Presented on Technology Innovation & Standardization II class.

1. Technology Innovation and Standardization II
LOGO
Sony’s Business Strategy on FeliCa
Nur Ahmadi – 11M51169
Dept. of Communication & Integrated Systems

2. About Sony FeliCa
 Sony produce FeliCa chip
All Osaifu-ketai use FeliCa chip
 Sony is a major investor to FeliCa Networks (57
%)
Perhaps, FeliCa networks is quite profitable
 Sony is one of the main member of NFC forum
Protocol is common
 Sony not a GSMA member
 Whether operators will keep using FeliCa
networks is the operator’s decision
Operators may go toward “Wave and Pay”

3. Latest Updates
 US & UK operators established “Wave & Pay”
company based on GSMA “pay by mobile”
technology
 Google announced and run Google Wallet
 Philips released a new NFC enabled chip
 Samsung & Nokia set to use Philip’s NFC
technology
 Sony launched new FeliCa Lite-S chip
 All the next chip will support NFC (type A, type
B, and FeliCa) as stated by NFC forum
 More many coming handsets will enable NFC
technology

4. Sony FeliCa: Strengths
 The new FeliCa Lite-S has faster response
 It offers better security
 It is going cheaper
 It becomes smaller
 Sony makes NFC controller which enables type
A and type B used together with FeliCa chip in
the same handset
 The NFC controller costs cheap enough
 By NFC controller, the handsets can be used
both inside and outside Japan
 FeliCa chip provides up to 3 space for
application use

5. Sony FeliCa: Weaknesses
 The price of FeliCa chip is more expensive than
Philip’s chip
 Previously (without NFC controller), FeliCa chip
can only be used inside Japan (can not expand
the market outside Japan)
 Tend to manage its brand which affects to the
price
 The FeliCa network is closed, it’s expensive to
buy the license

6. Sony FeliCa: Opportunities
 Sony can get bigger market (including outside
Japan) if they can pursuade operators and
handsets vendor to use their FeliCa chip and
NFC controller
 Sony can keep the market in Japan by providing
more secured FeliCa chip with lower price,
smaller size, and faster response
 Sony may reduce the license fee of FeliCa
network to get more market (especially for
operators that use NFC enabled chip instead of
FeliCa chip

7. Sony FeliCa: Threats
 It’s highly possible Sony will lose their market
because operators change their chip into
Philip’s NFC based technology since the FeliCa
chip costs more money
 The future trend is using SIM enabled
technology which likely change Japanese &
Korean operators’ mind to use Philip’s NFC chip

8. Solution
 This is the best solution that
Sony will offer to the
operators and handsets
vendor
 The mobile payment
application needs very
secured transactions as it
directly dealing with the
money inside. That’s why
FeliCa chip will be the most
suitable choice

9. Solution
 The main problem of
using FeliCa chip in the
operators’ head is the high
price and incompatibility
outside Japan. It is solved
by reducing its price yet
with great improvement
on the response speed
and the chip size, and by
making NFC controller to
communicate with type
A/B (NFC)

10. Solution
 The use of NFC controller
chip also anticipates the
future trend of using SIM
enabled so that it can be
used anywhere in the
world
 The operators can install
other applications (up to
3) in FeliCa chip, e.g.
Suica, Edy, Nanaco, etc

11. Thank You