable
one very important benefit for companies working in
customer interface. The behavior and preferences of
customers can be recorded with huge accuracy when
using RFID tracking and feedback systems. Fun parks,
skiing centers or conference organizers can collect real
time and accurate information about the customers by
following the actions of them in their premises. E.g.
skiing center can follow which elevators are most
popular or which is the average age of people is in
certain track.12
Lately also many companies have moved to used
electronic tickets that use RFID technologies. Examples
of this in Finland can be found quite many. Finnair has
been testing automatic check-in system that is based on
RFID technology and the public transportation around
Helsinki can be paid with RFID card.13
3.2 Mobile phone applications
RFID technology is not yet really deployed in mobile
phone industry. There are few examples of RFID
technology adaptation in mobile phones. Nokia has
produced first mobile phone that has RFID reader build
in the phone. Nokia 5140 phone has RFID reader
possibility trough removable RFID covers. Nokia has
also published RFID kit that enable user to design
simple applications for RFID usage. RFID has many
potential applications that could be integrated to the
mobile phones. The applications may sound good, but
before those will be used commonly there will be a long
journey.14
7
11
8
12
Rinta-Runsala
Wall Mart internet pages
9
Shepard S, Forrester
10
Krebs, Liard (information is from 2001)
Shepard, RFID journal
Rinta-Runsala & Tallgren
13
YTV home page
14
Nokia home page
direct reporting tool integrated to their mobile phones.
Think about the situation where coffee automata service
person receives a service request with SMS to his or her
personal mobile phone. After fulfilling the task he or
she would just read the RFID tag – containing
information what has been done and when- from the
coffee machine and the data would be transferred
directly e.g. to the invoicing data bases.
Figure 1 Nokia 5140 with RFID covers15
Maybe most promising RFID application area in mobile
phones is related product identification and linking
mobile services to these specified products. The
customer could example use his or her mobile phone –
equipped with RFID reader- to read the information on
DVD movie. After this the mobile would connect to the
internet and fetch related material concerning the
movie. The customer would possible want to see the
trailer of the movie or view the rankings given by other
customers. This is promising area of RFID application,
but before it can be reality two things are needed. First
of all the relatively big amount of mobile phones has to
be equipped with RFID readers and secondly the big
amount of products would need to attached with right
kind of RFID tags. Without these two things are there is
no possibility to reach the critical mass and with out the
critical mass there are no major business opportunities.
More about these possible limitations is chapter 4.
Mobile phone – equipped with RFID reader or tag – can
be also used for device for paying goods or services.
Customer could pay his travel trip, food or product with
simply reading the RFID tag and getting confirmation
of purchase trough e.g. SMS. Mobile RFID payment
application has been launched in Japan by Japanese
operator DoCoMo. User can use his or her mobile
phone as electronic wallet and pay his or her products
and services with it. There are 39 companies -including
McDonalds and Japan railroads- offering their products
or services trough this application.16
RFID payment and product identification may be the
most promising areas of RFID applications in personal
mobile phones, but for business usage there are existing
already beneficial RFID solutions. In all businesses
where the personnel of a company have to travel around
the field, trough beforehand known points, it is possible
to use the RFID technology as method for reporting and
operating tool. All service personnel could use their
own mobile phones to report their service time and
other data directly to the servers by just simply reading
RFID tag from the repaired item. E.g. elevator, base
station or coffee machine service personnel would have
15
16
Nokia home page
Telecom Asia
Nokia presents some use cases in their web pages,
which has been developed around RFID. These
applications are based on the idea that user touches the
RFID tag with mobile phone, containing RFID reader,
and the phone will connect to needed place to execute
needed operation. Nokia promotes these applications as
“Touch and Browse”, “Touch and Record” and “Touch
and Call”. These applications do many things from
browsing the internet to connecting to closest
restaurant, but there is one common thing in them.
These applications all use some other service to deliver
value to the customer. The applications use e.g. GSM,
MMS or internet browsing services.17
The access control could be also partly integrated to
mobile phone. People would not need to carry different
kind of keys with them if the RFID tags would be
integrated to their mobile phones. This would benefit
specially persons who are moving in many different
premises, e.g. security guards and maintenance
personnel.
4. RFID potential in mobile phone business
It is clear that RFID has many potential applications
that could be integrated to the mobile phones. The
applications may sound good, but those need more
analyses before you can see the risks and real potential
of the RFID applications in mobile phones.
4.1 Tools for analyses
The potential of the different mobile phone applications
will be analyzed using SWOT analyses and Ansoff
model. The SWOT and Ansoff model should together
bring out the most potential opportunities and most of
all the risks that may many times be hidden to the
potential new businesses that rely heavily on new
technologies or business prospects that are not proven
in reality.
The SWOT analysis is simple tool to help matching the
capabilities and potential of prospect business to the
competitive environment that it would operate.
Normally SWOT is used in evaluating existing
companies strategic positioning, but is can be used
productively to also map the potential business or new
17
Nokia www pages
technology. The following picture presents the SWOT
framework and illustrated the different aspects of it.
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
Figure 2 SWOT framework
Ansoff model is developed to help companies or
potential companies to define the growth strategy. The
model contains four different growth strategy options
that may be chosen based on the product of company
characteristics. (See
We can see from the Ansoff model that RFID mobile
phone applications belong to some somewhere between
the “Market development or extension” and
“Diversification”. The markets are clearly new, but the
product is some where between new and old. My
justification for this conclusion is the fact that RFID in
mobile phones is new product, but the final deliverable
in these applications is usually a service that has been
on the markets already for some time. With these
services I point to e.g. browsing and mobile
advertisement.
Due to the reason that these issues are totally separate
business prospects, I have here divided the business
area to two different fields:
1. RFID as new business area. (e.g. developing
RFID systems and middle ware fro mobile
phone usage)
2. RFID as enabler for growth of existing service
business (e.g. more web browsing and mobile
purchases)
The following picture shows how these fields are
located to the Ansoff model:
Figure 3 Ansoff model
Figure 4 Different business areas in Ansoff model
I have used the Ansoff model to define the strategy that
RFID mobile applications would most likely to follow
and then to dig deeper to the potential success of the
chosen strategy by analyzing the different aspects of the
strategy in Ansoff model.
RFID as new business area is more turning to the
“diversification” direction and the RFID as enabler of
existing businesses is more related to market
development strategy.
4.2 Results of analyses
I have taken the following approach in analyzing the
RFID mobile phone applications. First I have defined
the strategic growth area of RFID mobile phone
applications, using the Ansoff model. After this I have
conducted SWOT analysis for the RFID applications in
chosen growth strategy path. By combining these two
approaches it is possible to limit the analyses to slightly
more concrete level and concentrate only the most
relevant and important SWOT aspects.
These two different business field are analyzed together
in the SWOT analyses, but then discussed separately in
the conclusions.
In the following SWOT tables can be found most
important issues concerning both, technological and
business aspects of RFID usage in mobile phones.
These aspects are based on the issues in earlier chapters
and authors own judgments. As mentioned both
different business areas are analyzed here together.
STRENGTHS
Existing technology
Relatively cheap to modify and develop applications
Used widely in other business areas
Enables user friendly interface to launce mobile services
target is not to sell physical RFID products, but to boost
the markets of mobile services.
WEAKNESSES
Separated standardization of technology
Too expensive components (specially readers)
More RFID phones and services needed in order to reach
critical mass (now only on trial level)
RFID only enabler, not real new value element for mobile
phones?
RFID security still partly unreliable
Still some challenges with basic issues (interference of
material, collision etc.)
OPPORTUNITIES
Could open huge extra business for service providers
RFID has the basic elements to be successful also in
mobile phone industry
Some big players are showing the direction (Nokia,
DoCoMo, etc.)
Some good existing applications for companies may boost
up the coming of RFID
Open standard that can be used to develop new services
(easy access to markets)
THEREATS
What is the earnings principle (is it only business for
operators?)
Standardization can not be done on global level
Technology will not be enough reliable after all (still huge
efforts to improve reliability)
Other technologies may replace RFID in some potential
applications. (WLAN, UWB….)
If the component prices can not be reduced are end users
willing to pay extra for RFID readers.
Markets impregnated by technological innovations?
3. Conclusion
Does RFID have true potential of being successful
technology to be adapted to mobile phones? The time
will show but, currently it has still some technical
challenges that have to be solved. In mobile phone
applications I consider that the inadequate
standardization is the most important aspect from
technology point of view. The other technical
limitations are not as important as in supply chain
applications.
RFID is totally open and relatively simple technology
that will not provide any competitive advantage as pure
technology. Any new RFID invention or RFID mobile
applications are currently – and seems that also in
future- too easily and rapidly copied by competitors.
There is no competition currently related to RFID
mobile phone business, this is due to the reason that it is
very much immature area where the current applications
are only on test level. The only players on the field are
huge telecommunication companies whose ultimate
As stated, RFID has still clearly its technical limitations
and the number of mobile phones and applications
using RFID is much too low for gaining the critical
mass. However if we estimate that these challenges will
be solved we might see even some killer applications
enabled at least partly by RFID
.
The biggest potential business area comes from the
possibility that RFID would bring the boost to the usage
of mobile services. In this aspect RFID can not be seen
as new business idea, but rather like one enabler of
mobile service business. In this aspect RFID can deliver
truly user friendly interface that can be used for
activating huge variety of different mobile services.
RFID could even bring at the same time ideas for
developing new kind of services, but still it would not
provide nothing else than complementary technology to
link the user to these services.
After RFID has spread more widely, there is potential
also for business related to RFID technology. There is
naturally need for better and more reliable RFID
components and systems, as well as middle wear
applications, but this is related to business areas where
huge volumes and efficient production processes are the
core competence. This results to the fact that business
related to RFID hard and middle ware will be
dominated by huge global companies, rather than small
or start-up entrepreneurs.
Despite of some applications that can be said that are
pure RFID products –like positioning systems – it
seems that RFID has very limited amount of mobile
phone applications that would create true business case.
These applications would require environment where
RFID reader/tag equipped mobile phones would be in
the majority of total amount of mobile phones. This
seems unlikely in near future.
The conclusion of this research paper is that RFID has
huge potential in enabling growth of mobile services,
but other real killer applications we have to wait for
longer time. The break trough of RFID enabled mobile
services will require vide co-operation from mobile
phone manufacturers, operators and mobile service
provides. It is unlikely that mobile phone users are
willing to pay extra for RFID readers in their mobile
phones, before there are real cases where they can us it.
This means that manufacturers, operators and service
providers has to finance this break trough. I consider
this to be the biggest obstacle between mobile RFID
success and failure.
References
.
Crossbow technology
http://www.xbow.com/
http://www.nokia.com/nokia/0,,55739,00.html
Socket communications Inc.
http.//www.socketcom.com
Wal mart homepage
http://www.walmartstores.com/wmstore/wmstores/Hom
ePage.jsp
Tesco homepage
www.tesco.com
Computer world home page
Http://www.computerworld.com
Container location system
http://www.savcor.com/one/cps_main.php
Texas Instruments: RFID cases
http://www.ti.com/tiris/default.htm?DCMP=TIHomeTr
acking&HQS=Other+OT+home_tirfid
Aus RFID
http://www.ausrfid.com/
Rinta-Runsala E, Tallgren M, RFID-tekniikan
hyödyntäminen asiakkuden hallinnassa. VTT 2004
Tutorial overview of inductively coupled RFID
Systems. UPM Rafsec 2002-2004
Shepard Steven, RFID Radio Frequency Identification.
McGraw-Hill. 2005.
YTV information concerning the RFID travel card
www.ytv.fi/matkakortti/yleista.html
Telecom Asia
www.telecomasia.net/telecomasia
RFID usage in Japan. 2005.
http://Ubiks.net/
The Inquirer.2005. Mobile phones turned into
point'n'buy devices.
http://www.theinquirer.net/?article=20827
Charles Holms. 2004. Forrester research paper:
Exposing The Myth Of The 5-Cent RFID Tag
http://www.rfidbuzz.com/news/2004/forrester_the_pric
e_of_rfid_tags_wont_drop_to_005_in_the_next_eight_
years.html
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http://www.itnews.com.au/newsstory.aspx?CIaNID=17
939
Krebs D, Liard M, Global Markets and applications for
radio frequency identification. Venture Development
Corporation. 2001
Use cases for RFID. Nokia external material
5140 RFID phone. Nokia external material
http://www.nokia.com/nokia/0,,72324,00.html