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Philips pushes for smart card use in mobiles
Philips Philippines, the local unit of Dutch firm Royal Philips Electronics, is pushing for the use of the radio frequency identification device (RFID) technology in mobile phone applications.In a press conference held for the company’s 50th anniversary celebration recently, company officials said that RF1ID can be used for contactless phone applications, including bills payments.
RFID is used for "smart cards," or chips that process transactions, services, and identification without swiping or any form of contact. It is currently being used by universities as an all-around identification card, by public transport systems abroad, and by credit card companies.
Philips Philippines, which has Philips Semiconductors Philippines, Inc. as part of its group, is a center for excellence in RFID. Philips is celebrating its 50th anniversary in the country, while Philips Semiconductors is celebrating is 25th.
"We are talking with the telecommunications companies right now for this so that instead of having to press keys for the transactions, like what is being done right now through G-cash, we can do it without contact,’" Philips Semiconductors Philippines general manager Jun Sta. Ana told BusinessWorld.
While bills payments can now be done through mobile phones, the current system still requires the use of the keypad for the payment process, he said.
The RFID will do away with this, he added.
The technology, to be called "near field communications," will be made available to all mobile phone companies that are interested in using it, Mr. Sta. Ana said.
"This [technology] will be integrated within the year. We’re promoting it with various telecommunications companies," he said.
Med Mateo, Philips Electronics and Lighting, Inc. president, also told reporters the group continues to push other uses for RFID, including its use for public transport, particularly for the Metro Rail Transit and Light Rail transit systems.
The technology is being used in Hong Kong’s Octopus card and in Singapore’s transportation access pass card for its mass transport system, among others.
Mr. Mateo said Philips continues to push for the use of smart cards in the proposed National ID system.
BusinessWorld earlier reported that Philips was in talks with the government for the use of smart cards for the national ID. The proposal for a single ID, however, has been met with opposition.
Officials said that Philips Semiconductors sees new RFID applications as one of the strongest drivers for growth going forward.
Philips Semiconductors Philippines, the biggest contributor among all the semiconductors units in Asia-Pacific, posted $1 billion in export sales last year. The firm expects to grow sales by 20% to 25% this year.
Other growth opportunities for the semiconductors group are power management units, or power chargers for mobile phones and audio players; telecommunications infrastructure including hardware used for cellsites; and automotive products, including sensors for anti-lock breaking systems.
For Philips Electronics and Lighting, meanwhile, growth opportunities are seen in street lighting and city beautification, mobile phones including third generation or 3G units which will be launched next year, plasma television, audio players, and medical devices.
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