Mobile commerce - new frontier for e-commerce

M-Commerce Technology:

To harness the enormous potential m-commerce seems to promise, proper technological infrastructure and support is indispensable. A robust technological infrastructure requirement consists of three main elements - Networks, devices, and Middleware.

Networks:

One of the basic elements of m-commerce business architecture is the delivering network, which provides the transmission. The wireless network market has enjoyed tremendous growth worldwide, evolving from First Generation (text only) through Second Generation (Voice Only), to the Third Generation (Voice plus data applications).

A major concern for network providers, today, is the limited capacity of the networks, restricting the provisions of higher band-with services. The current generation of wireless networks and handsets support data rates of only 9.6 kilobits per second, far below the 64-kilobit per second capacities, of landline copper wires. However, with GSM (Global System for Mobile Communications-the most common cellular standard) being extended by GPRS (General Packet Radio System) which can support data rates of 112 kilobits per second (twice the rate of a standard computer modem), the situation is drastically improving. In fact, the third generation (3G) networks based on UMTS (Universal Mobile Telephone System) standard supporting data rates of 2 megabits per second, is already being introduced by a number of network providers of Japan, Europe and US. Japan's leading company NTTDOCoMo, has been spending as estimated $7.6 billion a year to introduce the 3G mobile communication services based on its W-CDMA systems in May 2001. Other leading network providers like Ericsson, Motorola, Lucent and Nokia, are also investing in 3G: technologies to provide more capacity and extra functionality over the existing networks. As per the possible timeline for transmission technology evolution provided by Arthur. D. Little's E-business Center, US Wireless Market lays behind that of Japan and Europe.

Indian wireless network providers like Bharti Cellular and BPL mobile, has already tied up with Ericsson and Motorola, respectively to provide its subscribers Internet access through GPRS technology. Implementation of 3G GSM is already high on Indian Mobile telephony networks.

Devices:

Yet another critical element of m-commerce enabling technology requirement is the device that provides the reception. The receiving units, computing mobile handsets and other devices like PDA (Personal Digital Assistants), notebooks, pagers and other hand held devices provides a link between the network, the application, and the end user. There are two simultaneous battles among device manufacturers --one is among mobile phone manufacturers, and the second is among platforms (Smart phones, PDs, Pocket PC). The first battle is primarily among the three leading companies in mobile market place: Nokia, Motorala, and Ericsson. The second battle among operating system providers (Windows CE by Microsoft, EPOC by Symbian Consortium and Palm by 3Com) has resulted in a race between platforms: Pocket PCs with Windows CE, Mobile phones with EPOC, and PDAs with Palm O/S.

With more and more wireless Information Devices (WIDs) getting connected and gaining functionality, they are becoming powerful channels for the delivery of products and services. Thus, the development of smart WIDs, specially WAP enabled cellphones, have unfolded new business opportunities.

Middleware:

This element of wireless technology provides the critical software support to allow opportunities to communicate via wireless data network. Wireless middleware, thus, is a software development tool or wireless ennoblement tool that provides applications with basic modules to securely import transactions, transportations and other features. A well known middleware solution is called wireless Application Protocol (WAP). WAP is an independent middleware layer, providing a global communication for mobile phones. WAP, however, has not been able to become the middleware solution to the Palm and Window CE platforms. With other players coming in to provide middleware solutions, the monopoly of WAP platform may be threatened wireless business architecture.

M-Commerce Applications:

Wireless applications are targeted towards three major market segment comprising - Business operations, Mobile Workforce, and Consumers.

Applications facilitating Business operations are in the area of transportation, field service, public safety, sales force automation, ERP etc, leading to enhanced productivity. For Mobile workforce, application should aim at providing access to critical corporate information, task management, contracts, e-mailing etc. At present, mobile business professionals are the major users of wireless application. Still this segment offers enormous opportunities yet to be tapped. The third market segment which comprises of consumers/ individuals seeking easier and better way to communicate, shop etc. is a future market for wireless applications.

Still in its infancy, m-commerce features highly focussed applications that fits the existing wireless technology. With consumer sales representing a fraction of potential market the real impetus for growth in this industry is the potential for B2B applications. However, for a more mass-consumer applications, all online services are working to take their content (by compressing and translating) to the wireless Internet. Already players like Amazon, e-trade, yahoo etc have made their sites accessible for mobile devices. Low graphic intensive and more text-oriented pages translates well into these devices. With voice and messaging being the killer application for the mobile internet, location aware applications that provide travel based information, books flights, receiving updates on departure times etc are also gaining grounds. The financial industry, however, is leading the charge, despite catering to niche market that will buy and trade stocks on the mobile devices. According to Mark Zohar, Forester Research Analysts, winning applications of wireless internet are truly, simple to transact and location based. Some of the most emerging widespread application of mobile internet are mobile stock trading, Mobile Banking and Messaging.

List of Wireless Internet Devices (WIDs) enabling m-commerce:

1. Mobile Phones

Handsets with wireless data moderns installed. Third Generation cellular
phones (launched by NTTDoCoMo in October 2001) are capable of sending and
receiving internet files, 40 times faster than the current phones technology
allows.

2. Mobile Computing Devices

1. Laptop Computer: New breed of wireless ready laptop based on
   windows CE.
2. Hand-held Computer: Known as personal Digital Assistants (PDAs) are
   ideal for wireless connectivity. Being able to open a hand-held computer up
   and be instantly connected to email in extremely attractive to many
   customers.
3. Palmtop Computer: Windows CE-based palm computers and Palm
   Computing platform products are available with wireless options.
4. Auto PC: Based on WindowsCE, is an information and entertainment
   system for an automobile. Wireless support options enable Auto PC to provide
   traffic alerts, Navigation Software in Auto PC provides spoken directions.
5. Embedded Computer: Many embedded computers have gone wireless. For
   e.g. Soda machines now send messages when they are low on product or change.

Saboohi Naseem Visiting faculty at ACEM, Aligarh