Mobile Commerce

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Chapter 09:

Chapter 09 MOBILE COMMERCE

Understanding Electromagnetic Waves and radio Frequencies:

Understanding Electromagnetic Waves and radio Frequencies being introduced into the world of mobile commerce necessitates some sort of introductory lessons of electromagnetic waves being the means of moving or transmitting data and communication used in mobile commerce. The transformation of telecommunication system and technology as well as devices from being dependent or connected by wires as in the older versions of telephone gadget is on account of the use of electronic electromagnetic waves and radio frequencies. Radio frequencies- if the data and communication signals can be transmitted through wires and cables ,the same data and communication can be relayed or transmitted using the magnetic waves.

Evotion of Telephone Technology:

Evotion of Telephone Technology Ever since A lexander Graham Bell invested the telephone device in 1876 and recognized by the government of the United State through the issuance of patent number 174465, the use of telephones has gone as long way from its original purpose as a medium of transmission of sounds, the human voice in particular. About 25 years later, the utility of telephones from being physically connected by wires has reached a nother milestone when Guglielmo Marconi transmitted the first “wireless” message across the Atlantic Ocean in 1901, in 1967, cordless telephone was introduce in the US market.

INTRODUCTION OF WIRELESS SYSTEM:

INTRODUCTION OF WIRELESS SYSTEM The introduction of the wireless telephone devices and the speed at which telecommunication technologies have evolved particularly the satellite technology the satellite technology greatly expanded the role of wireless telephone system. Satellite system has provided a venue and a role not only in standard telecommunication applications such as relaying video-related information for the television network and other military or c ivilian purposes but also for other business-related transactions including linking mobile telephons and other devices.

Wireless versus wired System:

Wireless versus wired System Mobile commerce- evolved around the idea of working on wireless system and technologies, it is appropriate to characterize wireless technology vis - a vis wired system to emphasize its importance not only as a tool for mobile commerce but also for other business or personal use.

The Uniqueness of wireless system:

The Uniqueness of wireless system Ubiquity- the use of the wireless device enables the user to receive and transmit data and communication thus allowing conduct of business transaction anywhere at the time Accessibility- Given conduct with cell sites, mobile devices enable the users to be contracted at virtually anytime in place Convenience- the portability of the wireless device and its function for storing data to access the information or persons.

Slide 10:

d) Localization- T he emerge of location-specific based application will enable the users to receive relevant information or persons. e) Instant connectivity- I nstant connectivity or “always on” is becoming more prevalent with the emergence of 2.5 and 3G network, GPRS or EDGE f) Personalization- T he combination of location and personalization creates a new channel/business opportunity for reaching and attracting customers . g) T ime sensitivity - A ccess to real- time information such as news, stock-market quote and similar financial information can be acted upon immediately.

Slide 11:

The Global System for Mobile Communication Giving impetus and energy to global scale development and use of mobile communication system is the Global System for Mobile Communication (GSMC). GSMC is a technology that is de facto standard in Europe for digital cellular telephone service. GSMC is also available in the Americas hence; it is the most widely used of the three wireless digital technologies (TDMA, GSMC, and CDMA). GSMC supports voice, data, text messaging and cross border roaming. The Subscriber Identification Module(SIM) is a removable plastic card that contains a user’s data , which is an essential element in a GSMC network. Providers of technologies and services associated with cellular and mobile phone have formed a group called the Cellular Telecommunication and Internet Association (CTIA). The CTIA serves the interest of mobile operators, software developers, and manufacturers.

Slide 12:

Mobile Computing The variation in computer hardware construction has gone a long way from the huge main frames back in the 1960s to 1970s then to relatively compact design like the personal computer (PC) introduced in the 1980s. Unlike computer main frames, PC does not require a room solely housing computers thus limiting the workplace within the room or its vicinity where the main frame computers are installed. Laptop computers were further reduced to palm-sized devices called Personal Digital Assistants or PDA. Mobile Computing Essentially mobility or doing tasks anywhere and anytime. It is the ability to do your work on computers from composing your correspondence, writing reports and other documents, preparing worksheets and graphs, developing a slide presentation using a favorite software, analyzing a processing numeric data, processing digital photographs, preparing a multimedia presentation, or a variety of artworks on digital formats. From a stand alone use of computers without connection to the rest of the world.

Slide 13:

Concept of Mobile Commerce Mobile commerce or mCommerce is the use of the internet as well as wireless technologies and devices in the conduct of commerce or business. The terminology mCommerce is commonly associated or used synonymously with mobile business or mBusiness , which Deitel , et al. (2000) defined as essentially using wireless devices with Internet access. In like manner, mCommerce is known as next generation eCommerce. commonly perceived as aids or instruments in the mCommerce transactions are devices like laptop computers, landline telephones, satellite phones, cellular phones, PDAs, and two way radois . Gralla (2002) described mCommerce as the use of cellular phones or wireless PDAs to do buying, primarily over the Internet. Gralla pointed out that mCommerce is not really something like making a cellular phone call and placing an order by voice. Instead, it means buying a product using the cellular phone over the Internet, sometimes by browsing a wireless online shopping site and other times by making a direct connection to an individual store.

Slide 14:

Another aspect that Gralla (2002) cited as an important business use of wireless device is the idea of allowing people with cellular phones and PDAs to directly interact with large company databases and other “enterprise” software, no matter where they are. It also allows people to synchronize the data on their PDA with corporate information found on their corporate databases. This will be most important for sales people, but eventually many kinds of workers will be able to access corporate information this way. Mobile Commerce vs. eCommerce Mobile Commerce is considered a subset of eCommerce and eBusiness. Mobile commerce is a unique business opportunity with its own unique characteristic.

Slide 15:

Devices used in Mobile commerce The common and popular devices used in conjunction with the use of mCommerce include the following: Cellular Phones or Smartphones Laptop computer Personal Digital Assistants (PDAs) Satellite phones Portable TV sets Portable radio sets (VHF, UHF, CB)

Slide 16:

Cellular Phone Thus far, cellular phones are being touted and promoted on a large-scale as a technology or devices with potentials for mCommerce but the potentials of PDAs should not be underestimated. Cellular phone is type of short-wave analog or digital telecommunication device in which a subscriber has a wireless connection from the mobile telephone operator transmitter. The transmitter’s span of coverage is called a cell. A cellular telephone is not to be confused with a cordless telephone, which is simply a phone with a very short wireless connection to a local phone outlet. Personal digital assistants Aside from the cellular phones, Personal Digital Assistants or PDAs with Internet capabilities, however, also offer a promising option for maximizing benefits from mCommerce.

Slide 17:

Personal Digital Assistants are handheld devices originally designed as personal organizer. Recently models of PDAs include multi-functions capable of doing variety of tasks. Some brands of PDAs product have ability to synchronize data with personal or home computer. Computer savvy businessmen can use their PDAs to access their e-mails, import reports form WAP-enabled websites or used their PDAs for mobile phone applications. More specifically, benefits from PDAs are as follows: Media Player Audio recorder Remote control Camera (still and video) Wi-Fi clients Video game emulator Photo browser GPS receiver Cellular phone Data storage devices

Slide 18:

Pocket PCs vs. Smartphones Pocket PCs are essentially handheld computer or pocket-size computers and their relatively lower capacity compared to desktop is the inherent disadvantage but good enough for mobile application. A Smartphone is essentially a generic terms to mean telephone devices that come with a smaller set of applications in relation to computer devices. A Smartphone is good choice for business users who need to check e-mail, keep track of their calendars, and take voice notes, but who do not need the added functionality of Word Mobile, Excel Mobile, and PowerPoint Mobile.

Slide 19:

Mobile Application Software – The Windows Mobile Windows Mobile is Microsoft’s response to the growing need and popularity of handheld devices for mobile-related services of the business community. Window Mobile promotes mobility that changes the way gets done. A windows Mobile powered device can improve the productivity of your mobile workforce by automating paper-powered workflows instead of asking your field personnel to write up orders, return to the office, and enter the orders into the computer, costing time and risking data loss.

Slide 20:

The Evolution of 1G to 3G Technology The first generation or the 1G wireless technology was the cellular phone ( Deitel , at al., 2000). They refer to analog devices, which provide voice only services via wireless systems. They have typified by early cellular phone models and pages that were heavy and bulky and have not offered that many services. Cellular phones had bricks size batteries that were attached to backpacks. Second generation or 2G wireless technology followed the 1G technologies, which include digital cellular phones in use worldwide. Second generation technologies handle data rates falling into 9.6 kbps categories. Aside from providing voice services, 2G technologies provide short messaging services (SMS). 2.5G technologies refer to the interim upgrade or 3G mobile system and enable General Packet Radios Service (GPRS) thus enabling wireless phones to remain “always on” meaning that users are always connected to the Internet. The 2.5 phones offer voice and data features and could fall into the “smart phones” category with PDAs functionality. Third Generation or 3G technology enables wireless devices to send and receive data as much as even seven times faster than standard 56 K modem. The 3G technologies transmit data at 384 kbps to 2 megabits per second.

Slide 21:

Application Potentials of 3G technology Bluetooth Technology Bluetooth and IEEE.11 (Institute of Electrical and Electronic Engineers) are just two of the familiar terms related to the development of the wireless systems. Bluetooth is named after Harald Blatand , king of Denmark from approximately 940 to 985, who united Denmark and Norway. Bluetooth technology is designed to allow many different kinds of devices to talk to one another, from computers to cellular phones to stereos-in fact, just about any kind of devices you can name. It is designed as a peer-to-peer network that allows these devices to talk directly to one another, without extra hardware such as network server. Bluetooth is a wireless technology conceived by Ericsson in 1994. it provides short-range (up to 30 feet) but high-speed voice data communication between digital devices at a speed up to 1Mbps using a radio frequency band that has global compatibility.

Slide 22:

Wireless Fidelity The term Wi-Fi refers to Wireless Fidelity. The terms refers to particular standard from the IEEE particularly the provision under section 802.1.it is now being used. however, as a blanket term covering networks based on the broad IEEE 802.1 .1 specification for wireless area network(WLAN). Wi-Fi technology is being marketed both by smart communication, inc. and globe telecoms. the latter pushes the product in the local market through GlobeQUEST . GlobeQUEST or wireless internet zones lets netizens or wireless surfers connect to the internet at ultra-fast broadband speed wirelessly! Smart communication, Inc. its Wi-Fi products by connecting home-based computers with a gadgets that allow internet connection thru nearest cell sites.

Global Positioning System:

Global Positioning System Global positioning system(GPS)- a networks of twenty-four navigational satellites develop and operated by the US.GPS provides precise location determination anywhere in the world via special receivers, which can indicated the location of an aircraft, ship or people with an accuracy of within one hundred meters. through originally meant for defense purposes. GPS also increasingly used for commercial purposes, Recreational activities and personal application. Global System for Mobile Communication (GSMC) – Originally called the Groupe Speciale Mobile- GSMC also the pan - european digital cellular standard . Several service providers in the united state also use GSMC. But at a different frequency from that used in Europe. In many ways, both GPS and GSMC technologies and standards have made substantial contribution in the development of mCommerce .

Wireless Application Protocols:

Wireless Application Protocols Wireless Application Protocols (WAP)-is an open international standard for application that use wireless communication. It is a technology standard that enables application to work over digital wireless networks. The protocols is designed to simplify how mobile device users access e-mail and voice mail, send and receive faxes, as well as use special interest features, such as trading stocks and playing games. Other Characteristic of Wireless Application Protocols : WAP provides consistent content for delivering Internet based information and services to digital mobile phones and other wireless devices. WAP is a global open standard. WAP has been slow to gain wide acceptance because of slow connection speeds and dearth of application. Improvements in WAP technology and security features are expected to vastly enhance its acceptance. End- of-use should improve with new developments in the mobile infrastructure.

Short Messaging Service and Unified Messaging:

Short Messaging Service and Unified Messaging Sort Messaging Service(SMS)-is a scheme used for sending short text messages of up to 160 characters between mobile subscribers. SMS, or more popularly known in the Philippines as text messaging has gained wide popularity in the Philippines, and such that it has gained the reputation of being the text messaging capital of the world. Instant Messaging and Multimedia Messaging Service- a common and popular application of wireless devices or technologies like cellular phones is the ease and applicability at which text and instant messages can be sent out at astonishing speeds. Instant messaging (IM) - enables people to carry on one or more real-time conversations in text appears on user’s computer or mobile communication device screen. Multimedia Messaging Services (SMS)- is the text generation in mobile-to-mobile messaging after instant messaging.

International Roaming :

International Roaming Roaming- refers to the ability to a wireless phones to make and receive calls in places outside of one’s home calling area. International Roaming-refers to a roaming services offered by telecommunication companies beyond the limits of the country or geographical territory it is normally conducting its business. Roaming agreement-enables a mobile subscriber in one country to communicate with a subscriber in another country. Roaming services allows the following to happen: Subscribers can reach each another by mobile phone throughout the world because networks operators in each country have signed a reciprocal roaming agreement. In addition to voice, international roaming is also available for e-mail, internet, and fox services. Network operators with roaming agreement normally exchange subscriber data.

Issues and Concerns about Mobile Commerce:

Issues and Concerns about Mobile Commerce while mCommerce appears to a very promising potential especially among countries with developed information and communication technology infrastructures. Issues and concern constraining development of its potentials : Small display screens Replicating the wired internet Does the wired Internet have to completely duplicated Incompatible standard Identifying services Identifying markets Is the wireless Internet competing with the wired Internet? Can a wired eCommerce co-exist with mCommerce ? Is their a synergy between wired commerce and mCommerce ?

Broadband Service and Intel :

Broadband Service and Intel Among the global players in the world of mobile commerce are organizations provider hardware and other provisions that can lead towards popular use of mobile devices and technologies. In the Philippines, and throughout the world, Intel corporation is one of those companies having active efforts in moving towards mobile commerce application. its is recent effort is focused on pushing broadband and wireless technologies. Intel- the worlds largest chip maker, said that the Philippines is at the forefront of broadband technology application known as WI-MAX (Wireless Interoperability for Microwave Access). WI-MAX- provides greater broadband connectivity over long distances, would be the best delivered in areas previously not serves. A single WI-MAX antenna can range up to 64.4 kilometers with speed of 70 megabits per second or more. The agenda of Intel in ASEAN is to bring about new standards-based wireless broadband connectivity. It is about building up broadband infrastructure not just in urban areas but also in rural areas as well. The Asian market is Intel’s largest market.

Wireless Technology Providers in the Philippines:

Wireless Technology Providers in the Philippines In active pursuit of mobile business applications in the Philippines are several business organizations involved in various products or services geared towards the mobile business sector. the business organization GLOBE Telecoms, Inc. SMART Communication, Inc. Sun Cellular Panasonic Seagate MPH Astone Western Digital MSI LiteOn Hp Archos Sony

Considerations in Going for Mobile Business:

Considerations in Going for Mobile Business When considering mobile technologies as part of the eBusiness strategy, certain factors have to be considered and among them are the following The difficulty of connecting mobile devices to company’s internal network High support costs for mobile users The effect on performance of widespread mobile use Technical standards and compatibility issues. The new hardware and software required by mobile technologies The development of clear business strategy for adopting mobile technologies The need to develop and implement security systems for corporate wireless network. other considerations in evaluating digital mobile service Clarity- voice clarity can vary noticeable from one digital technology to another. Cost – new and competitive services have helped drive prices down on both phones and services. Coverage- this is particularly important in rural areas or where different services, are being offered. Capacity- all digital networks offer more channel capacity than analog services, and some digital systems offer more channel space than others.

GlobeQUEST WIZ Hot spots in Metro Manila [as of November 2004]:

GlobeQUEST WIZ Hot spots in Metro Manila [as of November 2004] Existing Hot Spots Café Allegro Greenbelt 2 Greenbelt 3- Cafea , Lagoon Area, 2 nd floor restaurants, food court area, and theater snack lobby Greenhills Theater Mall Legan Hotel Pioneer Highlands UG Level PCBC EAT Food Court Ayala Center Cebu Cebu City Sports Club Bo’s Coffee Ayala and Entertainment Center, Ayala Center, and Mactan Airport Mactan International Airport Marcel Fernan Press Center Waterfront Hotel Lahug Mimosa, Clark Batis Brew, Davao Grand Regal Hotel Davao Soon In: Ayala Tower 1 Alabang Town Center Kaya Restaurant, Rockwell NAIA Centennial One Roxas Podium St. Francis Square The Coffee Bean and Tea Leaf University of Asia and the Pacific Fontana Leisure Park Kelly Blue Café, Clark Davao International Airport Waterfront Insular Hotel

Globe’s 3G products provide the following services:

Globe’s 3G products provide the following services Video share- it enables two subscribers to view the same video. Of for one user to show the person He is talking to, video direct from his mobile phone. Video call- It allows mobile-to-mobile call that can be made over 3G network where both audio and video are transmitted in real-time , allowing callers to see and hear each other. Browsing- With 3G, mobile users can experience ultra-fast browsing anytime, anywhere – similar to surfing the Internet via broadband. 3G phones can also be used as modems for your laptop or personal computer. Download and streaming – The technology high-speed, high-quality downlink services that allow users to download music tracks or view videos in the fastest time and best quality possible .

SMART on Mobile Banking and 3G Technologies:

SMART on Mobile Banking and 3G Technologies SMART Communications, Inc. is a leading mobile phone service provider in the Philippines. Through the SMART Mobile banking functions, SMART cellular phone devices, selected bank account holders can now provide some basic services via cellular phone instead of the usual physical visit to the branch office of the ATM location. SMART product lines offer the ff : services; Video Calling- It makes relationships even stronger with up close and personal video conversations. Video Streaming – Subscribers can watch favorite games, videos and TV programs right on the subscribers’ SMART cellular phone. High-speed Internet- SMART’s 3G cellular phone allows surfing and browsing at broadband speed right at your fingertips.

Sampling of SMART’s 3G:

Sampling of SMART’s 3G PBA-Subscribers can see the best slam dunks of the Professional Basketball Association or view the best moves and scores of the PBA conference. The Big News-The cellular phone can be used to review the top events of 2005 with Big News anchor Cher Mercado Santos in ABC News and Public Affairs Comedy Galore-SMART subscribers can laugh out loud watching the zany Wow Maling Mali’s spoof Pinay Big Sister with Joey de Leon and the Tropang Wow Movie previews-Users need not to be on TV or inside the movie house to view preview of upcoming movies in local cinemas Films-Short films can be viewed on the cellular phone From the boob tube-With the mobile phone, users can jam with the gang of Eat Bulaga , view SOP clips with SOP Gigsters Anime action-Over 30 anime clips, from classic favorites such as Voltes V and many others Shorts-For short film afficionados , view the top finalists of the 1 st SMART Cuts Digital Film Contest

More on Applications of Mobile Commerce:

More on Applications of Mobile Commerce Schneiderman (2000) cited that current and emerging applications of mCommerce on Internet usually fall into four categories namely: Corporate applications Telemetry Field service Consumer applications

For corporate applications, mCommerce has applications and potentials in the following areas::

For corporate applications, mCommerce has applications and potentials in the following areas : Mobile messaging- This include short messaging services (SMS) for short text messages of up to 160 characters to mobile phones, voice mail, and faxes Mobile Office- This is used for accessing e-mail, the corporate intranet, corporate database, and for downloading presentations and other corporate information and data, corporate e-mail, intranet browsing, and file transfer Corporate Groupware- This is used for accessing corporate information and personal-related files such as corporate information or news, travel or directory service, personal information management (PIM) synchronization Teleconferencing- It is used for online audio, video and/or data conferencing for multiple locations, including sharing documents, spreadsheets, and other applications like collaborative working (networked meeting) and telemedicine

Remote Monitoring and Control Remote monitoring and control are another areas where mCommerce technologies can be applied. Specifically, some mCommerce hardware and software can be applied in the following eBussiness concerns::

Remote Monitoring and Control Remote monitoring and control are another areas where mCommerce technologies can be applied. Specifically, some mCommerce hardware and software can be applied in the following eBussiness concerns: Vending machine Ticket machines Automatic metering Video surveillance Point-of-sale Vehicle tracking Route guidance Alarm systems Health care

Real-Time Business Process Support Real-Time Business process support is another aspect where mCommerce technologies may make sense. It can make use of a two-way radio dispatch and monitoring services for truck and delivery fleets, as well as real-time sales and inventory database. In particular, the following business tasks can be addressed by mCommerce technologies::

Real-Time Business Process Support Real-Time Business process support is another aspect where mCommerce technologies may make sense. It can make use of a two-way radio dispatch and monitoring services for truck and delivery fleets, as well as real-time sales and inventory database. In particular, the following business tasks can be addressed by mCommerce technologies: Dispatch Fleet management Emergency services Utilities Field service management Sales force or inventory management Preventive maintenance

Consumer Application of Mobile Internet At the consumer level, mobile technologies particularly those with Internet capabilities can be used in the following areas::

Consumer Application of Mobile Internet At the consumer level, mobile technologies particularly those with Internet capabilities can be used in the following areas: Information and Entertainment- To serve as instant news reports, sports results, and direct information such as: News and sports Financial service Directory inquiries Yellow page Mobile messaging- This is used for short text messaging, voice mail, e-mail, and faxes Travel or Location- This includes real-time traffic updates, in-vehicle navigation and locations services, and calendar information

Advocacy Efforts on Mobile Devices:

Advocacy Efforts on Mobile Devices While mCommerce -related applications appear relatively new in the Philippines as of the release of this publication, certain groups or communities have made some efforts in promoting mCommerce -related technologies at the time SmartPhones were introduced in the country and also at the time Microsoft launched its Windows Mobile products in the country

Slide 41:

PinoyWindowsMobile began as a Pocket PC Users Philippines egroup founded by Carlo Ma. Guererro on April 18, 2001. The group was later renamed to PinoyPocketPC and was expanded to include the SmartPhone platform under the egroup PinoySmartPhone in February 2003

Slide 42:

Airfagev ia another community of mobile device enthusiasts that evolved from Rey Vegafria’s smartphone-inspired personal website

Legal Risks in Mobile Commerce Dealing with mobile comes with the legal risks (www.michalson.com) some of which are as follows::

Legal Risks in Mobile Commerce Dealing with mobile comes with the legal risks ( www.michalson.com ) some of which are as follows : Legal requirements for the formation of contracts within the technological constraints of mobile systems Consumer protection issues in regard to mobile-originated transactions Mobile transaction mobility Liability of certification service providers for unencrypted/cracked communications Liability of service providers and operators for incomplete transactions Impact of emerging mobile technologies on statute and contract laws Impact of mobile- ralated technologies on copyright and intellectual property law

Key terminologies::

Key terminologies: Mobile commerce Mobile computing Cellular phones Bluetooth technology Global Positioning System Instant messaging International roaming Global System for Mobile Communication (GSMC) Wireless devices Personal Digital Assistants 1G, 2G, and 3G technologies Wireless Fidelity (Wi-Fi) Short Messaging Service Multimedia Messaging Service Wireless Application Protocol

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