Why Are Google and Verizon Fighting Over The TPM Chip In Your Phone?

I’ll give you a hint: it’s not about using NFC to exchange business cards, and it’s not even primarily about mobile payments. Why does Google want the TPM/NFC module in your phone integrated into the phone, and Verizon wants it in the SIM card? Simple: Identity ecosystem lock-in. Verizon and Google both have a huge vested interest in providing you with an electronic identity which you can use to execute high-stakes transactions. The only good way to do that for the general public is by putting a TPM chip in everyone’s phone and wirelessly provisioning high-assurance credentials to it via their trusted service manager of choice (much like “The Highlander,” there can be only one in control of the keys for each TPM, and they each want it to be theirs).

Why do I think this? Take a look at the OIX-certified FICAM Trust Framework-approved list of identity providers. What do you notice? Verizon is LoA 1, 2 and non-crypto 3 approved, and Google is LoA 1 approved but likely wants to be at LoA 2 and 3. Why is Verizon at LoA 2 and 3? Because they have a very well-established business relationship with their customers. They know, with a high degree of assurance, who they are. How will Google establish this high-assurance relationship with their customers? Google Wallet, Google Voice and their controversial¬†“Real Names” policy.

So why do these companies want to be your default high-assurance identity provider? Simple: vendor lock-in. Can you imagine a more powerful lock-in effect for a specific platform than the one created when you not only use it for all your financial transactions, but also to open all the high security physical doors you use? With the advent of cloudsourced security, we aren’t just talking the front door of your house or starting your car. Your workplace will likely soon move to outsourced identity for login to your workstation, access to the VPN, and even the doors to the data center. Why? It’s much cheaper and easier (and less risky) to sign a contract with Verizon or Google to provide this service than to hire the people and purchase the infrastructure to manage it yourself. It’s also much less cumbersome to use a phone which everyone in the company normally already carries, than to set up some kind of expensive and cumbersome smart card system.

So which vendor will companies buy high-assurance identity from? The one with the largest installed base.