Wireless Internet and M-Business


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Wireless Internet and M-Business

  1. 1. Cmpe 472 Wireless Internet and M-business
  2. 2. Introduction <ul><li>Wireless technology turns e-business into m-business, or mobile business </li></ul><ul><li>Internet+wireless+e-business = M-Business </li></ul><ul><ul><li>Going on-line anywhere at anytime and using multiple devices </li></ul></ul><ul><ul><li>New business opportunities </li></ul></ul><ul><li>Exponential growth (keeps growing) </li></ul><ul><ul><li>No of mobile internet service users: 1bn by 2004 (the Economist 2001). </li></ul></ul>
  3. 3. Characteristics of M-business <ul><li>Ubiquitous computing </li></ul><ul><ul><li>Anywhere, any time </li></ul></ul><ul><ul><li>Conveninet, instant connectivity </li></ul></ul><ul><li>Very personal </li></ul><ul><ul><li>Device owner has an exclusive access to the contents/ services </li></ul></ul><ul><ul><li>Service providers know who the owner is </li></ul></ul><ul><li>Varied users, usage contexts </li></ul><ul><ul><li>Elementary school students, parents, old people </li></ul></ul><ul><ul><li>Location and context-sensitive apps and services </li></ul></ul><ul><ul><li>Work-play: business purpoes and personal fun </li></ul></ul><ul><li>People seem willing to pay for mobile services </li></ul>
  4. 4. Drivers of M-business <ul><li>High mobile phone penetration: 18mm subscribers (Finland: 80%, HK: 90%) </li></ul><ul><li>Convergence of the internet and the mobile devices </li></ul><ul><li>Improvements in technology (bandwidth, device functionalities): transition to the 3rd generation </li></ul><ul><li>Declining prices: device, service prices </li></ul><ul><li>Explosion of e-commerce in general: more opportunities available on-line, i.e., more opportunities for m-business </li></ul><ul><li>M-business based on mobile devices can help developing countries fill the gap of digital divide: </li></ul><ul><ul><li>More internet users in China than the US by 2005. </li></ul></ul>
  5. 5. M-business Applications <ul><li>Current applications </li></ul><ul><ul><li>Conduct on-line transactions </li></ul></ul><ul><ul><li>Make purchases </li></ul></ul><ul><ul><li>Send e-mail </li></ul></ul><ul><li>Future applications </li></ul><ul><ul><li>A wireless office </li></ul></ul><ul><ul><li>In-hand, on-the-go entertainment </li></ul></ul><ul><ul><li>Migration from a PC-centric to a multi-device model </li></ul></ul>
  6. 6. Wireless Devices <ul><li>Wireless development </li></ul><ul><ul><li>First-generation wireless technology was the cellular phone </li></ul></ul><ul><ul><li>Second generation wireless technology, which includes digital cellular phones, is currently in use worldwide </li></ul></ul><ul><ul><li>Third generation (3G) technology will enable wireless devices to send and receive data as much as seven times faster than a standard 56 K modem (0.4 to 2m bps) </li></ul></ul><ul><li>Wireless devices </li></ul><ul><ul><li>Personal digital assisstants (PDAs) </li></ul></ul><ul><ul><li>Digital cellular phones </li></ul></ul><ul><ul><li>Two-way pagers, laptops,... </li></ul></ul>
  7. 7. Phone Evolution Roadmap Timing of mass Market adoption Functionality Technologies Location 20th century Late 90s 2002 2005 Voice Text messages Colour graphics Pull text content Video streaming Graphical content SMS Bluetooth, GPS WAP Cord in home Wireless in home Wireless anywhere
  8. 8. Information Appliances <ul><li>Clear trend for the convergence of several mobile devices including intelligent home appliances </li></ul><ul><li>PDA phone: PDA + cell phone </li></ul><ul><li>Phones with MP3 player, voice recorder, digital camera, GPS </li></ul><ul><li>Wireless control of refrigerator, TV, DVD through a cell phone </li></ul>
  9. 9. Key Characteristics of Wireless Device <ul><li>Ubiquitous interactivity </li></ul><ul><ul><li>Personal device: always handy and available at all times on a person </li></ul></ul><ul><ul><li>User identity: the device carries its user identity; distinctly personal and the usage can be tracked down to an individual rather than households (e.g. PC) </li></ul></ul><ul><li>Location aware </li></ul><ul><ul><li>Easy to track down where the user physically is as long as the wireless device is on (using GPS) </li></ul></ul><ul><ul><li>Important marketing implications </li></ul></ul>
  10. 10. Some Limitations of Current Wireless Devices and Services <ul><li>Need huge investment for infrastructure </li></ul><ul><ul><li>GSM to 3G costs 200-300% of GSM investment </li></ul></ul><ul><li>Service is not universally available and still relatively expensive </li></ul><ul><li>Limited bandwidth restricts the amount of data that can be sent over the wireless network as well as the speed </li></ul><ul><li>Wireless devices have significantly smaller memory capacity and less powerful processors than desktop computers </li></ul><ul><li>Small screen, keyboard: usability, navigation problems </li></ul>
  11. 11. Some Limitations of Current Wireless Devices and Services (cont’d) <ul><li>Lack of contents </li></ul><ul><li>Rapidly developing standards </li></ul><ul><li>Legacy of wire-line internet </li></ul><ul><li>Security (viruses, tapping, hacking) </li></ul><ul><li>Safety (radiation, brain cancer?) </li></ul><ul><li>However, wireless technology is growing rapidly </li></ul>
  12. 12. Wireless Access <ul><li>International Telecommunications Union (ITU) definition: </li></ul><ul><ul><li>Wireless access is an application of radio technology and personal communication systems. The key characteristic of wireless access is the use of a multiple access radio system instead of wires (e.g. copper or coaxial cables) in the distribution/ access network. </li></ul></ul><ul><ul><li>Wireless channel: between users/ terminals and wireless networks. </li></ul></ul>
  13. 13. Limited Wireless Communication Channels <ul><li>Frequency assigned to wireless communication is limited </li></ul><ul><li>Explosive growth of demand </li></ul><ul><li>Critical qustion: find more efficient ways of using the assigned frequency band so that multiple users can gain simultaneous accesses </li></ul><ul><li>What technology manipulates: three dimensions (space, frequency, time) </li></ul><ul><li>SDMA, FDMA, TDMA, CDMA </li></ul>
  14. 14. Space Division Multiple Access (SDMA) <ul><li>Frequency reuse </li></ul><ul><li>A covered area (e.g. Bebek) is divided into many small cells </li></ul><ul><li>A channel (frequency band) used in one cell to be reused by a different user in another cell as long as there is ENOUGH SEPARATION between the two cells to minimise interference </li></ul>
  15. 15. Cell Clusters Cell 7 Cell Cell Cell 5 Cell 4 Actual coverage Area of Cell 1 Actual coverage Area of Cell 3 Cell 1 overlaps 6 others Different frequencies must be used in adjacent cells Seven different sets of frequencies required
  16. 16. SDMA Many cells can share same frequencies if separated in space Pattern can be replicated over the area
  17. 17. FDMA, TDMA <ul><li>FDMA (Frequency Division Multiple Access) </li></ul><ul><ul><li>Each channel uses a different frequency bandwidth </li></ul></ul><ul><li>TDMA (Time Division Multiple Access) </li></ul><ul><ul><li>Assign a frequency band for multiple channels by slicing time slots </li></ul></ul><ul><ul><li>Each channel uses certain time slots </li></ul></ul><ul><ul><li>There is some downtime: not using a channel all the time </li></ul></ul><ul><ul><li>Global System for Mobile Communications (GSM) </li></ul></ul>
  18. 18. CDMA <ul><li>CDMA (Code Division Multiple Access) </li></ul><ul><ul><li>Assign a large frequency band for multiple channels </li></ul></ul><ul><ul><li>Calls are split into packets and the packets are tagged with identifying codes </li></ul></ul><ul><ul><li>Often in the format of FDMA+CDMA </li></ul></ul><ul><ul><li>Considered most efficient; creating capacity triple that of comparable TDMA </li></ul></ul><ul><ul><li>Generally CDMA>TDMA>FDMA </li></ul></ul>
  19. 19. Types of Multiple Access Call 1 Call 2 Call 3 Call 4 Time vs Frequency frequency time frequency frequency time time Call 1 Frequency Division FDMA Time Division TDMA Code Division CDMA Conversational Analogy Everyone talks in a different room to prevent interference. Since the conversation can’t be heard from another room, it can be filtered from the other by going to the other room. Within each room, everyone takes turns talking to prevent İnterference. Within each room, one person is talking at once, so they must talk fast to say everything. Everyone speaks a different language at the same time in the same room. Since each language is unique, one may be filtered from another. Call 2 Call 3 Call 4 Call 5 Call 6 Call 7 Call 8 Call 9
  20. 20. Mobile Technology Generations <ul><li>First </li></ul><ul><ul><li>Analog, circuit-switched </li></ul></ul><ul><li>Second </li></ul><ul><ul><li>Digital, circuit switched (GSM, CDMA) 14.4 kbps </li></ul></ul><ul><li>Advanced second </li></ul><ul><ul><li>Digital, circuit switched, internet enabled (WAP) 14.4 to 64 Kbps </li></ul></ul><ul><li>2.5 </li></ul><ul><ul><li>Digital, packet-switched, TDMA (GPRS, EDGE), CDMA 40-400 Kbps </li></ul></ul><ul><li>Third </li></ul><ul><ul><li>Digital, packet-switched, wideband CDMA (UMTS, CDMA2000, W-CDMA) 0.4-2Mbps </li></ul></ul><ul><li>Fourth </li></ul><ul><ul><li>Data rate 100 Mbps; achieves “telepresence” </li></ul></ul>
  21. 21. MobileTechnology Time Frame <ul><li>2000 </li></ul>2001 2003+ WAP GPRS 3G Concentrates mobile industry on connectivity & inter-operability Starts Consumer Interest in Data Services Introduces packet-based systems Commercial data services launched Usage indicates demand picture and leads the way to 3G Data speeds reach levels eough for streaming Platforms & technologies evolve, costs decline to reach mass market
  22. 22. Glossary <ul><li>2G: second generation technology category for digital cellular networks </li></ul><ul><li>2.5G: umbrella term for technologies designed to add 3G capabilities to existing cellular networks </li></ul><ul><li>3G: new digital cellular network technology designed to enable very fast data transmission speeds and delivery of multimedia content. </li></ul>
  23. 23. Glossary (Cont’d) <ul><li>AMPS: advanced mobile phone service, analog cellular network system used in the US </li></ul><ul><li>EDGE: enhanced data rate for GSM evolution, an enhancement to bring the data-transmission rate of TDMA network up to the speed of basic 3G networks (2.5G) </li></ul><ul><li>GPRS: general packet radio services, an enhancement designed to introduce packet-switching to GSM networks (2.5G). </li></ul>
  24. 24. Glossary (Cont’d) <ul><li>ITU: international telecommunication union, the standards body of the telecom industry </li></ul><ul><li>IMT-2000: international mobile telecommunications 2000, an ITU initiative aimed at harmonising the various efforts under way to create 3G networks </li></ul><ul><li>CDMA2000: an implementation of wideband CDMA backed by the US and Korea; a 3G network type </li></ul>
  25. 25. Glossary (Cont’d) <ul><li>SMS: short message service, a means of conveying messages upto 160 characters long to and from GSM cell phones </li></ul><ul><li>WCDMA: an implementation of wideband CDMA supported by Europe and Japan; a 3G network type; also known as UMTS (universal mobile telecommunications service) in Europe </li></ul><ul><li>Cdma2000 and WCDMA share basic technology (CDMA). WCDMA marks a break in technology for GSM network operators, whereas cdma200 isa logical development for CDMA networks. </li></ul>
  26. 26. Wireless Technology Evolution Timeline 2000 2001 2002 2004 2006 Bandwidth 14.4 Kbps 64 Kbps 100-170 Kbps 2 Mbps Very fast TECHNOLOGY CDMA IS-95a IS-95b IS-707 IS-95c 3G (IMT2000) 4G CDMA IS-136 IS-136+ GPRS EDGE TDMA Basic HSCSD GPRS EDGE WCDMA CDMA GSM Circuit switched Packet switched
  27. 27. CDMA2000 vs WCDMA <ul><li>WCDMA (Europe and Japan) vs CDMA2000 (US and Korea) </li></ul><ul><li>WCDMA seemed to be the de-facto standard only 2-3 years ago, but things changed </li></ul><ul><li>CDMA2000 increases its market share fast (50% increase for the last 3 years) </li></ul><ul><li>Two representative 3G services available now </li></ul><ul><ul><li>Japan (FOMA: freedom of mobile multimedia access) </li></ul></ul><ul><ul><li>Korea: (CDMA2000 1xEV-DO: evolution-data optimised) </li></ul></ul>
  28. 28. M-business <ul><li>E-business using wireless devices with internet access </li></ul><ul><li>New possibilities for commerce beyond internet access </li></ul><ul><li>Enormous potential in many areas (B2C, B2B) </li></ul><ul><li>Currently B2C wireless apps are more rapidly emerging </li></ul>
  29. 29. New Competition, New Opportunities <ul><li>Wireless technology is attracting interest from virtually every industry, creating interesting competitive and partnership opportunities </li></ul><ul><ul><li>Mobile service providers vs banks </li></ul></ul><ul><ul><li>Automotive multimedia m-commerce apps </li></ul></ul>
  30. 30. M-business Apps Services for customers to buy/ sell certain items Mobile auction (B2C, B2B) Locating/ ordering certain items from a mobile device Product locating and shopping (B2B, B2C) Transmission of information related to aging components to vendors Proactive service mgmt (B2C, B2B) Location tracking of goods, boxes, people Mobile inventory mgmt (B2C, B2B) Sending user specific and location sensitive ads Mobile advertising (B2C) Banking, brokerage, and payments for mobile users Mobile financial apps (B2C, B2B)
  31. 31. M-business Apps (Cont’d) Information up/ downloading by mobile users (insurance co) Wireless business re-engineering (B2C, B2B) Taking classes, training courses using streaming video and audio Mobile distance education (B2C, B2B) Gambling, interactive games and other services Mobile entertainment services (B2C) Customer acquisition and retention by providing truely personalised content Mobile CRM, customer support (B2C, B2B) Obtaining instant feedback from customers Mobile marketing research (B2C) Services allowing customers to book, ticket for travel, hotel, events Mobile booking and ticketing (B2C, B2B)
  32. 32. Location-aware Apps <ul><li>Vehicle tracking </li></ul><ul><ul><li>Automatic vehicle location (AVL): using GPS device installed in a vehicle </li></ul></ul><ul><ul><li>Can be used for rapidly dispatching taxis, ambulances, police vehicles, trucks </li></ul></ul><ul><ul><li>Can be used for navigating optimal routing in unfamiliar geographical areas or heavy traffic </li></ul></ul><ul><ul><li>Can also be used for tracking cargo, delivery, baggege, giving customers more accurate info </li></ul></ul>
  33. 33. Automatic Vehicle Location Mobile GPS Unit Communications Network Base Station Software
  34. 34. Location-aware Apps <ul><li>Shopper assisstance, product location, and shopping </li></ul><ul><ul><li>Provide shoppers ads, promotional events, price alerts at a shopping mall </li></ul></ul><ul><ul><li>Allowing shoppers to locate and compare products using aDB containing info on products, locations of stores, and distance from the users’ current location, alleviating the need to visit several stores in a particular area </li></ul></ul><ul><ul><li>Allowing shoppers to buy on-line using a mobile device </li></ul></ul><ul><ul><li>Can be applied to mobile retailing, ticketing and reservation </li></ul></ul>
  35. 35. Location-based services involving maps Enhanced billing Personalised portals Buddy finder Emergency assisstance Find nearest services geocoding mapping routing content find location visualise directions intelligence
  36. 36. Location-aware Apps <ul><li>E-911 (Enhanced 911) </li></ul><ul><ul><li>Mandates wireless carriers to provide location-identification capabilities that enable rescuers to locate 911 callers </li></ul></ul><ul><ul><li>Designed to improve emergency response time </li></ul></ul><ul><ul><li>Interest increased after 9/11, earthquakes, etc. </li></ul></ul><ul><ul><li>Can be used for rescuing people in a disaster area </li></ul></ul><ul><li>Firemen, emergency crew, doctors, patients assistance </li></ul><ul><ul><li>Firemen in a building under fire (automatic warning signal for oxygen remaining) </li></ul></ul><ul><ul><li>Sending doctors vital signs of patients in critical situations </li></ul></ul><ul><ul><li>Patients with Alzheimer’s: exact location, the location of the nearest police station and contact information for family members </li></ul></ul>
  37. 37. Telematics (or Telemetry) <ul><li>Integration of </li></ul><ul><ul><li>Wireless communications </li></ul></ul><ul><ul><li>Vehicle monitoring systems </li></ul></ul><ul><ul><li>Vehicle location devices </li></ul></ul><ul><li>Diverse apps for cars </li></ul><ul><ul><li>Remote vehicle diognostics </li></ul></ul><ul><ul><ul><li>Install GSM chip sets in cars to monitor performance and to provide an early warning message to the manufacturer indicating what problem is occuring </li></ul></ul></ul><ul><ul><li>Emergency breakdown service (Mercedes Benz) </li></ul></ul><ul><ul><li>Multimedia services and m-commerce right on the dashboard </li></ul></ul><ul><ul><li>Smart traffic products: </li></ul></ul><ul><ul><ul><li>Nokia: by 2010 every vehicle will have its IP address </li></ul></ul></ul>
  38. 38. Mobile Financial Apps <ul><li>Likely to be one of the most important components of m-business </li></ul><ul><li>Involve a variety of apps </li></ul><ul><ul><li>Mobile banking, brokerage, money transfer </li></ul></ul><ul><ul><li>Can turn a mobile device into business tool, replacing bank, ATM </li></ul></ul><ul><ul><li>Easy identification and authentication both for restricted access and for payment purposes, even replacing credit cards </li></ul></ul>
  39. 39. Mobile Financial Apps <ul><li>Micro-payment: small purchases such as vending through a wireless network </li></ul><ul><ul><li>Can be implemented in several ways </li></ul></ul><ul><ul><ul><li>Per minute phone call charge equal to the cost of vending item (Sonera for Pepsi) </li></ul></ul></ul><ul><ul><ul><li>Pre-paid numbers purchased from a service provider, bank, or credit-card co </li></ul></ul></ul><ul><li>To support financial transactions including micro-payments, amobile service provider could act as a bank, competing with a bank </li></ul>
  40. 40. <ul><li>Cell phone </li></ul><ul><li>Pager </li></ul><ul><li>PDA </li></ul><ul><li>PC </li></ul><ul><li>TV </li></ul><ul><li>Card </li></ul><ul><li>ATM </li></ul>A wearable bank
  41. 41. Mobile Financial Apps
  42. 42. Mobile Financial Apps
  43. 43. Mobile Financial Apps
  44. 44. Cell phone based service options Basic Added Special Lower costs More revenue Cross sell Predefined payments Navigate (not secured) Prompts Cell Quicken Prepaid with bank credit Dynamic insurance Buy things and have them delivered Private label Pay anyone Backed up Secure
  45. 45. Mobile Inventory Management (MIM) <ul><li>Involves location tracking of goods, services, and possibly inventory </li></ul><ul><li>Rolling inventory </li></ul><ul><ul><li>Involves multiple trucks carrying a large amount of inventory while on the move </li></ul></ul><ul><ul><li>Whenever a store needs certain items, it can locate a truck and JIT can be performed </li></ul></ul><ul><li>JIT delivery of components in an assembly plant </li></ul><ul><ul><li>New components required can be moved by a supplier at a certain speed after receiving a signal from the components reaching the assembly line or from the assembly line itself </li></ul></ul><ul><ul><li>Possible adjustment of assembly speed to match the arrival time of components </li></ul></ul>
  46. 46. iButton <ul><li>Java-enabled iButton </li></ul><ul><li>Communicates by contact at 142 Kbps </li></ul><ul><li>Small memory chips (ROM, RAM) in a stainless steel can </li></ul><ul><li>Uses: authentication, e-payment, access </li></ul>
  47. 47. Mobile Security System <ul><li>Remote surveillance </li></ul><ul><li>Remote alarm verification </li></ul><ul><li>Monitor from work, abroad </li></ul>
  48. 48. Bluetooth <ul><li>A wireless technology that provides short-range, high-speed voice and data communication between a variety of mobile digital devices </li></ul><ul><li>Conceived by Ericsson in 1994 </li></ul><ul><li>Bluetooth Special Interest Group (1998) </li></ul><ul><ul><li>Initially comprising Ericsson, IBM, Intel, Toshiba and Nokia </li></ul></ul><ul><ul><li>Developed an open specification for the technology and to encourage cross-platform capabilities for the different wireless devices </li></ul></ul><ul><ul><li>Currently over 2000 companies are supporting the standard and Bluetooth-enabled devices </li></ul></ul>
  49. 49. Bluetooth Apps <ul><li>Can create a personal area network (PAN) </li></ul><ul><ul><li>Can be used to create wireless offices </li></ul></ul><ul><ul><li>Can remote control digital appliances at home </li></ul></ul><ul><li>Mobile transactions between users and fixed points such as cash registers, vending machines, ticket readers </li></ul><ul><li>Ad hoc conferences among business users by establishing a temporary wireless LAN </li></ul><ul><ul><li>Face-to-face meetings with shared computing resources allowing temporary documents and apps sharing </li></ul></ul><ul><li>Advertising, conveying info </li></ul>
  50. 50. BLIP Zone <ul><li>Bluetooth Local Infotainment Point </li></ul><ul><li>A small hub unit, with a 10-meter radius, and with Bluetooth connectivity </li></ul><ul><li>ınstalled at strategic places, providing people with info depending on their immediate situation and location </li></ul><ul><li>Shopping malls, buses, bars, restaurants will use BLIP as an infrastructure element to distribute info relevant to their businesses </li></ul>
  51. 51. Bluetooth Chracteristics <ul><li>Packet switched </li></ul><ul><li>Uses radio frequency band (2.4 GHz) available worldwide, allowing for global compatibility </li></ul><ul><li>Lower power (1 milliwatt) making it suitable for small, battery-operated devices </li></ul><ul><li>Data transfer capability between devices: 10 – 100 meter range, bandwidth 1-2 mbps </li></ul><ul><li>Supports upto 8 devices in a network </li></ul><ul><li>Built-in security (encryption, authentication) </li></ul><ul><li>Non line-of-sight: penetrating walls and avoiding obstacles </li></ul>
  52. 52. Wireless Fidelity (Wi-Fi) <ul><li>Increasingly popular networking standard used to create wireless LANs in homes/ offices </li></ul><ul><ul><li>Provides broadband internet access to PCs and laptops within a few hundred feet (300ft) of a Wi-Fi base stationin hot-spots where people can log onto wireless networks </li></ul></ul><ul><li>Technical standard IEEE 802.11 </li></ul><ul><ul><li>802.11b: popular standard for wireless LAN, speed up to 11 Mbps at 2.4GHz band, typically 500k-1M </li></ul></ul><ul><ul><li>802.11a: just start to be introduced, speed up to 54 Mbps at 5GHz band (less conjested, less inteference) </li></ul></ul><ul><ul><li>802.11g: new standard being developed, up to 22-5Mbps at 2.4GHz band (extension of 802.11b) </li></ul></ul>
  53. 53. Wi-Fi (Cont’d) <ul><li>Why attractive? </li></ul><ul><ul><li>Cheap, fast (both set-up and use) broadband connection </li></ul></ul><ul><ul><li>Especially for small businesses or frequently moving companies </li></ul></ul><ul><ul><li>Wireless home networking </li></ul></ul><ul><li>Some concerns </li></ul><ul><ul><li>Security, interference (micro-wave owenns, garage doors), network slow-down </li></ul></ul><ul><ul><li>Network hopping: can share a connection with other people (free-riders), hard to monitor unauthorised uses </li></ul></ul><ul><ul><li>Can not maintain a connection outside the range of the hot spot </li></ul></ul><ul><li>Could be complementary to 3G wireless </li></ul><ul><ul><li>Seamless roaming between Wi-Fi hot spots and cellular network </li></ul></ul>
  54. 54. Home and Office of the Future Broadband Internet pipe Cordless phone Remote speech recog Call by name Build shopping lists Mobile display pad Electronic program guide Read&set security system Home theater control Display news headlines Kids room PC Printer access Internet access File access Fridge pad Family calendar Recipe display Build shopping lists Voice messaging Family car Trip navigation downloads Download news/ entertainment Main home PC Additional PC Ethernet or Home PNA Office laptop Connect to office LAN Email Home printer acces Surf from anywhere Share files