A Case Study of Smartphone Connectivity

Smartphone connectivity is something many industries take for granted. This can either be through the cellular network services for calls and data services, through WiFi at home or in public areas and more local contact using NFC or Bluetooth. The enticing prospect of the smartphone for authentication is that the platform connects to the wider data world.

However, it is easy to forget that this connectivity is not universally available and we should be aware of these issues.

The aim here is not to be alarmist or to denigrate the solutions provided as examples. It is rather to consider some counter arguments when we evaluate smartphone connectivity for authentication programmes.

Smartphone connectivity

It is easy (and sometimes convenient) to forget that connectivity is not universal, with many areas and communities falling far short of this. It would be most convenient to consider the almost universal connectivity of the metropolitan citizen with a high-end, up-to-date smartphone as the model on which to build identity and authentication solutions. While this could arguably be the case for brand protection of high value consumer goods, the purpose of this section is to take a more balanced view to cover the whole area of identity and product authentication.

These various methods of data connectivity are often mutually reliant for authentication implementations. The implications of this can be found in the ‘small print’. For example, in 2020 when Samsung announced their implementation of a mobile ID solution for Germany using NFC there was a caveat stating ‘subject to service availability’.

Connection to a cellular network

One of the issues faced by technology providers for authentication is that cellular network connectivity is provided by 3rd parties. They have a different business model which in essence equates to the profitability of providing a connection to a geographic area. As a result, areas with sparce populations, low economic activity or difficult terrain can lose out.

We should stop and consider the effects on authentication from this. Many fintech services require 2 factor authentication via a text message to a smartphone to complete a transaction. This system falls down if you happen to be in an area with intermittent or non-existent cellular connection.

This is an issue across the globe and, by way of example, one such instance was presented at the Tax Stamp and Traceability Forum™ in 2022. In Liberia 80% of the population have access to a basic smartphone but only 40% have internet access. Comparisons such as this remind us that statistics on smartphone in part of the story.

Connectivity through NFC

Near field communication (NFC) is a radio frequency technology that has been adapted for short range communication and can be applied across a wide range of secure applications, from brand protection to document authentication, and when deployed with other features can produce some strong combinations.

An interesting example is provided by Krypten with their NFCHOLO™ feature, combining an NFC chip with a security hologram. However, while acknowledging the strength of features such as this we should also remain aware of some of the issues with NFC connectivity.

When considering NFC applications we should recognise that this technology is not universal on smartphones. It began implementation on high end (and expensive) smartphones and gradually diffused down into mid-range and entry level handsets. While most new smartphones on sale in some societies do have NFC technology, that does not mean that everybody has access to one.

Some global facts and figures may be useful here. It was noted in this newsletter in October 2022 that by the end of 2023 there are forecast to be 4 billion NFC enabled smartphones in use. However, there are already over 6 billion smartphones in use so, while NFC availability is rising, it is not universally available to the global population.

We should consider how widespread this issue could be. As noted in ID & Secure Document News™ in March 2022, when Deloitte were selected to implement an identity verification solution for the UK leveraging NFC technology, it acknowledged that the technology was only implemented on ‘most’ smartphones. At the time of writing the author, who is a UK citizen, uses a smartphone without NFC technology and as a result is disenfranchised by this solution.

A similar situation may be faced by the French SGIN NFC enabled identity solution from IDEMIA. With companies, shareholders and commentators focussing on issues of inclusion we may need to give this wider consideration. In the current social environment we may also need to take a look at this from a wider ESG perspective.

ESG considerations

Environmental, Social and Governance (ESG) issues have become an increasingly important consideration at board level and by socially conscious investors and customers. ESG issues could play a part in programmes that rely on smartphone connectivity.

From an environmental standpoint, a change from treating a smartphone as a disposable fashion accessory to only replacing it when it fails is a more sustainable stance. Whilst this is contrary to the marketing propositions of the major manufacturers, this may have to change. The drivers from economic considerations are moving in this direction too – as smartphones enter a mature part of the product life cycle, new models appear less frequently.

This has implications for any reliance on the latest technology, as more customers view their smartphone as ‘good enough’. As an example, this explains why I and others like me do not have NFC capabilities. The existing smartphone has yet to fail.

Programmes using the latest technology may also attract scrutiny from a social inclusion perspective. In general, lower socio-economic groups tend to have older/ less capable devices. A solution that is acknowledged to work on only ‘most’ smartphones could attract criticism from this direction. An ESG audit on proposals could prove sensible.

NFC solutions in particular could be vulnerable to ESG considerations. The suggestion that an otherwise functional smartphone should be replaced simply because it does not feature NFC is not an environmentally aware stance.

Similarly, implementing payment and citizen identity solutions through technologies that may not be available to all could be criticised from a social inclusion perspective.