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1.1 HISTROY
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6. CONCLUSION
7. REFERENCES
Tech seminar m-
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Abstract
M-Commerce
envisioned so far assume fixed or stationary users with wired infrastructure, such as a
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7. REFERENCES
m-commerce -4-
Many people do not use a PC outside the office, but keep the mobile phone at their side
all the times. Mobile commerce is perfect for this group.M-commerce allows one to reach
the consumer directly, not his fax machine, his desk, his secretary or his mailbox, but
hands, anywhere, via wireless technology" and "putting a retail outlet in the customer's
hands anywhere." This can be done with just a mobile phone, a PDA connected to a
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mobile phone or even a portable PC connected to a mobile phone. M-commerce is also
Electronic commerce has attracted significant attention in the last few years.
envisioned and developed so far assume fixed or stationary users with wired
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infrastructure, such as browser on a PC connected to the Internet using phone lines
commerce" will benefit one to reach the consumer directly, regardless of where he is.
the same function that can be done over the internet. This can be done by connecting a
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Commerce is perfect for the group who always keep a mobile phone by side all the times.
A study from the wireless data and computing service, a division of strategy analytics,
reports that the mobile commerce market may rise to $200 billion by 2004. The report
predicts that transactions via wireless devices will generate about $14 billion a year.
We are aware that consensus within business and industry of future applications is
still in its infancy. However, we are interested in examining those future applications and
technologies that will form the next frontier of electronic commerce. To help future
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applications and to allow designers, developers and researchers to strategize and create
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1.INTRODUCTION
M-commerce (mobile commerce) is the buying and selling of goods and services through
wireless handheld devices such as cellular telephone and personal digital assistants
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Internet without needing to find a place to plug in. The emerging technology behind m-
commerce, which is based on the Wireless Application Protocol (WAP), has made far
greater strides in Europe, where mobile devices equipped with Web-ready micro-
Nokia, Ericsson, Motorola, and Qualcomm are working with carriers such as AT&T
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Wireless and Sprint to develop WAP-enabled smart phones, the industry's answer to the
Swiss Army Knife, and ways to reach them. Using Bluetooth technology, smart phones
offer fax, e-mail, and phone capabilities all in one, paving the way for m-commerce to be
As content delivery over wireless devices becomes faster, more secure, and scalable,
there is wide speculation that m-commerce will surpass wireline e-commerce as the
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commerce include:
Financial services, which includes mobile banking (when customers use their handheld
devices to access their accounts and pay their bills) as well as brokerage services, in
which stock quotes can be displayed and trading conducted from the same handheldevice
Telecommunications, in which service changes, bill payment and account reviews can all
be conducted from the same handheld deviceService/retail, as consumers are given the
ability to place and pay for orders on-the-fly Information services, which include the
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delivery of financial news, sports figures and traffic updates to a single mobile device
IBM and other companies are experimenting with speech recognition software as a way
1.1 HISTROY
Mobile commerce was born in 1997 when the first two mobile phone enabled
Coca Cola vending machines were installed in the Helsinki area in Finland. They used
SMS text messages to send the payment to the vending machines. In 1997 also the first
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mobile phone based banking service was launched by Merita bank of Finland also using
SMS.In 1998, the first digital content sales were made possible as downloads to mobile
phones when the first commercial downloadable ringing tones were launched in Finland
In 1999, two major national commercial platforms for m-commerce were launched
with the introduction of a national m-payments system by Smart as Smart Money in the
Philippines and the launch of the first mobile internet platform by NTT DoCoMo in
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Japan, called i-Mode. i-Mode was revolutionary also in offering a revenue-sharing deal
where NTT DoCoMo only kept 9% of the content payment and returned 91% to the
content owner.Mobile commerce related services spread rapidly in early 2000 from
Norway launching mobile parking, Austria offering mobile tickets to trains, and Japan
commerce was held in London in July 2001 and the first book to cover m-commerce was
Tomi Ahonen's M-profits in 2002. The first university short course to discuss m-
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commerce was held at the University of Oxford in 2003 with Tomi Ahonen and Steve
Jones lecturing. UCL Computer Science and Peter Bentley and now run dedicated
popular that many businesses are beginning to use m-commerce as a more efficient
trends and advances are concentrated in Asia and in Europe, Canada and the United
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The less price sensitive early adopters from the 13-25 age group could drive the
initial growth. Growth in mobile products such as ringtones, games, and graphics may
displace spending on many traditional youth products such as music, clothing, and
movies. This would radically change the dynamics of all visual entertainment and
product-service distribution world wide so marketers could target end-users with diverse
youth mind sets. The youth market has historically shown rapid viral growth which later
gains acceptance in the mass market. While emerging markets are proving to be the ideal
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solution for sustaining revenues in the face of falling ARPU average price per unit,
Nokia, Ericsson, Motorola, and Qualcomm are working with carriers such as AT&T
Wireless and Sprint to develop WAP-enabled smart phones and ways to reach them.
Using Bluetooth technology, smart phones offer fax, e-mail, and phone capabilities.
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"Profitability for device vendors and carriers hinges on high-end mobile devices and the
accompanying killer applications," said Burchett. Perennial early adopters, such as the
youth market, which are the least price sensitive, as well as more open to premium
mobile content and applications, must also be a key target for device vendors.
Since the launch of the iPhone m-commerce based systems like FanGo, a popular m-
commerce platform mainly for the iPhone and Blackberry, have increasingly moved
away from SMS systems and into actual applications. SMS has proved to have significant
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vulnerabilities with security and congestion even though it is widely available and
it more prudent to carry more of the resource burden on the actual device. As phones like
the iPhone become more prevalent we will see an increasing exodus from e-commerce
platforms to applications and systems that will readily integrate mobile interface with the
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The finance and banking industry sees the introduction of mobile e-commerce
TANTAU Software Inc found that 80% of organisations interviewed felt that
applications, followed the ability to extend brand presence 'beyond the High Street', cited
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The TANTAU research identified a clear difference between first- and second-
any time, were identified as far greater benefits to customers than the ability simply to
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The M-Commerce Working Group aims at promoting the interests of European
GSM operators in the fields of mobile commerce and mobile Internet. It seeks to position
GSM Europe among the reference organizations involved in e-commerce and Internet
objectives, the Working Group closely follows the developments of the European
regulatory framework for electronic commerce, content and Internet and drafts relevant
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Members of the Group also hold bilateral meetings and participate in hearings
organized within the European arena. The Working Group monitors the implementation
Attention is also given to political initiatives such as the i2010 initiative and to
international regulatory activities affecting the European framework (for instance within
the Council of Europe). The Group works to inform the main decision-makers, presenting
key aspects of mobile-commerce and demonstrating the important role played by GSM
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operators in the development of e-commerce and the Internet. The M-Commerce
Working group also works in collaboration with and/or provides support to other groups
within GSM Europe or GSM Association and liaises with GSMA technical groups on a
regular basis.
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1.4 TYPES OF M-COMMERCE
referred to as m-commerce. There are three basic types of m-commerce transactions. The
wireless device. This method lets the user bill their purchase to their monthly carrier bill
(or deduct it from their pre-paid deposit). The second type of mobile commerce
transaction involves using a credit card over a wireless network connection. In this type
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of transaction, the user has securely stores their credit card data on their mobile phone,
using their cell phone as a surrogate credit card. The third type of m-commerce
Mobile commerce has lost much of the hype it had in North America and Europe
several years ago. At the time, companies predicted that people would be using cell
phones to purchase everything from books to home computers. Mobile commerce has,
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In Japan, however, mobile commerce has been a huge success, accounting for over
$400 million in revenues each year. Through NTT DoCoMo’s popular i-mode service,
subscribers can buy sodas from vending machines, purchase food at fast food restaurants,
and shop at Internet retailers like Amazon.com, buying all their good through DoCoMo’s
billing system. Other companies, like Visa, also offer m-commerce services in Japan.
While the European m-commerce market failed to take off as originally planned,
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there has been renewed interest as of late. Orange, Vodafone, T-Mobile, and Telefonica
Moviles recently announced the creation of an industry-wide group, called the Mobile
Payment Services Association, to push for new standards for m-commerce systems. In
addition to standardizing technical issues, the new association will promote a common m-
commerce brand and help launch new mobile commerce services over Europea networks.
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• The customer wants to access information, goods and services any time and
• He can use his mobile device to purchase tickets for events or public
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transport, pay for parking, download content and even order books and CDs.
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more and more towards value-added services. Analysts forecast that soon half
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• Generations,
• standards and
• protocals
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crucial factor forthe commercial success of Mobile Commerce, since it is largely
This paper is structured on the following lines: The various technologies and
generations of mobile data transmission (i.e. 1G, 2G, 2.5G and 3G) are discusses
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some complementary technologies, such as WLAN and Bluetooth. Display and
categorised in three broad generations of technologies. Between the second and the
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third generation a “second and half” (2.5) sub-generation is supposed to exist, that
bridges the two neighbouring generations (see figure ). These generations and their
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Fig: Generations of mobile telecommunication standards in Germany
the German Railways introduced a wireless telephone service for first-class passengers
The mobile telecommunication gained currency, however, only with the introduction
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A countrywide coverage was provided later by the C-Network4 in 1985 [IMZF, 2005b].5
In the United States of America (USA) a comparable system called the Advanced Mobile
Phone System(AMPS) was introduced in 1983. Some more standards that belong to 1G
are the Total AccessCommunications System (TACS), the Nordic Mobile Telephone
(NMT) system and the Japan Digital Cellular (JDC) network system [Elliot and Phillips,
2004; Toh, 2002].The first generation systems were voice-oriented analogue mobile and
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cordless telephones[Krishnamurthy and Pahlavan, 2002]. Such systems are not suitable
for modern Mobile Commerce services on account of low quality of transmission and
their exclusive voiceorientation, i.e. the inability to transmit non-voice data [Geer and
The second generation (2G) systems are based on the digital multiple access
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technology, e.g. the Time Division Multiple Access (TDMA) and the Code Division
Multiple Access(CDMA), and currently worldwide in use They use digital encoding and
support transmission of not only voice but also of other data, e.g. fax and SMS. They
Such features areprerequisites for mobile services. Examples of 2G systems are the
Systems (PACS) and Digital European Cordless Telephone (DECT) [Toh, 2002].
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Since GSM has become “the” dominating standard in the world in general and in Europe
in particular, this paper explains GSM and one of its off-shoot, the High Speed Circuit
GSM, first introduced in 1991, is an open, non-proprietary and digital system of second
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European standard,10 it has come to be the most widely deployed global standard.
• Support for various types of mobile devices, e.g. hand-held devices and devices
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mounted in vehicles;
The first GSM-based digital network (D-Network) was launched in Germany in 1992
on the frequency of 900 Megahertz (MHz) by two network carriers, namely the Deutsche
Telekom AG (launched as D1) and by the Mannesmann AG1 (launched as D2). In 1994
a new GSM based digital network (E-Network) was launched by the E-Plus Service
GmbH & Co. KG (launched as E1). The E-Network is based on the Digital Cellular
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System (DCS) standard that utilises the frequencies of 1800 MHz. In 1998 one more
network Viag Intercom launched its services as E2. Meanwhile D1 and D2 have also
begun using the E-Network to expand their network capacities [At-mix.de, 2005].
major problem is that of low actual data-transmission rates. Though GSM is theoretically
capable of a transmission rate of 22.8 kilobits per second (kbps), the actual rate of data-
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transmission errors[Steimer et al., 2001].
is assigned for the transmission of data for the complete duration of usage. For example,
if a user calls a Wireless Application Protocol (WAP) page on his mobile phone, a
channel is assigned to this process. This channel is kept allocated until the process is
cancelled, even when all the data has been transmitted and displayed on the screen. The
user is billed for the utilised channel-time and not for the volume of the actually
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transmitted data [Ahlke, 2002].
Both these factors – low actual transmission rates combined with the circuit-switched
technology – result in disproportionately high costs for the user and discourage the usage
of data services offered. Low transmission rates are also problematic for data-intensive
applications, e.g. mobile videos. Such drawbacks make GSM technology sub-optimal for
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using multiple channels. With a transmission rate of 28.8 kbps HSCSD allows three times
The bundling of channels requires functions that may dissect and consolidate data on
and from various channels without compromising the integrity of data. This requires
costly and extensive modification in the hardware of mobile devices . There are currently
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few subscribers with voice terminals that support HSCSD. The other alternative is using a
special portable computer card that has a built-in GSM phone. This card turns laptops and
other portable devices into a high-speed mobile office with the ability to make voice-calls
and carry out data transfer. This facility is particularly interesting for subscribers who
wish to access the Internet, or their office Intranet, while on the move, by using a mobile
device. The main drawback of HSCSD lies in the circuit-switched technology that makes
its usage very expensive, considering that the user has to pay for multiple channels.
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HSCSD seems to be more interesting and suitable for a laptop than for a mobile phone.
The transit between 2G and 3G is known as 2.5G. The General Packet Radio Service
(GPRS),main standard of this phase, even though based on GSM distinguishes itself from
2002].Another standard that arguably belongs to both 2.5G as well as to 3G and builds on
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GPRS is the Enhanced Data-rates for Global Evolution (EDGE).
2000a]. It is a packet-switched technology, which means that the data to be sent is broken
up into small packets, which are “routed by the network between different destinations
based on addressing data within each packet. Use of network resources is optimized as
the resources are needed only during the handling of each packet” [Toh, 2002]. GPRS
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[Buckingham,2000a].
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of the geographic area, always connected to the network (“Always-on,
Always connected” feature). The user does not have to dial up a connection to
3) Innovative services: GPRS can offer services that were hitherto not
similar to Internet based web-pages and provides access to many other services,
e.g. the Internet, email, music and office applications [Buckingham, 2000a;
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Gneiting, 2000].
4) Costs advantage: The subscriber pays for the volume of the transmitted
data and not the time required in the process [Toh, 2002].
These advantages make GPRS the first technology that can not only enable but also
promote mobile applications. But also GPRS has certain shortcomings, which are
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i) Low actual transmission rates: The theoretically possible rates of data
transmission are not achieved, because all the eight time-slots are seldom, if ever,
via GPRS is reported be a meagre 14 kbps while sending and between 28 and 64 kbps
while receiving [GSM World, 2005b].
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voice-transmission that has a higher priority. If the capacities are being utilised for
a voice-call, then the data-transmission has to take a back seat [Schell, 2002].
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to transmit both voice and data. It however is just an add-on to GPRS and can not work
alone [Ericsson,2003]. EDGE allows subscribers to access the Internet and to send and
receive data, e.g. digital images and videos, with a broadband like transmission speed of
384 kbps that is about three times faster than an ordinary GPRS network [Ericsson
Glossary, 2004].This speed is sufficient even for video-transmissions and in that sense it
2002]. EDGE is reputed to possess high potential and a growing importance in many
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regions of the world, e.g. the Americas, Australia and India, where it is reported to be
gaining market rapidly [Menon,2005]. The main advantage of EDGE is that it could
GSM/GPRS structure [Toh, 2002]. It may also be used with laptops with the help of a
card [Menon, 2005]. EDGE however does not seem to have very bright prospects in
Europe for a practical reason: Most of the network carriers in Europe have invested
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heavily in the expensive UMTS licenses and building a UMTS network [Wallbaum / Pils,
multimedia services, video telephony and high speed internet access, in addition to voice
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access technology called Wideband Code Division Multiple Access (WCDMA). The
high speed of data transmission makes it suitable for real-time and time-critical
applications [Wallbaum and Pils, 2002].UMTS works with a hierarchical cell structure
i) Pico cells: The speed of data transmission in Pico cells, i.e. at low mobility, is up
to 2048 kbps, provided the device remains within a geographic range
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ii) Micro cells: The rate of data transmission in urban areas is 384 kbps at limited
mobility, within a geographic range of 50 to 350 metres.
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iv) Satellite cells: UMTS supports universal roaming and provides global coverage.
For this purpose it uses – in addition to terrestrial systems – also satellite systems
[Toh, 2002]. The data transmission rate in the satellite cell is 9.6 kbps
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UMTS uses frequencies in the bandwidth of 1,920 and 2,170 MHz [IZMF, 2005b].
This necessitates new mobile devices that are UMTS-capable. On the other hand these
devices must be backward compatible with the GSM/GPRS standards because UMTS is
initially available only in metropolitan areas whereas a UMTS subscriber must be able to
use “normal” mobile services while on the move outside of big cities.
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UMTS services are being offered in Germany in nearly all metropolitan cities since
2004.The Vodafone D2 GmbH (Vodafone) and the T-Mobile Deutschland GmbH (T-
Mobile) launched their services in May, 2004, the other two carriers, the e-plus 3G
Luxemburg S.à.r.l.(E-Plus) and the O2 (Germany) GmbH und Co OHG (O2) in June
2004 [UMTS Forum,2005b]. There are several UMTS services being offered, e.g.
Vodafone has been showing a complete movie on its UMTS network that was running in
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At the end of the year 2004 there were approximately 75 models of UMTS capable
mobile telephones [Gfaller, 2004, p. 1]. There are some 16 million UMTS subscribers
worldwide, of which 6.5 million in Europe [FAZ, 2005a, p.15]; but only around 0.25
million in Germany [BITKOM, 2005, p. 1]. The customer response so far seems to have
been less than enthusiastic on account of high costs for UMTS services [FAZ, 2004, p.
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As the 3G services are just beginning to reach users, 4G is a distant scenario expected to
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are expected to go along following lines:
bandwidth and switch to it. The handover will take place without interrupting
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ii) Speed of data transfer is expected to reach, and probably even exceed, 100 mbps
[EITO, 2004]. This would allow offering of highly data-intensive applications, e.g.
iii) 2G and 2.5G technologies are expected to be still around since 3G/UMTS
networks are not expected to extend their reach to all geographic areas. A
al., 2004].
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The WLAN technology is employed for wireless communication with Local Area
Networks (LAN) and theoretically provides data transfer rates of up to 54 megabits per
second (mbps), which is much higher than UMTS [Krishnamurthy and Pahlavan, 2002].
In practice, WLAN permits data transfer with a speed of up to 2 mbps [Swisscom, 2004].
Most of the WLAN systems are based on the standard developed by the US based
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Institute of Electrical and Electronics Engineers (IEEE) and work on the free-to-use,
unlicensed 2.4 GHz frequency.24 The interface to mobile devices, e.g. laptops, is provided
by Access Points (popularly known as Hotspots), which are connected to LAN. WLAN
usually has a range of 100 meters in buildings and up to 300 meters on open ground.
WLAN has gained tremendous popularity in past few years. In Germany there were 109
Hotspots at year-end 2002. Within one year their number increased to 525 [Mobilmedia,
2004]. The number however jumped dramatically in the following years. 9354 Hotspots
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were reported to be in operation in Germany by July 2006. These Hotspots were spread
across 1035 cities and towns. Over 93% of them were commercially run. The biggest
provider was Deutsche Telekom, whose subsidiaries T-Com and T-Mobile controlled the
Top-2 places with a market share of 50% and 13% respectively.WLAN is expected to
grow in the same manner in coming years. Network carriers such as Vodafone and O2 are
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communicate via WLAN. The biggest handicap of WLAN is that the handover of a
network connection between two Access Points is not possible. It means that the
connection (and every data transfer process) is broken, when the user leaves one WLAN
range and enters another one. On account of this handicap WLAN can not be really seen
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contrary it seems likely that WLAN could develop into a complementary standard to
UMTS, so that subscribers could use WLAN for data-intensive mobile applications that
are needed while outside of one’s home or office but not necessarily while physically on
the move. Both the standards could, thus, reinforce the need for each other and give
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2.6.1 Bluetooth:
communication amongst and between mobile devices and personal computers (PC)
[GSM Bluetooth, 2005]. Bluetooth has established itself as a useful tool for Mobile
Commerce, serving for diverse business needs such as mobile payment and direct
marketing [Incisor,2004]. The primary reasons for its success are [Ericsson Glossary,
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2004]:
Bluetooth works with a freely usable, non-licensed frequency of 2.4 Gigahertz (GHz) in
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the Industrial, Scientific and Medical (ISM) band. It is a low-cost, short-range radio
technology that can be used in a radius of about 10 meters, in some cases up to 100
meters. Bluetooth can transmit data with a speed of 432.6 kbps in case of synchronous
and up to 724 kbps in case of asynchronous data links.26 A Bluetooth device changes its
better security while transmitting data [Ahlke, 2002]. It is, thus, a high speed, secure and
yet low-cost as well as low energyconsuming technology and for this reason highly
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The previous section described protocols employed for voice- and data transmission.
The transmitted data however must be presented to the user on his mobile device via a
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suitable and uncomplicated user-interface. This section describes two such programmable
WAP is a non-proprietary (open), global standard that was introduced in its first
version WAP 1.0 in 1998. It has been developed by the WAP Forum, a consortium of
leading manufacturers of mobile phones including Ericsson, Motorola and Nokia. The
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used by network
carriers [WAP-Forum,2001].
WAP applications can be written with the help of Wireless Mark-up Language
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(WML), a language that resembles in its structure the Hypertext Mark-up Language
(HTML) used for creating Internet pages. It is used to specify content and user interface
for delivery to a narrowband device”, e.g. a mobile phone. WML can work with
constraints that a mobile device typically possess, e.g. small display, limited user input
A WAP Gateway acts as interpreter between the mobile device and a web server which
decodes and encodes the information in a way that the server and the mobile device can
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communicate with each other .
Ever since the introduction of GPRS and higher data transfer rates, WAP can also
work with complicated graphics and images. It allows a relatively easy and
servers can be modified with the help of suitable software to offer WAP functionality. On
the hardware front only a WAP Gateway is required. However the content must be made
WML compatible so that it can be read by mobile devices [Lei et al., 2004]. Translating
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all relevant content into WML increases the temporal and monetary costs of WAP.
Another major problem of WAP 1.0 was that the data were decrypted by WAP
Gateway before transmitting them to the web server and sensitive data, e.g. credit card
information,could potentially be misused. The new version WAP 2.0, which was
introduced in 2001, takes care of this problem and the data are no more stored in
decrypted form on the WAP Gateway [Lei et al., 2004]. WAP 2.0 also defines a new
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programming language “Extensible Hypertext Mark-up Language Mobile Profile”
(XHTMLMP) that supports both of the established standards, namely WAP and i-mode.
On account of its open, non-proprietary nature WAP is attractive for developers and
application providers.
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2.7.2 i-mode:
The Japanese network carrier NTT DoCoMo (NTT) introduced i-mode in 1999 as an
based on packet-switched network technology and is thus GPRS- and UMTS compatible,
allowing for a wide range of push- and pull services [Teltarif, 2004]. i-mode users get
access to Mobile Internet sites offering specialised services such as e-mail, online
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shopping, banking, ticket reservations and restaurant advice. Users can access sites at low
rates, because charges are based on the volume of data transmitted, not the amount of
i) Content provided by official providers: It is integrated in the i-mode menu and can
be accessed directly by clicking on the menu item. Official partners need an
agreement with NTT, which charges a 9% commission for collecting bills on the
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ii) Content provided by unofficial providers: Such sites can be viewed by customers
by typing the site-address in a mobile browser, similar to the Internet sites. These
providers have to find their own mechanisms to collect charges for their services.
Content providers, generally, do not have to pay fees for offering i-mode compatible
content.
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The real profit of NTT comes by transferring data on account of network usage.
Other network carriers wishing to offer i-mode services need a license. i-mode has been
successful in Japan, attracting 45 million subscribers and offering access to over 96,000
Internet sites via mobile phones as of January 2006, according to information provided by
NTT. In Germany there are over a million E-Plus customers that subscribe to i-mode
services. One more network carrier in Germany, namely, O2 is set to launch i-mode
services in early 2006. The service shall, however, be named MMO2 owing to legal
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complications with E-Plus [Kroder and Wihofszki, 2004]. The i-mode technology,
however, has seen little success outside Japan. Only in 14 countries worldwide, apart
from Japan, i-mode services are available up to now. These are: Taiwan (since 2002),
Germany (2002), Holland (2002), Belgium (2002), France (2002), Spain (2003), Italy
(2003), Greece (2004), Australia (2004), Israel (2005), Russia (2005), United
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i) Official content providers do not have to install own payment mechanisms and pay
relatively low commission charges;
A severe handicap of i-mode is that it requires special i-mode compatible devices [Kroder
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and Wihofszki, 2004]. The proprietary nature of i-mode services for network carriers is
another reason why i-mode does not seem to be gaining ground in other parts of the
world.
3. ADVANTAGES AND DISADVANTAGES OF
M-COMMERCE
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2- reducing transaction cost
4- competitive pricing.
1- small screens of most devices still limit types of file and data transfer (i.e. streaming
videos, etc.)
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2- standards guiding applications and technology development and connection(s)
5- less functionality for mobile Internet over mobile phones and existing generation of
handhelds than for mobile computers (laptops and next generation handhelds)
7- limited bandwidth
8- limited roll out of higher bandwidth mobile networks and devices (i.e. 3g networks and
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wireless broadband networks are predominantly located in cities)
11- security of data moved across some mobile and wireless networks
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commerce), the topic is still under development and offers potential opportunities for
further research and applications. Since the subject is at the stage of development, a
review of the literature on m-commerce with the objective of bringing to the fore the
state-of-art in m-commerce research and applications will initiate further research on the
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and applications using a suitable classification scheme to identify the gap between theory
and practice and future research directions. The 149 m-commerce articles are classified
and the results of these are presented based on a scheme that consists of five distinct
comprehensive list of references is presented. We hope that the findings of this research
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will provide useful insights into the anatomy of m-commerce literature and be a good
source for anyone who is interested in m-commerce. The paper also provides some future
5 M-COMMERCE APPLICATIONS
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digital content delivery and telemetry services. The applications can be further
subdivided into passive and active m-commerce applications. Active application relates
with the applications in which the user has to take the initiative on his wireless device. In
contrast, the passive applications themselves get activated towards accomplishing the
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M-commerce transactions point to online shopping Web sites tailored to mobile
phones and PDAs which are being equipped with the capabilities of browsing, selection,
purchase, payment and delivery. These sites also include all the necessary shopping
features, such as online catalogs, shopping carts, and back office functions as currently
available for desktop computers. Leading online booksellers already started the
to initiate and pay for purchases and services in real time. The highest volume of m-
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commerce transactions using wireless devices in the days to come is bound to occur on
the side of micro-transactions. When individuals reach for their e-cash-equipped mobile
phones or PDAs instead of coins to settle micro transactions, such as subway fees,
The second important one is regarding digital content delivery. Wireless devices can
retrieve status information, such as weather, transit schedules, flash news, sports scores,
ticket availability and market prices, instantly from the providers of information and
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directory services. Digital products, such as MP3 music, software, high-resolution images
and full-motion advertising messages, can be easily downloaded to and used in wireless
devices when the 3G transmission technology becomes usable. The proposed arrival of
better display screen and higher bandwidth will surely trigger the development of
innovative video applications. This will help wireless users to access, retrieve, store and
and e-learning.
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The last major application of m-commerce is telemetry services, which include the
Global Positioning System (Global Positioning System), wildlife tracking, camera control
robotics, and oceanography. Thus in the near future, wireless phones and appliances can
be used by people to contact and communicate with various devices from their homes,
offices or any where at any time. For example, delivery drivers will ping intelligent
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dispensing machines or users can transmit messages to activate remote recording devices
or service systems.
This type of applications seems manifold and exciting. Instead of using dedicated
cash cards for automatic collection of toll charges, digital cash can be used by integrating
cash cards with mobile devices. Mobile users can easily pay and record payment of toll,
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mass-transit, fast-food, and other other transactions
Nowadays mobile users can send and receive short text messages up to 160
characters that show up on the user's display screen. As digital convergence becomes
more commonplace, all kinds of mail, such as e-mail, fax documents and digitized voice
mail, can be received passively. Thus it is felt that in near future there will be many novel
services for mobile users for a fixed fee. Further on, users may be tempted for some
services free of cost for viewing audio or video advertisement delivered to their wireless
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devices. Any kind of security breach, illegal intrusion, unusual event or unacceptable
companies are testing this technology to alert frequent air passengers regarding seat
availability and upgradation, to notify the changes made in the timings etc. through
wireless devices.
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marketing. Stores will be able to market their products and services by constantly
transmitting promotional and inducing messages and doling out something towards
6. CONCLUSION
As m-commerce applications and wireless devices are evolving rapidly, one will take
forward the other one towards empowering innovation, versatility and power in them.
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There are a number of business opportunities and grand challenges of bringing forth
viable and robust wireless technologies ahead for fully realizing the enormous strength of
m-commerce in this Internet era and thereby meeting both the basic requirements and
There are news articles and pictures displaying people, who are ordering things over
the Internet while waiting for a bus, downloading merchant coupons on their PDAs as
they enter a store or bidding for the last table at a hot restaurant by digital phone in a
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spur-of-the-moment auction. Actually this process represents a tip of a very big iceberg.
The advent of m-commerce, as widely referred to among the users, has far-reaching
implications. But there are many limitations in the technologies that Once its relevant
technologies get matured, widely available and competent, the host of portable devices
will be ready to handle the bigger transactional activities not envisioned so far
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[1] F. Perich, A. Joshi and R. Chirkova, “Data Management for Mobile Ad Hoc
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Communication of the Association for Information Systems, vol. 8, no.3, 2002, pp.
41-46.
[4] M. Munusamy and H.P. Leang, “Characteristics of Mobile Devices and an Integrated
at a Mobile Terminal,” Proc. of the 36th Annual Hawaii Int Conf on System
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Sciences, IEEE 2003, pp. 89-98.
336-337.
[cited 30/06/08];
[8] Y.H. Choi, S. Yoon, G. Shin and C. Park, “An Approach to Design of Software
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[9] W.-C. Hu, C.-W. Lee and J.-H. Yeh, “Mobile Commerce Systems,” Mobile
[10] U. Varshney and R. Vetter, “A Framework for the Emerging Mobile Commerce
Applications,” Proc. Of the 34th. Hawaii Int Conf on System Sciences, IEEE,
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[11] A. Sergio, “M-commerce- What is it? What will it mean for consumers?,” [cited
15/06/08];
[12] R.A. Boadi and A.G. Shaik, “M-Commerce Breakthrough in Developing Countries:
1. INTRODUCTION
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Sciences, Lulea University of Technology, Sweden. 2006, pp. 1-92.
[14] G. Elliot and N. Phillips, eds., Mobile Commerce and Wireless Computing Systems,
[15] S.J. Barnes, “Under the Skin: Short-range Embedded Wireless Technology,” Int
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Journal of Information Management, vol. 22, no. 3, Elsevier Science Ltd., 2002, pp.
165- 179.
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Database and Expert Systems Applications Springer, 2003, pp. 276-286.
[18] V. Patil and R.K. Shyamasundar, “Trust Management for E-Transactions,” Sadhana,
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