Essay Preview: M-Commerce
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Introduction to wireless technology
Mobile wireless technology describes a wide range of telecommunications services and portable devices that send and receive data, text, voice and video. Cell phones and pagers are the most widely used mobile wireless products today, and many routine daily activities rely on the voice communications and messaging services supported by these devices. New technologies are emerging that will support wireless remote monitoring, wireless financial transactions, wireless Internet access, and wireless control of appliances and devices. Mobile wireless developments are evolving so rapidly, that it is difficult to keep up with the latest advances and to make purchasing decisions. This on-line tutorial strives to provide a brief background on the history of wireless development, a general overview of mobile wireless technologies that are available today, and some predictions for the future.
History of Wireless Technology
Marconis radio: The origins of wireless communications date back to the 1890s with Marconis work in radio and wireless telegraphy. Since then, advances have come through a sequence of discoveries and advancements. In 1898, Marconi produced the first commercial radio service (data only) linking a radio transmitter with a receiver over 7.5 miles away. In December of 1900, the first voice radio link was demonstrated. Radio communications were of natural interest to the shipping industry, and the government established ship to shore communications requirements in 1910. By 1918, 5700 ships had wireless telegraphy. Advertisement for a Wireless Telegraph(Scientific American, November 25, 1905)Police radios to CBs: Another valuable wireless communications service was initiated when the Detroit Police institute issued the first radio dispatch in 1921, operating in 2 MHz band. Detroit Police radio dispatch equipment in 1925
Pagers to Cell Phones: In the 1980s, the Regional Bell Operating Companies (RBOC) emerged after the breakup of the AT&T, and they began to offer low-data rate wireless text services for pagers. Cellular Digital Packet Data (CDPD) and Mobitex were data services that used a packet data network based upon cellular structure. During this period, a wave of new analog cell phones and service options became widely available and affordable.
Ericssons first hand held mobile phone in 1987
In the 1990s, digital signal processing led wireless advances that supported more efficient used of bandwidth, new waveforms, and smaller devices that consumed less power.
Applications of Wireless Technology
Mobile wireless phones
Email, paging, messages
Information (Internet everywhere)
school, health, financial
Access: news, weather, shopping, recreation
Actions: open doors, elevators, lights, heat,
Transactions: ATMs, vending, voting, shopping
Personal: medical devices, emergency alerts
Environmental: equipment maintenance, security
Global Positioning System (satellite-based) GPS
Enhanced 911 (cell phone-based)
Along with this there is new and fast growing concept of MCOMMERCE. It is a subset of ecommerce and includes all above application in it.
Introduction to MCOMMERCE
M-commerce is a subset of e-commerce that deals with electronic transactions using mobile communication equipment. It refers to electronic transactions and businesses such as financial services or shopping, the only difference with e-commerce being that the medium is wireless rather than wireline.
The increased mobility and reach of wireless transactions grants the opportunity to provide enhanced services to customers. It makes possible the concept of delivering value to the customer at all times, irrespective of his or her location, as long as he/she is within connection range. It also thereby provides value to information itself; although it may be readily accessible in households or offices (the traditional contact points for e-commerce) through other media such as the internet or television, a person on the move would not be able to access it as readily and therefore be willing to pay for it. However, this does not mean that m-commerce would be restricted to simple tasks like information dissemination or e-mail; with time, service models of much higher sophistication than even e-commerce are expected to appear. The advent of new technologies can already increase its rapid growth: in Europe, for example, it is estimated that m-commerce will soar to Ðˆ23 billion in 2003 from Ðˆ323 million last year. In addition, revenue from European m-commerce will rise to 13 per cent of mobile phone companies revenue, by the end of 2003. The main device used in m-commerce is expected to be mobile phones, as pagers are of limited utility due to one-way pathway and inability of subscribers to initiate data-traffic.
Advantages Of M-Commerce
Increased reach: the presence of a wireless link between the customer and the service provider eliminates the need for a fixed interface such as a computer for communication. Providers of e-commerce services can therefore reach customers over a longer range, creating the opportunity for new value added services.
Convenience: the small size and ease of use of mobile receivers, coupled with freedom from problems caused by infrastructure, makes for a higher degree of user convenience.
Customization: the service provider has access to data about the users preferences and status, which facilitates better, personalized service. In addition, the service provider can be constantly updated about the current status and location of