Telecommunications and Mobile Commerce

1. Telecommunications andMobile Commerce Wireline and Wireless Technologies Mobile Marketing and Commerce (Sections 7.3 and 7.4)

2. Learning Objectives • Describe the purpose and components of a telecommunications system • Recognize the differences between analog and digital signals • Describe the processes used by modems to send and receive information • Describe the major types of networks • Describe the major types of wireline and wireless transmission technologies • Describe the size and growth of mobile marketing • Identify the key elements of a mobile marketing campaign • Understand the capabilities of location-based marketing

3. Telecommunications Systems • A telecommunication system consists of hardware and software that transmit information from one location to another • These systems can transmit text, data, graphics, voice, documents, or full-motion video information • They transmit this information with two basic types of signals: analog and digital • They link the system components using a combination of wireline and/or wireless transmission media

4. Analog vs. Digital Signals • Analog signals • Analog signals are continuous waves that transmit information by altering the characteristics of the waves • The characteristics include the wave’s amplitude and frequency • The human voice is an example of an analog signal • Digital signals • Digital signals are discrete pulses that are either on or off, representing a series of bits (0s and 1s) • This quality allows them to convey information in a binary form that can be clearly interpreted by computers

5. Analog and Digital Signals

6. Communications Processors • Communications processors are hardware devices that support data transmission and reception across a telecommunications system • One of these devices is a modem whose function is to convert digital signals to analog signals (modulation) and convert analog signals to digital signals (demodulation) • Examples are dial-up, DSL, and cable modems

7. Modem Types • The U.S. public telephone system was originally designed as an analog network to carry voice signals or sounds • In order for this type of circuit to carry digital information, that information must be converted into an analog wave pattern by a relatively slow dial-up modem • Cable modems operate over coaxial cable (for example, cable TV) and they offer higher speeds than dial-up • A disadvantage is that they use a shared line which may slow transmission speed when large numbers of users access the same modem • DSL modems operate on the same lines as voice telephones and dial-up modems, but DSL signals do not interfere with voice service and they always maintain a connection

8. Types of Networks • A computer network is a system that connects computers via communications media so that data can be transmitted among them • Computer networks are essential to modern organizations for many reasons • Enable organizations to be more flexible to adapt to changing business conditions • Enable companies to share hardware, software, and data across the organization and among different organizations • Make it possible for geographically dispersed employees and work groups to share documents and ideas • And they are a critical link between businesses and customers

9. Types of Networks • There are various types of computer networks, ranging from small to worldwide • Types of networks include: • Local area networks (LANs) – connect two or more devices in a limited geographic region, usually within the same building • Wide area networks (WANs) – networks that cover large geographic areas and are often provided by common carriers such as telephone companies and the international networks of global communications service providers • The Internet

10. Communications Media and Channels • For data to be communicated from one location to another, some form of pathway or medium must be used • These pathways are called communications channels • Examples of wireline media include: • Twisted-pair wire • Coaxial cable • Fiber-optic cable • Each type of wireline media has relative advantages and disadvantages

11. Twisted-Pair Wire

12. Coaxial Cable

13. Fiber-Optic Cable

14. Transmission Speed • Bandwidth is a measure of channel capacity (and potential speed of transmission) • Why is this an important issue? • Analog signal speed is measured in hertz (Hz) • Digital signal speed is measured in bits per second (bps) • The speed of particular communication channels is determined to a great extent by the underlying transmission medium (copper wire vs. glass fibers) • For example, fiber-optic cable is potentially about 40,000 times faster than copper wire systems

15. Advantages and Disadvantages of Wireline Communications Channels

16. Wireless Transmission Media • Wireless media, or broadcast media, transmit signals without wires over the air or in space • The major types of wireless media are: • Microwave • Satellite • Radio • Infrared • Each of these media has relative advantages and disadvantages

17. Advantages and Disadvantages of Wireless Media

18. Satellite • Satellite transmission systems make use of communication satellites • Three types of satellites around the earth include: • Geostationary (GEO) • Medium earth orbit (MEO) • Low earth orbit (LEO) • A major limitation of GEO satellites is that their transmissions take a quarter of a second to send and return • This is referred to as propagation delay • The characteristics of each satellite type determine the systems they are able to support • Which satellite types would be used for voice communication, GPS, or television transmission?

19. Global Positioning System (GPS) • The GPS is a wireless system that uses satellites to enable users to determine their position anywhere on earth • GPS is supported by 24 MEO shared satellites

20. Internet over Satellite • In many regions of the world, Internet over Satellite (IoS), is the only option available for Internet connections • Installing cables is either too expensive or physically impossible • IoS enables users to access the Internet via GEO satellites from a dish mounted on the side of their homes • Drawbacks are that there is propagation delay and signals can be disrupted by environmental influences such as thunderstorms

21. Mobile Marketing • Mobile marketing involves the use of mobile devices such as smartphones and tablet computers to display: • Banner ads • Rich media • Video • Games • E-mail • Text messaging • In-store messaging • QuickResponse (QR) codes • Couponing • More than 246 million Americans are now using mobile devices, while 140 million of these use smartphones

25. In-App Experiences and In-App Ads • Mobile users spend 80% of their mobile minutes using apps, and only 20% using browsers • On average, users have downloaded about 40 apps, and regularly use about 15 • The implications for marketers are quite clear: • Need to place ads in apps • Need to concentrate their marketing in the most popular apps • Niche marketers can concentrate their ads in apps that support their niche

29. Location-Based Marketing • Location-based mobile marketing is the newest and fastest growing segment of the digital marketing universe • Location-based marketing targets marketing messages to users based on their location • Location-based services involve providing services to users based on their location • Examples of location-based services include: • Personal navigation • Point-of-interest • Reviews • Friend-finder • Family-tracker services