M-COMMERCE

 It is also called mobile commerce. It is defined as all activities

related to a potential commercial transaction conducted through
communications networks that interface with wireless or mobile
devices.
 M- commerce is any type of transaction of an economic value
having at least at one end a mobile terminal and thus using the
mobile telecommunication network.
 It is the use of wireless hand-held devices such as mobile phone,
personal digital assistance (PDA) and smart phone etc.
 It provides a new dimension to this space by extending the reach
of traditional e-commerce to the millions of mobile phone and
wireless device users worldwide.
 By 2021, mobile e-commerce sales are expected to account
for 54% of total e-commerce sales.
HISTORY OF M- COMMERCE
 Mobile Commerce Services were first delivered in 1997, when the
first two mobile-phone enabled Coca Cola vending machines
were installed in the Helsinki area in Finland. The machines
accepted payment via SMS text messages. The first mobile
phone-based banking service was launched in 1997 by Merita
Bank of Finland, also using SMS.
 The M-Commerce server developed in late 1997 by Kevin Duffey
at Logica.
 Since the launch of the iPhone, mobile Commerce has moved
away from SMS systems and into actual applications.
FEATURES OF M-COMMERCE
 Ubiquity-Mobile users must have the ability to receive
information and perform transaction in real-time, regardless of the
location.
 Flexibility- Users of mobile device should be able to engage in
activities such as receiving information and conducting
transaction with ease.
 Instant connectivity-Easy and quick connection to Internet,
intranets, other mobile devices.
 Personalization- It offers services and application that should be
personalized according to their preferences.
 Localization of products and services-Knowing where the user
is located at any given time and match service to them. 
CON
 Hardware- Hardware refers to the physical elements of a computer. Also
referred to as the machinery or the equipment of the computer. Examples of
hardware in a computer are the keyboard, the monitor, the mouse and the
processing unit.
 Server operating system- it is also called a server OS, is an operating
system specifically designed to run on servers, which are specialized computers
that operate within a client/server architecture to serve the requests of client
computers on the network.
 Web server software- In addition to the web server operating system, each e
commerce web site must have web server software to perform a number of
fundamental services:
• Security
• Retrieving and sending web pages
• Web site tracking
• Web site development
• Web page construction
 E-commerce software - It must support the five core task.
• Catalog management’
• Product configuration
• Shopping cart
• E commerce transaction processing
TYPES OF M-COMMERCE
 Entertainment- Mobile entertainment includes content services
such as music downloads videos, gaming and ring tones as well as
text – based messaging services such as audience voting.
 Banking and bill payment- It enables customers to use their
mobile phones to receive alters, manage their accounts, pay bills
and transfer fund.
 Ticketing- It allows devices users to purchase tickets for events,
transportation and parking.
 Retail and peer to peer- Customers are increasing comfortable
with paying for goods and services and transferring money via
mobile devices. In India, consumers are using their mobile devices
to pay for home-delivery shopping services, vending machine and in
store purchases, taxis and purchases at fuel stations and retails
outlets.
BENEFITS OF M-COMMERCE
 Portability/ Mobility
 Instant connectivity
 Personalization
 Localization
LIMITATION OF M-COMMERCE
 Bandwidth- The limited bandwidth that can be support by mobile
device currently is very small which causes web developers to
reduce the usage of rich data.
 Screen size- The screen size of a mobile device is very limited.
This also limits the viewing capacity of the user.
 Less powerful processors- Due to the slow processing speed web
developer would have to use server side scripting which will
bring more loads to the services.
 Cost of wireless connection- As wireless connection of a mobile
device to the internet is still a relatively new technology the cost
of using such connection is also expensive as the technology is
still under heavy development.
TECHNOLOGIES FOR M-
COMMERCE
Technology suppliers are the market drivers for M- commerce. There
would not be significant growth in M- commerce market until the
necessary technology are developed and deployed.
 Network Technologies- The main barriers to M –commerce are the
limited network bandwidth and long call establishment time.
Because higher bandwidth allows simultaneous access to voice,
video and data services at one. Its packetized nature also enables“
always on mobility”.
 Services Technologies- Short message service(SMS) and wireless
Application Protocol(WAP) have been the most popular mobile
services that enable most of the M- commerce application today.
 Wireless Application Protocol (WAP)- It is an open, interoperable
framework for delivery of internet content and application to mobile
devices. It presents information in Wireless markup language format
that is optimized for wireless handheld mobile terminal. It is the
stripped down version of HTML.
 Security Technology – Public Key Infrastructure(PKI)- Security
is the most important factor in M- commerce. In M-commerce
security services s provided by the Sonera smart Trust who has
offered PKI fro mobile Since early 1999. By means of certificate
encryption and digital signature.
 Infrared (IRIT)- It is a cordless, low cost transceiver signaling
technology.
 Bluetooth- It came into market in 2001. it is a short range radio,
energy saving, low- cost and safe wireless technology that allows
voice and data connection to be made up to 10 meters.
 Mobile Location Technologies- the ability to locate the
position of the mobile device is the key of M – commerce.
It locates the position by GPS(Global Positioning System),
is a system that consists of 24 satellites revolving around the
earth. Since the satellites are continuously broadcasting their
own position and direction, the GPS receiver can calculate
its position very exactly.
 I-Mode- It is rival standard to WAP developed by Japan
NTT DOCOMO mobile phone network. It uses compact
HTML to deliver content. It uses packet switching which
allows users to be constantly connected to the web.
MOBILE MARKETING
 Mobile marketing is a multi channel digital marketing strategies
aimed at reaching people on their mobile devices-such as smart
phones and tablets. Mobile marketing strategies include SMS and
MMS, mobile websites and social media channels, and apps.
MOBILE ADVERTISING
 It is the communication of products and services to mobile device
and smart phone. A effective advertising means understanding
your mobile audience, designing content with mobile platform in
mind and making use of SMS/MMS marketing and mobile apps.
 It can build brand awareness; increase consumer involvement and
interaction; and influence consumer response and activation
(Sultan & Rohm, 2005).
BENEFIT
 Accessibility- Most people who use mobile phones keep them handy
throughout the day. This means you can reach potential customers wherever
they are instead of having to wait until they log on to the internet with a
computer, notice your physical sign or tune in to a broadcast. 
 Personal- generally a mobile is not shared and is always personal so the
data managed for a user by demographic behavioral history and presence
will be always correct.
 Measurement- As with online, it should be possible to measure the impact
of campaigns directly.
 Instant Result- The mobile is always carried by user.
 Fraud resistance - Any carriers can audit usage and click to call can easily
be verified. So fraud detection is very easy as compared with
desktop/laptop advertising.
 Easy to work- it is simpler and less expensive as compared to
desktop/laptop advertising.
LIMITATION
 Technology- Differing screen sizes and software for mobile, other
standards for mobile web and rich clients is also a big challenge
while framing the advertisement.
 Reach over world- The reach over world is not as high as
consumption of mobile content is small and penetration of 3G
devices is still low in most penetration.
 WAP- The wap technology is still inadequate which discourages
web surfing but is increasing with high pace.
 Scarcity- Mobile sites as compared to desktop/laptop sites is
very minimal.
 Data transfer -Slow data transfer as compared to desktop/laptop.
 Not user – Friendly- Majority of the user still consider d
desktop/laptop are more user friendly than a mobile to operate a
website.
TYPES OF
M-MARKETING/ADVERTISING
 Mobile web poster
 SMS advertising
 MMS advertising
 Mobile games
 Mobile video
 Audio Advertisement
M- COMMERCE APPLICATION
 It shows that the design of new mobile commerce applications
should take into consideration the general capabilities of user
infrastructure mobile devices.
 It also provides a developer and provider plane to address the
different needs and roles of application developer, content
developer and other parties.
 They are grouped into two categories:
Consumer Based
Business Based
CONSUMER-BASED
 Consumer- based m- commerce application refer to normal daily
commerce activities that are most likely to be conducted by
anyone who is a user of a wireless device.
BUSINESS BASED
 Business based m- commerce refers to business application that
are applied in a corporate or business environment to facilitate
business transaction and to improve productivity within in a
company.
•ERP(Enterprises resources planning) software typically integrates all facets of an
operation — including product planning, development, manufacturing, sales and
marketing — in a single database, application and user interface.

•It is a integrated applications to manage the business and automate many back

office functions related to technology, services and human resource.
M- COMMERCE APPLICATION
AND ITS TRENDS
 In developed countries mobile customer are starting to use
handsets to make purchases from retails stores, to conduct
personal banking and make travel reservation, view sports and
news program. In India, around 35% of population are interested
in m-commerce possibility.
 SMS- Since 1997, SMS has allowed people to send data and
receive text message using their mobile phone. Now SMS is
becoming the backbone of M-commerce. In Singapore, 52% of
mobile user are using SMS more than once in day for doing
transaction.
 Micro payment- It offer vast opportunities to make micro
purchases (buying from a vending machine, paying a parking
meter) easier. In this case if you are using SMS, then payment will
done through post paid account linked to debit card. In case of
subscription, it charges the customer through the monthly bills.
 Financial services- Now we have various method and
systems for making payment in M-commerce. Various
countries are using different method. In Republic of Korea,
mobile customers prefer to pay charges in the monthly bills.
Whereas in Japan, people prefer to pay in prepaid manner.
 In 2002, new system was developed named Infra-red to
make the payment easier. In infra-red interface, payment is
automatically debited through your debit card.
 Logistics/E-Logistics- The potential of mobile
communication for generating greater efficiency in transport
is widely acknowledged. With the expand of m-
commerce /wireless data access will make it possible to
follows goods movement throughout the supply value chain.

 With the growing use of information technologies in cargo

booking, tracking and delivery by major shipping lines,
internal and external trade will become more efficient.
 Information services- Value added text messaging in the
use of SMS to provide a content service or product to
customer at a premium price. Now for the content service
consumers are ready to pay more.
 In Ireland , this is known as premium text messaging. It will
involve the allocation of 5- digit short code so that customer
will understand they are accessing the premium services.
 Wireless CRM Services- Customer relationship
management(CRM) services usually consist of a set of
methodologies, software and internet capabilities that are
coordinated and co-integrated whose purpose is to help an
enterprises manage its relationship with customers.
 Companies activities can be very varied and may not always
be managed in a coordinated way from a customer centric
point of view.
MOBILE PAYMENT
 A transfer of funds in return for a good or service, where the
mobile phone is involved in both the initiation and
confirmation of the payment.
 Mobile payment also referred to as mobile money, mobile
money transfer and mobile wallet generally refer to payment
services operated under financial regulation and performed
from or via a mobile device.
CATEGORIZATION OF M-
PAYMENT SYSTEM
 Most e-payment systems are not suitable for use in a mobile
context. So, we categorized m – payment systems according
to the concern of the customer money.
 Software electronic coins
 Hardware electronic coins
 Background account
 Software electronic coins- In this case, monetary value is
stored on the mobile device in the form of file. This file contain
information like; a value, a serial number, validity period and
the signature of the issuing bank. Since these coins are easy to
copy, the validity of an electronic coin depends on the
uniqueness in terms of serial number.
 Hardware electronic coins- In this case, monetary value is
stored on a secure hardware token, typically a smart card in the
mobile device. In order to get the money, the costumer smart
card and the merchant payment server authenticate each other
and a secure channel is set up between them.
 Background account- In this type, the money is stored
remotely on an account at a trusted third party. Under this
method when customer will get the bill from the merchant,
then authentication and authorization message to the
merchant that allows the trusted party to identify the
customer and to verify the payment authorization. The
accounts can then be settled.
APPLICATION AND SERVICES OF
M- COMMERCE
 Mobile ticketing
 Airline ticketing
 Cinema ticketing
 Railway and Bus
 Concert/ Event
 Consumer voucher distribution
 Mobile money transfer- by this service we can transfer
money from one person to another by using a mobile phone.
Ex- ICICI bank started IMPS
 Content purchase and delivery- the convergence of
mobile phone, portable audio player and video player into a
single device is increasing the scope of 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 PC. These services include:
 Traffic reporting
 Sports scores
 Stock quotes
 News
 Mobile banking- banks and other financial institutions use
mobile commerce to allow their customer to access account
information and make transaction such as purchasing stocks,
remitting money, receive notification and transfer money.
MOBILE WALLET
 It is a mobile wallet payment strategy deals with how, where,
and when the payment can be accepted and processed using
the user wallet accounts.
 Prepaid- under this users top up their mobile wallet accounts
upfront and such mobile wallet accounts are used to make the
payment in context of the mobile sales transaction.
 Postpaid- in this case, a user mobile wallet account is linked
to his ort her carrier billing account. this is charged to the
associated mobile billing amount that is usually paid on a
monthly or quarterly basis.
 Card linked mobile wallets- in this strategy, the mobile wallet
account are linked to user’s debit or credit cards. In a mobile
sales transaction, with card linked mobile wallet payment, final
payment is made from the wallet account that is linked to user
card.
 Module -4
A framework for the study of mobile commerce
FRAMEWORK FOR THE STUDY
OF M- COMMERCE
USER PLANE
 This framework has four levels: m-commerce applications,
user infrastructure, middleware, and network infrastructure.
 The framework shows that the design of new mobile
commerce applications should take into consideration the
general capabilities of user infrastructure (mobile devices),
and not the individual devices.
 Mobile middleware hides the details of underlying wireless
and mobile networks from applications and at the same time
provides a uniform and easy to use interface. It is an
extremely important component in developing new mobile
commerce applications.
 The network infrastructure also plays an important role in
mobile commerce, as the user perceived service quality
depends on available resources and capabilities of wireless
and mobile networks.
DEVELOPER AND PROVIDER
PLANE
 This plane addresses the needs and roles of application
developers, content providers, and service providers.
 Each of them could build its products/services by using the
functionalities provided by others.
 Service providers can also act as content providers.
WIRELESS USER
INFRASTRUCTURE
 To realize these application, we need several functional
components, starting with a mobile device with sufficient
memory, an appropriate display and communications
functionalities.
 As these devices gain more functions and grow in storage and
processing capabilities, they will need an operating system to
manage resources.
 As the number of functions on a mobile device increase along
with increased storage, we need an operating system which can
run on handheld and other small device. E.g- Microsoft releasing
the pocket version of outlook, Excel and Word and striped down
version of UNIX.
WIRELESS NETWORKING
INFRASTRUCTURE
 Besides mobile devices and middleware, mobile commerce
applications depends on networking support.
 Two of the most important factors are bit rate and coverage
 Developers are now standardizing the fourth generation of
wireless network.
 Requirements:
 Location management, an integral part of many mobile
commerce application
 Reliable and survivable wireless network so that users can
access mobile commerce application even under varying degree
of network failure.
 Roaming across multiple heterogeneous network so that users
can access mobile commerce applications from anywhere.
NTT DOCOMO’S I MODE
 I-mode is a wireless multimedia service popular in Japan and is
increasing in popularity in other parts of the world.
 It is a multimedia and messaging service for mobile phones.
 Developed by NTT Docomo
 NTT Docomo is the spin off of Japan telecommunication giant
Nippon telegraph and Telephone(NTT).
 I-mode was launched in Japan on 22 February 1999
 I-mode users have access to various services such as e-mail,
sports results, weather forecast, games, financial services, ticket
booking and internet browsing.
 I-mode was developed as an inexpensive method of packet
switched high-speed communication which give the feature of
always on.
 Based on WWW standards(TCP/IP,HTTP,HTML)
POPULARITY OF I-MODE
 There are multiple reasons attributed to I mode success.
 It is based on packet switched wireless technology.
 The second big factor for the popularity of I mode, high
penetration rate of mobile phone than the PC.
 It is less expensive.
PERSONAL DIGITAL ASSISTANTS(PDA)
 It is a hand-held microcomputer that trades off power of small
size and greater portability.
 They are tightly integrated computers that often use flash memory
instead of a hard drive for storage
 These devices usually do not have keyboards but rely on touch
sensitive LCD screen for both output and input.
 WIRED V/S WIRELESS
Wired Wireless
Communication happens using a Communication occurs via radio
wired media signal and line-of sight base
station.
Faster Speed Relatively slower.
Secure, very difficult to breach Inherently insecure
Limited location and reach is Mobile. Supports all devices in
restricted because of physical hotspot range.
accessibility.
Fixed work location Devices can be accessed from
anywhere.
WIRELESS DEVICE FOR M
COMMERCE
 Wireless communication is a technical and business revolution.
 Mobile phone are a common sites in most cities around the world.
 Wireless personal and local area networks provides digital
connectivity among mobile computing devices, including
 Desktop
 Laptops and
 Personal digital assistants(PDA).
WIRELESS MOBILE
TECHNOLOGY
 GSM( Global System for Mobile communication) – it is a
digital mobile telephony system that is used in Europe and other
parts of the world.
 GSM technology was first launched in Finland in 1991.
 It uses a variation of time division multiple access (TDMA) and
it is most widely used of the three digital wireless telephony
technologies(TDMA, CDMA, GPS).
 It digitizes and compresses data, then sends it down a channel
with two other stream of user data, each in its own time slot.
 It operates at either the 900 MHz or 1800 MHz frequency brand.
 One of the features that was introduces into GSM network was
the SMS( Short Messaging System).
 GSM network operators have roaming agreements with foreign
operators, so user can often continue to use their mobile phones
when they travel to other countries.
GPRS
 GPRS(General Packet Radio Service)- it is a non-voice service
added to existing TDMA network.
 GPRS complements existing technologies like cellular phone
connections/SMS.
 It is a packet based wireless communication service that
promises data rates from 56 upto 114 Kbps.
 GPRS is an upgrade over the basic features of GSM.
 It allow mobile handsets to obtain much higher data speeds than
what standard GSM can offer.
 It higher data rates allow users to take part in video conferences
and interact with multimedia web sites.
 GPRS packet based services cost is lesser than circuit switched
services since communication channel are being used on a shared-
use.
CDMA
 CDMA(Code division multiple access) is an example of
multiple access, where several transmitters can send
information simultaneously over a single communication
channel. This optimizes the use of available bandwidth.
 The technology is used in ultra-high-frequency
(UHF) cellular telephone systems in the 800-MHz and 1.9-
GHz bands.
CDMA V/S GSM
 IMPACT OF TECHNOLOGY ADVANCES ON
STRATEGIES FOR MOBILE COMMERCE
 Mobile device will enable product and services to be offered
direct to an individual pocket facilitating more tailored
product and service offerings than internet access through a
PC.
 Following are the various wireless services:
 Financial services
 Travel and tourism
 Retail
 Entertainment and gambling
 Personal information management
 Location based service
FINANCIAL SERVICES
M-banking services, which are an extension of internet
banking (or home banking) allow customers:
 To manage personal account information
 To transfer funds in bank account or pre-paid accounts
 To receive alerts regarding bank information or payment
due
 To handle electronic invoice payment
TRAVEL AND TOURISM
 With enhanced messaging and location based mobile
services, offered by the mobile operator and enterprises
travel companies, travelers get in touch will all traveling
tips, news, financial information, weather and ticketing
anytime.
 For example; if a crisis arises while traveling( a flight delay
or diversion) you will get immediate message from the
company.
RETAIL
 In the retail trade industry, the possible uses of wireless
internet access devices are almost limitless.
 Shopping app will enable regular internet e-commerce via
mobile, that is related with ordering and payment of goods
and services.
ENTERTAINMENT AND
GAMBLING
 One of the most appealing group of application for m-
commerce is likely to be entertainment.
 The service provider will supply a means for users to pay or
sign contract electronically.

PERSONAL INFORMATION MANAGEMENT

 It allow users to manage their daily information and events
easily and in a simple way. E.g- email, dictionary checking,
contact list, event reminder and data storage management.
 It cooperates with third party software like lotus notes and
mail messenger.
LOCATION BASED SERVICES
 It is a revolutionary services for the mass.
 User can get instant information based on their current
geographical position or location.
 This services is based on GPS(Global positioning System),
TOA(Time of arrival) and Angle of arrival(AOA).
1G TELECOMMUNICATION
 1G refers to the first generation
of wireless cellular technology (mobile telecommunica
tions).
 These are the analog telecommunications standards
that were introduced in the 1980s and continued until
being replaced by 2G digital telecommunications.
 The main difference between the two mobile cellular
systems (1G and 2G), is that the radio signals used by
1G networks are analog, while 2G networks are digital.
 It's Speed was upto 2.4kbps. It allows the voice calls in
1 country. AMPS was first launched in USA in 1G
mobile systems.
ADVANTAGES OF 2G
 It provides the digital signal which requires very little
battery power.
 Digital coding also reduces the noise in the line, thus
improving the clarity of voice.
 2G phones are greatly more private than 1G phone, as
the call on the digital cell are almost impossible to
eavesdrop or by use of radio scanner.
3G TECHNOLOGY
 3G technology refer to third generation which was
introduced in year 2000.
 It is the upgrade for 2G and 2.5G GPRS networks, for faster
internet speed.
 3G is the next generation of technology which had
revolutionized the telecommunication industry. Apart from
increasing the speed of communication, the objective of this
technology is to provide various value added services like
 video calling, live streaming, mobile internet access, etc on
the mobile phones.
 HISTORY OF 3G
 The evolution of 3G technology was the result of high speed demands of smart
phones. Smart phones, which is a combination of PDA and mobile supports
different applications. Since, these smart phones require high speed data transfer
therefore, high speed network become the demand which led to the evolution of 3G
networks. 
 NTT DoCoMo launched the first 3G network in Japan, in the year 2001. In
December 2007, 190 3G networks were operating in 40 countries and
154 HSDPA networks were operating in 71 countries, according to the Global
Mobile Suppliers Association (GSA). In Asia, Europe, Canada and the USA,
telecommunication companies use W-CDMA technology with the support of
around 100 terminal designs to operate 3G mobile networks.
 On 11 December 2008, India entered the 3G arena with the launch of 3G enabled
Mobile and Data services by Government owned MTNL in Delhi and later
in Mumbai MTNL becomes the first 3G Mobile service provider in India. After
MTNL, another state operator (BSNL) launched 3G services on 22 Feb 2009
in Chennai and Kolkata and later launched 3G as Nationwide. The auction of 3G
wireless spectrum was announced in April 2010 and 3G Spectrum allocated to all
private operators on 1 September 2010.
DIFFERENCE BETWEEN 2G VS 3G
Basis 2G 3G
Terms 2G is the second generation 3G is the third generation
of mobile networks. of the mobile network.

Function 2G networks is primarily 3G technology offers the

the transmission of voice additional benefit of data.
information.
Security Normal security High security
Speed The downloading and While in 3G technology the
uploading speeds available downloading and uploading
in 2G technologies are up speeds are up to 21 Mbps
to 236 Kbps. and 5.7 Mbps respectively.
Features That are not available with The features like mobile
2G technologies. TV, video transfers and
GPS systems are the
additional features of 3G
technology.
Data Bandwidth 14-64 Kbps 2Mbps
4 G TECHNOLOGY
 4G  is the term used to describe the fourth-generation of
wireless cellular service.
 4G is a big step up from 3G and is up to 10 times faster
than 3G service. Sprint was the first carrier to offer 4G
speeds in the United States beginning in 2009. Now all
the carriers offer 4G service in most areas of the country.
 Kolkata is the First 4G City in India and Launched by
Airtel Network.
 It is capable of providing 100Mbps-1Gbps speed.
 It is the next generations of wireless technology that
promises higher data rates and expanded multimedia
services.
 FEATURES
 More Security
 High Speed
 High Capacity
 Low Cost Per-bit
DIFFERENCE BETWEEN 3G /4G
Basis 3G 4G
Terms 3G is the third generation 4G is the fourth
of mobile networks. generation of the mobile
network.

Data transfer rate  3.1 MB/sec 100 MB/sec

Internet Services Broadband   Ultra Broadband

Download and upload 5.8 Mbps 14 Mbps
Speed
Bandwidth 5-20 MHz 100MHz 

 Mobile - TV Resolution Low High

 Module – 5
ECOLOGY OF MOBILE COMMERCE
WIRELESS APPLICATION
PROTOCOL
 It is a set of communication protocols to standardize the
way that wireless devices, such as cellular phone and radio
transceivers, can be used for internet access.
 It is a universal standard for bringing internet based content
and advanced value-added services to wireless devices such
as phone and PDA.
 It is hosted on web server and use the same transmission
protocol as web sites that is Hypertext transport
protocol(HTTP).
 The most common difference between the web and WAP
sites is the application environment.
 Web site is coded mainly using HTML whereas WAP use a
more streamlined formatting language WML(Wireless
Markup language).
ARCHITECTURE OF WAP
 The WAP protocol suits contain four protocols that are
responsible for the communication between clients and
WAP gateway.
These can be used in four different configuration;
 Connectionless mode – Only WSP and WDP are involved,
no acknowledgement on the sent data.
 Connectionless mode with security- Additional encryption
by WTLS
 Connection mode- They are additional use of WAP, now
the data being sent must be acknowledge and may be
retransmitted if lost.
 Connection mode with security- Additionally encrypted
by WTLS.
LAYERS OF WAP PROTOCOL
 WAP has a layered architecture. Following are the
various layer of WAP architecture;
 Wireless Application Environment(WAE)
 Wireless Session Protocol(WSP)
 Wireless Datagram Protocol (WDP)
 Wireless Transaction Protocol(WTP)
 Wireless Transport Layer Security (WTLS)
 Wireless Markup Language (WML)
 Wireless Application Environment (WAE)- It defines the
user interface on the phone.
 It provides the general purpose environment for application
to be used on wireless devices.
 It connects the technologies used in the WWW and mobile
telephony to allow interoperability.
 This layer contains of two logical layers:
 User layer – Browser, phone book and message editor
 Services layer- It deal with common elements and formats
accessible to user agent, like programming languages, WML,
and WML Script.
 Wireless Session Protocol- This protocol layer provides a
lightweight session layer to allow efficient exchange of data
between WAE and the rest of the protocol stack.
 When running WSP in connection mode, this session is
assumed to be long lived and can be resumed if suspended.
 Wireless Datagram Protocol (WDP)- It is the transport
layer that sends and receive message via any available
bearer network.
 It is the base of the WAP protocol and hides the
characteristics of different underlying bearers
(GSM,CDMA).
 It allows WAP to be bearer-independent by adapting the
transport layer of the underlying bearer.
 Wireless Transaction Protocol- The WTP runs on top of a
datagram service, such as User Datagram Protocol (UDP)
and is part of the standard suite of TCP/IP protocols used to
provide a simplified protocol suitable for low bandwidth
wireless stations.
 It makes sure that message are unique and retransmitted if
they are lost.
 Messages are divided into three different classes.
 Unreliable send with no result message
 Reliable send with no result message.
 Reliable send with reliable result message.
 Wireless Transport Layer Security (WTLS)- It
incorporates security features that are based upon the
established Transport Layer Security (TLS) protocol
standard. It includes data integrity checks, privacy, service
denial, and authentication services.
 It is an optional security layer which incorporate encryption
facilities that provide the secure transport service for
application that must be secured during transaction between
the client and WAP gateway.
 Wireless Markup language-The wireless markup
language (WML) is WAP counter part to the hypertext
language on WWW.
 It is the page describing language used for authoring
services and is designed to fit small handheld devices.
 WML is designed to handle issues like small display size,
limited user input capabilities, narrowband network
connection with high latency, limited memory and
computational processing power.
 Each of these layers provides a well-defined interface
to the layer above it. This means that the internal
workings of any layer are transparent or invisible to the
layers above it. The layered architecture allows other
applications and services to utilize the features
provided by the WAP-stack as well. This makes it
possible to use the WAP-stack for services and
applications that currently are not specified by WAP.
ADVANTAGES
 WAP is open standard. It is totally vendor and
network independent.
 WAP transport mechanism is optimized for
wireless data bearers.
 It is possible to configure the WAP gateway in
such a manner that it requires the phone to use
WTLS and enforce sufficiently strong encryption.
 The WAP gateway inside the corporate premises it
is harder for someone to listen or modify traffic
between the WAP phone and web server.
 Some of the WAP features are similar to HTML.
DISADVANTAGES
 If WTLS is enforced, all WAP phones that do not
support WTLS may be disabled.
 A separate gateway computer must be purchased
that requires configuration and support.
 Another problem that the gateway might be used
by a hacker to modify or break into other
applications that may reside behind the same
firewall.
 There is no way for the web server to know the
identity of the WAP user in a secure way.
MOBILE BUSINESS SERVICES
 Mobile business is a very recent, but promising industry created
by the emergency and widespread adoption of wireless data
network, which enable the convergence of the internet, e-
business and the wireless world.
 This sector is driven by both the demand and supply side factors.
 According to the Gartner Group, over 80% of European
corporation consider mobile devices and application are very
important for their business.
 Mobile business services are attracting increasing attention and
they promise a multibillion dollar market whose characteristics
are quite distinct compared to mobile consumer services.
Competitive activity among players keen on tapping into this
opportunity is increasing rapidly. 
IMPORTANT PLAYERS IN MOBILE
BUSINESS SERVICES
Network operators Technology providers
Cellular networks Devices
wireless Enabling infrastructure
LAN Middleware
Business application

Market for mobile

business services

Transaction and content

service providers
Banking Solution providers
Business content
Marketplace
TECHNOLOGY PROVIDERS
 Technology providers, such as middleware and
application developers are primarily leading
innovation in mobile business services.
 Their role is very important since many services
cannot be managed by network providers.
 Technology solutions need more tailoring since it
is needed to integrate corporate IT systems.
NETWORK OPERATORS
 Business segment has been the main source for
telecom operators, but now the profitability is at
risk.
 Mobile is becoming bundled as part of overall data
service offering.
 With newer technologies, new players are
emerging in the network operator market.
 Mobile operators need to think through their
approach to mobile business services.
TRANSACTION AND CONTENT
SERVICE PROVIDERS
 They belong to a key group of players in the
consumer market.
 Mobile can only generate limited, incremental
value to business content and transaction service
providers.
 Majority of content and applications in mobile
corporate use is internal to the corporation or
belongs to its business network.
SOLUTION PROVIDERS
 Solution providers manage the IT customer
interface since they have knowledge and
experience of IT infrastructure and legacy
applications.
 Mobile solutions are increasingly being integrated
with other systems and hence system integration
skill is needed.
 Integrated mobile solutions are increasingly in
demand.
 Most of the companies prefer external service
provider for mobile solution deployment.
MOBILE PORTALS
 An Internet gateway that allows mobile devices to
connect remotely via a Web browser. Mobile portals
aggregate content from many sources and present it
in a format designed for the smaller screens and
limited bandwidth common to mobile devices.
 It is also known as portable portal.
 The most lucrative feature of mobile portal is degree
of personalization and localization point.
 The mobile portals are emerging today, in many
ways, a stripped down version of traditional web
portals.
CHARACTERISTICS OF MOBILE
PORTAL
 Ubiquity
 Convenience
 Localization
 Personalization
 Device optimization
UBIQUITY
 It offer users the ability to receive information and perform
transaction from virtually any location on a real time basis.
 Thus mobile portal users can have a presence everywhere or
in many places simultaneously.
CONVENIENCE
 The agility and accessibility provided from wireless devices
will further allow m-commerce to differentiate its ability
from e-commerce. E.g- Many people use their mobile
devices when they are commuting, get stuck in traffic and
are waiting in lines.
 In these situation, m-portal act as time saver by allowing
performing task that a person would do anyway but on the
account of other important activities.
LOCALIZATION
 Knowing the geographical location of an internet user
creates a significant advantage for m-commerce over e-
commerce.

 Through the GPS technology, service providers can

accurately identify the location of the user so that M-
commerce providers will be able to receive and send
information relative to a specific location.
PERSONALIZATION
 Mobile devices are typically used by a single person,
making them ideal for individual-based and highly
personalized target marketing efforts.
 Eg- advertising messages tailored to individual preferences
can be provided.
DEVICE OPTIMIZATION
 It is an automatic generation of m-portal content based on
device configuration, such as screen size, memory and CPU,
characteristic of a communication channel, such as
bandwidth and supported and protocols.
 Since service providers know in detail about a device,
bandwidth and supported language, they may optimize the
content of their portals to each user individually in order to
achieve fast transmission speed, simple navigation, an
intuitive graphical user interface and consistent page layout.
DRIVER OF MOBILE SERVICE
STRATEGY
 It should be able to increase the probability of success by
incorporating these three major driver into mobile portal
strategy:
 Portal must be easily customizable
 Portal must optimize flexibility
 Portal must contain relevant content
IT ADOPTION IN SMALL
BUSINESS
 An important and fast growing technological innovation during this
century is information technology (IT) in the form of computers .
 IT provides an opportunity for businesses to improve their efficiency
and effectiveness, and even to gain competitive advantage.
 For a small business, embarking on IT adoption for the first time is
non-trivial as there is a lot of uncertainty and risk involved.
 There are many reported cases of the positive contribution of IT to
large businesses. With the decreasing cost and ever more powerful
user-friendly microcomputers and standard software packages, today
the benefits are accessible even to the smallest business. Yet, while
large businesses have been using computers for some time, small
businesses have been slow in adopting these technological
innovations.
 We have identified a variety of factors thought to affect m-
commerce/Internet technology adoption in small business:
 Owner/Manager Characteristics: These are based on behavioral
and attitudinal factors, being:
 Perceived benefits affect technology adoption in terms of the
perceived ease of use and/or usefulness of the technology. If the
owner/manager does not perceive the technology in a positive
way, they will be reluctant to adopt technology.
 The Computer literacy of the business owner can also influence
technology adoption. If the owners are unaware or do not
understand the technologies available, they are unlikely to adopt
them into their own business.
 The level of assertiveness, rationality and interaction of
business decision processes can also impact on IT adoption. If
owners of the firm are assertive in business decision processes,
understand the benefits and uses of the technology to their
organization, and are able to rationalize that information, they will
be more likely to adopt IT.
 Perceived control relates to the amount of requisite opportunities
and resources (time, money, skills, co-operation of others)
someone possesses to be able to carry out the course of action
(technology adoption). For example, a small business owner may
decide that connection to the Internet is an important competitive
use of IT. Yet if there is a possible budget shortfall, or lack of time
or understanding of the technologies, their decision to adopt will
be influenced.
 Subjective norm: It is the impact of groups decision on an
individual group perception for technology adoption can influence
a individual decision.
 Mistrust of the IT industry relates to the attitudes of
owner/managers that IT professionals are untrustworthy, difficult
to understand and overcharge.
 Lack of Time refers to the owner/managers’ attitude that they do
not have sufficient time to invest in gaining knowledge and
purchasing and implementing new technologies.
 Firm characteristics:
 Organizational readiness refers to the level of technology
currently incorporated into business processes. If there is
little technology incorporated, or outdated/inefficient
technology being utilized, a firm is less prepared to
incorporate the technologies and therefore less likely to
adopt.
 A small business owner/manager will be reluctant to adopt
innovative IT unless there is a specific request for it by their
trading partners and/or customers. If this external pressure
to adopt IT is not present in the industry sector, then the
business owner may perceive the technology as a waste of
resources.
 The structural sophistication of the firm in terms of centralization
and complexity will also influence technology adoption in its
ability to incorporate new technologies into its work practices. A
particularly complex structure could either inhibit or facilitate
technology adoption and would be dependent on whether the
owner believed that IT could be easily incorporated and enhance
operations, or excessively disrupt operations
 The size, sector and status of the organisation have been shown to
influence technology adoption, particularly in relation to the
sector and status. If competitors and trading partners within the
sector have adopted IT, an owner may be more inclined to adopt
as well.
 The size of the business can also influence technology adoption,
as a very small business with only two or three employees may
not have the time or expertise to devote to implementing and
using new technologies
 The dependency of the small business customer on the supplier
is linked to the previous factor. Not only would the supplier
need to have adopted the technology to make it viable, the
small business owner would need to recognize and understand
the benefits to his or her firm in adopting the technology. In
addition, an organization may perceive that their clientele was
of a certain socio-economic level that would not readily benefit
from the introduction of new technologies
 Finally, the level of information intensity within the organization
may influence the owner to adopt or not adopt a technology. For
example, if large amounts of data and information are part of the
business processes, an owner may be more likely to adopt
technologies that could streamline operations and lead to improved
information process within the organization.
LOCATION–BASED SERVICE
 A location based service is any applications that offer
information, communication or a transaction that satisfies
the specific need of a user in a particular place.
 Traffic information for the highway a user is currently
driving on, or a discount for a coffee shop around the corner
from where a user is walking are both classic examples of
location based services
DIFFUSION OF MOBILE DATA
TECHNOLOGIES
 Major innovation may have to prove themselves in new market before
they can displace other technologies.
 The usefulness and ease of use will impact on owner/manager acceptance
of the technologies.
 The attributes of the technologies may improve their acceptance by small
business owner/manager.
 Small business owner/manager do not buy technology, they just want
benefits.
 Lack of speed is a barrier to adoption as mobile data technologies are slow
and hence inefficient.
 Another barrier is the perception of a lack of standardized IT environment
for developing mobile data application.
 Limited bandwidth, higher usage costs, and a susceptibility to
transmission noise and call dropout are also possible barrier for adoption.
 Security is also a concern for slow adoption.
 FACTOR INFLUENCING THE ADOPTION OF MOBILE GAMING SERVICES

Following are the factors influencing the adoption of mobile

gaming services;
 Relative advantage- It the extent to which an innovation is
perceived as being better than an idea it supersedes.
 Consumers are not likely to start using new technology just
because it is here.
 The main advantage of mobile services is that are accessible
anytime, anywhere.
 Time killing displays one of the goals of using mobile
entertainment services.
 Compatibility
 It related to the fit between the innovation and existing value, past
experience and needs of potential adopters.
Complexity
 It is also refer to as ease of use.

 It is the extent to which an innovation is perceived as relatively

difficult to understand.
Communicability
 It refers to the extent to which the innovation lends itself for
communication.
 Particularly the extent to which the use of the innovation is
observable by others.
 This factor resembles social influence, which has been identified as
a critical factor in the adoption process.
CONSTRAINTS OF WIRELESS
DATA SERVICES
 The constraints of technology and human behavior compel
wireless data services to exhibit three key attributes to
achieve market adoption. So the wireless services must be:
 Personalized
 Localized
 Actionable
MOBILE NETWORK OPERATOR
OPPORTUNITY
 Mobile network services operators enjoyed rapid growth throughout
the 1990.
 New subscribers were acquired at high double-digit growth rates and
network infrastructure was upgraded from the first generation (1G)
analog phones to (4G) digital phones to meet the increasing demand
for data traffic over the mobile network.
 Network operator enjoyed the double benefit of rapid subscriber
growth and increasing voice traffic per subscribers.
 In the era of initial mass adoption of mobile phone ended in the
industrialized countries, new subscriber growth rates and average
revenue per user(ARPU) began to moderate.
 High subscriber turnover which operators could accept in periods of
rapid subscriber growth began to affect profitability.
 Now network provider make an efforts to differentiate and brand
themselves based on the voice quality, voice traffic became
commoditized and pricing highly competitive.
M-COMMERCE IN AUTOMOTIVE
INDUSTRY
 M-commerce in the automotive industry could be
characterized in parallel and in conjunction with another
term framed within the industry telematics.
 The telematics industry is an emerging business area that
allow car manufactures and aftermarket producers to
provide innovative solutions for information services.
 These services include automatic and manual emergency
call, roadside assistance services, GPS, traffic and dynamic
route guidance.
IMPACT OF M-COMMERCE IN
AUTOMOTIVE INDUSTRY
The following trends demonstrate the dynamic of the
automobile industry:
 The automotive/transportation platform becoming
technologically current/internet ready.
 Wireless computing becoming pervasive in society
 Product and services prices dropping.
 Rapid increase in growth.
 Rapid rate of technological innovation.
 Increased demand for call center and convenience services
integration.
MOBILE ADVERTISING IN
BUILDING A BRAND
 The internet and mobile are often considered personnel that
enable effective one to one marketing.
 It is often used as an integral part of internet marketing.
 Currently, mobile advertising campaigns primarily include
advertising messages sent via SMS to registered of a web
portal.
 Mobile advertiser today should thoroughly consider how
they use the mobile channel for advertising purpose.
 Customers should be given the possibility to choose where,
when and by whom they are contacted.
 It is getting popular compared to direct marketing because
of its personal nature.
 It is always be based on the customers needs it should be
communicated in the right context.
MOBILE ADVERTISING
It includes push and pull message as well as promotional sponsorship.
Push messaging
 It is equivalent to spam e-mail.
 Typically push campaigns includes offers sent to existing customers,
mobile alerts and information sent via a mobile device.
 Sending push messages illegally without permission is commonly called
spam.
Pull messaging
 It attract the customer to order further information and other content
through the mobile devices.
 Customer can receive discount coupons or samples by sending their
contact information via their mobile device.
SUCCESSFUL BUSINESS MODELS
 Brand Building and Media Mix
 Every company has a corporate website which details its
products and services.
 Many consumer oriented website not only have product
information but also useful content.
 Media mix is a successful derivative of this model.
 Blending the content of I-mode with other media helps in
driving business.
 I-mode is not intended to replace other media but a useful
access point for other content or media.
 Customer Relationship Management
 CRM is providing support for one’s customer with useful
online services in mobile environment. E.g- Shipment tracking
services, Mobile banking services
 Consumer oriented stockbrokers, direct or Nomura securities,
offer real-time trading functionality to their account holders,
while offering other useful services to non-clients.
 Online Retail
 It is the most discussed business model of the internet
revolution.
 Walt Disney has developed a strong business model which is
providing an excellent revenue stream.
 They provide downloadable ringtones, screen savers and these
premium services cost 100 to 300 yen/month/subscription.

 Aggregation
 They are part of database category of content.
 They include restaurant guides, job search sites, etc
 Classic aggregator would be yellow pages telephone directory.
 Advertising
 Revenue from advertising is totally dependent on number of
subscribers.
 Schemes for advertising:
 Simple banner Ads – Small banners with on being clicked

take the user to advertiser’s website.

 Message Free Service – It is a special push mail function

where cost is borne by advertiser.