KDDI and SOFTBANK MOBILE Sign Memorandum of Understanding on NFC [1] Services with SK Telecom of Korea

KDDI Corporation

July 15, 2010

KDDI, SOFTBANK MOBILE and SK Telecom, Korea's biggest cell phone company (President and CEO: Man-won Jung; hereafter "SK Telecom"), signed a Memorandum of Understanding on Wednesday July 7, 2010. The purpose of the MOU is to explore the potential for mutual use of services such as electronic money transactions and coupons by holding an NFC-capable mobile phone that works both in Japan and Korea over a reader, and the equipment for realizing such services.

Both Japan and Korea currently offer a range of services including electronic money transactions, coupons, membership cards, public transportation tickets and electronic ticketing services by holding a mobile phone over a reader. But the technical systems that make these services possible are not the same, thereby limiting the services to within the respective country.
NFC will open the way to mutual use of mobile transaction services that are currently operated under different national systems.

KDDI, SOFTBANK MOBILE and SK Telecom will explore the possibility of mutual use of services and equipment in Japan and Korea utilizing NFC.

<Content of Memorandum of Understanding>

(1) To explore the feasibility of a range of services in Japan and Korea, such as credit card transactions, coupons, membership cards and acquisition of information from posters, which can be used by holding a mobile phone over a reader

(2) To explore the possibility of mutual utilization of equipment which realizes services such as application downloads and authentication servers

The MOU originates from the desire of the three telecommunication providers to revitalize mobile transaction services in their respective countries. They will cooperate in promoting studies with a view to rapid commercialization. By utilization of NFC, they aim to increase the number of countries, particularly in Asia, where mobile transaction services are available and promote further global expansion for enhanced user convenience.

  • [1] NFC (Near Field Communication): The international standard for proximity wireless communication systems defined by ISO (International Organization for Standardization). NFC supports three types of communication systems: Type A, Type B and FeliCa®. It enables various applications including non-contact IC card functions, reader/writer functions and inter-device communication functions.
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