CHAPTER III

M-commerce

Synopsis

Introduction

Mobile Phones

Payment Mechanisms on Mobiles

M-marketing

Technologies of Mobile Phones

Introduction

E-commerce relates to only business transitions and commercial process. E-commerce depends on the adaptation of new technology by the consumer, for the consumer and of the consumer. With the due development of technology and electronic world, world is changing to E-commerce and gradually to M-commerce. It was forecasted in 2007 that India will become the third largest mobile market by 2007. Common men have been lured by many offers e.g., life-time validity, free outgoing call within your network, free SMS, STD calls and ISD calls at very minimum rates, etc., which hooks the common man to the mobile world. Mobile is not just a phone, it has become an on-hand computer in which through an internet enabled mobile, people can receive e-mail, text massages. Mobile banking is also done through this. Railway booking, astrology, day to day news forecast facilities are available on the mobile phone, etc. The camera in mobile phones allows you to snap photos. Mobile phones are also used for investigative purposes. It is also forecasted that in future, in each and every case, mobile phones will be evidence in one form or another. From children to old men, every one is using mobile phones as it is helpful in locating persons.

Mobile Phones

Wireless telecommunication was the first step of cellular architecture. It was represented as basic like phones. Then at 2 G, digital technology was introduced. Earlier only voice communications were used in mobile phones but later with development of use of mobile phones and technology, data features like Short Messaging Service (SMS) was also allowed for the convenience of people. Then later at 2.5G, the most prevalent technology took place which has better software allowing increased data rates. At 3G, there is a greater widening of technology in which there are bigger data pipes for users allowing them more flow of information. Then later at 4G, the speed of multimedia delivery is very high with which the flow of information is also very high.

With the development of mobile world, it provides many advantages to common man:

· The devices are smaller in size. It is easy to carry anywhere and anytime.

· It has high mobility so a person can use it at any part of world since it has roaming facility at very nominal rates.

· It has better and permanent connectivity as one network is easily connected to another network. So it is easy for a common man to use any network and stay connected with other networks also.

· It has fast speed so a person can call another person any time in just few seconds.

· The service which is provided to common man is of a very high quality. Many features are provided in mobile phones to a common man with warranty and guarantee.

· The last but not least advantage of this technology is that it has very low cost as compared to other technologies. A common man can easily afford it and use it.

In an electronic world, website is used by customers for their personal use e.g., to access their accounts or business or to improve their business process.

Similarly, now the world is changing from E-commerce to M-commerce because instead of using websites on computer, all the practical applications are done on mobiles.

M-commerce is about-

· Personalization-Mobiles are made by common man for common man, it provides "made for me services" e.g., Ring tones, ring back tones, gaming, news update, gallery, etc. These services provided to a common man for their personal use and also a service of SMS/MMS is provided in mobiles so that in a short time a written message is sent to other person, if they don't have time to talk and also a message is sent through MMS in very short time. Mobiles also have a feature of real time responses.

· On demand-With the due development of this technology M-commerce is on demand. People want all information with ease. They want their personal information should also cope up with new demand. People want to access their personal data and personal software environment anytime anywhere on mobiles because it is difficult to carry computers or laptops as they are comparatively heavier than mobiles.

Mobile networks are fulfilling the urge of every human being as it provides data, personal software at any place and any time within few seconds.

· Micro payments-"micro payments" are defined as a financial payment in an amount which is related to a transaction cost that would incur in making the payment using traditional payment mechanism.

With the payment technology, it is easy to buy or sell low value digital products for small amount of money e.g., to download a ring tone software on mobile a very less amount is deducted from the balance. This system has increased the mobile commerce system.

With the development of mobile networks, desktop environment is changing into mobile environment.

Mobile networks are providing services and facility transfer of informative content to users in a short time and in efficient manner. Because of this application, the use of desktops is decreasing day-by-day. The stage of using internet on Desktops is shifting towards the stage of using internet in the palm of one's hand, i.e., mobile internet.

It is easy to access internet on mobile phones in a short time and in efficient manner.

For the use of mobiles by common man, focus is on the content. The manufacturers of mobiles are inclined to manufacture the product which provides satisfaction to customers. Many features are provided on mobiles:

· person to person video messaging

· Streamed videos

· News

· Sports

· Astrology

· Hi-resolution 3D games

· Entertainment

These features are provided on mobile phones for the entertainment of common man, so that they can enjoy with their mobile phones.

PAYMENT MECHANISMS ON MOBILES

What are the various modes of payments on mobiles to avail various services?

· Fee based-Every customer using mobile phones has to pay "fee" for downloading the pictures, songs or games, etc. The scheme is like "pay per view". The charges of downloading are very nominal and it can be paid either in form of cash coupons or the amount of fee is deducted from the balance amount of customer.

· Subscription based-The customer can also take subscription scheme on their mobile phones. They can take any scheme which they want and feel that it is convenient to use. The scheme must suit their budget also. The subscription amount is paid either monthly or quarterly or yearly, while taking schemes, many other free items like ring tones, limited amount of SMS, calls is also given to customers.

· Pay as you use-Other mode of payment for use of mobile phones is by recharging the phones with coupons. These coupons are easily available in the market and the person can recharge their mobile phones anytime, anywhere. After recharging with these coupons, the amount is deducted from the balance according to the calls made by the customers.

M-MARKETING

Write a note on M-marketing?

M-marketing is also a common phenomenon now a days. Every common man is inclined towards marketing of mobile phones. Sale and purchase of mobile phones is becoming a business. It provides employment to most of the people. Now courses have also been started to make mobile engineers.

M-marketing promises to provide-

· Cost effective-The cost of mobile phones is very nominal and it is easy for every man to afford it.

· Efficient-Every person can use the mobile phones efficiently. It is easy to use and easy to carry. Due to this feature, its demand is increasing day by day. Now it has become the need of every man.

· Precisely targeted-Every company of mobile phones has a target which they have to achieve. They are in competition with each other. And because of this competition they are offering many schemes at nominal charges to customers. Their target is only to provide satisfaction to customers.

· Ad-campaigns-It is the most common phenomenon in the business world. M-marketing also involves ad-campaigns in which they get profits. Through ad-campaigns, they get direct revenue from the advertisers who gain access to the operators customers. The revenue is generated from the users in responding back to the marketing campaigns. Revenue is also generated from transactions made by advertisers through their special offers and 'm-coupons'.

The survey is done on "ad-avoidance". It is conducted by BBC World and initiative media in various States in India. It is found that the survey of "ad-avoidance" is not common now-a-days after the increased use of mobile phones. It is found that "ad-acceptance" is highest in SMS and FM where the avoidance was just 14% and 24% respectively. The avoidance is only in the cable TV ads and magazines.

In the legal world, mobile evidence can be used to get relevant information:-

· It is used to locate a person or track a person's movements. For example, in a case of kidnapping, murder, and dacoity, it is easy to locate the criminal.

· It is used for fixing a person to a particular location at a particular time.

· Contacts in phone memory are also helpful in revealing the important information about person's link.

· Proving the criminal record of criminal activities of a criminal, by their outgoing and incoming calls and call duration.

· Pictures, videos, recording in mobile phones sometimes become a relevant evidence in proving the case.

TECHNOLOGIES OF MOBILE PHONES

The two main technologies of mobile phones are GSM which stands for Global Standard Communications and other one is CDMA which stands for Code Division Multiple Access.

· GSM technology-It was started in early 1980's. The development of mobile communications infrastructure was in 1990's. GSM service started in 1991. This year it was renamed as Global System for Mobile communications (GSM). More details about GSM can be taken on http://www.gsmworld.com

GSM network has three parts:

· Mobile Station (MS) - It is similar to the cordless phone with extra features.

· The Base Transceiver Station (BTS) - It controls the connection with the mobile station.

· The Base Station Controller (BSC) - It controls the Base Transceiver Station.

Mobile Station (MS) includes a digital mobile phone and a SIM card. SIM card is a silicon chip. The SIM (Subscriber Identity Modals) is a card that fits into the handset. The SIM contains identification details such as IMSI(International Mobile Subscriber Identity) which is numeric, where first 3 digits represent the country where the SIM is from and the other digits represent subscriber identity in phone memories, bill information, text message, PIN numbers.

An IMEI (International mobile equipment identity)is the serial number of GSM phone which is fixed in phone and cannot be changed.

· CDMA Technology - It has the great network capacity to serve more subscribers at same amount. It provides broad network coverage to all countries. It is a wireless technology and is a competing technology with GSM, TDMA, CDPD, etc.

In CDMA phones along with IMEI and IMSI numbers, ESN (Electronic Serial Number) and MIN (Mobile Identification Number) also identify the mobile phones.

· TDMA Technology - TDMA stands for (Time Division Multiple Access) which delivers digital wireless service. It combines data streams by assigning each stream a different time slot in a set. It transmits a sequence of time slots over a single transmission channel. It also combines PCM (Pulse Code Modulated) stream created for each conversation. It divides ratio frequency into time slots and allocates slots to multiple calls. It is used by GSM digital cellular system.

· GPRS (General Packet Radio Service) - GPRS is used to send data at very high speed ranging from 9.6 kpbs to 57.6 kpbs by combining3 to 6 voice channels of TDMA system.

· EDGE (Enhanced Data Rate for GSM Evolution) - It is a 3G technology based on GSM and TDM. It allows more data upto 384 kpbs to be transmitted over TDMA radio frequency.

· Satellite phones - These phones are directly linked to satellite and do not have land based networks. It is similar to other phones. It also have prepaid connections which can be recharged from any part of the world. This phone is never out of coverage area because satellite can locate phone link anywhere on the globe. Satellite phone operators will have link with GSM networks because of cost effectiveness. It will also offer dual connectivity.

© Universal law Publishing Co.