M-commerce

• Mobile e-commerce (also called mobile commerce or m-commerce) is defined as covering all activities related to the use of mobile or wireless information and communication technologies (ICTs) to communicate, interact, entertain and transact any time, anywhere, any place across public and private networks.

Cellular subscribers

• Asia: 543 million subscribers - with 15% market penetration.

• Europe: 441 million subscribers at 55% market penetration.

• Americas: 288 million subscribers at 33.8% market penetration.(ITU, 2004:1)

• 2008 data: 300+ million in India alone!

Global connections (million)

M-commerce activities

Entertainment• music• games• graphics• video• interactive games

M-commerce activities

Information• news• maps/guides• directories• traffic/weather• market data• corporate • browsing and directory services

M-commerce activities

Communication• email• chat • corporate system access and security• video/voice• intranet• extranet

M-commerce activitiesTransactions• banking• stock trading and brokering• shopping (real time - online - access, buying, purchasing

or browsing)• auctions• betting• reservations and ticketing• e-cash• sales force automation• field service automation

Benefits of m-commerce

• Ubiquity – Pervasive ( present everywhere )• Reachability – access on your demand from anywhere• Form factors – use the device that suits their needs and

user preferences (PDA, PC, mobile phone, etc.)• Convenience and accessibility – time and space

constraints are removed and people can access applications to their time and preferences

• Security – use of means such as Security Socket Layer (SSL) to provide personal security, privacy of communications, and data integrity above that available in fixed Internet environments

Benefits of m-commerce

• Localisation – merging capabilities and sharing costs between retailers or a region wishing to ‘push’ or promote mutual services and products

• Instant connectivity – access to applications on demand using multiple technologies and more network option.

• Personalisation – retailer has more direct access to an individual user as devices are more personal than a PC or TV that may have multiple users.

Limitations of m-commerce

• Small screens of most devices still limit types of file and data transfer (i.e. streaming videos, etc.)

• standards guiding applications and technology development and connection(s)

• WAP and SMS limited to small number of characters and text.

• use of graphics limited• less functionality for mobile Internet over mobile phones

and existing generation of handhelds than for mobile computers (laptops and next generation handhelds)

• user interface is often difficult to learn how to use

Limitations of m-commerce

• Limited bandwidth• limited roll out of higher bandwidth mobile networks and

devices (i.e. 3g networks and wireless broadband networks are predominantly located in cities)

• cost of establishing mobile and wireless broadband infrastructure

• technology constraints of mobile devices (memory, processing power, display capabilities, input methods)

• security of data moved across some mobile and wireless networks

• businesses investment in hardware and infrastructure is seen as riskier as rapid evolution of mobile and wireless technologies continues.

M-commerce: better customer understanding

Including their:

• individual preferences

• location and time factors

• use patterns

• technology and applications preferences

• technology skills and patterns of use

M-commerce framework

Wireless network infrastructure

Information dissemination and distribution( middleware) protocols :WAP,iMode

Mobile device compatible publishing languages eg: WML,cHTML,VXML

M-commerce application

Business service infrastructure, legal frame work, protocol standards

Mobile payment modes

Security and ebcryption techniques

Wireless network infrastructure

Evolution of mobile networksGeneration

Channels Switch mode

protocol Data rates

1G Analog Circuit switched

AMPS N/A

2G Digital Circuit/

packet

GSM/ CDMA

9.6Kbps/

2.5G Digital Packet GPRS/ EDGE

171.2Kbps/

384kbps

3G Digital Packet CDMA2000,WCDMA

2 Mbps

AMPS(1G)• Advanced mobile phone system

• Features– Cells, mobile service center, Mob Tel

Switching Office ,PSTN– Use 2 25MHz bands (869-894) (624-649)– Electronic srl no, mob id no, sys id no

• Operation: carrier sense, channel detect, send Id Nos, control by MTSO

GSM(2G)• Architecture

– Mob device

– Uses 2 25 MHz ( 890-915)(935-960) FDMA,TDMA

– Base station sub system• Base TxR Station (BTS)

• Base station controller (BST)

– Network subsystem• Mob switching center

• Home location register

• Visiting location register

• Eqpt id register

• Authentication center

Global packet radio service

• Support to GSM for packet sw

• GPRS

– Serving GPRS support node

– Gateway GPRS support node

• GPRS uses packet switching

• Uses existing 2G infrastructure

• 171.2 kbps ( all slots of TDMA) 21.4 kbps per slot

• Support Full internet services

Enhanced Data GSM Environment

• 3 times BW of GPRS

• Uses 8-PSK modulation

• 48 Kbps per slot (total 384 kbps)

• Services : mutimedia,video conferencing

• Easy upgrade

• Requires more no: stations

3G network

• CDMA2000

• WCDMA

• 2.05 Mb for static,384 kbps for slow,128 kbps for fast moving

• Fixed and variable data rates

• Increased BW ( 15 to 20 MHz)

• Spectrum : 450 mhz, 800 mhz and 2.1 ghz

• Backward compatibility

• Devices more complex

• Closer base stations

WAP

• Goal: To bridge the gap between the mobile network and Internet

• WAP is a global standard produced by WAP

• forum founded in 1997 with the help of Nokia,Ericsson, Motorola and Unwired Planet.

• There are two different editions: WAP 1.x and

• WAP 2.x

• Generally, WAP related technologies are

– referenced with counterparts in Internet model

– with some changes suitable for mobile network

WAP 1.0 stack

WAP 1.x commn model

WAP layers• WDP: Wireless Datagram Protocol

– provide interface for upper layers to physical layer

– UDP functionality if bearer IP capable– Support for WCMP

• WTLS: Wireless Transprot layer security– Optional– Provide security( encryption/decryption,

MAC,Digital certificate)

WAP Layers

• WTP: Wireless Transaction Layer: suitable for browsing appln– Class0: unreliable push

• No retransmission

– Class 1: reliable push• Ack and retransmission

– Class 2: reliable transaction• Class1+segmentation,reassembly,flow control

Wap Layers

• WSP: Wireless session Protocol– Equivalent to HTTP– Management of session– Capability exchange– Compact encoding of data

WAP Layers

• WAE: Wireless Application Env– Web application development– Components:

• WML

• WML script ( subset of java script)

• WAP content type

• WTA provide access to telephoney services

iMode• Started by NTT DoCoMo, Japan• Users can access content from official and

unofficial imode sites• Components

– Powerful intelligent handset– Transmission protocol– Compact mark up language

• Packet switching, CDMA,iHTML( special tags for dialing,browsing)

WML

• Derived from SGML,HDML,HTML

• WML based on XML

• User defined tags

• Content made up of deck of cards

• Microbrowser loads deck of cards

iHTML

• Derived from cHTML

• Supports text tags, gif images & features operable by arrow buttons

• Main features– Accesskeys ( numbered menus)– Mailto (similar to chat)– Tel (voice calls)

security• WTLS

• Services– Authentication– Non-repudiation– Integrity– Confidentiality

• Limitations– Wireless, key distribution, low computation

Payment

• Simplicity, Universality

• Security, trust, privacy

• Cross border payments,Cost, Speed

• MODES:– Acquirer centric (Merchant based)– Issuer centric (bank based)– ISP centric ( service provider based)

M-commerce Applications

Entertainment• music• games• graphics• video• interactive games

M-commerce Applications

Information• news• maps/guides• directories• traffic/weather• market data• corporate • browsing and directory services

M-commerce Applications

Communication• email• chat • corporate system access and security• video/voice• intranet• extranet

Internet mobile applications in retail

• communication (messaging, video, email) • complete internal and external communication

systems• interface with and manage customer relationships• authorising, verifying and completing financial

exchanges• providing business services (contd..)

Internet mobile applications in retail

• conducting, planning and transmitting advertising

• setting price ranges and cost structures for products and services provided

• tracking services and products

• managing logistics and all aspects of supply chain management

Mobile, automated business applications

• price checks• recording purchases• full basket scans (accelerate the completion

of point of sale checkouts by scanning all barcodes or RFID tags to bill goods automatically against a shopper’s account)

• data movement in purchase and sales systems

Mobile, automated business applications

• stock orders receipt and picking or packing

• tracking of stock movement through the supply chain or the store

• inventory levels and procurement processes.