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New Final Mobile Commerce

New Final Mobile Commerce

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Term Report on M-commerce

Dot-com businesses may be falling by the wayside, but the percentage of commerce happening via the Web continues to grow. Meanwhile, hundreds of millions of cellular subscribers worldwide are gaining access to new wireless data choices, including Webenabled cell phones, handheld computers and PDAs. Combine these two facts, and you get an industry with an unbelievable potential called mobile commerce, or m-commerce. Not convinced? How about this: A woman is looking at a DVD player in a store and is ready to buy, but she isn't sure if the store is offering the best price. Using the microbrowser on her cell phone, she quickly determines that your online enterprise is selling the player for 10 percent less; she purchases it from you right then for delivery the next day. Or, you send your subscriber an alert on his Palm to let him know tickets have just gone on sale for one of his favorite performers, before the subscriber even knows the singer is coming to town. Within minutes, the customer selects the best seats in his price range and purchases tickets from you. Whether this convinces you or not, International Data Corp. forecasts that $21 billion worth of mobile commerce will take place in 2004, while Gartner Group predicts that 40 percent of B2C (business to consumer) e-commerce in that same year will occur over wireless connections. Already, the big e-commerce players, such as Amazon.com and Yahoo, are offering mobile options. Content and applications must still be developed in multiple mobile formats. Security questions continue to dog the industry. And evolving payment systems and networks are barely up to the task. In fact, the wide range of wireless networks, markup languages and devices has made developing mobile-commerce applications so complex that most organizations seeking to mobilize applications need help. Fortunately, help is available from a rapidly expanding array of middleware solutions, wireless portals and wireless ASPs (application service providers). As part of our investigation of this industry, we sent out a detailed RFI (request for information) to middleware vendors and ASPs to learn about their approaches for enabling mobilecommerce applications.

Evolution of an Industry
The first big wireless applications, deployed in the early 1990s, were field service and dispatch. Both applications facilitate commerce but do not involve transactions. We focused on mobile-commerce applications that involve actual transactions, in which a user securely purchases or sells goods or services. Current choices are a tiny subset of what will become possible with new location technology, financial settlement systems, devices and networks. Here's how we see the market evolving: 1. This year, companies will extend their e-commerce applications to mobile devices but will rely on existing settlement systems, such as charging a user's credit-card account. Examples of such applications are financial trading, buying tickets, ordering from restaurants, updating financial portfolios, conducting banking 1

Term Report on M-commerce transactions (such as transferring funds between accounts) and comparison shopping. Financial-trading applications are leading the way, as customers can derive clear and immediate benefits. 2. Now available in limited form, electronic wallets will facilitate transactions by providing a centralized way for users to maintain account and shipping information. Electronic wallets, whether hosted by portals, ASPs, banks or carriers, will play an increasingly important role in mobile commerce. Major sites, such as Yahoo, already support wallet mechanisms. Credit-card companies also are actively involved in this area. Expect dozens of such systems to crop up by the end of the year, which might cause some confusion among application developers and customers. 3. Around 2002, new location technology will enable mobile-commerce applications that take a user's location into account. Based on user preferences address privacy issues, these applications will give users access to localized and personalized information. For example, after dinner at a restaurant, someone could use his or her PDA or cell phone to get a list of movies playing at the closest theater, obtain show times and purchase tickets. 4. Beginning around 2002 but evolving over the decade, new financial settlement systems will allow secure transmission of electronic cash on a wide- or local-area basis. E-Cash Technologies is one of the pioneers in this area. To buy a Coke from a vending machine, for instance, a user will be able to press a couple of keys on a mobile device to transfer electronic tokens -- the equivalent of virtual coins -to the machine over a local wireless connection such as Bluetooth. This capability will apply to in-store purchases as well. In effect, mobile devices could begin to replace cash, checks and credit cards. The implications for everyone -- merchants, consumers and banks alike -- are huge.

What devices will people be using?
Initially they'll use smart phones with micro-browsers -- typically based on HDML (Handheld Device Markup Language) and WAP (Wireless Application Protocol) -- and handheld computers with wireless modems. But these categories are blurring, with cell phone modules available for handheld computers and O-Sys being built into cell phones. In fact, the multiplicity of devices -- not to mention physical differences, such as screen sizes -- makes developing content a big challenge. What will drive mobile commerce will be a billion users of mobile networks within several years, with every one of those users interested in buying products and services more conveniently. But what's convenient to users spells challenge and complexity to merchants and integrators. And we mean technical complexity. We're not even going to touch the business complexities of developing profitable m-commerce applications.

Architecture and Protocols
A mobile-commerce application can be broken down into three parts: 1. the user device, 2. the Web site hosting the application and 3. the payment mechanism. 2

Term Report on M-commerce In addition, various gateways come into play. In the simplest model, a Web site would deliver HTML directly to a mobile device, and a protocol such as SSL (Secure Sockets Layer) or TLS (Transport Layer Security) would secure communications. To settle transactions, the Web site would communicate with a financial network either directly or via a third party. This structure merely replaces a standard desktop browser with one operating on a mobile device and a wired link with a wireless link; in fact, HTML browsers are available for Palm and Pocket PC devices. But most deployments are more complicated than this because of slow wireless-link speeds and multiple network and device types. Most mobile-commerce application developers want to support as many mobile devices as possible. One approach might be to format the content in WML (Wireless Markup Language), which would make the application available to mobile devices with WAP browsers. And WAP browsers are also available for handhelds. What's wrong with this is that supporting all the different types of available mobile devices requires either an extraordinary amount of development effort or a third-party solution. Sorting through all the third-party solutions is a project in itself, as we learned through our RFI; you can find excellent tools that vastly simplify the process of developing mobile applications. Just don't underestimate the amount of work this requires. Installing and evaluating these platforms are comparable in time and difficulty to working with a new computer operating system. These third-party solutions are middleware platforms that typically translate from XML/HTML format located at the customer site to the appropriate wireless format, whether HDML (a precursor to WAP), HTML, WML or a format understood by interactive pagers. You can deploy these platforms yourself by purchasing a server license, or the vendor can host the platform as an ASP. The platform can also be hosted by a wireless ISP, such as GoAmerica or OmniSky Corp. Unfortunately, the conversion from XML or HTML to WML is far from automatic. With nearly all these third-party solutions, the XML or HTML content must be created from the ground up and adhere to strict rules and templates, often in conjunction with SDKs (software development kit) and tools provided by the vendor. Because of a lack of standardization, the rules and templates are specific to each ASP. Thus, if you design using OracleMobile's Portal-to-Go XML, you'll be limited to OracleMobile's platform to translate the content to the various wireless formats. Converting from XML to mobile formats will be much more reliable and flexible than starting with HTML. HTML conversions essentially involve "screen scraping," in which the middleware platform captures portions of the Web page to create mobile content. This approach is highly vulnerable to changes such as new page layouts. With XML, application developers can use specific tags to create mobile content that the middleware can interpret in an unambiguous, consistent fashion. The middleware can perform other functions as well, such as delivering mobile content using transport protocols better suited to wireless. This architecture is technically efficient, as it enables standard Internet communications between the middleware platform and the content/application provider. Application 3

Term Report on M-commerce developers can deploy their applications on existing Web platforms. The architecture also allows the middleware platform to deliver optimized content to the user with the most appropriate protocols for the connection. However, the solutions are vendor-specific and require a considerable commitment to a middleware platform or ASP. Many of these ASPs are new, and their long-term viability is unproven. In fact, many wireless middleware companies have come and gone over the past five years. Increasingly, major software vendors are adding capabilities to their Web and database platforms to support mobile formats. This could eventually obviate third-party solutions, though such solutions are likely to have broader network and device support for quite some time. Watch also for the role that Internet portals will play. These portals are in a strong position to integrate, and eventually subsume, the ASP function. Furthermore, they can provide a place for merchants to situate themselves. America Online, InfoSpace, MSN and Yahoo are ramping up their mobile emphasis and already command intense customer loyalty. For many users, the mobile environment will become an extension of their existing Internet environment. Some wireless portals, such as GoAmerica and OmniSky, are focusing on the mobile environment exclusively. It makes sense for these trailblazers to start providing financial services such as e-wallets or gateways to e-wallets. Finally, various industry organizations are seeking to standardize mobile-commerce methods and architecture; examples include Fundamo, the Global Mobile Commerce Forum, the Mobey Forum, the Mobile Electronics Transactions initiative, Radicchio and the Wireless Data Forum. So far, these organizations are long on stating the problems and issues involved, and short on delivering actual solutions.

Security: A Pain in the ASP
The wireless model we've described raises a serious security concern, since the ASP might decrypt messages received from the mobile unit. Some ASPs can pass on messages without decrypting them; you should investigate this aspect with vendors of interest. As for the security protocols used between the mobile unit and the wireless ASP or middleware platform, typical protocols include SSL with 3DES encryption. However, many Internet authentication and encryption methods are computationally intensive. Companies such as Certicom Corp., Chrysalis-ITS and Diversinet are developing security solutions based on new methods -- elliptic-curve cryptography, for example -- that are better suited to small devices. The wireless ASP or middleware platform can then translate from these mobile-specific security protocols and conventional Internet security protocols. A sophisticated eavesdropper (secretly listening to the conversation without consent) could access the wireless data stream, though doing so wouldn't be easy. The security protocols employed above the transport layer, such as SSL and WTLS (Wireless TLS), provide most of the protection. In addition, some wireless networks, such as CDPD (Cellular Digital Packet Data) and GPRS (General Packet Radio Service), encrypt the data stream below the network layer.


Term Report on M-commerce In the case of WAP and HDML, an additional tier is added to the architecture, namely a gateway operated by the carrier, as shown in "Wireless ASP Supporting Content through a WAP Gateway," above. This tier raises additional security questions. This gateway translates between SSL (or TLS) protocols and the WAP-specific WTLS protocol, resulting in all communications being decrypted and re-encrypted. Future versions of WAP will offer end-to-end security, but for now, customers must decide if they trust the wireless carrier. The gateway provides a set of wireless-optimized transport protocols as well. You'll also need to think about user authentication. Certainly, users can enter passwords when prompted. SIM (subscriber identity module) cards, now used in GSM (Global System for Mobile Communications) cellular networks and planned for other networks, are another method. These cards uniquely map subscribers to physical cards, which the users can insert into various devices. You can then augment this form of hardware authentication with password authentication. And with electronic wallets, users need never transmit sensitive information. The bottom line is, ample mechanisms are available to secure m-commerce applications, but you must carefully design such mechanisms into your application, and you must understand your partners' security operations.

Settlement and Payments
Most of today's mobile-commerce applications are extensions of Web-based e-commerce solutions, which typically use credit cards for payment. However, as these applications mature and the variety of mobile-commerce transactions broadens settlement systems will have to change. Simply put, we need generally available, secure electronic-wallet and electronic-cash mechanisms. This will take years, but many approaches have already been introduced. To make purchases using many of today's Web-based commerce applications, customers must enter their credit-card information -- clearly an unwieldy approach with a mobile device and one that raises security concerns. If the credit card is already on file with a merchant, all the user has to do is authenticate himself or herself. But users don't want to have to register their credit cards with numerous merchants. Credit-card companies and other organizations are working to solve this problem by developing electronic-wallet mechanisms; these hold users' financial information (such as credit-card accounts) and perhaps shipping info, and may contain funds as well. By supporting a particular wallet system, you can give your customers a convenient way to pay for purchases. Some wireless ASPs, such as Snaz Commerce Solutions, host such a wallet mechanism and provide a mobile shopping portal for merchants to plug into. "The Tangled Web of Settlement Options," below, shows the various possible interconnections among wireless ASPs, wallet systems, banks and customer networks. Wireless carriers also are in a position to play a strong role. They already have billing relationships with customers and could handle billing for merchants. NTT DoCoMo in Japan does this today with its i-mode service, for which the carrier collects 9 percent from merchants. On the other hand, this role is beyond many carriers' comfort level, since it exposes them to credit risks better handled by banks. 5

Term Report on M-commerce One reason for the initial popularity of financially oriented m-commerce applications is that the financial institution already has users' account information on file and is simply allowing them to manipulate their accounts letting them buy or sell stocks, for example, or transfer funds from one account to another. The challenge is to allow a user to easily purchase goods or services from any merchant or institution in a secure and cost-effective manner. Internet economics demands a reduction in the number of middlemen involved. Today's payment systems - credit-card companies for instance involve a number of intermediaries and will not scale to high volumes of smaller transactions. This is where companies such as ECash will play a role. ECash's payment architecture lets banks offer electronic-cash services to customers, who can then spend that cash with participating merchants. Although in their infancy, such payment infrastructures could truly revolutionize mobile commerce and, in the process, massively disrupt existing financial systems even making ATMs obsolete. However, this will all take time. Fraud levels in e-commerce are 12 to 18 times higher than in conventional commerce, according to Gartner Group, so banks will proceed cautiously. But if they don't proceed, they will be relegated to irrelevance. Another significant development that could bypass carriers entirely is local-area wireless connections. In this scenario, customers establish direct connections from their mobile devices to the merchants' point-of-sale systems at the merchants' locations. Palm and Hewlett-Packard Co.'s VeriFone recently agreed to launch exactly such an initiative. The infrared link simply replaces the credit-card swipe, and the merchant uses its existing back-end credit-card payment system. This approach completely sidesteps the architectures discussed above.

Speed Bumps
Despite this market's potential, numerous speed bumps exist. Most important, no magic elixir can convert existing Web sites to a mobile format. User connections are slow and screen real estate is limited, but that's just the physical problems. Users' mobile context will force the logic of applications to change. For example, the types of airline information users want at the airport and the travel transactions they wish to conduct are inherently different from those they'll seek when they're planning a vacation from their home two months before a trip. At the airport, a user will want immediate access to realtime alternatives if a flight is canceled, the cost to jump onto another airline and the ability to instantly purchase the new ticket. And the problems don't end with the applications. Wireless networks are barely up to the task of mobile commerce. To harness this category's full potential, wireless networks need to be packet-based, to provide permanent virtual connections that allow faster transactions and the ability to push alerts. Higher speeds will also improve session quality. But with the exception of CDPD and early-stage GPRS rollouts, it will be at least two years before all of today's cellular networks are upgraded to faster packet data services.


Term Report on M-commerce Today’s networks are suitable for many applications. But stick to applications in which information can be conveyed in small chunks and that don't require a lot of interaction. And keep them text based. Although we believe location technology will be available by 2002, technical hurdles and privacy issues are associated with deploying a technology that lets organizations know users' constant whereabouts. At this point, don't worry about integrating user location into your application, but start thinking about how to take advantage of this information perhaps two years from now. Companies will overcome the\is problem because the target markets are potentially huge, and momentum is building. Companies will travel the bumpy road to offer mobilecommerce services. But the net effect will be a narrower initial scope of applications and delays in the widespread adoption of mobile commerce. While industry enthusiasts predict large-scale adoption within three years, realistically this will likely be two years beyond that. If ever there were an opportunity to be a pioneer, this is it. The rewards are sure to outweigh the risks.


Term Report on M-commerce

Mobile Commerce
Mobile Commerce (also known as M-Commerce, owing to the ever-present nature of its services) is the ability to conduct commerce, using a mobile device e.g. a mobile phone, a PDA, while on the move. Mobile commerce is currently mainly used for the sale of mobile phone ring-tones and games, although as 3G services roll out it is increasingly used to enable payment for location-based services such as maps, as well as video and audio content, including fulllength music tracks. Other services include the sending of information such as football Scores via SMS. Currently the main payment methods used to enable mobile commerce are: · Premium-rate calling numbers, · Charging to the mobile telephone user's bill or · Deducting from their calling credit, either directly or via reverse-charged SMS. · Mobile commerce was coined in the late 1990s during the dot-com boom. The idea that highly profitable mobile commerce applications would be possible though the broadband Mobile telephony provided by 2.5G and 3G cell phone services was one of the main reasons for hundreds of billions of dollars in licensing fees paid by European Telecommunications companies for licenses in 2000 and 2001. Other examples of mobile commerce applications are information-on-demand systems like news services or stock tickers, banking and stock brokerage applications by SMS, WAP or iMode.

Current type of 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 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 Japan, called i-Mode. i-Mode was revolutionary also in offering a revenuesharing deal where NTT DoCoMo only kept 9% of the content payment and returned 91% to the content owner. The first conference dedicated to mobile commerce was held in London in July 2001 and the first book to cover m-commerce was Tomi Ahonen's Mprofits in 2002. The first university short course to discuss m-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 courses in mobile commerce as of 2008. PDAs and cellular phones have become so popular that many businesses are beginning to use m-commerce as a more efficient method of reaching and communicating with their customers. The less price sensitive early adopters from the 13-25 age groups 8

Term Report on M-commerce could drive the initial growth. Growth in mobile products such as ring tones, 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 endusers 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 solution for sustaining revenues in the face of falling average price per unit, analysts say the rapid commercialization of 3G services is likely to open up new opportunities in developed markets. In order to exploit the m-commerce market potential, handset manufacturers such as 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. 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 vulnerabilities with security and congestion even though it is widely available and accessible. 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 existing e-commerce back end.

Features of Mobile Commerce
Promising unlimited information, entertainment, and commerce, mobile commerce gives users the ability to access the Internet from any location at any time, the capability to pinpoint an individual mobile terminal user's location, the functionality to access information at the point of need, and a need-based data/information update capability. Mobile commerce has features not available to traditional e-commerce, some of which we discuss next: 1. Ubiquity: Through mobile devices, business entities are able to reach customers anywhere at anytime. On the other hand, users can also get any information they are interested in through Internet-enabled mobile devices. In this sense, mobile commerce makes a service or an application available wherever and whenever such a need arises. 2. Personalization. Since owners of mobile devices often require different sets of applications and services, mobile commerce applications can be personalized to represent information or provide services in ways appropriate to the specific user. 3. Flexibility. Because mobile devices are inherently portable, mobile users may be engaged in activities, such as meeting people or traveling, while conducting transactions or receiving information through their Internet-enabled mobile devices. 4. Dissemination. Some wireless infrastructures support simultaneous delivery of data to all mobile users within a specific geographical region. This functionality offers an efficient means to disseminate information to a large consumer population. 9

Term Report on M-commerce

Trends in Mobile Commerce
PDA’s and cellular phones have become so popular that many businesses are beginning to use m-commerce as a more efficient method of reaching the demands of their customers. Although most trends and advances are seen in Asia and in Europe, North America (Canada and the United States) is also beginning to take advantage of mcommerce. Banks and other financial institutions are exploring the use of M-Commerce to broaden/retain their business by allowing their customers to not only access account information, e.g. bank balances, stock quotes and financial advice, from anywhere, but also the possibility to make transactions, e.g. purchasing stocks, remitting money, via mobile phones. This service is often referred to as Mobile Banking or M-Banking. The stock market services offered via mobile devices have also become more popular and are known as Mobile Brokerage, as they allow the subscriber to react to market developments in a timely fashion and irrespective of their physical location. News information is also becoming more popular with subscriptions to daily headlines from anywhere in the world being transmitted to mobile devices. Sports and entertainment are areas that have also grown with the demand for mobile related services. Shopping and reservation services are now more accessible when using mobile devices. Corporations are now using m-commerce to expand everything from services to marketing and advertisement. Although there are currently very few regulations on the use and abuses of mobile commerce, this will change in the next few years. With the increased use of m-commerce comes increased security. Cell phone companies are now spending more money to protect their customers and their information from online intrusions and hackers.

Future implications
Financial Institutions such as Banks see mobile commerce as offering new channels of service to customers as well as offering them new and innovative products. These financial institutions are working to design and implement new applications that will offer mobile payment (i.e. being able to pay for groceries) and mobile brokering. The travel industry, in realizing the possible benefits of m-commerce, is working on technologies that will take care of travel arrangements, update customers on flight status, notify them when this information changes and will offer to make new arrangements based on preset user preferences requiring no input from the user. Therefore, a customer’s entire trip can be scheduled and maintained using only their mobile device. Additionally, retailers will also be able to track customers at all times and notify them of The retail sector is also looking into the possibility of using mobile commerce for making the purchase of merchandize easier. Customers will be able to browse and order products while using a cheaper more secure payment method. An example of this is; instead of using paper catalogues, retailers can send customers a list of products that the customer would be interested in, directly to their mobile device. Discounts at local stores in which that customer would be interested in. 1

Term Report on M-commerce Shopping will also be easier. Soon, phones will be equipped with “bar-code scanners” and shoppers could scan an item and find out its pricing and availability. In the entertainment industry, m-commerce could be used for the purchasing of movie tickets, verify someone's ID or authorize their reservation information. This industry will also be able to promote wireless gaming and music.

Products and services available:
Mobile ticketing:
Tickets can be sent to mobile phones using a variety of technologies. Users are then able to use their tickets immediately by presenting their phones at the venue. Tickets can be booked and cancelled on the mobile with the help of simple application downloads or by accessing WAP portals of various Travel agents or direct service providers. Mobile ticketing for airports, ballparks, and train stations, for example, will not only streamline unexpected metropolitan traffic surges, but also help users remotely secure parking spots (even while in their vehicles) and greatly facilitate mass surveillance at transport hubs.

Mobile vouchers, coupons and loyalty cards:
Mobile ticketing technology can also be used for the distribution of vouchers, coupons and loyalty cards. The voucher, coupon, or loyalty card is represented by a virtual token that is sent to the mobile phone. Presenting a mobile phone with one of these tokens at the point of sale allows the customer to receive the same benefits as another customer who has a loyalty card or other paper coupon/voucher. Coupons may be sent to a customer utilizing location based services when he is in a certain physical proximity.

Content purchase and delivery:
Currently, mobile content purchase and delivery mainly consists of the sale of ring-tones, wallpapers, and games for mobile phones. The convergence of mobile phones, mp3 players and video players into a single device will result in an increase in the purchase and delivery of full-length music tracks and video. Download speeds, if increased to 4G levels, will make it possible to buy a movie on a mobile device in a couple of seconds, while on the go.

Location-based services:
Unlike a home PC, the location of the mobile phone user is an important piece of information used during mobile commerce transactions. Knowing the location of the user allows for location based services such as: • Local maps and Local weather • Local offers • People tracking and monitoring


Term Report on M-commerce

Information services:
A wide variety of information services can be delivered to mobile phone users in much the same way as it is delivered to PCs. These services include: • • • • • News services Stock data Sports results Financial records Traffic data and information

Particularly, more customized traffic information, based on users travel patterns, will be multicast on a differentiated basis, instead of broadcasting the same news and data to all Users. This type of multicasting will be suited for more bandwidth-intensive mobile equipment.

Mobile banking:
Banks and other financial institutions are exploring the use of mobile commerce to allow their customers to not only access account information, but also make transactions, e.g. purchasing stocks, remitting money, via mobile phones and other mobile equipment. This service is often referred to as Mobile Banking or M-Banking.

Mobile brokerage:
Stock market services offered via mobile devices have also become more popular and are known as Mobile Brokerage. They allow the subscriber to react to market developments in a timely fashion and irrespective of their physical location.

Over the past three years mobile reverse auction solutions have grown in popularity. Unlike traditional auctions, the reverse auction (or low-bid auction) bills the consumer's phone each time they place a bid. Many mobile PSMS commerce solutions rely on a onetime purchase or one-time subscription; however, reverse auctions are high return applications as they allow the consumer to transact over a long period of time.

Mobile purchase:
Mobile purchase allows customers to shop online at any time in any location. Customers can browse and order products while using a cheap, secure payment method. Instead of using paper catalogues, retailers can send customers a list of products that the customer would be interested in, directly to their mobile device or consumers can visit a mobile version of a retailer’s ecommerce site. Additionally, retailers will also be able to track customers at all times and notify them of discounts at local stores that the customer would be interested in.


Term Report on M-commerce

Mobile marketing and advertising:
Mobile marketing is an emerging concept, but the speed with which it's growing its roots is remarkable. Mobile marketing is highly responsive sort of marketing campaign, especially from brands’ experience point of view. And almost all brands are getting higher campaign response rates. Corporations are now using m-commerce to expand everything from services to marketing and advertisement. Although there are currently very few regulations on the use and abuses of mobile commerce, this will change in the next few years. With the increased use of m-commerce comes increased security. Cell phone companies are now spending more money to protect their customers and their information from online intrusions and hackers.

Payment methods:
The main payment methods used to enable mobile commerce are: 1. 2. 3. 4. 5. Premium-rate calling numbers, Charging to the mobile telephone user's bill or Deducting from their calling credit. Registration of a credit card that is linked to a SIM card. Billing a customer's credit card through a secure user interface.

Challenges to M – Commerce
• GSM provides a relatively secure connection through the PIN when turning on the handset.


But more is expected in the field of security, like smart cards m-Commerce

Companies need to integrate capabilities in both telecommunications and information systems

As bandwidth demand increases, service providers may have to face problem of bandwidth scarcity

Term Report on M-commerce

Universal Mobile Telecommunications System (UMTS)
Universal Mobile Telecommunications System (UMTS) is one of the third-generation (3G) mobile telecommunications technologies, which is also being developed into a 4G technology.

UMTS, supports maximum theoretical data transfer rates of 21 Mbs. Also it offers access to the World Wide Web and other data services on mobile devices. UMTS networks in many countries have been or are in the process of being upgraded with High Speed Downlink Packet Access (HSDPA), sometimes known as 3.5G. Currently, HSDPA enables downlink transfer speeds of up to 21 Mbs. Work are also progressing on improving the uplink transfer speed with the High-Speed Uplink Packet Access (HSUPA). Longer term, the 3GPP Long Term Evolution project plans to move UMTS to 4G using a next generation air interface technology. The first national consumer UMTS networks launched in 2002 with a heavy emphasis on Telco-provided mobile applications such as mobile TV and video calling. The high data speeds of UMTS are now most often utilized for Internet access: to the World Wide Web either directly on a handset or connected to a computer via Wi-Fi, Bluetooth, Infrared or USB. To enable a high degree of interoperability. Now there are 11 different frequency combinations used around the world. Also another SIM is given with name of USIM which supports all UMTS and GSM systems. In addition to user subscriber information and authentication information, the (U) SIM provides storage space for phone book contact.

Difference between UMTS and EDGE
The Universal Mobile Telecommunications System (UMTS) and Enhanced Data Rates for GSM Evolution (EDGE) are competing mobile communication technologies. These are both third generation (3G) communication technologies with new features and capabilities that advance the options for cell phones, particularly those that use Global System for Mobile Communications (GSM). Generally, these systems differ mainly in speed and the way that users access the networks that transmit radio signals. The rapid evolution of UMTS has made it the more dominant of the two technologies.

Salient features of EDGE
1. The maximum data rate for EDGE is 236 kilobits per second (kbps). 2. General Packet Radio Service (GPRS) is a recent enhancement to EDGE that expands its capability for handling multimedia at higher speeds. 3. EDGE networks are capable of decent speeds for text and graphics. 4. EDGE uses the normal GSM frequencies. 1

Term Report on M-commerce

Salient features of UMTS
1. It has maximum data transmission rates that top 3.6 megabits per second. 2. UMTS networks use High Speed Packet Access at transmission rates that support large file transfers and mobile data-intensive Internet activities like video and music streaming. 3. UMTS use 5 MHz bands. The majority of UMTS carriers operate on the 1700 and 2100 MHz radio frequencies 4. UMTS handsets currently on the market are dual-band devices that can seamlessly switch to the GPRS system for data transmission from GSM.

Difference between GSM and CDMA
In cellular service there are two main competing network technologies: Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). Understanding the difference between GSM and CDMA will allow you to choose a carrier that uses the preferable network technology for your needs. Upon viewing competitors' coverage maps you may discover that only GSM or CDMA carriers offer cellular service in your area. So for the non-invested consumer who simply wants bottom line information to make a choice, the following considerations may be helpful.

Outstanding features of CDMA:
1. EVDO, also known as CDMA2000, is giving speed with a downstream rate of about 2 megabits per second. High traffic can degrade speed and performance. 2. CDMA handsets are not card-enabled. To upgrade a CDMA phone, the carrier must deactivate the old phone then activate the new one. The old phone becomes useless. 3. CDMA networks may not cover rural areas as well as GSM carriers, and though they may contract with GSM cells for roaming in more rural areas but it’s expensive. 4. CDMA phones that are not card-enabled do not have capability of international roaming.

Outstanding features of GSM:
1. GSM's with data rates of up to 384 kbps with real world speeds reported closer to 70-140 kbps. 2. GSM phones use SIM cards. 3. GSM have wider coverage of more rural areas, often without roaming charges to the customer. 4. If you travel to other countries you can even use your GSM cell phone abroad.


Term Report on M-commerce

In radio, multiple-input and multiple-output, or MIMO (commonly pronounced my-moh or me-moh), is the use of multiple antennas at both the transmitter and receiver to improve communication performance. It is one of several forms of smart antenna technology. MIMO technology has attracted attention in wireless communications, because it offers significant increases in data throughput and link range without additional bandwidth or transmit power. It achieves this by higher spectral efficiency (more bits per second per hertz of bandwidth) and link reliability or diversity (reduced fading). Because of these properties, MIMO is a current [update] theme of international wireless research. MIMO is also planned to be used in Mobile radio telephone standards such as recent 3GPP and 3GPP2 standards.

3G Standard
A 3G standard is a specified standard for telecom tools and systems. 3G standards for wireless telecom are a twenty-first century invention. The first 3G network was implemented in Japan in 2001. Part of the 3G standard is for a rate of transmission. The 3G standard offers 14 megabits per second on an uplink, and 5.8 megabits on a downlink. One common type of 3G service is WiMAX. Practically, 3G standard service offers more to users of wireless communications devices. Types of services that were not previously feasible are now common with faster and more reliable wireless data transmission services. These include mobile TV, video conferencing, and other services that rely on huge amounts of data transmission. Although a 3G standard does provide specific rate of transmission information as mentioned above.

4G networks
Just as mainstream cell-users have started to get more comfortable with the term 3G, the third-generation technology that supports "smart phones," whispers of a mythical 4G on the horizon have already started to spread. In a basic sense, 4G (fourth-generation wireless communications) will involve settling mobile communications firmly and fully into the realm of Voice over Internet Protocol. Although 4G technology will eventually be implemented in a variety of mobile gadgets, such as laptops and gaming devices, it will have the most noticeable impact in the case of mobile phones since they still deal with voice data differently. In essence, cell phones will use the same basic Voice over Internet Protocol system that computer soft phone software programs and many long-distance carriers do now. They'll transfer all the information they have to send over a wireless Internet connection in a manner conforming various Internet Protocols. This will enable them to more completely maximize on packet switching, which is a great way to send information quickly and at a much lower cost from one destination to another. 1

Term Report on M-commerce When 4G networks become standard, users should notice a difference. 4G technology has some persuasive benefits, which are helping accelerate the industry's push in its direction. Peak times might still be a little pokey (by the standards of people spoiled by super fast Internet service), but overall, it should be a step up from the service most cell phone users are familiar with today.

A wireless network uses radio waves, just like cell phones, televisions and radios do. In fact, communication across a wireless network is a lot like two-way radio communication. Here's what happens: 1. A computer's wireless adapter translates data into a radio signal and transmits it using an antenna. 2. A wireless router receives the signal and decodes it. The router sends the information to the Internet using a physical, wired Ethernet connection. The process also works in reverse, with the router receiving information from the Internet, translating it into a radio signal and sending it to the computer's wireless adapter. The radios used for WiFi communication are very similar to the radios used for walkietalkies, cell phones and other devices. They can transmit and receive radio waves. But WiFi radios have a few notable differences from other radios: 1. This frequency is considerably higher than the frequencies used for cell phones, walkie-talkies and televisions. The higher frequency allows the signal to carry more data. 2. Lets you move from one wireless network to another seamlessly. 3 WiFi radios uses many frequency bands. So they can hop rapidly between the different frequency bands. Frequency hopping helps reduce interference and lets multiple devices use the same wireless connection simultaneously. 4 several devices can use one router to connect to the Internet. This connection is convenient, virtually invisible and fairly reliable; however, if the router fails or if too many people try to use high-bandwidth applications at the same time, users can experience interference or lose their connections.

WiFi Hot spots
If you want to take advantage of public WiFi hotspots or start a wireless network in your home, the first thing you'll need to do is make sure your computer has the right gear. Most new laptops and many new desktop computers come with built-in wireless transmitters. If your laptop doesn't, you can buy a wireless adapter that plugs into the PC card slot or USB port. Desktop computers can use USB adapters, or you can buy an adapter that plugs into the PCI slot inside the computer's case. Many of these adapters can use more than one 802.11 standard. 1

Term Report on M-commerce Once you've installed your wireless adapter and the drivers that allow it to operate, your computer should be able to automatically discover existing networks. This means that when you turn your computer on in a WiFi hot spot, the computer will inform you that the network exists and ask whether you want to connect to it. If you have an older computer, you may need to use a software program to detect and connect to a wireless network. Being able to connect to the Internet in public hot spots is extremely convenient. Wireless home networks are convenient as well. They allow you to easily connect multiple computers and to move them from place to place without disconnecting and reconnecting wires. In the next section, we'll look at how to create a wireless network in your home.

Mobile-to-Mobile Convergence
Mobile-to-mobile convergence or MMC is a newer approach to the technology that provides the ability of mobile devices to connect to different types of networks. As part of this technology, mobile-to-mobile convergence makes it possible to automatically move from a cellular network to a Wi-Fi connection without having to manually initiate a process. This approach to wireless communications has made an extremely positive impact on mobile phone usage in recent years. There are several features associated with mobile-to-mobile convergence that make the technology attractive to many business and residential customers alike. First, MMC will work within the environment of a wide area network. The roaming capability can make use of both cellular and Wi-Fi networks, ensuring that the best option for connectivity is always utilized as the end user moves about. This secure connection process makes it possible for persons on the go to have constant access to email, the home server of the business, and even online multimedia conferences, depending on the voice and visual capabilities of the hand held device.

Mobile Broadband Technology (EVO in Pakistan):
Mobile broadband is powered by the same technology that makes cell phones work. For mobile broadband, the packets of information would be other types of data like e-mails, Web pages, music files and streaming video. Mobile broadband is also known as 3G, or third-generation cell-phone technology. Both GSM and CDMA have developed their own 3G technology solutions for delivering highspeed Internet access to mobile devices. The CDMA-based mobile broadband technology is called EV-DO (Evolution-Data Optimized or Evolution-Data Only). The trick behind EV-DO is that it runs over a part of the cellular network devoted entirely to data. By separating the data channel from the voice channel, the network can maximize data transfers and provide higher-speed access to e-mail, the Internet and multimedia. EV-DO is the equivalent of DSL. To use an EVDO network, you need to either have a device that's already loaded with EV-DO hardware (like a Blackberry or other smart phone) or a special network card that plugs into your laptop. 1

Term Report on M-commerce GSM's answer to EV-DO is something called HSDPA (High-Speed Downlink Packet Access). Unlike EV-DO, an HSDPA network can handle both voice and data transfers, so you can talk to mom and surf the Web at the same time. It maximizes data transfer speeds by focusing on downloading information, not uploading. HSDPA advertises average download speeds between 400 to 700 Kbps. Like EV-DO, you'll need special network hardware to access HSDPA mobile broadband. You either need a device with a built-in HSDPA card or a special PC card that plugs into a laptop computer. You'll also need to be within range of an HSDPA signal, which is concentrated in metropolitan city centers and along major highways.

Features of Mobile Broadband Services
With Broadband Connect, you can send e-mails, instant messages, browse the Web at speeds between 400 and 1.4Mbps, watch TV shows, and even record and share live video during a phone call. But to access all of these Broadband Connect services, you need to be within coverage range. Right now, that's confined to the nation's largest cities. What you pay to access these mobile broadband networks depends on what device you're going to use. There are four basic options for connecting to a 3G network: 1. 2. 3. 4. 3G cell phone PDA/smart phone laptop computer with a PC card laptop computer using a cell phone as a modem

In 1997, Nokia, Motorola, Ericsson and Phone.com came together to create the WAP because they believed that a universal standard is critical to the successful implementation of wireless Internet. Since then, more than 350 companies have joined them in the WAP Forum. Making a Web site accessible through a wireless device is quite a challenge. So far, only a small portion of the more than a billion Web sites provide any wireless Internet content. As the use of WAP-enabled devices grows, you can expect that many more Web sites will be interested in creating wireless content. WAP uses Wireless Markup Language (WML), which includes the Handheld Device Markup Language (HDML) developed by Phone.com.

Wireless Application Protocol
Here's what happens when you access a Web site using a WAP-enabled device: 1. You turn on the device and open the mindblower. 2. The device sends out a radio signal, searching for service. 3. A connection is made with your service provider. 1

Term Report on M-commerce 4. You select a Web site that you wish to view. 5. A request is sent to a gateway server using WAP. 6. The gateway server retrieves the information via HTTP from the Web site. 7. The gateway server encodes the HTTP data as WML. 8. The WML-encoded data is sent to your device. 9. You see the wireless Internet version of the Web page you selected. : The mindblower does not offer anything more than basic navigation. Wireless Internet is still a long way from being a true alternative to the normal Internet. It is really positioned right now for people who need the ability to connect no matter where they are. The WAP Forum is continually working on the specifications of the WAP standard to ensure that it evolves in a timely and useful manner.



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PDA (personal digital assistant)
The main purpose of a personal digital assistant (PDA) is to act as an electronic organizer or day planner that is portable, easy to use and capable of sharing information with your PC. It's supposed to be an extension of the PC, not a replacement. PDAs, also called handhelds or palmtops, have definitely evolved over the years. Not only can they manage your personal information, such as contacts, appointments, and todo lists, today's devices can also connect to the Internet, act as global positioning system (GPS) devices, and run multimedia software.

Types of PDAs:
1. Traditional PDAs: Today's traditional PDAs are descendents of the original Palm Pilot and Microsoft Handheld PC devices. Palm devices run the Palm OS (operating system), and Microsoft Pocket PCs run Windows Mobile. The differences between the two systems are fewer than in the past. 2. Palm PDAs: Most Palm devices are made by palm one. Known for their ease of use, Palm OS PDAs have: 1. A vast library of third-party applications (more than 20,000) that you can add to the system 2. An updated version of the Graffiti handwriting-recognition application 3. Synchronization with both Windows and Macintosh computers using the Palm Desktop 4. Smaller displays than Pocket PCs to accommodate a dedicated Graffiti area on the device. 3. Pocket PCs: Pocket PC is the generic name for Windows Mobile PDAs. Their standard features include: 1. Pocket versions of Microsoft applications such as Microsoft Word, Excel, and Outlook 2. Synchronization with Microsoft Outlook on a Windows PC. 3. Three handwriting-recognition applications: Transcriber, Letter Recognizer (similar to the new version of Graffiti), and Block Recognizer (similar to the original Graffiti) 4. A virtual writing area, which maximizes the display size 5. Windows Media Player for multimedia content


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4. Smart phones:
A smart phone is either a cell phone with PDA capabilities or a traditional PDA with added cell phone capabilities, depending on the form factor (style) and manufacturer. Characteristics of these devices include: 1. A cellular service provider to handle phone service. 2. Internet access through cellular data networks. 3. Various combinations of cell phone and PDA features, depending on the device (for example, not all smart phones offer handwriting-recognition capabilities) 4. A number of different operating systems, including Windows Mobile Pocket PC Phone Edition, the Palm OS, the Blackberry OS for Blackberry smart phones, and the Symbian OS for smart phones from Panasonic, Nokia, Samsung and others.

PDA Features
Here are some additional details about these basic features.

1. Handle Standard PIM Functions
All PDAs come with some kind of personal information management (PIM) software that typically handles the following tasks to keep you organized: 1. 2. 3. 4. 5. Store contact information (names, addresses, phone numbers, e-mail addresses) Make to-do lists and Take notes Track appointments (date book, calendar) Remind you of appointments (clock, alarm functions) Perform calculations

2. Run Application Software
PDAs can run specialized software applications: • Windows Mobile devices come with Pocket versions of Word, Excel, Internet Explorer and Outlook, along with Windows Media Player and voice memo recording. • Most Palm OS devices include applications such as Documents to Go, Media, email software and web-browsing software. • All types of devices can run other kinds of software including games, multimedia, expense, diet and exercise, travel, medical, time and billing, and reference.

3. Synchronize With PCs
Because PDAs are designed to complement your PC, they need to work with the same information in both places. If you make an appointment on your desktop computer, you need to transfer it to your PDA; if you jot down a phone number on your PDA, you should upload it later to your PC. 2

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4. Common PDA Functions
Today, most PDAs incorporate wireless and multimedia functions of some type. Functions found on most (but not necessarily all) devices include: 1. Short-range wireless connectivity using Infrared (IR) or Bluetooth technology. Bluetooth wirelessly connects to other Bluetooth-enabled devices, such as a headset or a printer. 2. Internet and corporate network connectivity through Wi-Fi and wireless access points 3. Support for Wireless WAN (Wide Area Networks); the cellular data networks that provide Internet connectivity for smart phone devices 4. A memory card slot that accepts flash media such as Compact Flash, Multimedia Card, and Secure Digital cards (Media cards act as additional storage for files and applications.) 5. Audio support for MP3 files and a microphone, speaker jack and headphone jack

5. Bells & Whistles
High-end PDAs offer multimedia, security and add-on features not found on less expensive devices: 1. A Secure Digital Input/Output (SDIO) card slot for add-on peripherals contained in an SDIO card, for example, a Bluetooth card, a Wi-Fi card, or a GPS (global positioning system) card 2. Built-in GPS capabilities 3. A built-in digital camera for snapping digital images and capturing short videos. 4. Integrated security features such as a biometric fingerprint reader

Mobile Smart phone
A mobile smart phone is a cell phone with many extra capabilities to make work and life easier. Mobile smart phones were once only popular in the business world, but are now becoming much more common among average cell phone users. Here's a list of some of the things smart phones can do: 1. 2. 3. 4. 5. 6. 7. 8. Send and receive mobile phone calls – some smart phones are also WiFi capable Personal Information Management (PIM) including notes, calendar and to-do list Communication with laptop or desktop computers Data synchronization with applications like Microsoft Outlook and Apple's iCal calendar programs E-mail Instant messaging Applications such as word processing programs or video games Play audio and video files in some standard formats

A mobile smart phone generally runs a proprietary operating system that allows the addition of specific applications. There are also many downloadable applications for 2

Term Report on M-commerce smart phones, such as games, news feeds, or stock market trackers, just to name a few. Smart phones may also offer a full QWERTY keyboard or a touch screen to make typing easier. There are also extra-cost accessories available for smart phones, such as a wireless headset, car charger or case. Mobile smart phones will be able to connect to your computer, allowing you to easily transfer and sync information and important documents. This is a great time-saver on smart phones. Being able to check the news, view social networks and track the stock market, among many other options, on your mobile smart phone is also convenient during a commute or a business trip. Mobile smart phones are generally more expensive than a standard cell phone. Though the purchase price may be similar initially but monthly fees are considerably higher. This is because a data plan is required to access the internet and send and receive e-mails or text messages. If you do not wish to have these extra-cost features, a standard cell phone is a better choice. Because mobile smart phones are becoming so popular, prices are becoming more reasonable. Some are able to replace their household land lines with cell phones, so even though a mobile smart phone may be more expensive on a month-to-month basis, you may save money by canceling your land line service.

Smart phone Operating Systems
The most important software in any smart phone is its operating system (OS). Some of The smart phone operating systems are:

Symbian OS is the operating system for more than 100 different models of phones. Though it's dominant in the market right now, with an estimated market share of 51 percent. The research firm, estimates that Linux and Microsoft will hold more of the market share than Symbian by 2010.

Linux is unique among the other operating systems in that its development is driven by a community of developers rather than by a central company. The Linux OS supports more processors than any other operating system on the market, though the most popular phone models still use the Symbian OS. Some smart phone companies find the risk too great to invest in Linux. Six telecommunications companies are responding to this by forming the LiMo foundation, an organization that is attempting to create a standardized Linux platform.

Windows Mobile
The OS is based off of Window CE.NET. Much of the strength of this OS lies in the compatibility with the Microsoft Office suite of programs. 2

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Some smart phones have operating systems based on the Java programming language. By using the Java language, the OS allows manufacturers or users to customize the interface as much as they like. Java-based phones have not made a huge impact in the marketplace so far, but some analysts think the operating system could gain ground while the big boys battle for the lion’s share of the market.

Garnet OS
Formerly known as Palm OS, this operating system combines a Linux-based foundation with applications written for the old Palm OS. The Palm OS was mainly used in PDAs, though the Treo line of smart phones used it as well. Phones using the Garnet OS should become available in late 2007.

Unique Operating Systems
Apple’s iPhone uses a variation of the Mac OS, known as OS X. The RIM Blackberry has its own proprietary OS as well.

Flexible Interfaces
The core services on smart phones all tie in to the idea of a multi-purpose device that can effectively multitask. A user can watch a video clip, field a phone call, and then return to the video clip after the call, all without closing each application. Or he or she can flip through the digital calendar and to-do list applications without interrupting the voice call. All of the data stored on the phone can be synchronized with outside applications or manipulated by third-party phone applications in any number of ways. Systems supported by smart phones include:

1. Bluetooth
It’s a short-range, wireless radio service that allows phones to wirelessly link up with each other and with other nearby devices that support it. This includes things like printers, scanners, input devices, computers and headsets. Some varieties of Bluetooth only allow communication with one device at a time, but others allow simultaneous connection with multiple devices.

2. Data Synchronization
The Open Mobile Alliance (OMA) is a collaborative organization with the mission to “facilitate global user adoption of mobile data services by specifying market driven mobile service enablers that ensure service interoperability across devices, geographies, service providers, operators, and networks, while allowing businesses to compete through innovation and differentiation”. The OMA formed a Data Synchronization Working Group, which is continuing the work begun by the SyncML Initiative. SyncML is an open-standards project designed to eliminate the trouble of worrying about whether your 2

Term Report on M-commerce PIM devices sync up with your phone and vice-versa. The project is designed so that any kind of data can be synchronized with any application on any piece of hardware, through any network, provided that they are all programmed to OMA standards. This includes synchronization over the Web, Bluetooth, mail protocols and TCP/IP networks. SyncML allows data to be synchronized from a phone to PalmOS, Windows, Mac and Linux applications using Bluetooth, infrared, HTTP or a USB cable. The OMA’s SyncML site keeps a list of devices that are compliant with the standard.

3. Java
A smart phone that is compatible with the Java programming language allows the user to load and run Java applications and MIDlets. MIDlets are applications that use a subset of Java and are specifically programmed to run on wireless devices. Java MIDlets include add-ons, games, applications and utilities. Since there are millions of Java developers worldwide, and the Java development tools are freely accessible, smart phone users can install thousands of third-party applications on their phones. Because of the way the OS architecture of most phones is built, these applications can access and use all of the data on the user's phone. For example, if you don't like the photo caller ID that comes bundled with Symbian Series 60 OS, you can just find one that you like better.

The Future of Smartphones
Smart phones are getting thinner and cheaper, and as a result are entering the consumer market. For the past few years smart phones have been aimed at prosumers, or “professional consumers” (prosumers can also refer to “production consumers”, or consumers who drive the design, production and alteration of a product). Prosumers are generally early adopters of products. They have disposable income and great enthusiasm for particular products or technologies. Smart phone developers find prosumers very useful when designing applications and hardware. As prosumers pick and choose the phones that offer the applications they want, developers can tweak designs and move towards mass production. Analysts predict that one billion smart phone handsets will be sold by 2011. While input methods will vary, the research firm, forecasts that 38 percent of all mobile phones will use touch screens or touch panels by 2012. The iPhone uses an advanced touch screen, for example, and can even detect multiple points of contact simultaneously.

Perhaps the most challenging consideration for the future is security. Smart phones and PDAs are already popular among many corporate executives, who often use their phones to transmit confidential information. Smart phones may be vulnerable to security breaches such as an Evil Twin attack. In an evil twin attack, a hacker sets a server’s service identifier to that of a legitimate hotspot or network while simultaneously blocking traffic to the real server. When a user connects with the hacker’s server, information can be intercepted and security is compromised. One downside to the openness and configurability of smart phones is that it also makes them susceptible to viruses. Hackers have written viruses that attack Symbian OS phones. 2

Term Report on M-commerce The viruses can do things like turning off anti-virus software, locking the phone completely or deleting all applications stored on the phone. On the other side, some critics argue that anti-virus software manufacturers greatly exaggerate the risks, harms and scope of phone viruses in order to help sell their software. The incredible diversity in smart phone hardware, software and network protocols inhibit practical, broad security measures. Most security considerations either focus on particular operating systems or have more to do with user behavior than network security. With data transmission rates reaching blistering speeds and the incorporation of WiFi technology, the sky is the limit on what smart phones can do. Possibly the most exciting thing about smart phone technology is that the field is still wide open. It's an idea that probably hasn't found its perfect, real-world implementation yet. Every crop of phones brings new designs and new interface ideas. No one developer or manufacturer has come up with the perfect shape, size or input method yet. The next "killer app" smart phone could look like a flip phone, a tablet PC, a candy bar or something no one has conceived of yet.

1. 2. 3. 4. http://www.hipc.org http://www.cacci.org http://www.isg.rhul.ac.uk http://www.wikkipedia.com


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