Our Cellphone Future

The wireless companies' ultimate goal is to further ensconce cell phones at the center of their subscribers' busy digital lives. "We are aiming to make our mobile phone a 'personal gateway'," says KDDI spokesperson Maki Sato. Key to that effort is using the RFID chips now in most Japanese handsets to allow the phone to serve various functions, such as a corporate ID card, a TV remote control, a door key--and, most enticingly, a wallet. All three Japanese carriers currently allow subscribers to use their phones as prepaid debit cards, to buy everything from groceries to train tickets. With number portability now imminent, they are offering credit services as well. Subscribers can buy now with a wave of the phone and see the charges later, on their monthly phone bill.

Security is key to selling the idea of phones-as-credit cards, say DoCoMo execs. Recently, the firm introduced several new services to limit the repercussions when a user loses his mobile wallet. They include storing users' personal information on DoCoMo's servers instead of on the phone itself, and remotely locking a subscriber's mobile phone when it's lost. The company also plans to unveil handsets equipped with biometric authentication--using fingerprints and voice and face recognition to make subscribers feel more secure.

Ironically, analysts expect that most mobile-phone users won't switch carriers in October. But they'll still be able to enjoy the benefits of the increased competition. The rest of us will just have to wait for similar technological innovations to make their way to our shores.

© 2006