MOBILE COMMERCE

Guided By Submitted By
Miss. Jagruti Goswami Amit. M. Patel
6
t
I.!.
C.".S#A# COLLEGE O$ E%GG. & !EC#.
'A(#'A% CI!) * +6+ ,+,
C.".S#A# COLLEGE O$ E%GI%EERI%G & !EC#%OLOG) 1
MOBILE COMMERCE
WADHWAN CITY
DIST: SURENDRANAGAR
CER!I$ICA!E
!is is to -erti.y tat Mr. /Patel Amit0umar Ma1ubai /////
is studyi1g i1 SEM * 2I o. B.E. I1.ormatio1 !e-1ology a3i1g Roll
%o //45/ as -om6leted is semi1ar o1 te .ollowi1g to6i-
su--ess.ully.
!o6i- %ame7 Mobile Commer-e ////////
Sta.. * I1-arge #ead o. (e6t.
8Miss Saro9 Bodar:
(ate7 ///////////
AC;%O'LE(GEME%!
C.".S#A# COLLEGE O$ E%GI%EERI%G & !EC#%OLOG) 2
MOBILE COMMERCE
We hereby take this opportunity to thank each and everyone who has helped
us in creating and formulating this seminar report. We especially thank our faculties
for guiding us through whole period of preparation and presentation. We whole-
heartedly express our gratitude towards our H.O.. Miss S.G.BO(AR for giving us
the moral and academic support for representing the seminar. !t last we thank all
those who directly or indirectly helped us in preparing the seminar report.
We are also very much thankful to our parents who encourage us and always
giving us the strong support.

Amit Patel 86
t
I.!.:
Roll %o. 45
ABS!RAC!
C.".S#A# COLLEGE O$ E%GI%EERI%G & !EC#%OLOG) "
MOBILE COMMERCE
#he wireless revolution sweeping through $urope% &apan and very soon
around the globe is expected to result in a pro'ected twenty-fold increase to 1(1
million Web-enabled mobile users by 2))*% spending over +1) billion on
m,ommerce. -obile players are preparing for this expected growth by spending
hundreds of billions of dollars on spectrum% building infrastructure% developing new
applications and forming new partnerships. !gainst this backdrop% market participants
that seek to rapidly recoup investment must focus on attracting and retaining
customers. ,ustomer churn rates due to stagnant product offerings and poor customer
service.reminiscent of the early cellular days.will delay the path to profitability and
stunt the growth of the industry. ! scalable and easily adapted business infrastructure
is re/uired to meet constantly evolving market re/uirements. #he numerous and
complex partnerships that must be created to provide seamless wireless service point
to a need for integrated front-end and backend systems for all players in the wireless
supply chain. 0olving the uni/ue ecosystem problems associated with m,ommerce
companies lies in a single integration platform that provides end-to-end supply chain
automation% business-to-business 12223 process automation and internal application
integration. 4itria offers a solution package that.when combined with best-of-breed
enterprise applications.can fully automate supply chain interactions between
bandwidth providers% mobile service providers and content providers. #his solution
empowers these companies for both top-line and bottom-line growth.
C.".S#A# COLLEGE O$ E%GI%EERI%G & !EC#%OLOG) 5
MOBILE COMMERCE
%o !o6i- Page %o
1. 6ntroduction 5
2. ,haracteristics of --commerce (
". -ain features of --commerce 7
5. -obile commerce enabling technologies 11
*. --commerce applications and trends 15
8. 9rivacy and data controls 17
(. ,haracteristics of wireless 21
:. #he mobile technology landscape 2"
7. --commerce challenge 28
1). #echnical problems in supporting mobile 2(
$-commerce transactions
11. 4itria;s --commerce solutions benefits 27
12. ,onclusion ")
1". 2ibliography "1
I%!RO("C!IO%
-obile ,ommerce is the latest bu<<word in the age of new economy. 6n
0imple terms it means making on-line purchases and=or transactions
anytime=anywhere. >or example% while you are travelling in a car or 'ust taking any
C.".S#A# COLLEGE O$ E%GI%EERI%G & !EC#%OLOG) *
MOBILE COMMERCE
evening walk. 6n order to do m-commerce one needs a mobile phone or a 9ersonal
igital !ssistant 19!3 connected to a mobile network operator. -obile ,ommerce
is also referred to as m-commerce% mobile e-commerce or wireless commerce and in
this report these terms have been used interchangeably.
Wireless commerce . the concept of enabling enterprise and commerce
applications for customers% partners% and employees anytime% anywhere% anyplace . is
now being viewed as the next big technology enabled breakthrough looming over the
hori<on. -any mobile devices such as laptop computers and personal digital
assistants 19!s3 are already being used as extended enterprise tools. #his mobile
suite is now being supplemented by digital telephones with 6nternet and wireless data
access capabilities. #he extended enterprise applications are closely followed by
wireless commerce applications directly to the customer and the consumer via these
wireless devices. #he market potential for wireless commerce is /uite significant.
-arket researchers predict that by the end of 2))*% there will be almost *)) million
users of wireless devices% generating more than +2)) billion in revenues.
#he wireless economy can be represented as consisting of four layers 1see
>igure 13? the Wireless 6nfrastructure layer consisting of the infrastructure providers%
the !pplications layer consisting of organi<ations developing wireless applications%
the 6ntermediaries layer% organi<ations adding value in the commercial pro@AB8*C
88DE8888888888888FG 8
C.".S#A# COLLEGE O$ E%GI%EERI%G & !EC#%OLOG) 8
MOBILE COMMERCE
(b'b'H2H2(((((((((((((((((( ()I (J((-
J
((KL((((((M((((((((((((((((((((((NNO(((((((((NNO(((((((((NNO
(((((((((((((((((P(((((2((((((2((2((((((2((((((;((((((;((((((;((Q((((
(((((((R((((((Sd((((((Sd((((((Sd((:(((Td(( @AB(*C
((DE(((((((((((((FG (
C.".S#A# COLLEGE O$ E%GI%EERI%G & !EC#%OLOG) (
MOBILE COMMERCE
:b'b'H2H2:::::::::::::::::: :)I :J::-
J
::KL::::::M::::::::::::::::::::::NNO:::::::::NNO:::::::::NNO
:::::::::::::::::P:::::2::::::2::2::::::2::::::;::::::;::::::;::Q::::
:::::::R::::::Sd::::::Sd::::::Sd::::::Td:: ocus on issues that are highly
relevant in understanding how the marketplace can be shaped and what kinds of
business.
--commerce% a new form of electronic commerce brought about by the rapid
growth of wireless communications. #he most common definition of m-commerce is
the buying and selling of goods and services using wireless handheld devices such as
mobile telephones or personal data assistants 19!s3. ! broader definition that
extends m-commerce to Gmobile businessU may be more appropriate. #his involves
business-related communication among individuals and companies where financial
transactions do not necessarily occur. 6n the last four years% the growth in the number
of mobile telephone users worldwide has exceeded the growth in the number of fixed
lines% expanding from *) million to almost one billion in 2))2. #oday% over 7) per
cent of countries have a mobile network% and nearly one in every six of the world;s
inhabitants has a mobile telephone. !lmost 1)) countries have more mobile than
fixed-line telephone subscribers and this will become a global phenomenon in the
early part of 2))2. #he introduction of wireless communications has not only
expanded telephony in many developing countries% but also introduced wireless data
services which are essential for conducting m-commerce. >or many people in
developing countries% mobile handsets may be the first and main access route to
C.".S#A# COLLEGE O$ E%GI%EERI%G & !EC#%OLOG) :
MOBILE COMMERCE
information and communication technologies 16,#3% the 6nternet and e-commerce
technologies. #he challenge is to provide access to the global telecommunications
system for a significant number of citi<ens in developing countries. -obile
communications may be the technology that overcomes the barriers constituted by the
high cost of installing fixed-line infrastructure that developing countries continue to
encounter. #he many facets of m-commerce% encompassing a number of dynamic and
evolving services% will be examined in this chapter. 6t begins with a description of the
main features of m-commerce. $xperiences in several countries are discussed where
relevant. ,urrent m-commerce applications and trends% including banking and
insurance% logistics% securities% and information services% are also reviewed. 6n
addition% regulatory issues related to data security and privacy are assessed. >inally%
the main findings and recommendations for developing country m-commerce
readiness are presented.
C.".S#A# COLLEGE O$ E%GI%EERI%G & !EC#%OLOG) 7
MOBILE COMMERCE
C#ARAC!ERIS!ICS O$ M<COMMERCE?
#he Vni/ue ,haracteristics of --,ommerce?
WWX "bi=uity. When was the last time you left home without your mobile phone% 9!%
9ager or other mobile device that has become the center of your personal and
professional universeY -obile devices fulfill the need for real-time information and
communication% in a way desktop 9,s% which are dependent on a user;s location% will
never be able to do.
WXCo13e1ie1-e a1d A--essibility. 6n the wired e-commerce world% people are
constrained by time and place. Zot so in the m-commerce world where being seated at
a 9, is not a prere/uisite for sending email% bidding on e2ay% trading stock% or getting
the latest sports results. -oreover% users can still maintain their privacy by limiting
who has access to them% and at what times.
WX Lo-ali>atio1. With technologies like [90 1[lobal 9ositioning 0ystem3 or #O!
1#ime of !rrival3% m-commerce will enable users and merchants to push% receive and
access information and services specific to their location.
WWX Perso1ali>atio1. While personali<ation has started to make some strides with the
wired Web% the wireless world offers a vastly superior opportunity for companies to
provide personali<ed% one-to-one services to its customers. Where the 9, is often
shared across multiple users% mobile devices are typically operated by and configured
for a single user.
WWX $orm $a-tors. #he physical form of mobile devices 1e.g.% screens% keyboards%
weight3 invokes a very different user experience from that of a desktop 9,. #o be
successful companies should appreciate these limitations and design offerings that
leverage the positive attributes of a particular mobile device? larger screens for 9!s%
\W$]#^ keyboards for two-way pagers% or voice for mobile phones.
WWX Ba1dwidt a1d Ca6a-ity. While streaming audio and video capabilities over
mobile devices are enticing% current bandwidth and device limitations 1e.g.% processor
speeds% memory and storage capacity3 demand that the first generation of mobile
offerings is practical and predominantly text-based. With this said% adoption of mobile
6nternet devices will still be explosive because applications% and not bandwidth% will
drive m-commerce growth. _eep in mind less than 1)` of all wired 6nternet users
currently have connections faster than *8 kpbs% and yet there has still been rapid
adoption of the Web.
WWX!e 2alue Cai1. #oday;s wireless 6nternet closely resembles the supply-driven
value chain that existed in the formative years of the wired 6nternet? customers are
C.".S#A# COLLEGE O$ E%GI%EERI%G & !EC#%OLOG) 1)
MOBILE COMMERCE
locked into Gclosed-wallU relationships with access to limited% proprietary content and
services. 2ut% like the wired 6nternet% this will evolve into a more open model
characteri<ed by a proliferation of relationships between ,ontent 9roviders% ,ontent
!ggregators% -obile 9ortals and Zetwork Operators all looking to own a piece of the
customer.
C.".S#A# COLLEGE O$ E%GI%EERI%G & !EC#%OLOG) 11
MOBILE COMMERCE
MAI% $EA!"RES O$ M<COMMERSE
Wireless communications provide the long sought after platform that can
make digital data transfer possible in many developing countries. #his is due in part to
the lower costs of mobile systems relative to fixed networks% the provision of short
message services 10-03 and the enabling of wireless 6nternet connections. 6n
developing countries most mobile services are prepaid using stored value cards. #his
mitigates post-paid subscription problems of creditworthiness and billing. 2y mid-
2))2 there were ")) million mobile telephone users in the !sia-9acific region. ,hina
has the largest number of mobile telephone users in the world? more than 1() million
in mid-2))2% with over 5)) million forecast by 2))*a2))8." $urope is an important
mobile market with over ")) million subscribers forecast for 2))2. #he number of
wireless communications has already exceeded the number of fixed-line subscribers%
and it is expected that in many countries% particularly developing countries%
telecommunications operators will continue to rapidly increase the number of mobile
subscribers thanks to low infrastructure and operating costs. 0urveys in the Vnited
0tates indicate that wireless services are expected to be a ma'or vehicle for customer
relationship management 1,]-3 and that the amount of business management and
marketing activities carried out using remote communications is continuously
growing.5 --commerce represents the extension of e-commerce to a mobile
environment. #he main types of e-commerce . 222% 22,% 22[ and 929.- remain. 6n
developing countries mobile business applications% especially when used by small and
medium-si<ed enterprises in remote areas% may become a key method for reaching
potential customers% and are expected to be highly important features of m-commerce.
6n 2))2 worldwide m-commerce revenues are forecast to be 'ust below +*) billion.
#he Vnited 0tates and Western $urope will dominate actual and forecast revenues
through 2))*. 2ut by 2))* sales generated in the !sia-9acific region and the rest of
the world are expected to register a significant increase% approaching 5) per cent of
the global +22* billion m-commerce revenues forecast. [iven that global revenues in
2))1 were about +2) billion and very small in regions outside Zorth !merica and
$urope% it is difficult to determine what the ma'or m-commerce transactions have
been. -ost m-commerce is 22, where micro-purchases are involved. barger
transactions continue to be conducted using the usual e-commerce methods. #he surge
in mobile handset use throughout the world% the dramatic growth of the 6nternet% and
the proliferation of 9! 1personal data assistants3 are expanding the e-commerce
market in which m-commerce is expected to flourish.8 ! number of uni/ue
advantages of m-commerce have been identified?c Immediacy. ,onsumers are
constantly moving% working% commuting% travelling% sociali<ing and shopping. --
commerce lets them buy goods and services as soon as the need arises.
? Co11e-ti3ity. Vsers sharing a common location or interest can be instantly
connected via text messaging and mobile chat capabilities. !dvertisers can use such
C.".S#A# COLLEGE O$ E%GI%EERI%G & !EC#%OLOG) 12
MOBILE COMMERCE
access to promote products and make special offers with the expectation that
subscribers will answer and listen to their messages.
? Lo-ali>atio1. With the deployment of positioning technologies% such as the global
positioning system 1[903% companies can know users; whereabouts and will be able
to offer goods and services specific to their location.
? (ata 6ortability. Vsers can store profiles of products% company addresses%
information about restaurants and hotels% banking details% payment and credit card
details% and security information% and access these when needed for purchases or for
making contact% all from their mobile handsets. 6nternet use has been dependent on
personal computers 19,s3 and a fixed-line network. !nd the growth of the 6nternet
drives e-commerce. ,onse/uently% until the advent of mobile telephone% e-commerce
has been dependent on expensive infrastructure and e/uipment. #oday% however%
there is a growing convergence of the 6nternet and mobile communication. Handsets
are ac/uiring functionalities that were limited to desktop 9,s only a few years ago.
-any are already running slimmed-down versions of 9, operating systems and
applications% and the difference between future handheld and desktop devices is likely
to be related to the ergonomics of the physical user interface that will be designed to
serve a particular purpose% rather than lack of processing power% memory or network
accessibility. #he 6#V reports that 22* countries and territories have dial-up 6nternet
connections . that is% a link to the 6nternet through a local telephone line. 6n 2))1
there were over *)) million 6nternet users% representing :.2 per cent of the world;s
population. [lobal distribution of 6nternet access% however% remains dominated by
developed countries% where over half of the adult population is online( 1see chapter 1
for a detailed analysis of the 6nternet population3. Wireless access is likely to be the
principal means of bringing more people in developing countries to the 6nternet. >or
that purpose% mobile networks and handsets need to be upgraded to carry data and
messaging% as well as traditional voice services. #he introduction of Gthird
generationU 1"[3 and 6nternet-enabled handsets in Zorth !merica and $urope is
imminent. >or the rest of the world% second generation 12[ and 2.*[3 mobile
capabilities have opened-up opportunities for narrow-band 6nternet access and 0-0
1see box 15 for standards definitions3.
C.".S#A# COLLEGE O$ E%GI%EERI%G & !EC#%OLOG) 1"
MOBILE COMMERCE
MOBILE COMMERCE E%ABLI%G !EC#%OLOGIES
#he talk on m-commerce wouldn;t have been possible but for a tremendous
upsurge in the development of various technologies which enable the data
transmission over a mobile network. -obile technologies can be categori<ed as
follows?
1. Zetwork #echnologies
2. 0ervice #echnologies
". -obile -iddleware
5. -obile ,ommerce #erminals
*. -obile 9ersonali<ation #echnologies
8. Wireless 6nternet 0tandards
%E!'OR; !EC#%OLOGIES
-obile protocols can provide a continuously increasing array of services to
users. #he introduction of mobile communications continues to be sub'ect to
competing technical solutions. 6n contrast with the gradual development of fixed line
telephony% these technologies are being introduced almost concurrently% even within
the same country. #he most advanced third generation 1"[3 is being introduced in
developed countries% whereas second generation 12[3 less powerful technology is
being applied in many developing countries. #he following transmission technologies
are likely to co-exist for some time in the future.
2[ is the present widespread standard and consists of several
implementations. [0- 1[lobal 0ystem for -obile ,ommunications3 operates in the
7)) -H< and the 1%:)) -H< 11%7)) in the Vnited 0tates3 fre/uency bands and is the
prevailing standard in $urope and most of the !sia-9acific region. #he popularity of
[0- provides the critical mass making it possible to develop a large variety of
innovative applications and services economically. Other 2[ [0- type technologies
include !-90 and 9,. 6n the Vnited 0tates% &apan and ,hina% ,-! is an
important standard.
2.*[ mobile technology has been developed to provide voice and data services
in parallel in order to bring data services and 6nternet access to mobile handsets. 6t
also has several implementations. [9]0 1[eneral 9acket ]adio 0ervice3 is a packet
switched wireless protocol that offers instant access to data networks. 6t permits burst
transmission speeds of up to 11* _bit=s when it is completely rolled out. ! real
advantage of [9]0 is that it provides Galways onU connection 1i.e. continuous 69
connectivity3 between the mobile terminal and the network% while users only pay for
data that are actually transmitted. [9]0 networks are already operational in $urope
and are being introduced in 0outh-$ast !sia and other regions% for example 0outh
C.".S#A# COLLEGE O$ E%GI%EERI%G & !EC#%OLOG) 15
MOBILE COMMERCE
!frica. $[$ 1$volved ata [0- $nvironment3% a more evolved protocol that offers
data delivery rates of up to ":5 _bits% and [9]0 are considered evolutionary steps on
the path from 2[ to "[.
"[ is the generic term for the formal standard 6-#-2))) 16nternational -obile
#elecommunications 2)))3 adopted by the 6#V. #he standard was devised in order to
support the development of broadband wireless 6nternet access. ]ather than
establishing a technical specification% the 6#V set forth criteria that implementations
had to meet in order to achieve an 6-#-2))) classification. #here are several
implementations based on 6-#-2))). ,-!2))) was developed by the #hird
[eneration 9artnership 9ro'ect 2 1"[9923 consisting of five telecommunications
standards bodies? !]62 and ##, in &apan% ,W#0 in ,hina% ##! in the ]epublic of
_orea and #6! in Zorth !merica. ,-! irect 0pread is also known as
W,-1V-#03 and W,- 1o,o-o3 in &apan. #-0,-! was proposed by
,hina Wireless #elecommunication 0tandards group 1,W#03 and approved by the
6#V in 1777. #he ,hinese !cademy of #elecommunications #echnology% in
cooperation with private sector partners% developed the technology. -ultiple "[
licenses have been issued in [ermany% &apan% the ]epublic of _orea% the Vnited
0tates% and the Vnited _ingdom.
Wireless bocal !rea Zetworks 1Wb!Z3% while more m-business than m-
commerce% are gaining ground. !voiding laying cable and using fixed lines can be a
great advantage in a vast number of situations% ranging from business conferencing to
managing very large production or construction sites. :)2.11b is a Wb!Z
implementation that is designed to substitute for wired networking and allows users to
move around in buildings and remain connected. 6ts range is about *) meters indoors
and *)) meters outdoors. 2andwidth is specified up to 11 -bps and decreases with
range. #he 2luetooth Wb!Z implementation allows mobile phones% computers% and
personal digital assistants 19!s3 to interconnect easily with each other using a short-
range wireless connection. 6t has a range of about 1) meters and a bandwidth of up to
" -bps. 0ee presentation of technologies being deployed in mobile communications%
using example of ,hina% >an Jing% and ,yber
[0-
H0,0
[9]0
$[$
"[
,-!
SER2ICES !EC#%OLOGIES
0-0? 0hort messaging service
W!9
6--ode
V00
,ell 2roadcast
06- !pplication #oolkit Web ,lipping -$x$
C.".S#A# COLLEGE O$ E%GI%EERI%G & !EC#%OLOG) 1*
MOBILE COMMERCE
MOBILE MI((LE'ARE
-obile 9ortal 9latforms -obile ,ommerce 9latforms -obile 9ayment 9latforms
MOBILE COMMERCE !ERMI%ALS
Operating 0ystems 9hysical #erminals -icro browser
0martcards
9_65
0ynchroni<ation
MOBILE PERS%OLI@A!IO% !EC#%OLOGIES
,ontent elivery and >ormat
J-b
W-b
4J-b
WWW? ---
'IRELESS I%!ER%E! ACCESS S!A%(AR(
2luetooth
:)2.11b
&ini
Vniversal 9n9
H!4i
Hb#
0trings
C.".S#A# COLLEGE O$ E%GI%EERI%G & !EC#%OLOG) 18
MOBILE COMMERCE
M<COMMERCE/APPLICA!IO%S A%(/!RE%(S
-obile telephone customers in many developed countries are starting to use
handsets to make purchases from retail stores% conduct personal banking and make
travel reservations% as well as to view sports and news programmes% and search the
Web 1see box 1*3. 6n [ermany% for example% mobile users are said to Ghave a
moderate attitude toward many new servicesU% yet about 2* per cent are particularly
interested in m-commerce possibilities. 6n the Vnited 0tates mobile phones are often
kept in family cars and used as auxiliary communication devices% rather than being
carried and used continually by family members. 6n $urope% the greatest interest in m-
commerce seems to be in 6taly whose large population of mobile telephone customers
have indicated an interest in paying bills 1*8 percent3 and conducting banking
transactions 18) percent3 via wireless devices. -obile service providers allow both
prepaid and post-paid account subscribers to register and link their cash=debit cards
with mobile phone subscription accounts. #his allows subscribers to conduct mobile
transactions for services and goods offered through their particular mobile service
provider% for example topping up of prepaid accounts and purchase of theatre tickets.
,ertain commercial activities using 0-0% such as hotel and restaurant reservations%
could eventually lead to a growth in m-commerce applications. #he following
discussion takes a more detailed look at several promising applications.
A. SMS
0ince 1772 0-0 has allowed people to send and receive text messages using
their mobile phones. $ach message can contain up to 18) alphanumeric characters.
0-0 is the backbone of m-commerce% with the number of messages totalling billions
in 2))1. One of the greatest concentrations of 0-0 users is in 0ingapore% where *2
per cent of phone users utili<e 0-0 more than once a day. 0-0 use in !ustralia%
,hina and the 9hilippines is reported to be almost as high. #he global average%
however% is 2" per cent.1: 6n ecember 2)))% >ilipinos were sending almost *)
million short messages a day% or around 7 per subscriber. #he 9hilippines is the leader
in per capita 0-0 usage% accounting for some 1) per cent of all short messages sent
around the world. #he 9hilippines had :.* million mobile telephone subscribers in
&une 2))1.#he number of mobile telephones in use exceeded the number of fixed
lines in 2)))d it continues to grow rapidly and is expected to reach 1* to 2) million.
0-0 is said to offer a practical alternative for those who do not have a computerd
mobile telephone subscribers outnumber 9,s in the 9hilipinnes by 5 to 1. ! mobile
short message is actually much cheaper than a telephone call. 0-0 was initially free.
! nominal 2 cents charge was introduced in 1777. 0-0 accounts for a growing
portion of mobile telephone revenues% since for every call made on a mobile phone% an
average of 1) short messages are sent. Wireless !pplication 9rotocol 1W!93 remains
C.".S#A# COLLEGE O$ E%GI%EERI%G & !EC#%OLOG) 1(
MOBILE COMMERCE
expensive for 22, m-commerce applications. >inally% the vast ma'ority of >ilipinos
still do not have credit cards to use for online transactions or may have insufficient
bank account balances to tie a debit card to direct debit.
4. Mi-ro<6ayme1ts
--commerce offers vast opportunities to make micro purchases easier. #hese
can be as simple as buying from a vending machine% paying a parking meter or
purchasing gasoline. !mong the most widespread mcommerce applications using
0-0% is making payments through post-paid accounts linked to debit cards. 6n the
case of subscriptions to information services% the mobile service provider charges the
customer through monthly bills. However% in many developing countries a shortage of
consumer credit systems and the lack of automated payment systems that can be
conveniently used for wireless electronic payments are hampering advancement of m-
commerce. -icro-payments and settlements via wireless are growing rapidly in a
number of developed countries. $stimates for 2))2 are typically around +1.*
billion.2) >orecasts for wireless micro-payments speak of + 2)) billion worldwide by
2))*% with more than + 5) billion in the Vnited 0tates.
+. $i1a1-ial Ser3i-es
! wide variety of mobile payment and settlement methods are currently used
in various countries. 6n the ]epublic of _orea% mobile 6nternet customers prefer to
integrate charges for purchases into their monthly telephone bills. &apanese often
prefer to pay mobile 6nternet charges and usage fees in cash at convenience stores.
9repaid value cards are widely used in &apan. However% a growing number of
services% such as speciali<ed information services% can be charged to monthly
telephone bills. ! new system will be introduced before the end of 2))2 that uses
mobile handsets with an infra-red interface that would automatically debit prepaid
cards. #he cost of e/uipping handsets with an infra-red interface will be absorbed by
savings resulting from operators and vendors not installing new vending e/uipment.
6n &apan there is great interest in this new mobile techni/ue. >igure 5 illustrates the
priorities of &apanese and ]epublic of _orea consumers. 0aving time% simplicity and
speed of payments are the main advantages of mobile settlements. #he following
characteristics are listed in order of importance?
c 9aymentsd
c ]apid paymentd
c ]ecord of payment providedd
c bess cash to carry aroundd
c 9oint-of-sale convenienced
c 0ignature not re/uired.
! number of concerns still exist and demonstrate the novelty of mobile
settlements and people;s lack of awareness about how to take advantage of them. #he
main concerns are?
c ifficulty in making a payment or a financial transactiond
c ]isk to the confidentiality of personal datad
c ifficulties in processing payments% including loss of paymentsd
c 9roblems stemming from the loss of a mobile device% which someone might find and
use to make illegal purchases.
C.".S#A# COLLEGE O$ E%GI%EERI%G & !EC#%OLOG) 1:
MOBILE COMMERCE
-obile banking is still hampered by the re/uirement for standardi<ed payment
cards and online systems. #here has been more success with securities trading%
however% where investors can buy and sell shares using their mobile handsets. Other
areas are opening up .for example% insurance% here potential customers can receive
offers and submit personal details for premium /uotes by insurers% all with their
mobile phones. -obile communications provides insurers with yet another way to
interact with% and obtain information from% potential customers. #he most immediate
benefits are reducing administrative costs and bringing innovative and less expensive
services to a wider market. !n important facet of mobile technology will be to enable
insurance agents and field representatives to provide better customer service. !gents
tend to focus on clients who they believe will take out larger policies% while the low
end of sales and marketing through m-commerce has the potential to extend insurers;
reach into previously underserved segments where agent penetration is low. 2uying
habits are changing in that many customers want online access to product information
and /uotations and want to pay premiums% compare prices% access and update their
policy information and claims status and receive customer service . all online.
]egarding direct insurance sales% a vast market of potential buyers could be reached
through the use of mobile-based insurance marketing methods. #he present level of
mobile media richness and the interface /uality of commercial handsets may not
satisfy regulatory re/uirements for selling insurance products% including policy
delivery and payment% in most countries. Owing to government supervision and
policy complexity% mobile insurance may have to wait for "[ before making real m-
commerce headway. -obile services include all those products provided by securities
brokerage firms. Wireless technology enables customers to bypass ordering in person
or by telephone% thus opening the securities market to enlarge number of potential
buyers. 6n addition% brokerages supply financial information and market data to
investors through their mobile handsets. #his provides individual clients who have
online accounts with instant access to the buying and selling of securities. However%
because of poor user interface of mobile telephones and 9!s% significant mobile
trading is not expected before 2))* and the full roll-out of "[ and associated
handsets.
B. Logisti-s
#he potential of mobile communications for generating greater efficiency in
transport and logistics is widely acknowledged. #he movement of goods within
developing countries% as well as with regard to imports=exports% has traditionally been
slow and inefficient owing to a lack of modern logistics ystems.6,#s have become the
key to achieving efficient logistics. bogistics costs in developed countries add about
12 per cent to the retail cost of a product% whereas in developing countries this may be
as high as 2) percent. #ransport and logistics will clearly benefit from the
introduction of wireless services and% in doing so% expand m-commerce. Wireless data
access will make it possible to follow goods movements throughout the supply and
value chain. With the growing use of information technologies in cargo booking%
tracking% clearance and delivery by ma'or shipping lines% as well as in customs
clearance% ports% warehouses and stock points% external and internal trade will become
more efficient. #he challenge lies in the introduction of hardware% software and
networking which are costly and re/uire technical expertise to operate. #rackability
and traceability need to be ensured through interfacing technologies such as 6 chips
and bar codes. -obile communications devices will then help link-up the supply
C.".S#A# COLLEGE O$ E%GI%EERI%G & !EC#%OLOG) 17
MOBILE COMMERCE
chain. #ransport is typically multimodal% ranging from rail-water-air-shipping to
express delivery services. #he introduction of intelligent transport services further
increases the value of mobile communications in the logistics supply chain% in
particular for support services such as pick-up and delivery of goods.
C. I1.ormatio1 ser3i-es
Zews% weather reports% and traffic and map information have increasingly
become the services most sought after by mobile telephone subscribers. 0ince the
launch of mobile services in &apan in 2)))% as many as ") per cent of all mobile
customers indicate that they are users of those information services. #his is three
times the 9,-based usage of paid information services. #here is a charge by mobile
service providers of about +2.*) 1")) yen3 per month for unlimited access to a menu
of information services.2* Over 7) percent of mobile users in &apan access bank
account data through their handsets. >igure * outlines the popularity of various mobile
services in &apan. 4alue added text messaging is the use of 0-0 to provide a content
service or product to the consumer at a premium price. #he value added to the text
message by the application or the content contained therein is assumed to be above
and beyond that of a standard text message and the consumer knowingly consents to
be billed for that added value. 6n 6reland% this is known as premium text messaging. 6t
will involve the allocation of a *-digit short code so that consumers will understand
they are accessing premium services and will be prepared to pay for them.28 !n early
entrant will be m9erium% which will launch an m-payments solution using text
messaging that will enable websites to charge their audience for time-metered access
on their mobile telephones.2( Other services that could be available are? event-driven
content .sports alerts for a favourite team% personal investment information and alerts%
industry sector news alerts% travel information such as locali<ed real-time traffic news%
and other local information.
6. 'ireless/CRM/Ser3i-es
,ustomer relationship management 1,]-3 services usually consist of a set of
methodologies% software and 6nternet capabilities that are coordinated and co-
integrated and whose purpose is to help an enterprise manage its relationships with
customers. ,ompany activities can be very varied and may not always be managed in
a coordinated way from a customer-centric point of view. #he advantages for
consumers of having better coordination between% say% research and development%
manufacturing and after-sales services may translate for the company into marketable
value added or increased competitiveness. -uch of any commercial organi<ationes
activities% including business operations and customer servicing% falls within the scope
of ,]-. #herefore% its large si<e% as shown in figure 8% is not unexpected. ,]- can
transform knowledge and data stored in companies by applying them% in real time% to
existing and potential sales and service opportunities% in particular through access to
an enterprise;s data% message systems% remote sales force automation and order
tracking. 6t has been forecast that in the Vnited 0tates between "* per cent and 5) per
cent of company sales and support personnel will be using mobile devices within the
next two to three years. -obile technology is starting to emerge as the newest value-
added feature for ,]-.27 $xtending ,]- to wireless devices will enable enterprises
to be more proactive in their marketing and sales by providing continuously updated
C.".S#A# COLLEGE O$ E%GI%EERI%G & !EC#%OLOG) 2)
MOBILE COMMERCE
information to field representatives% as well as by offering customers a broader array
of contact and self-service options. #hree levels of benefits are expected?
1. Wireless ,]- enables greater mobili<ation of the sales force% replacing periodic
data synchroni<ation with real-time information concerning products% client status%
purchase history% inventory levels% product vendor information% order tracking and
related data. #he sales force will also have wireless financial transaction capabilities%
shortening the sales cycle and increasing enterprise responsiveness.
2. Wireless ,]- facilitates a higher level of customer support by providing
additional contact channels for clients seeking information or technical assistance. 2y
extending customer data to mobile devices% the enterprise enables its support staff to
better anticipate and respond to customer issues and enables customers to take
advantage of self-service support and transactions via their mobile phones or 9!s.
". bocation-based marketing will be an extension of current marketing automation
and customer analysis systems. #hese emerging applications are expected to stimulate
m-commerce by extrapolating location-specific buying behaviour to provide
information to mobile device users.
5. Oter/Mobile/Ser3i-es
--commerce opens up a myriad of options for new electronic services. #hese
include making appointments% voting% applications for membership or membership
renewal and entitlement cards% and alarm systems. Zorway provides an excellent
example of this diversity of m-commerced box 18 outlines the range of currently
available services% and those soon to be available% in that country. ! survey of
fre/uently purchased items in the ]epublic of _orea found buying habits similar to
those in &apan. !bout 12 per cent of mobile subscribers indicated that their main
preferences are buying movie tickets% cosmetics% banking% audio-visual and electronics
products.
C.".S#A# COLLEGE O$ E%GI%EERI%G & !EC#%OLOG) 21
MOBILE COMMERCE
PRI2AC)/A%(/(A!A/PRO!EC!IO%
#he need to protect personally identifiable data has received the attention of
national policy-makers and international organi<ations for more than ") years. With
the advances in wireless communications% concerns have again arisen about loss of
control over personal information. 0ome 5) countries have adopted national data
protection laws% ranging from ,anada and !rgentina to 0weden and [reece% and
#hailand and the ]epublic of _orea. 6nternationally% the Organi<ation for $conomic
,o-operation and evelopment and the ,ouncil of $urope% have adopted legal
instruments for their member countries governing the collection and use of personal
data.
A. Regulatory issues
2ecause mobile communications services are new and operators are being
licensed to compete with incumbent carriers% a number of policy and regulatory issues
must be resolved. 6nterconnection between fixed-line operators and competing mobile
operators has been the ma'or difficulty constraining mobile development. #he
predominant conflicts over mobile interconnection have occurred in developed
countries where several operators are seeking to gain market share. eveloping
countries have experienced fewer problems when national regulators have insisted on
rapid deployment and fairly priced interconnection rates. -any developing countries%
however% have limited geographical coverage for mobile telephone use% some
operators charge both caller and receiver% and transmission standards still need to be
harmoni<ed. ! new $uropean ,ommunity irective that Gadapts and updates existing
provisions to new and foreseeable developments in electronic communications and
technologiesU is now replacing the existing telecommunication irective. 6t is
expected to be adopted before the end of 2))2. #he revised irective stipulates that
the location data% giving the geographical position of mobile users; terminal
e/uipment% as in road transport services that provide traffic information and guidance
for drivers% may not be used for surveillance purposes. #raffic data in general may be
collected and used only with the consent of the subscriber. 6t has been recogni<ed that
commercial users of wireless communications should be sub'ect to codes of fair
personal information practice% established by public law or self-regulation. #he
Wireless !dvertising !ssociation 1W!!3% an international trade group% has adopted a
privacy policy that should be readily available to consumers. Vnder this policy W!!
members should give users notice and choice regarding the use of personal
information obtained. 6t may be used only for the purpose for which it was collected
unless users explicitly consent to its being used for other purposes. >urthermore%
W!! members are re/uired to make every effort to ensure the security of personal
information and% where reasonable% allow wireless subscribers to correct or delete
C.".S#A# COLLEGE O$ E%GI%EERI%G & !EC#%OLOG) 22
MOBILE COMMERCE
such information. #he specific provisions of the W!! privacy policy re/uire that a
member company must make known to potential recipients?
1a3 what information is being collectedd
1b3 its policy on data storaged
1c3 the choices available to an individual regarding policy on collection of personal
informationd
1d3 the use of personal informationd
1e3 any third-party collection of personal information% together with a statement of the
organi<ation;s commitment to data securityd and
1f3 what steps the organi<ation takes to ensure data security and access by the
consumer to his=her records.
4. Mobile se-urity
,oncerns about e-commerce security are only heightened in the m-commerce
domain. >ixed-line 6nternet and 9,-based browser technology provides a media
richness and interactivity that can be used to implement technological security and
assure commercial partners that transactions are under way safely and surely. 6n
contrast% the present-day mobile interface% be it 0-0 or W!9% is fairly poor and does
not inspire confidence. >urthermore% worries about data interception in the wireless
medium are heightened% unlike in the case of fixed-line access% through an imperfect
understanding of the technology. >inally% mobile handsets are more prone to theft and
conse/uential misuse% particularly since they may contain passwords% keys and
personal identification numbers 196Zs3 used to provide the authentication and data
integrity re/uired for verifying financial transactions. 0ecurity is vital if m-commerce
is to become an electronic wallet for micro-payments for customers worldwide. 6n
addition to digital signature laws and regulations% certification authorities are being
created by governments% financial institutions and other bodies% or are licensed to
private entities% so that parties to e-commerce transactions can know the identity of all
entities or individuals involved. #o ensure m-commerce payment interoperability
among devices and networks% the financial-services backed -obile 9ayment >orum
was established in Zovember 2))1."2 6nitial members were -aster ,ard
6nternational% 4isa 6nternational% !merican $xpress and the &apan ,ard 2ureau. #he
>orum now has :7 members. 6t is cooperating with the 9ay ,ircle consortium and the
-obile $lectronic #ransactions initiative% supported by wireless and 6nternet
infrastructure vendors and handset manufacturers. #he >orum;s work should lead to
secure m-commerce by migrating existing security mechanisms to the mobile
environment% or by installing similar security levels for authentication% data integrity%
privacy and non-repudiation. 6ts work covers both existing and emerging
technologies% including symmetric keys and biometrics. !nother organi<ation%
]adicchio% is a global initiative of over *) companies in m-commerce and security
industries that promotes m-commerce solutions based on public key infrastructure
technology for personal handheld devices and wireless network. #his initiative is a
cross-industry non-profit organi<ation% representing the interests of mobile operators%
system integrators% hardware manufacturers% certification service providers and
financial service providers% as well as software houses.
C.".S#A# COLLEGE O$ E%GI%EERI%G & !EC#%OLOG) 2"
MOBILE COMMERCE
C#ARAC!ERIS!ICS O$ 'IRELESS
#he key characteristic of the wireless device can be summed up in two words
Gubi/uitous interactivityU 1>igure 23. 6t is a personal device% which is always a handy
and available at all time on a person. 6n addition% the device carries its user identity.
#his is a significantly distinctive characteristic as compared to a 9, or a laptop% which
are not
C.".S#A# COLLEGE O$ E%GI%EERI%G & !EC#%OLOG) 25
MOBILE COMMERCE
generally handy or easy to use at a moment;s notice% although they may be available
at all times. 0econd% a wireless device is distinctly personal and the usage can be
tracked down to an individual rather than the household as in the case of a 9, or other
devices.#hird%wireless technology is Glocation awareU . that is% it is easy to track
down where the user physically is as long as the wireless device is on. #hese
characteristics have important marketing implications% as we will later analy<e. #he
wireless technology also has some constraints that limit its usage in the near future.
[iven the constraints of its si<e for a handy usage% the user interface of a wireless
device is /uite limited and cannot display information-rich content in a useful way.
#his constraint also limits the client capabilities for processing and storing
information and data. -ost importantly% the bandwidth over the air for wireless
transmission is also a constraint in the near future. #hese constraints limit the use of
wireless technology for predominantly text-based% less information-intensive
exchanges and interactions. #hus% if wireless environment is viewed purely as an
extension of the 6nternet environment% it is a downgraded Web access at best. Zew
possibilities for commerce using the wireless technology emerge when it is seen not
'ust as a Web access. 0ince wireless is a personal device% it is easy to use for
identification and authentication purposes both for restricted access and for payment
purposes. #his implies that it could be used as a substitute for credit cards. #he fact
that it is available at all times to interact with users suggests that it can be used to
obtain instant feedback from customers at the usage context for market research
purposes. #he location awareness characteristic of wireless technology also suggests
the possibility of providing consumers advertisements% information content 1e.g.% price
alerts3 at the point of need% be it in a car% or in a brick-and-mortar store% or any other
place. -any players in the wireless application arena are attracted to the enormous
potential that wireless technology has in customer ac/uisition and retention. #here are
four factors that make wireless the ideal technology to implement the concept of
customer relationship management 1,]-3?
113 the ability to provide truly personali<ed content and service by tracking personal
identityd 123 the ability to track consumers across media and over timed 1"3 to provide
content and service at the point of need% and finally% 153 the capability to provide
content of highly engaging characteristic.
[iven this it is not surprising that business-to-consumer wireless applications
dominate the list of commerce applications that are emerging in the market place 1see
>igure "3.6n the 22, domain% wireless can be effectively used to provide point-of-
purchase support for the buying goods in a brick and mortar 12f-3 environment.
#his could be retrieval of product information 1price% /uality ratings of alternatives
from different competitors3% usage of the product information% budget and payment
information% etc.!nother possibility is the use for auction purchases where the
anywhere% anytime /uality of wireless technology proves very useful. 0imilar uses
could be visuali<ed in the 222 arena but impact is a little less significant. #he most
significant possibilities lie in the marketing of services over wireless% ranging from
interactive games% gambling% booking and ticketing for travel% hotels and events%
banking and stock trading% and for e-promotion and marketing research purposes.
Wireless also provides a very viable means of streaming customi<ed content 1cross
media content . music% text information at the point of need% advertisement3 and for
interaction with other users 1e-mail% chat% discussion etc3. 6t is to be noted that
substitutes for wireless exist for most of the above applications and wireless will
become the device of primary choice for these applications when all the virtues
C.".S#A# COLLEGE O$ E%GI%EERI%G & !EC#%OLOG) 2*
MOBILE COMMERCE
!#E MOBILE !EC#%OLOG) LA%(SCAPE
#hroughout this paper we emphasi<e that m-commerce and e-commerce are
very different. #his observation extends to technology where the wired 6nternet has
already reached a state of maturity relative to the wireless 6nternet% which is beset
with a multitude of competing standards. #he figure below provides a high-level view
of 'ust how different the wireless technology landscape is from the wired 6nternet% and
indeed how much more complex it is.
6n this section we highlight the ma'or technology components of the wireless 6nternet
and describe some of its key differences from the wired 6nternet.
WWBearer %etwor0s.
#oday;s wireless networks are an alphabet soup of incompatible technologies and
standards. 0ubscribers cannot use their mobile devices outside their coverage area%
and developers are potentially forced to create multiple versions of the same
applications. 6n contrast% the wired 6nternet is a more homogeneous environment with
implemented standards globally. 0ome analysts suggest that due to a single dominant
network standard% [0-% $urope is 1: months ahead of the V0 wireless market. 2y
October 1777% 21* million people 1or *)` of the world;s mobile phone subscribers3
used phones supported by [0- networks. Of this total% only * million subscribers
were in the V0 with the balance spread across other standards like #-! 1!#f#3%
,-! 10print and 4eri<on3% and i$Z 1Zextel3.#wo further criticisms leveled at the
current second generation 12[3 bearer networks are low bandwidth and limited
network capacity which negatively impact the user experience and the reliability of
C.".S#A# COLLEGE O$ E%GI%EERI%G & !EC#%OLOG) 28
MOBILE COMMERCE
the service.G"[U is the generic term for the next giant step in mobile technology
development with its goal being a single% high-speed network standard. On the
downside% upgrading from 2[ to "[ re/uires significant capital investment. >or this
reason many view 2.*[ as more than 'ust an interim solution as it delivers significant
bandwidth improvements at greatly reduced cost. 16n the V_% for example% five "[
mobile licenses were auctioned off at an average cost of +( billion with the
expectation that it will cost each license-holder between +5 billion and +7 billion to
build out their "[ network.3
(E2ICES.
#he ^ankee [roup estimates that by 2))" there will be more than 1 billion
Web enabled mobile devices% but this number does not reveal the fact that there will
be a broad range of individual devices. ,ompanies must account for the uni/ue
attributes of different mobile devices when deploying their m-commerce strategies.
evice attributes can be broken down into the following categories?
functionality . including voice% text and graphics
physical form including handset si<e% screen si<e and type% and input device
method and speed of access . including wireless modem and syncing
6n contrast% accessing the wired 6nternet is typically achieved through a single device%
the personal computer% with its large color screen% \W$]#^ keyboard and relatively
high-speed Web connection. #he primary mobile devices include?
C.".S#A# COLLEGE O$ E%GI%EERI%G & !EC#%OLOG) 2(
MOBILE COMMERCE
P(As 8Perso1al (igital Assista1ts:7 ,onnect to the 6nternet through wireless
modems or are synced offline with a Web-enabled 9,. $xamples? 9alm 9ilotd
Handspring 4isord H9% ,ompa/ and ,asio 9ocket9,sd and 9sion ]evo.
Low<e1d Smart 6o1es7 Web-enabled cellular phones either supporting W!9
technology or some proprietary micro browser.
#ig<e1d Smart 6o1es7 Hybrid of mobile phone and 9!% supporting voice and
data services like email% 6nternet access% 0-0 and personal organi<ation tools.
$xamples? Zokia;s ,ommunicator and $ricsson;s -,21:.
Pagers7 #he latest generation of pager supports two-way messaging and personal
organi<ation tools. $xample? ]6-;s 2lackberry.
(igital Pa6er7 $nables the use of specially developed pen and paper to interact
with mobile devices% desktop computers and the 6nternet. Vsers will be able to take
notes or draw diagrams without being constrained by the limited screen si<es of 9!s
or the bulkiness of laptops. $xamples? ,ross; Zet9en and ,rosspad.
OPERA!I%G S)S!EMS.
#he wired computing environment is largely homogenous% comprising a
relatively limited set of mature and interoperable operating systems. 6n contrast% there
are a plethora of operating systems and micro browsers used to run Web-based
applications on mobile devices.
$ach general category includes a number of mobile devices designed to run different
operating systems and micro browsers?
PDAs 9alm% Windows ,$% $9O,=0ymbian
High-End Smart phones 9alm% Windows ,$% $9O,=0ymbian
Low-End Smart phones 9hone.com V9.2rowser% Zokia 2rowser
Pagers ]6- O0% -otorola O0% and other proprietary O0s
C.".S#A# COLLEGE O$ E%GI%EERI%G & !EC#%OLOG) 2:
MOBILE COMMERCE
M<COMMERCE C#ALLE%GE
While the business opportunities that m,ommerce presents are compelling%
capitali<ing on these opportunities is deceptively complex. On the surface%
implementing m,ommerce successfully involves increasing available wireless
bandwidth% converting existing personal digital assistants 19!s3 and cell phones to
6nternet-enabled devices% and offering all of the 6nternet ",s 1content% commerce and
community3 that have been so successful in the wired world. 2ut upon closer
inspection% m,ommerce presents myriad challenges. 6n particular% the content%
commerce% and community of the wired world is not entirely the same for the wireless
or mobile world. >or example% in the mobile world% 6nternet-based activity often
relates to the physical location of the user 1aka the gpoint of actiong3. 6n addition%
information and services must be adapted to smaller screens% limited input methods%
shorter user sessions and lower bandwidth% compared to traditional wired information.
2ut most importantly% unlike the wired world% a large number of supply chain partners
will need to work together to offer customers the right mix of information and
services% even as they compete for customer revenue. #his challenge will evolve and
is likely to be mastered only after repeated trials 1with hopefully few errors3. #he
winners will be the players that can rapidly and cost effectively form% modify and
manage new supply chain partnerships. 6n the voice-only world% success involves
selling minutes of air time. 0ustaining average revenue per user 1!]9V3 customers is
a matter of effective marketing. ,arriers with sole control over subscribers use
innovative packaging and related voice services as the primary weapons to grow
revenue. 6n contrast to the voice-only world% the wireless data arena involves selling
kilobytes. 2ut in this case% a kilobyte can be a weather update from one content
provider% a stock trade confirmation from another provider% an e-ticket to a movie
down the street% or an instant chat message from a friend. #he carrier;s challenge is to
work with the content and service providers who provide the underlying value of
these kilobytes% to handle customer in/uiries and issues% to ensure fair share of
revenue% and administer new or changing accounts. 6n anticipation of the inevitable
spread of m,ommerce from $urope and &apan to the V.0.% spectrum licenses are
being purchased at great expense% and service providers are beginning to tool up to
offer the 6nternet ",s via this new distribution channel. !t the same time% location-
based technology has matured. #he outstanding challenge is to establish an integration
infrastructure that can link m,ommerce supply chain partners% reduce implementation
and operation costs% and allow for future growth and changing business models.
C.".S#A# COLLEGE O$ E%GI%EERI%G & !EC#%OLOG) 27
MOBILE COMMERCE
!EC#%ICAL PROBLEMS I% S"PPOR!I%G MOBILE
E<COMMERCE !RA%SAC!IO%S
We take here the view that the dominant form of mobile $-commerce will be
based on miniature% hand-held devices. _eeping this in mind% one can argue that the
same or similar $-commerce services as discussed above in 0ection " can be
offered to mobile terminals% e.g. to W!9 terminals. #here is a strong pressure to go
into this direction among the banks% mobile e/uipment manufacturers% and other
service providers. What are the problemsY We have discussed the basic problems
above% as concerns the security% authentication% authori<ation etc.% and suggested
certain transaction-oriented solutions. -obility does not solve any of the problems
discussed above% on the contrary. -obile environment poses rather a /uestion% how
could even the current mechanisms be implemented in the environment.
,urrently the hand-held terminals are still more error-prone than stationary
work stations. 6n addition% it is rather common that a mobile terminal looses the
network connection. #his happens% because the terminals are effectively ,-
autonomous h"*id the user decides to turn-oj the the radio transceiver% the terminal
runs out of battery% or simply because the user moves during the transaction
processing to a place where there is no coverage. 0hould the connection be lost during
the service ordering provision transaction% e.g. at _eltainen 9orssi at the critical places
described above% it is likely that the customer will loose money. #his is because%
currently% there is no mechanism guaranteeing delivery atomicity either at the terminal
or at the bank server in the case of crash.
6t is evident that the states of e.g. such a service provision transaction as
discussed above should be logged more carefully at the three sites. 2ased on the logs%
it should be possible to continue the transaction after the terminal has been possibly
re-charged and rebooted and the communication capability has been re-established. 6t
is also evident that providing a more resilient service provision than what is offered
now at the example bank and service provider re/uires changes to the current
implementation of the services% especially at the bank site. !lso% the terminal must
store more information about the status of the transaction in order to be able to
continue it after a terminal crash or communication failure. #his re/uires some kind of
distributed recovery protocol% the exact form of which needs to be investigated.
One evident technical re/uirement in this context is that the amount of
information stored for recovery purposes at the terminal must not be large. Otherwise%
the current smallest hand-held terminals could not cope with it. !nother re/uirement
is that the algorithms needed to support the transactional mechanism% security and
authentication at the terminal should not be overly complicated% i.e. their time and
space complexity should be modest.
C.".S#A# COLLEGE O$ E%GI%EERI%G & !EC#%OLOG) ")
MOBILE COMMERCE
Which re/uirements would the above business process-oriented approach
discussed in 0ection 5 pose in the mobile environmentY >rom a mobile device point of
view% it might be hard to persistently store the entire state of several long running
transactions. #his would% however% be re/uired in practice should the customer want
to have several common checkpoints with the merchantes process 1confirming the start
of the delivery% acknowledging the delivery of the goods3.]emembering by heart
many pending orders and their status would be too tedious.
How many process variants should be supported at the terminalY >or both
!ma<on and 2okus cases a rather similar mechanism between the terminal and
merchant site would be of help when the order is placed. 0toring the state of the $-
commerce transaction 1like ordered=non-shipped% shipped% cancelled3 at the terminal
would be of benefit% especially if confirmations were used. How this could be
technically done in aW!9 environment% for instance% is not clear for the moment.8
>urther% whether it is possible to develop only a small set of typical process
specifications for the terminals remains to be seen. #hey should be so simple that
programming them using W-b0cript in W!9 environment would be feasible.
6mplementing end-to-end authentication and authori<ation at different phases
of the transaction would raise the security level of the mobile $-commerce. 6t is for
further study% whether the 06- card-based authori<ation technology can easily be
used in the context of advanced transactions.
C.".S#A# COLLEGE O$ E%GI%EERI%G & !EC#%OLOG) "1
MOBILE COMMERCE
2I!RIADS M<COMMERCE SOL"!IO%DS BE%E$I!S
4itria;s m,ommerce 0olution has been designed to empower businesses in the
m,ommerce supply. 0ummari<ing the benefits of 4itria;s m,ommerce solution?
]apid and cost-effective addition of new or enhancement of existing services to
accommodate ongoing customer re/uirements
bower costs of development and hard-coding associated with growth and changes
in partnering
$asy implementation and modification of innovative billing and settlement
schemes between supply
chain partners
6mplementation of real-time% seamless customer management via rapid and high
/uality provisioning
and customer care
!bility to affect real-time changes to subscriber accounts and gain real-time
visibility into services usage
Higher revenues through excellent customer satisfaction resulting from rapid and
error-free processes
!bility to capitali<e on business opportunities% without the need to focus on
complex technological issues.
>lexibility to rapidly modify business models as market conditions change through
automated process management
C.".S#A# COLLEGE O$ E%GI%EERI%G & !EC#%OLOG) "2
MOBILE COMMERCE
CO%CL"SIO%
#he rapid advance of technology and user re/uirement for anytime-anywhere
access inherent in the wireless world means that success in this environment depends
largely on how /uickly a wireless player can bring a new service to market and meet
customer demands. #o ensure prosperity in this space% the complexity and Gsend-and-
prayU experience of todayes mobile users must be replaced by seamless% instant access
through reliable automated provisioning% customer assurance and billing. 4itriaes
m,ommerce solution enables wireless players to automate both their internal and
external processes to more effectively respond to demanding customers. #he
functionality of 4itriaes solution helps wireless players gain time-to-market
advantage% rapidly sign on and manage partners% and p rovide seamlessly automated
service. ]eal-time visibility into customer usage and settlement status enables
wireless players to instantly respond to customer /ueries and generate new revenue
streams. ,ombined with scalability to help companies meet increasing customer
volume% 4itria provides the solution wireless players need to capitali<e on
m,ommerce business opportunities.
C.".S#A# COLLEGE O$ E%GI%EERI%G & !EC#%OLOG) ""
MOBILE COMMERCE
BIBLIOGRAP#)
www.google.-om
www.alta3ista.-om
www.bit6i6e.-om
www.as0.-om
C.".S#A# COLLEGE O$ E%GI%EERI%G & !EC#%OLOG) "5