SIM Makers Respond to China Mobile's Halt on 2.4GHz
China Securities Journal, 6/03/10
Chinese mobile payment chipmaker Nationz (300077.SZ) said in a public filing on June 3 that it has yet to receive any notification from China Mobile (NYSE: CHL; 0941.HK) regarding the cessation of RF-SIM trials. The company signed a two-year agreement on SIM cards featuring RF technology with China Mobile in June 2009, under which the two companies agreed to work together on the development of RFID-SIM cards and related solutions.
Hengbao (002104.SZ), another company involved with the 2.4GHz technology, confirmed that China Mobile will submit no further orders for its 2.4GHz SIM cards, and said that moving forward, Hengbao will primarily supply China Mobile with 13.56MHz SIM cards. A source at the company said that China Mobile's decision to change its standard will in fact be good for Hengbao, as there are already a number of companies providing 2.4GHz SIM cards, meaning that profits are relatively low. By comparison, only Hengbao and Beijing Watchdata Systems provide 13.56MHz SIM cards, allowing more room for profit.
Editor's Note: Rumors emerged earlier this week that China Mobile called a halt to RF-SIM-based mobile payment services in favor of 13.56MHz technology; see "Rumor: China Mobile Returns to 13.56MHz Payment," MD 6/01/10 issue.
Keywords: 300077.SZ contactless payment Hengbao 002104.SZ China Mobile wireless mobile payment CHL RFID 0941.HK RF-SIM Watchdata Nationz SIM card Near Field Communication
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