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Mobile and Wireless Applications: Design and Integration in the U.S.

Mobile and Wireless Applications: Design and Integration in the U.S. Les Wanninger Carlson School of Management University of Minnesota Jyväskylän Yliopisto Summer School August, 2001. Mobile and Wireless Applications: U.S. Opportunity and Challenges.

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Mobile and Wireless Applications: Design and Integration in the U.S.

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  1. Mobile and Wireless Applications:Design and Integration in the U.S. Les Wanninger Carlson School of Management University of Minnesota Jyväskylän Yliopisto Summer School August, 2001

  2. Mobile and Wireless Applications:U.S. Opportunity and Challenges • SMS Text Messaging is a “killer app” for MW • Tremendous U.S. opportunities in adopting successful SMS and i-Mode applications • Focus on existing companies adding WM Channels • 3G is long term • SMS Text Messaging and i-Mode Application Categories • Text messages for social and entertainment • Personal and business communications • e- or m-Commerce communication channels • m-Payments and billing • SMS and i-Mode application platforms

  3. U.S. MW Applications – Current Status • U.S. using e-mail based forms of text messaging • “Wireless Internet” applications • Extension of Internet and e-Commerce experience • Some of the issues • Bandwidth, standards, devices – immature • Carrier competition and interoperability • Latency of e-mail based messaging • Hype of MW • Crash of dot-coms • Always looking for the “killer app” – which is only evident after-the-fact

  4. Messages sent worldwide19995 Billion2000100 Billion • Global revenues from text messages & simple information services:2000 $13bn* 2004 $47bn* • Biggest market will continue to be Europe *Source: Ovum The Global SMS Market • SMS messages have exceeded the internet’s killer application, e-mail by more than double! • Mobile has found its killer application… SMS!

  5. US Perspective on Design and Integration of WM Applications • Focus on existing companies adding WM Channels • Issues – technology, infrastructure, cultural, interoperability across service providers and geographies • Areas of required integration • Legacy systems • Business processes • Technical – • Wireless - Internet, SMS, WAP, GSM, GPRS, 3G, CDMA, TDMA, iDen, Bluetooth, ….. • Mobile Devices – Cell phone, SIM, PDAs, Laptops, … • Mobile Devices as New Media • User Interface options and design factors • Platform options • SMS, WAP, Web, TETRA, …… • Development tool options

  6. Catalog Industry Metaphor: Electronic Servicescapes Receive Order, Assemble, Pack, Deliver Advertising, sales, brokers, bricks: Communication to the Customer Returns & Customer Service Information Systems, Analytical Tools, Customer & Operations Databases Production, InventoryManagement Customer Relationship Management Order Fulfillment Procurement, Suppliers Payment Processes Electronic Servicescape Marketing: Define Target Markets, Products, Channels Accounting, Invoicing, Payables, Receivables Customers & Suppliers • Web Browser • Mobile and Wireless

  7. EMPS : Electronic Mobile Payment System SIM EMV Instead of all these... …THIS! Debit/Credit cards All cards in one chip inside your WAP-phone Loyalty cards Access codes to net-bank Teemu Testihenkilö Nihitsillantie 3 D 00020 MERITA FINLAND 6789 7890 3562 3652 5674 4567 8767 6543 4235 6347 5678 5678 2341 2345 5678 4321 4321 7635 6353 7585 6789 7890 3562 3652 5674 4567 8767 6543 6373 5748 6789 7890 3562 3652 5674 4567 8767 6543 6363 3838 6789 7890 3562 3652 5674 4567 8767 6543 7378 3738 6789 7890 3562 3652 5674 4567 8767 6543 3737 3334 6789 7890 3562 3652 5674 4567 8767 6543 7363 8383 6789 7890 3562 3652 5674 4567 8767 6543 3838 3395 6789 7890 3562 3652 5674 4567 8767 6543 3142 8696 3456 2312 6543 8976 6778 4567 8976 6543 6272 7484 4567 8767 6543 5678 5678 2341 2345 5678 7474 8494 3456 2312 6543 8976 6778 4567 8976 6543 4848 4493 Debit-/Credit card, bank log-on, club membership, application downloading, etc.

  8. The Enterprise Challenge HDML 3.0 WML 1.1 HDML 3.0 HDML 3.0 WML 1.1 HDML 2.0 WML 1.1 eHTML WML 1.1 WML 1.2 HTML HTML HTML WML 1.1 VoiceXML VoxML NeoPoint Qualcomm Audiovox Motorola TouchPoint Ericsson Motorola Mitsubishi Samsung Ericsson Mitsubishi Motorola Samsung Sanyo Alcatel Ericsson Motorola Samsung Nokia RIM Palm VII Palm !!! & V PcketPC Standard IVR Voice Browser V.V.S. CDMA (Sprint, Verzion) TDMA (AT&T) iDEN (Nextel CDPD (AT&T) iMode DoCoMo) GSM (Voice Stream & Worldwide CRM SFA Sales Phone eBiz FSA Service ERP PM Pager Executive Mobitext (Bell South) Palm.Net (Bell South) CDPD (AT&T) All Telcos KM PDA SCM Voice Content Other… Email Future… Source: META Group Inc.

  9. SMS in Use • Text Messaging - communications application • Contrast SMS with Instant Messaging, Chat, Internet forms, etc. • Text Messaging - value added services • Sonera m-broadcast of Sydney Olympic results, $3 • Sonera ZED • Platform for applications that communicate with text • Nordea, Yomi examples • M-Payments • Simple, intuitive, familiar phone interface • Keyboard not a significant limitation for entering text • (QWERTY is not intuitive) • GSM bandwidth not a limitation for text messaging • GPRS is here • Display screen not a limitation for text messaging

  10. Cell Phone – How it Works • Phone has hardware-based, multitasking operating system and some writable memory • Op System sorts and then processes incoming signals (from wireless service provider) • SMS or WAP Tone • SMS or WAP Icon or other picture • SMS or WAP text message • Voice • Data • Op System processes outgoing signals (keypad, SIM card, voice and data) • SIM card provides memory and processing capability Service provider information, security

  11. Phone Data Entry

  12. SIM Card • Current - telecomm operator specific • SIM Tool Kit • Future –Smart Card, programmable via application developer • “Smart mobile clients” • Organizations control applications and revenue from them • Analogy: Mainframe to PC applications

  13. SMS as Application Platform • Jups to describe in detail • SMS Server – analogous to Web server • GSM Phone operating system • Currently analogous to Web browser • SIM cards • Operator specific – therefore differ • Different capabilities to process, store and display • Mobile phones and other devices • Different operating systems • Different capabilities to process and display non-text components of text messages

  14. Schematic:Web Browsers, Servers, & Internet Addresses • Local Browser @ Address “B” • requests document “C.htm” from Server at Address “A” http://A/C.htm/ Server @ “A” Internet Local Browser @ B” 2. Server @ “A” Sends file “C.htm” to Browser “B” through Internet 3. Browser @ “B” Reads and displays C.htm text file

  15. SMS Platform Analogy toWeb Browsers, Servers, & Internet Addresses • Individual @ Mobile # “B” • Sends SMS message “C” through SMSC to Server at Mobile # “A” SMS Server @ “A” GSM Network Person @ Mobile # B” • 2. SMS Server @ “A” • Processes message “C” and prepares response message “D” • Sends message response “D” to Individual “B” through Network 3. Phone Op System @ “B” Reads and displays message “D”

  16. EMPS : Electronic Mobile Payment System SIM EMV Instead of all these... …THIS! Debit/Credit cards All cards in one chip inside your WAP-phone Loyalty cards Access codes to net-bank Teemu Testihenkilö Nihitsillantie 3 D 00020 MERITA FINLAND 6789 7890 3562 3652 5674 4567 8767 6543 4235 6347 5678 5678 2341 2345 5678 4321 4321 7635 6353 7585 6789 7890 3562 3652 5674 4567 8767 6543 6373 5748 6789 7890 3562 3652 5674 4567 8767 6543 6363 3838 6789 7890 3562 3652 5674 4567 8767 6543 7378 3738 6789 7890 3562 3652 5674 4567 8767 6543 3737 3334 6789 7890 3562 3652 5674 4567 8767 6543 7363 8383 6789 7890 3562 3652 5674 4567 8767 6543 3838 3395 6789 7890 3562 3652 5674 4567 8767 6543 3142 8696 3456 2312 6543 8976 6778 4567 8976 6543 6272 7484 4567 8767 6543 5678 5678 2341 2345 5678 7474 8494 3456 2312 6543 8976 6778 4567 8976 6543 4848 4493 Debit-/Credit card, bank log-on, club membership, application downloading, etc.

  17. Designing MW Applications • Process • Iterative • Business Case • Requirements • (Prototyping) • Design • Development • Testing and QA • Pilot • Implementation • QA and continuous improvement

  18. Person – to – Person Messaging:Same Carrier GSM Network Person A, Mobile # A Person B, Mobile # B Sonera SMSC, Service Center # C

  19. Person – to – Person Messaging:Different Carriers GSM Network Person A, Mobile # A Person B, Mobile # B Sonera SMSC, Service Center # C Radiolinja SMSC, Service Center # D

  20. Many Persons – to – Business Messaging:Many Carriers GSM Network Person A, Mobile # A Person B, Mobile # B Sonera SMSC, Service Center # C Radiolinja SMSC, Service Center # D Company or ASP SMS Server, # E Operations Database Content Provider

  21. Design the EMPS Application

  22. Intercarrier SMS Routing • One basic difficulty in developing SMS based services is the variety of protocols used in SMS Centers (SMSC). • The European Telecommunication Standards Institute (ETSI) has approved four SMSC protocols, each of which has a slightly different functionality and quite different character conversions: • SMPP (by Logica) • CIMD (by Nokia) • UCP/EMI (by CMG) • SMS2000 (by SEMA) • Another difficulty is that most U.S. carriers use protocols other than GSM (CMDA, TMDA, Analog, iDen) • Not all U.S. carriers have SMSCs and/or do not offer direct high speed connections

  23. SMS Message Routing - Present • At present, any SMS message sent between two cell phones within the same carrier network is merely routed through the carrier’s network in the carrier’s SMS format (i.e., SMPP). • In contrast, when an SMS message is sent to a cell phone in a different carrier network, the message is presently switched to SMTP (Simple Mail Transfer Protocol) and routed through the Internet to the other carrier who in turn switches the message from SMTP to their SMS format and routes the SMS message to the target phone. • SMTP is a protocol for sending e-mail messages between servers. Most e-mail systems that send mail over the Internet use SMTP to send messages from one server to another. SMTP is also generally used to send messages from a mail client to a mail server.

  24. Current U.S. Inter-Carrier SMS Routing Method

  25. Current U.S. Inter-Carrier SMS Routing Method • The previous figure is a scenario in which Cellular Operator “A” uses SMPP for SMS messaging and Cellular Operator “B” uses CIMD for SMS messaging. • SMTP is a protocol for sending e-mail messages between servers. Most e-mail systems that send mail over the Internet use SMTP to send messages from one server to another. SMTP is also generally used to send messages from a mail client to a mail server.

  26. Implications of 2.5G and 3G for U.S. Intercarrier message routing • In the case where a carrier’s 2G network and 2.5G network reside on the same physical network (i.e., a card swap is all that is required to upgrade the network), the SMS routing is largely unaffected. • In the case; however, where a carrier’s 2G network and 2.5G network reside on different physical networks, the carrier must have an internal routing capability to switch SMS messages between the 2G and 2.5G networks. In this latter scenario, all messages remain in the single SMS format used by the carrier. • The same scenarios will apply when upgrading from 2.5G to 3G.

  27. Integration between email and SMS – Unisys OMIS

  28. smsc web-sms rex mip Content – how about SMS???Architecture – Web-SMS flow (Unisys Mobile Business Group) SMS 5. SMS message with requested content arrives on callers mobile IVR 4. Content delivered to the SMSC 1. Call comes into Web-SMS 2. Web-SMS sends a command to REX, which is client to Web-SMS, to fetch content in real time from the MIP 3. Content fetched from the MIP through an HTTP connection in HTML format. REX converts the content into an SMS message

  29. AS EUROPE ZOOMS AHEAD, U.S. FIDDLES WITH FORMATS(New York Times 07/27/99) • Wireless service providers in Europe are pulling ahead of U.S. carriers in developing wireless data services. • European carriers plan to take advantage of faster Web transmission technology and general packet radio service (GPRS) to deliver the services. • GPRS, which will be available next year, will support transmission speeds fast enough to browse the Internet in full color. Users will also be able to use GPRS to stay connected to the Internet for an entire day. In offering GPRS, carriers will be able to charge subscribers based on the amount of data transmitted, rather than by the minute. • While industry players in the U.S. are also pursuing wireless data, the market has been stymied by a lack of standards and carriers' differing opinions over which3G technology should be adopted. • Europe's adoption of a single standard has helped carriers offer built-in paging and messaging functions years before such features were launched in the U.S.

  30. Design the application infrastructure for SMS Messages across Carriers in the U.S.

  31. The Giga ViewHigh-Speed Wireless Data: What, When and Where? Weston Henderek Industry Analyst June 18, 2001 Call in at 8:55 EDT (1) (973) 321-1020 Password: ????

  32. Scores: 10 10 = Best ever 7 = Mature 8 5 = Viable 6 3 = Immature 4 2 0 VoiceStream/AT&T Wireless/Nextel Upgradability to 3G VoiceStream International Roaming Coverage AT&T Total Coverage Nextel International Partnerships Prices Corporate Discounts Internet Commerce Support Bundled Wireline Discounts

  33. Scores: 10 10 = Best ever 7 = Mature 8 5 = Viable 6 3 = Immature 4 2 0 Sprint PCS/Verizon Wireless Upgradability to 3G Sprint International Roaming Coverage Verizon Total Coverage International Partnerships Prices Internet Commerce Support Corporate Discounts Bundled Wireline Discounts

  34. 2005 2003 Euro-GSM CDMA 2001 TDMA iDEN GPRS EDGE UMTS The Wireless Protocol Hurdle Race

  35. iDEN-GPRS TDMA-GPRS (Japan) WCDMA GSM-GPRS GSM-GPRS GSM-EDGE 64-128K 115-256K 256-512K 3G WCDMA 384-768K 768-2M WCDMA cdma2000 2001 2002 2005 2006 2003 2004 1-5.2M 1Xtreme 384K-1.5M 384-512K HDR 3xRTT 56-144K 1xRTT By 2006, Wireless Standards Will Converge

  36. US Wireless Carrier Data Road Map

  37. Incompatible Technologies and Spectrum Shortage Will Delay US Migration to 3G

  38. TDMA to GSM transition issues will cause major coverage and service issues for corporate users. Incompatible Technologies and Spectrum Shortage Will Delay US Migration to 3G (Cont.)

  39. Network upgrade times will not be reflective of actual coverage. TDMA to GSM transition issues will cause major coverage and service issues for corporate users. Incompatible Technologies and Spectrum Shortage Will Delay US Migration to 3G (Cont.)

  40. Network upgrade times will not be reflective of actual coverage. Lack of multimode 3G phones will prevent interoperable global 3G standards. Multinational companies need to plan around this issue. TDMA to GSM transition issues will cause major coverage and service issues for corporate users. Incompatible Technologies and Spectrum Shortage Will Delay US Migration to 3G (Cont.)

  41. Trends in Wireless Technologies and Services • Vendors will make big promises to promote early adoption. • Corporate use will shape demand for wireless data. • Mobile IP adoption will vary across geographies. • Users will opt for “always-on” or international roaming. • 3G wireless technologies will converge around two standards.

  42. Giga Recommendations • Don’t expect 3G data rates before 2006. • Opt for short-term contracts and centralized procurement. • Plan to support at least two types of wireless devices.

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