MOBILE COMMERCE

WHAT IS MOBILE COMMERCE?

Any electronic transaction or information

interaction

conducted using a mobile device and mobile

networks (wireless or switched public network)

that leads to transfer of real or perceived

value in exchange for information, services or

goods

A BRIEF HISTORY1997: Mobile commerce was born when the first two mobile-phone enabled Coca Cola vending machines were installed in the Helsinki area in Finland. The machines accepted payment via SMS text messages.

1997: The first mobile phone-based banking service was launched by Merita Bank of Finland, also using SMS.

1998: The first sales of digital content as downloads to mobile phones were made possible when the first commercial downloadable ringtones were launched in Finland by Radiolinja (now part of Elisa Oyj).

1999: Two major national commercial platforms for mobile commerce were launched: Smart Money in the Philippines, and NTT DoCoMo’s i-Mode Internet service in Japan. i-Mode offered a revolutionary revenue-sharing plan where NTT DoCoMo kept 9% of the fee users payed for content, and returned 91% to the content owner.

2000: Mobile-commerce-related services spread rapidly.

Norway launched mobile parking payments.Austria offered train ticketing via mobile device.Japan offered mobile purchases of airline tickets.

2001: The first conference dedicated to mobile commerce was held in London in July.

2002: The first book to cover mobile commerce was Tomi Ahonen’s M-profits.

2003: The first university short course to discuss mobile commerce was held at the University of Oxford with Tomi Ahonen and Steve Jones lecturing. 2008: UCL Computer Science and Peter Bentley ran dedicated courses in mobile commerce.

Customers‘ point of view

The customer wants to access information, goods and services any time and in any place on his mobile device.

He can use his mobile device to purchase tickets for events or public transport, pay for parking, download content and even order books and CDs. He should be offered appropriate payment methods. They can range from secure mobile micropayment to service subscriptions.

 

Providers‘ point of view

The future development of the mobile telecommunication sector is heading more and more towards value-added services. Analysts forecast that soon half of mobile operators‘ revenue will be earned through mobile commerce. Consequently operators as well as third party providers will focus on value-added-services. To enable mobile services, providers with expertise on different sectors will have to cooperate.

Innovative service scenarios will be needed that meet the customer’s expectations and business models that satisfy all partners involved.

ATTRIBUTES OF M-COMMERCE

Mobility—users carry cell phones or other mobile devices

Broad reach—people can be reached at any time

Ubiquity—easier information access in real-time environment

Convenience—devices that store data and have Internet, intranet, extranet connections

Instant connectivity—easy and quick connection to Internet, intranets, other mobile devices, databases

Personalization—preparation of information for individual consumers

Localization of products and services—knowing where the user is located at any given time and match service to them.

WIRELESS TELECOMMUNICATIONS TECHNOLOGY ROADMAP

1st Generation- 1G: Analogue network (1979-1992)Cellular NetworksFrequency Division Multiple Access (FDMA)Advanced Mobile Phone Service (AMPS)

2nd Generation- 2G: Digital networkTime Division Multiple Access (TDMA)Global System for Mobile communications specifications (GSM)Code Division Multiple Access (CDMA)

2nd & a Half Generation- 2.5GGeneral Packet Radio Service (GPRS)CDMA IS-95B

2.75GEDGE ( Enhanced Data rates for Global Evolution) cdma2000 Phase 1 or 1xRTT

3rd Generation- 3G: Broadband network

4th Generation- 4G: fully IP based network; will provide faster multimedia display (2006-2010)

 

WIRELESS MESSAGING DEVELOPMENTS

SMS- Short Message Service

EMS- Enhanced Messaging service

MMS- Multimedia Messaging Service

Wireless Application Protocol(WAP)

The drivers

Fragmented standards and incompatible systems well into the 1990s.

Dire need of a focal point as the launch pad to a new wave of research and development.

Recognizing the need for a more coordinated strategy, wireless telecommunications luminaries Ericsson, Motorola, Nokia, and Phone.com founded the Wireless Application Protocol Forum in mid-1997

WAP is an open, extensible and unified industry standard for delivering sophisticated telephony services over wireless networks to mobile device

Devices as diverse as mobile phones, alphanumeric pagers, PDAs and other wireless appliances, and practically all cellular network technologies from 2G to 3G are supported.

At the core of the application development environment is the micro-browser or WAP browser, essentially a hi ghly trimmed and pared-down version of the conventional Internet Web browser software.

Hypertext Markup Language (HTML) is replaced by Wireless Markup Language (WML)

WAP ARCHITECTURE

Web Server

Content

CGIScripts

etc.

WM

L D

e cks

wit

h W

ML

-Scr

ipt

WAP Gateway

WML Encoder

WMLScriptCompiler

Protocol Adapters

Client

WML

WML-Script

WTAI

Etc.

HTTPWSP/WTP

MOBILE COMPUTING INFRASTRUCTURE

HARDWARE: Cellular (mobile) phonesAttachable keyboardPersonal Digital Assistants (PDAs)-handheld wireless computersInteractive pagersOther devicesNotebooksHandheldsSmartpadsScreenphones—a telephone equipped with color screen,keyboard,e-mail, and Internet capabilitiesSmartphones—Internet-enabled cell phones with attached applicationsE-mail handheldsWirelined—connected by wires to a network

Unseen infrastructure requirements:

Suitably configured wirelined or wireless WAN modem

Web server with wireless support

Application or database server

Large enterprise application server

GPS (satellite-based Global Positioning System) locator used to determine the location of mobile computing device carrier

 

Software:

Microbrowser- Wireless Markup Language (WML) based

Mobile client operating system (OS)- e.g Windows 2000/2001/NT, Palm OS, Win CE, etc.

Bluetooth

Mobile application user interface- Application logic under the browser

Back-end legacy application software

Application middleware- e.g. IBM Websphere

Wireless middleware –links multiple wireless networks with application server

Networks and access:

Wireless transmission media

MicrowaveSatellitesRadioInfraredCellular radio technology

Wireless systems

ENTITIES IN THE M-COMMERCE VALUE CHAIN

Customer-he is mainly mobile.

Content/Service Provider- provides specific contents to a customer through a WAP Gateway which can be hosted at the Mobile Network Operator

Mobile Portals- offer personalized and localized services to customers.

Mobile Network Operator

THE MOBILE NETWORK OPERATOR

Advantages of the Mobile Network Operator over other portal players

They have an existing customer relationship and personal data.

They can identify the location of the subscriber.

Traditional portal doesn’t usually have a billing relationship with the customer.

Provide bundle services: Provides offers with a combination of various purchases from different suppliers with discounts. So, e.g, if customer wants to buy product A from supplier X, he may find out about an offer from the Telecom Operator about two products A and B from different suppliers at a lower price.

Act as a front- end to the bank: The customer pays to the operator who, in this case, is also responsible for payment refund to the customer if the latter is not satisfied with the products.

Act as Trusted Third Party: In cases the customer wants to buy a number of goods from various suppliers who must interoperate.

APPLICATIONS OF MOBILE COMMERCE

Mobile financial applications (MFA)mobile bankingmobile brokerage servicemobile money transfermobile micropaymentsMobile AdvertisementsProduct location and search (PLS)

Bill Payments by Cell Phone

Example of MICROPAYMENT: MOBILE TICKETING

MOBILE ADVERTISINGText message marketing, where customers opt-in to receive news about deals or offer coupons, has been a widely adopted practice as it’s a direct way to engage with consumers that has a high likelihood of being read.

PRODUCT LOCATION & SEARCH: ILLUSTRATIVE EXAMPLES

NEXTBUS—bus riders in San FranciscoInternet-enabled cell phone or PDA helps:

Find estimated arrival time at each stop, in real time

Soon location-based advertisements will pop up — you have time to get a cup of coffee before the bus arrives — Starbuck’s is 200 feet to the right

DINE ONE ONE—home delivery from restaurants in the San

Francisco area

100 participating restaurants

Food needs to be delivered hot

The solutionDrivers equipped with AT&T’s PocketNet service — portable smartphonesDispatchers locate drivers, notify where to pick up and deliver food Better service and driver utilization

BARGAIN HUNTINGBargain hunting has become extremely popular with apps like RedLaser that allow users to scan product bar codes and discover it’s various prices at different retailers. Shoppers are melding the two worlds of online/mobile shopping with actual physical shopping to make sure they get the best prices.

ISSUES IN M-COMMERCEWIRELESS PRIVACY- subscribers could be placed with near pinpoint accuracy; threat to personal privacy, undue surveillance, spam and profiling.

WIRELESS PAYMENT SYSTEMS- The use of transmission encryption technology essentially contains the risks inherent in sending credit card information over the Internet to online merchants for payment settlement.

WIRELESS SECURITY- Computer viruses migrate to hand-held devices like PDAs and mobile phones; malicious individuals target the platform with rogue code & cripple the network WIRELESS EMISSION AND PUBLIC HEALTH- emission from wireless handsets and cellular base stations may actually be cancer-inducing; an increase in traffic accidents has been reported when mobile phones are operated while driving---even using hands-free kits

Obstacles preventing M-Commerce

OBSTACLES PHONES PDAs

Credit card security concerns

52% 47%

Fear of 'klunky' user experience

35% 31%

Don't understand how it would work

16% 16%

Never heard of it before

10% 12%

Others 11% 13%

CONCLUSIONThe mobile world is quickly becoming a new hub for business.

Even if marketers and companies can’t reach consumers at their computers, on TV, before the previews at the movies, with billboards, or magazine and newspaper ads, they can still reach them on their cell phones.

Mobile commerce is a profitable and rapidly growing market.

By 2015, it’s estimated that shoppers from around the world will spend about $119 billion on goods and services bought via their mobile phones.

THANKING YOU………

ABDUS SAMAD MOLLAH

YEAR: 4TH

ROLL NO.: 100

UNIVERSITY ROLL NO.: 071090101102

DEPARTMENT OF COMPUTER SCIENCE & ENGINEERING

NETAJI SUBHAS ENGINEERING COLLEGE