ITPC 2003, Kathmandu, Nepal

1. Keynote Address :“Mobile Commerce – Vision and Challenges”, at ITPC 2003 Nepal by Prof. P. Venkataram IISc Bangalore INDIA Keynote Address : Mobile Commerce - Vision and Challenges ITPC 2003, Kathmandu, Nepal P. Venkataram Protocol Engineering and Technology Unit, ECE Dept. Indian Institute of Science Bangalore, 560 012, INDIA e-mail: pallapa@ece.iisc.ernet.in http://pet.ece.iisc.ernet.in/pallapa/

2. Keynote Address :“Mobile Commerce – Vision and Challenges”, at ITPC 2003 Nepal by Prof. P. Venkataram IISc Bangalore INDIA • Organization of Talk What is Mobile Commerce Requirements of Mobile Commerce Developments of Mobile Commerce Challenges in Mobile Commerce Some of the existing Applications of Mobile Commerce Current Scenario Research Activities Conclusion

3. Keynote Address :“Mobile Commerce – Vision and Challenges”, at ITPC 2003 Nepal by Prof. P. Venkataram IISc Bangalore INDIA • What is Mobile Commerce • Mobile commerce is a natural result of combining two strongly emerging • trends: electronic commerce and pervasive computing. • Internet + Wireless + E-Business = M-Business • Going online anywhere at anytime and using multiple devices • New business opportunities • M-Commerce represents another wave of the e-commerce invasion that is • changing the nature of business in the 21st century. • Exponential growth (keeps growing)

4. Check Bank Balance Check Stock Price Purchase Stock WAP Server Web Server Customer Database Product Database Multilingual Content Database Mobile Commerce Keynote Address :“Mobile Commerce – Vision and Challenges”, at ITPC 2003 Nepal by Prof. P. Venkataram IISc Bangalore INDIA • Fixed Vs Mobile Commerce Fixed Commerce

5. Keynote Address :“Mobile Commerce – Vision and Challenges”, at ITPC 2003 Nepal by Prof. P. Venkataram IISc Bangalore INDIA • Characteristics of M-Commerce Ubiquitous computing Anywhere, anytime Convenient, instant connectivity Very personal Device owner has an exclusive access to the contents/services Service providers know who the owner is Varied users, usage contexts Elementary school students, grandpas, grandmas Location & context-sensitive applications and services Ambidextrous Work & Play: Business purpose + Personal fun People seem willing to pay for mobile services

6. Keynote Address :“Mobile Commerce – Vision and Challenges”, at ITPC 2003 Nepal by Prof. P. Venkataram IISc Bangalore INDIA • Requirements for M-Commerce • Hardware technologies for ubiquitous computing • Software infrastructure for ubiquitous computing • Sensing and interaction with the physical world • Graceful integration of human users • Systems considerations, including scalability, security, and privacy.

7. Keynote Address :“Mobile Commerce – Vision and Challenges”, at ITPC 2003 Nepal by Prof. P. Venkataram IISc Bangalore INDIA • Problems in M-Commerce What distinctive requirements does mobile commerce impose on pervasive computing? What properties should an underlying pervasive computing platform possess in order for mobile commerce applications to achieve good usability and wide acceptance? How can the requirements raised by mobile commerce be met? What are some possible approaches to addressing each of the requirements? What system architectures and application models are appropriate for mobile commerce?

8. Keynote Address :“Mobile Commerce – Vision and Challenges”, at ITPC 2003 Nepal by Prof. P. Venkataram IISc Bangalore INDIA • Technological Challenges of M-Commerce Security ( Peace of Mind) Personalized Services Usability ( Consistent and Reliable Interface) Intelligent Services ( Smart about you, your location ) Pervasive & Flexible Payment ( Pay for any service Using Mobile) Consultation Capabilities ( Phone a Friend )

9. Keynote Address :“Mobile Commerce – Vision and Challenges”, at ITPC 2003 Nepal by Prof. P. Venkataram IISc Bangalore INDIA • Technological Challenges of M-Commerce (cont’d) Usability Intelligent and Personalized Services It is useful to determine what the mobile industry considers a service (a set of functions offered to a user by an organization) Personalized services have access to important user information that enables them to tailor their operation to the needs of the served user. Examples include speed dialing using personal contact lists or address book Pervasive and Flexible Payment Mechanisms It may be possible to replace credit-cards and paper money by making mobile phones act as electronic wallets. User’s credit-card details may be stored on the phone or on the user’s Subscriber Identity Module (SIM) card. “Access Tokens” are assigned when subscribing to a service or requesting to buy an item.

10. Keynote Address :“Mobile Commerce – Vision and Challenges”, at ITPC 2003 Nepal by Prof. P. Venkataram IISc Bangalore INDIA • Technological Challenges of M-Commerce (cont’d) Security Authentication “is a property by which the correct identity of an entity or party is established with a required assurance.” Consultation Capabilities The Session Initiation Protocol (SIP) should be the biggest enabler of these kinds of services. These features should enable consultation sessions to be established where a potential customer is taken through the features of a product by an expert using a multimedia presentation and/or a website. Computing Environment Infantile: The area is in its infancy and needs lot of coordination between the industries and institutions to bring out a common standard for resolving the issues of pervasive computing .

11. Keynote Address :“Mobile Commerce – Vision and Challenges”, at ITPC 2003 Nepal by Prof. P. Venkataram IISc Bangalore INDIA • Technological Challenges of M-Commerce (cont’d) User input (voice, text, gestures) ; Human computer interaction technology should be developed for voice recognition, gesture recognition and natural language processing of the text. Context aware systems: The smart devices software and hardware architectures should be scalable, and secured to handle context aware operations, which may involve communication between diverse users and components. IPv4: A bridging support should be developed for embedded devices to communicate through Internet. Anonymity: The devices should allow others devices to track its operation and communicate among a group of components and users in a secured manner. Ubiquity: The devices should be capable of ubiquitous computing.

12. Keynote Address :“Mobile Commerce – Vision and Challenges”, at ITPC 2003 Nepal by Prof. P. Venkataram IISc Bangalore INDIA • Building Blocks of M-Commerce

13. Keynote Address :“Mobile Commerce – Vision and Challenges”, at ITPC 2003 Nepal by Prof. P. Venkataram IISc Bangalore INDIA • Building Blocks of M-Commerce User Equipment A mobile phone or PDA acts as the user endpoint Access Network To provide authentication to validate a user’s attempt to consume network resources Service Network Linked to the Access Network, probably via secure Virtual Private Network (VPN). The Service network provides personalized portals to many services, including commerce.

14. Keynote Address :“Mobile Commerce – Vision and Challenges”, at ITPC 2003 Nepal by Prof. P. Venkataram IISc Bangalore INDIA • Enabling Technologies: Mobile Commerce • Wireless development • First-generation wireless technology was the cellular phone • Second generation wireless technology, which includes digital cellular phones, is currently in use worldwide • Third generation, or 3G technology will enable wireless devices to send and receive data as much as seven times faster than a standard 56K modem (0.4M ~ 2Mbps) • Fourth generation, networks designed to uninterrupted high speed data transfer • Wireless devices • Personal digital assistants (PDAs) • Digital cellular phones • Two-way pagers, laptops…

15. Keynote Address :“Mobile Commerce – Vision and Challenges”, at ITPC 2003 Nepal by Prof. P. Venkataram IISc Bangalore INDIA • Enabling Technologies: Mobile Commerce (cont’d) Clear trend for the convergence of several mobile devices including intelligent home appliances PDA phone: PDA + Cell phone Phones with MP3 player, voice recorder, digital camera, GPS Wireless control of refrigerator, TV, DVD through a cell phone

16. Keynote Address :“Mobile Commerce – Vision and Challenges”, at ITPC 2003 Nepal by Prof. P. Venkataram IISc Bangalore INDIA • Enabling Technologies: Mobile Commerce (cont’d) Mobile Communications GSM GSM (Global System for Mobile communication) is a digital mobile telephone system that is widely used in Europe and other parts of the world. GSM uses a variation of time division multiple access (TDMA). GPRS General Packet Radio Services (GPRS) is a packet-based wireless communication service in GSM CDMA CDMA is a form of multiplexing, which allows numerous signals to occupy a single transmission channel, optimizing the use of available bandwidth. Mobile-IP Mobile IP is an Internet Engineering Task Force (IETF) standard communications protocol that is designed to allow mobile device users to move from one network to another while maintaining their permanent IP address.

17. Keynote Address :“Mobile Commerce – Vision and Challenges”, at ITPC 2003 Nepal by Prof. P. Venkataram IISc Bangalore INDIA • Hardware / Software Tools • Tools supporting development of Devices in Mobile Commerce • Object Technology is playing a major part in shaping pervasive computing paradigm. • Java, C++ and XML are often used for implementation at the server side, and • in the meantime as well as on the pervasive device. • The Open Services Gateway initiative (OSGi) will play a key role in operating • pervasive devices.

18. Keynote Address :“Mobile Commerce – Vision and Challenges”, at ITPC 2003 Nepal by Prof. P. Venkataram IISc Bangalore INDIA • M-Commerce benefits can be seen in : • Banking • Financial services • Security services • Shopping • Advertising • Entertainment • Customer care • Information provision • Adhoc auction, where a particular user advertises the availability of a • particular commodity, and invites bids.

19. Keynote Address :“Mobile Commerce – Vision and Challenges”, at ITPC 2003 Nepal by Prof. P. Venkataram IISc Bangalore INDIA • Applications of M-Commerce

20. Keynote Address :“Mobile Commerce – Vision and Challenges”, at ITPC 2003 Nepal by Prof. P. Venkataram IISc Bangalore INDIA • Applications of M-Commerce (Cont’d)

21. Keynote Address :“Mobile Commerce – Vision and Challenges”, at ITPC 2003 Nepal by Prof. P. Venkataram IISc Bangalore INDIA • Location aware Applications Ubiquitous interactivity Personal device: always handy and available at all times on a person 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) Location aware Easy to track down where the user physically is as long as the wireless device is on (using GPS)

22. Keynote Address :“Mobile Commerce – Vision and Challenges”, at ITPC 2003 Nepal by Prof. P. Venkataram IISc Bangalore INDIA • Location aware Applications (cont’d) Vehicle tracking Automatic Vehicle Location (AVL): Using GPS device installed in a vehicle, finds the location of a vehicle Can be used for rapidly dispatching taxis, ambulances, police vehicles, trucks Can be used for navigating and optimal routing in unfamiliar geographical areas or heavy traffic Can also be used for tracking cargo, delivery, baggage, giving customers more accurate info

23. Keynote Address :“Mobile Commerce – Vision and Challenges”, at ITPC 2003 Nepal by Prof. P. Venkataram IISc Bangalore INDIA • Location aware Applications (cont’d) GPS Satellites Mobile GPS Unit Base Station Communication Networks

24. Keynote Address :“Mobile Commerce – Vision and Challenges”, at ITPC 2003 Nepal by Prof. P. Venkataram IISc Bangalore INDIA • Location based services using maps Find Location Geocoding • Enhance Billing • Personalized Portals • Friend Finder • Emergency Assistance • Find nearest service Mapping Visualize Routing Directions Content Intelligence

25. PAID You have paid $200 Thank You $ 200 Ok Clear Options Keynote Address :“Mobile Commerce – Vision and Challenges”, at ITPC 2003 Nepal by Prof. P. Venkataram IISc Bangalore INDIA • Mobile Applications in Finance To be one of the most important components of mobile commerce Other applications like Mobile banking, trading, brokerage, money transfer Easy identification and authentication both for restricted access and for payment purposes Small purchases such as vending through a wireless network

26. Keynote Address :“Mobile Commerce – Vision and Challenges”, at ITPC 2003 Nepal by Prof. P. Venkataram IISc Bangalore INDIA • Mobile services using Multimedia One of the most prominent area Other applications like Video-on-demand (VOD), MP3, ring tone, horoscope, fortune-telling, interactive games, news etc., Required Technology Mobile devices with multimedia capabilities High bandwidth wireless networks Video compression techniques Continuous connectivity

27. Keynote Address :“Mobile Commerce – Vision and Challenges”, at ITPC 2003 Nepal by Prof. P. Venkataram IISc Bangalore INDIA • Research Issues in M-Commerce • A secure environment is required, with the establishment of a system of • electronic signatures. • The development and use of signature and authentication products and • services is still in its introductory stage • General security requirements to achieve interoperability between • entities involved in the mobile signature architecture • Middleware issues on the devices • Human Computing Interaction issues • Gateways and infrastructure issues • Location-based services • Transactions Model • Database management • QoS management

28. A D V A N T A G E S Desktop / PC Mobile Phone / PDA • Location based advertising • Greater Convenience • Capture of buying impulses • Alternative payment mechanism e.g. Phone Bill • Supports new mobile services • Online product browsing • Personalized Advertising • Convenience for a technologically aware user. • Choice of many online stores for a wide range of items discount Notifications. • Greater Processing, multimedia and display capabilities of PCs • Greater presentation facilities makes the PC more applicable to larger purchases E-Commerce M-Commerce D I S A D V A N T A G E S • Distrust of technology, resistance to change • Fears about security online transactions • Bad design of many user interfaces • Slow connections if broadband access not available • Smaller screen size can degrade user experience • Small or immature input technologies • Market may be less open than e-commerce market • Tariffs are relatively high • Dialup hassles • Less possibility of impulse spending Keynote Address :“Mobile Commerce – Vision and Challenges”, at ITPC 2003 Nepal by Prof. P. Venkataram IISc Bangalore INDIA • Pros and Cons of Mobile Commerce

29. Keynote Address :“Mobile Commerce – Vision and Challenges”, at ITPC 2003 Nepal by Prof. P. Venkataram IISc Bangalore INDIA • Pros and Cons of Mobile Commerce (cont’d) • User point of view • Advantages : • Anytime, anywhere access to commerce services; • Disadvantages : • Small size of mobile device screens and their relatively limited • multimedia Capabilities • Relatively high costs of mobile services/ Tariffs for data • transmission over public mobile networks

30. Keynote Address :“Mobile Commerce – Vision and Challenges”, at ITPC 2003 Nepal by Prof. P. Venkataram IISc Bangalore INDIA • Pros and Cons of Mobile Commerce (cont’d) • Network Operator point of view • Advantages : • Huge numbers of predicted users - 650 Million 3G wireless users by • 2010 • Control users’ access service providers and service providers’ access users. • Disadvantages : • Must increasingly ‘open up’ their network services and information to • external service providers if they are to provide a wide range of • commerce services. • concerned about losing control of their networks and the value that • they generate.

31. Keynote Address :“Mobile Commerce – Vision and Challenges”, at ITPC 2003 Nepal by Prof. P. Venkataram IISc Bangalore INDIA • Pros and Cons of Mobile Commerce (cont’d) • Service Provider point of view • Advantages : • Information about user location means that advertisements can be • location-aware • Completely new services can be created, statically or dynamically, • based on convergence of information standards and communications • networks. • Disadvantages : • Future mobile networks are likely to be more ‘closed’ than the public • internet as network operators seek to encourage and/or limit • network users to choosing ‘preferred’ Service Providers.

32. Keynote Address :“Mobile Commerce – Vision and Challenges”, at ITPC 2003 Nepal by Prof. P. Venkataram IISc Bangalore INDIA • Conclusion M-Commerce will be at least as successful as e-commerce if the underlying technology and standards accentuate the advantages and minimize the disadvantages. The current specifications for 3rd Generation Mobile Networks and Services from the 3GPP provide a strong platform for M-Commerce Consistent and pervasive access to services across varied wireless networking topologies will be a key factor in the success of mobile commerce.