M-commerce

M-commerce is defined as ‘the ability to purchase goods anywhere

through a wireless Internet-enabled device. Primary mobile
communication exists through web-enabled wireless phones.  It can also
be defined as:  “Providing E-commerce in a mobile context.”  “Using
mobile technology to sell or buy items, access business information,
conduct a transaction, perform supply chain or demand chain functions.
Mobile Commerce refers to wireless electronic commerce used for
conducting commerce or business through a handy device like cellular
phone or 1Personal Digital Assistant (PDA). It is also said that it is the
next generation wireless E-commerce that needs no wire and plug-in
devices. Mobile commerce is usually called as ‘M-commerce’ in which
user can do any sort of transaction including buying and selling of
goods, asking any services, transferring ownership or rights, transacting
and transferring money by accessing wireless internet service on the
mobile handset itself. The next generation of commerce would most
probably be mobile commerce or M-commerce. Presuming its wide
potential reach, all major mobile handset manufacturing companies are
making 2WAP (Wireless Application Protocol) enabled smart phones
and providing the maximum wireless internet and web facilities
covering personal, official and commerce requirement to pave the for-
way M-commerce that would later be very fruitful for them. M-
commerce has several major advantages over its fixed counterparts
because of its specific inbuilt characteristics such as ubiquity,
personalization, flexibility and distribution. Mobile commerce promises
exceptional business market potential, greater efficiency and higher
fruitfulness. Thus it is not surprising that mobile commerce is emerging
much faster than its fixed counterpart. M-commerce is more
personalized than E-commerce and thus needs a gentle approach to
appraise M-commerce applications.
The difference between E-commerce and M-commerce is that E-
commerce is limited to PC users with an Internet Connection. With M-

UNIT 2 Page 1
commerce moving to an SMS platform among other things, M-
commerce is open to almost the entire mobile population. An important
barrier to M-commerce is the state of mobile networks today because
there is a risk of transactions not maturing due to poor networks. For M-
commerce an ecosystem between application developers, financial
institutions, and mobile phone networks is required, for its effective
utility. Simplicity is the key to proliferation of M-commerce coupled
with the idea of developing trust with audiences. Now days the cell
phone, on its own or in conjunction with an organizer is used for much
more than simply making phone calls. It also acts as a flexible terminal
for a huge range of applications. So the availability of information
(weather forecasts, economic data, and news), e-shopping, e-ticketing,
e-banking and e-brokerage is greater than ever before, regardless of time
or place. The WAP (Wireless Application Protocol) and 3WML
(Wireless Mark-up Language) open standards mean the Internet’s
innovative solution strategies can now be applied to mobile telephony
too. Mobile Commerce (also known as M-commerce, M-commerce or
U-commerce, owing to the ubiquitous nature of its services) is the
ability to conduct commerce, using a mobile device e.g. a mobile phone
(or cell phone), a PDA, a Smartphone while on the move, and other
emerging mobile equipment, like dash top mobile devices.

The Different Areas that Come Under M-commerce

(a) Travel and Ticketing – convenience is the key. Mobiles are and will
reiterate their time saving devices.
(b) Movie Ticketing
(c) Bill payments – making payments to utility and service companies.
(d) Merchant Transactions/Retail Transactions – Mobile and Internet
transactions over the Internet is difficult as of now due to low speed of
the Internet.

UNIT 2 Page 2
(e) Money Transfer – transfer from person to person through a financial
intermediary.
The difference between E-commerce and M-commerce is that, E-
commerce is limited to PC users with an internet connection. With M-
commerce moving to an SMS platform among other things, M-
commerce is open to almost the entire mobile population.

Mobile commerce is generally known as, any E-commerce done in a

wireless environment, especially via the Internet, can be done via the
Internet, private communication lines, smart cards, etc.
Creates opportunity to deliver new services to existing customers and to
attract new ones.
The Benefits from Mobile Commerce Includes:
 Internet offerings are easier and more convenient to access.
 It offers considerable flexibility when conducting business.
 It offers intense customer orientation and high customer loyalty,
and this is due to innovative service strategies.
 It offers lower transaction and personnel costs, which is due to the
widespread automation

CHARACTERISTICS OF WIRELESS VS. WIRED

1. Ubiquity: The use of wireless device enables the user to receive
information and conduct transactions anywhere, at anytime.

UNIT 2 Page 3
 2. Accessibility: Mobile device enables the user to be contacted at
virtually any time and place. The user also has the choice to limit
their accessibility to particular persons or times.
3. Convenience: The portability of the wireless device and its
functions from storing data to access to information or persons. 
Localization: The emergence of location-specific based
applications will enable the user to receive relevant information
on which to act.
4. Instant Connectivity: Instant connectivity or “always on” is
becoming more prevalent with the emergence of 4G networks,
GPRS or EDGE. Users of 4G services will benefit from easier
and faster access to the Internet. 
5. Personalization: The combination of localization and
personalization will create a new channel/business opportunity for
reaching and attracting customers. Personalization will take the
form of customized information, meeting the users’ preferences,
followed by payment mechanisms that allow for personal
information to be stored, eliminating the need to enter credit card
information for each transaction.
6. Time Sensitivity: Access to real-time information such as a stock
quote that can be acted upon immediately or a sale at a local
boutique.
7. It reaches the destination server: And has to cover the same
path again in reverse to complete the trip. There are many
physical links (hops), wireless and wired line, between the end
user’s client application software and the information server.
There are also several pieces of software involved, many of which
featuring queuing (i.e., they are asynchronous).
8. “M-commerce in its true form is the ability to charge an amount
of currency to a mobile phone either by applications like
Mobilcash or Near Field Communications, the amount to be
charged is actually taken from the Mobile device’s account or
preloaded 5RFID chip”

UNIT 2 Page 4
  E-commerce came into existence in the 1970s. Whereas, M-
commerce was invented later during the 1990s
 Electronic commerce has a narrower reach than M-commerce, due
to a large number of mobile users globally.
 E-commerce is generally a less costly method. The set up of the
website and the use of the internet is both relatively cheaper
methods. M-commerce, on the other hand, is more expensive due
to the creation of the mobile app and the need to use cellular data
(for the customers)
Applications of M-commerce
Other than the straightforward m-commerce transactions of buying and
selling of goods and services, they have so many applications. Let us
take a look at a few examples,
 Mobile Banking: Using a mobile website or application to perform
all your banking functions. It is one step ahead of online banking
and has become commonplace these days. For example, in
Nigeria, the majority of banking transactions happen on mobile
phones.

UNIT 2 Page 5
  Mobile Ticketing and Booking: Making bookings and receiving
your tickets on the mobile. The digital ticket or boarding pass is
sent directly to your phone after you make the payment from it.
Even in India now IRTC and other services provide m-ticketing
services.
 E-bills: This includes mobile vouchers, mobile coupons to be
redeemed and even loyalty points or cards system.
 Auctions: Online auctions having now been developed to be made
available via mobile phones as well.
 Stock Market Reports and even stock market trading over mobile
applications.
Advantages of M-commerce
 It provides a very convenient and easy to use the system to
conduct business transactions.
 Mobile commerce has a very wide reach. A huge part of the
world’s population has a mobile phone in their pocket. So the
sheer size of the market is tremendous.
 M-commerce also helps businesses target customers according to
their location, service provider, the type of device they use and
various other criteria. This can be a good marketing tool.
 The costs of the company also reduced. This is due to the
streamlined processes, now transaction cost, low carrying cost and
low order processing cost as well.
Disadvantages of M-commerce
 The existing technology to set up an m-commerce business is very
expensive. It has great start-up costs and many complications
arise.
 In developing countries, the networks and service providers are
not reliable. It is not most suitable for data transfer.
 Then there is the issue of security. There are many concerns about
the safety of the customer’s private information. And the
possibility of a data leak is very daunting.
Mobile Computing
UNIT 2 Page 6
Mobile Computing is a technology that allows transmission of data,
voice and video via a computer or any other wireless enabled device
without having to be connected to a fixed physical link. This tutorial
will give an overview of Mobile Computing and then it will take you
through how it evolved and where is the technology headed to in future
along with the classifications and security issues involved.
Mobile Computing is a technology that allows transmission of data,
voice and video via a computer or any other wireless enabled device
without having to be connected to a fixed physical link. The main
concept involves −
1. Mobile communication
2. Mobile hardware
3. Mobile software
Mobile communication
The mobile communication in this case, refers to the infrastructure put
in place to ensure that seamless and reliable communication goes on.
These would include devices such as protocols, services, bandwidth, and
portals necessary to facilitate and support the stated services. The data
format is also defined at this stage. This ensures that there is no collision
with other existing systems which offer the same service.

Since the media is unguided / unbounded, the overlaying infrastructure

is basically radio wave-oriented. That is, the signals are carried over the
air to intended devices that are capable of receiving and sending similar
kinds of signals.

UNIT 2 Page 7
Mobile Hardware
Mobile hardware includes mobile devices or device components that
receive or access the service of mobility. They would range from
portable laptops, smart phones, tablet Pc's, Personal Digital Assistants.

These devices will have a receptor medium that is capable of sensing

and receiving signals. These devices are configured to operate in full-
duplex, whereby they are capable of sending and receiving signals at the
same time. They don't have to wait until one device has finished
communicating for the other device to initiate communications.
Above mentioned devices use an existing and established network to
operate on. In most cases, it would be a wireless network.
Mobile software
Mobile software is the actual program that runs on the mobile hardware.
It deals with the characteristics and requirements of mobile applications.
This is the engine of the mobile device. In other terms, it is the operating
system of the appliance. It's the essential component that operates the
mobile device.

Since portability is the main factor, this type of computing ensures that
users are not tied or pinned to a single physical location, but are able to
operate from anywhere. It incorporates all aspects of wireless
communications.

UNIT 2 Page 8
 Mobile Information Access Device
Mobile computing is not only limited to mobile phones, but there are
various gadgets available in the markets that are built on a platform to
support mobile computing. They are usually classified in the following
categories −
 Personal Digital Assistant (PDA)
The main purpose of this device is to act as an electronic organizer or
day planner that is portable, easy to use and capable of sharing
information with your computer systems.
PDA is an extension of the PC, not a replacement. These systems are
capable of sharing information with a computer system through a
process or service known as synchronization. Both devices will access
each other to check for changes or updates in the individual devices.
The use of infrared and Bluetooth connections enables these devices to
always be synchronized.

With PDA devices, a user can browse the internet, listen to audio clips,
watch video clips, edit and modify office documents, and many more
services. The device has a stylus and a touch sensitive screen for input
and output purposes.
 Smartphones
This kind of phone combines the features of a PDA with that of a
mobile phone or camera phone. It has a superior edge over other kinds
of mobile phones.

UNIT 2 Page 9
Smartphones have the capability to run multiple programs concurrently.
These phones include high-resolution touch screens, web browsers that
can access and properly display standard web pages rather than just
mobile-optimized sites, and high-speed data access via Wi-Fi and high
speed cellular broadband.
The most common mobile Operating Systems (OS) used by modern
smartphones include Google's Android, Apple's iOS, Nokia's Symbian,
RIM's BlackBerry OS, Samsung's Bada, Microsoft's Windows Phone,
and embedded Linux distributions such as Maemo and MeeGo. Such
operating systems can be installed on different phone models, and
typically each device can receive multiple OS software updates over its
lifetime.

 Tablet PC and iPads

This mobile device is larger than a mobile phone or a PDA and
integrates into a touch screen and is operated using touch sensitive
motions on the screen. They are often controlled by a pen or by the
touch of a finger. They are usually in slate form and are light in weight.
Examples would include ipads, Galaxy Tabs, Blackberry Playbooks etc.

UNIT 2 Page 10
They offer the same functionality as portable computers. They support
mobile computing in a far superior way and have enormous processing
horsepower. Users can edit and modify document files, access high
speed internet, stream video and audio data, receive and send e-mails,
attend/give lectures and presentations among its very many other
functions. They have excellent screen resolution and clarity.

Mobile Computing - Major Advantages

Mobile computing has changed the complete landscape of our day-to-
day life. Following are the major advantages of Mobile Computing −
 Location Flexibility:-This has enabled users to work from
anywhere as long as there is a connection established. A user can
work without being in a fixed position. Their mobility ensures that
they are able to carry out numerous tasks at the same time and
perform their stated jobs.
 Saves Time:- The time consumed or wasted while travelling from
different locations or to the office and back, has been slashed. One
can now access all the important documents and files over a
secure channel or portal and work as if they were on their
computer. It has enhanced telecommuting in many companies. It
has also reduced unnecessary incurred expenses.

UNIT 2 Page 11
  Enhanced Productivity:-Users can work efficiently and
effectively from whichever location they find comfortable. This in
turn enhances their productivity level.
 Ease of Research:-Research has been made easier, since users
earlier were required to go to the field and search for facts and
feed them back into the system. It has also made it easier for field
officers and researchers to collect and feed data from wherever
they are without making unnecessary trips to and from the office
to the field.
 Entertainment:-Video and audio recordings can now be streamed
on-the-go using mobile computing. It's easy to access a wide
variety of movies, educational and informative material. With the
improvement and availability of high speed data connections at
considerable cost, one is able to get all the entertainment they
want as they browse the internet for streamed data. One is able to
watch news, movies, and documentaries among other
entertainment offers over the internet. This was not possible
before mobile computing dawned on the computing world.
 Streamlining of Business Processes:-Business processes are now
easily available through secured connections. Looking into
security issues, adequate measures have been put in place to
ensure authentication and authorization of the user accessing the
services. Some business functions can be run over secure links and
sharing of information between business partners can also take
place. Meetings, seminars and other informative services can be
conducted using video and voice conferencing. Travel time and
expenditure is also considerably reduced.

Wireless technology
Wireless technology has significantly advanced in recent years enabling
many applications in addition to a traditional voice call over a mobile
phone.  3G and 4G high speed data has transformed the mobile phone
and wireless services available. 

UNIT 2 Page 12
Following are the wireless technologies:-
 3G  - 3G is short for third-generation mobile telephony and
enabled multimedia, video calling and the mobile internet.
 4G LTE  - 4G LTE (Long Term Evolution) was the next major
enhancement to mobile communications networks. LTE delivered
mobile broadband and high speed data enabling a wealth of
enhanced mobile applications including high definition video. 
 5G - 5G is 5th generation of mobile networks, a significant
evolution of today 4G LTE networks.  5G will enable gigabit data
speeds; provide significantly increased capacity and low latency
connections.  5G is being designed to meet the very large growth
in data and connectivity of today’s modern society, the internet of
things with billions of connected devices, and tomorrow’s
innovations.  
 WiMAX   - WiMAX, the Worldwide Interoperability
for Microwave Access, is a telecommunications technology aimed
at providing wireless data over long distances in a variety of ways.
 Wi-Fi  - Wi-Fi, short for Wireless Fidelity, is the term used to
describe high speed wireless connection over short distances
between mobile computing devices such as laptops and the
internet.
 Femtocells  - Femtocells are low-power wireless access points that
combine mobile and Internet technologies within the home and
operate similar to a cordless phone.
 Bluetooth  - Bluetooth wireless technology is a short-range radio
technology that uses radio frequency fields to transmit signals
over short distances between telephones, computers and other
devices. The technology offers simplified communication and
synchronization between devices without the need for cables.
 DECT  - DECT stands for Digital Enhanced Cordless
Telecommunication. DECT is a common standard for cordless
telephones and is a radio technology suited for voice, data and
networking applications in residential, corporate and public

UNIT 2 Page 13
 environments.  Many cordless phones used in residential homes
use DECT technology.

1. Wireless Wide Area Networks (WWAN):

A WWAN is a network that covers a large geographic area, like, for
example, a mesh network. A Wireless Wide Area Network is
transmitting tiny packages of information between devices, mostly
through sensors. A WWAN is using mobile telecommunication cellular
network technologies such as LTE, GSM or cellular digital packet data
(CDPD) to transfer data.
 
2. Wireless Local Area Network (WLAN):
WLAN are wireless networks that use radio waves. The backbone
network usually uses cables, with one or more wireless access points
connecting the wireless users to the wired network. The range of
a Wireless Local Area Network can be anywhere from a single room to
an entire campus.
 Wi-Fi
Wi-Fi is widely correlated to wireless networking as it has become the
standard for home networks and public hotspot networks. The benefits
of Wi-Fi are that it runs over longer distances but in carefully controlled
environments. The protocol is limited to work within single residential
or commercial buildings and outdoor areas within short range.

UNIT 2 Page 14
 
3. Wireless Personal Area Network (WPAN):
Wireless personal area networks (WPANs) connect devices within a
small area, somewhere around within a person's reach. A WPAN has a
typical range of about 30 feet. They are commonly used to interconnect
compatible devices near a central location, such as a desk.
With billions of wireless devices on the air already, and many billions
more projected to join them in the next few years, many radio frequency
bands are becoming crowded, and interference is a growing
problem. You should consider this when designing your next product.
Wireless Network Technologies carrying over WPAN:
1. Bluetooth radio
2. Bluetooth Low Energy
3. ZigBee
4. Z-Wave
5. Thread
6. LTE
Before newer smartphones came out with the fourth-generation wireless
network (4G), phones employed older cellular communication protocols
like HSDPA or GPRS. Industry leaders invested large amounts of
money to upgrade the network equipment to support 4G. 4G LTE stands
for “fourth-generation long-term evolution,” where LTE is a type of 4G
what provides fast connection and the best user experience.
Proprietary
Proprietary is a custom protocol that is owned by an individual or a
company. It is the exact opposite way of building a wireless network
than an open source technology. Owning a protocol gives the ability to
have a more secure and reliable system that fits the owner's needs.

Switching techniques
In large networks, there can be multiple paths from sender to receiver.
The switching technique will decide the best route for data transmission.
Switching technique is used to connect the systems for making one-to-
one communication.
UNIT 2 Page 15
Classification of Switching Techniques

Circuit Switching
 Circuit switching is a switching technique that establishes a
dedicated path between sender and receiver.
 In the Circuit Switching Technique, once the connection is
established then the dedicated path will remain to exist until the
connection is terminated.
 Circuit switching in a network operates in a similar way as the
telephone works.
 A complete end-to-end path must exist before the communication
takes place.
 In case of circuit switching technique, when any user wants to
send the data, voice, video, a request signal is sent to the receiver
then the receiver sends back the acknowledgment to ensure the
availability of the dedicated path. After receiving the
acknowledgment, dedicated path transfers the data.
 Circuit switching is used in public telephone network. It is used
for voice transmission.
 Fixed data can be transferred at a time in circuit switching
technology.
Message Switching

UNIT 2 Page 16
  Message Switching is a switching technique in which a message is
transferred as a complete unit and routed through intermediate
nodes at which it is stored and forwarded.
 In Message Switching technique, there is no establishment of a
dedicated path between the sender and receiver.
 The destination address is appended to the message. Message
Switching provides a dynamic routing as the message is routed
through the intermediate nodes based on the information available
in the message.
 Message switches are programmed in such a way so that they can
provide the most efficient routes.
 Each and every node stores the entire message and then forward it
to the next node. This type of network is known as store and
forward network.
 Message switching treats each message as an independent entity.
Packet Switching
 The packet switching is a switching technique in which the
message is sent in one go, but it is divided into smaller pieces, and
they are sent individually.
 The message splits into smaller pieces known as packets and
packets are given a unique number to identify their order at the
receiving end.
 Every packet contains some information in its headers such as
source address, destination address and sequence number.
 Packets will travel across the network, taking the shortest path as
possible.
 All the packets are reassembled at the receiving end in correct
order.
 If any packet is missing or corrupted, then the message will be
sent to resend the message.
 If the correct order of the packets is reached, then the
acknowledgment message will be sent.

UNIT 2 Page 17