Wireless Application Protocol and M-Commerce

Yuben Joseph

School Of Management Studies

CUSAT, Kochi-22
E-mail: [email protected]

Abstract: WAP bridges the gap between the wireless mobile world and the
internet. The Wireless Application Protocol (WAP), is a collection of protocols and
transport layers which allow mobile and portable communication devices such as
mobile phones and Personal Digital Assistants (PDA’s), to receive information over
the airwaves such as personal computers users obtain information over the
internet. . WAP is simply a protocol- a standardized way that a mobile phone talks
to a server installed in the mobile phone network.
Advances in wireless technology increase the number of mobile device users and
give pace to the rapid development of e-commerce using these devices. The new
type of e-commerce, conducting transactions via mobile terminals, is called mobile
commerce. Due to its inherent characteristics such as ubiquity, personalization,
flexibility, and dissemination, mobile commerce promises business unprecedented
market potential, great productivity, and high profitability. This paper presents an
overview of mobile commerce development by examining the enabling
technologies, the impact of mobile commerce on the business world, and the
implications to mobile commerce providers. The paper also provides an agenda for
future research in the area.

Keywords: Mobile, internet, transaction, commerce, GPRS, EDGE

1.0 INTRODUCTION

WAP bridges the gap between the mobile world and the Internet as well as corporate
intranets and offers the ability to deliver an unlimited range of mobile value-added
services to subscribers—independent of their network, bearer, and terminal. Mobile
subscribers can access the same wealth of information from a pocket-sized device as
they can from the desktop.

WAP is a global standard and is not controlled by any single company. Ericsson, Nokia,
Motorola, and Unwired Planet founded the WAP Forum in the summer of 1997 with the
initial purpose of defining an industry-wide specification for developing applications over
wireless communications networks. The WAP specifications define a set of protocols in

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application, session, transaction, security, and transport layers, which enable operators,
manufacturers, and applications providers to meet the challenges in advanced wireless
service differentiation and fast/flexible service creation. There are now over one hundred
members representing terminal and infrastructure manufacturers, operators, carriers,
service providers, software houses, content providers, and companies developing
services and applications for mobile devices.

WAP also defines a wireless application environment (WAE) aimed at enabling

operators, manufacturers, and content developers to develop advanced differentiating
services and applications including a micro browser, scripting facilities, e-mail, World
Wide Web (WWW)–to-mobile-handset messaging, and mobile-to-telefax access.

The WAP specifications continue to be developed by contributing members, who,

through interoperability testing, have brought WAP into the limelight of the mobile data
marketplace with fully functional WAP–enabled devices (see Figure 1).

Figure 1. WAP–Enabled Devices

2.0 BENEFITS

2.1. Operators

For wireless network operators, WAP promises to decrease churn, cut costs, and
increase the subscriber base both by improving existing services, such as interfaces to
voice-mail and prepaid systems, and facilitating an unlimited range of new value-added
services and applications, such as account management and billing inquiries. New

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applications can be introduced quickly and easily without the need for additional
infrastructure or modifications to the phone. This will allow operators to differentiate
themselves from their competitors with new, customized information services. WAP is an
interoperable framework, enabling the provision of end-to-end turnkey solutions that will
create a lasting competitive advantage, build consumer loyalty, and increase revenues.

2.2 Content Providers

Applications will be written in wireless markup language (WML), which is a subset of

extensible markup language (XML). Using the same model as the Internet, WAP will
enable content and application developers to grasp the tag-based WML that will pave
the way for services to be written and deployed within an operator's network quickly and
easily. As WAP is a global and interoperable open standard, content providers have
immediate access to a wealth of potential customers who will seek such applications to
enhance the service offerings given to their own existing and potential subscriber base.
Mobile consumers are becoming more hungry to receive increased functionality and
value-add from their mobile devices, and WAP opens the door to this untapped market
that is expected to reach 100 million WAP–enabled devices by the end of the year 2000.
This presents developers with significant revenue opportunities.

3.0 BENEFITS OF WIRELESS APPLICATION PROTOCOL

In the past, wireless Internet access has been limited by the capabilities of handheld
devices and wireless networks. WAP utilizes Internet standards such as XML, user
datagram protocol (UDP), and Internet protocol (IP). Many of the protocols are based
on Internet standards such as hypertext transfer protocol (HTTP) and TLS but have
been optimized for the unique constraints of the wireless environment: low bandwidth,
high latency, and less connection stability. Internet standards such as hypertext mark-
up language (HTML), HTTP and transmission control protocol (TCP) are inefficient
over mobile networks, requiring large amounts of mainly text-based data to be sent.
Standard HTML content cannot be effectively displayed on the small-size screens of
mobile phones and pagers.

WAP utilizes binary transmission for greater compression of data and is optimized for
long latency and low bandwidth. WAP sessions cope with intermittent coverage and
can operate over a wide variety of wireless transports.
The lightweight WAP protocol stack is designed to minimize the required bandwidth
and maximize the number of wireless network types that can deliver WAP content. All
network technologies and bearers will also be supported, including short message
service (SMS), USSD, circuit-switched cellular data (CSD), cellular digital packet data
(CDPD), and general packet radio service (GPRS).

4.0 COMPONENTS NEEDED FOR WAP IMPLEMENTATION

Requires three essential products components

1. WAP Micro Browser-residing in the client’s handheld devices.
2. WAP Gate way-typically on the wireless ISP’s network.
3. WAP server-residing either on the ISP’s infrastructure or on end-user organization’s
infrastructure.

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4.1. WAP Micro Browsers

To fit into a small wireless terminal, WAP uses a Micro Browser.

A Micro Browser is a small piece of software that makes minimal demands on
hardware, memory and CPU. It can display information written in a restricted mark-up
language called WML. WML stands for Wireless Markup Language. It is a mark-up
language inherited from HTML, but WML is based on XML, so it is much stricter than
HTML. WML is used to create pages that can be displayed in a WAP browser. The
Micro Browser can also interpret a reduced version of JavaScript called WML Script.

4.2. WAP Gateway

The idea behind WAP specifications is to connect the mobile networks to the Internet.
To connect these two mega-networks, the WAP Specification assumes there will be a
WAP Gateway. At its simplest level, this is a stack converter, which will convert the
WAP request into a Web request and the Web response into a WAP response.
WAP Gateway is a piece of software that sits between the mobile device and the
external network like the Internet. The gateway does the job of converting Internet
content i.e. the WML pages into byte code (WMLC) which can be understood by a
WAP device. Usually located on a server of a mobile operator it handles incoming
requests from your WAP phone, takes care of the conversion required during
WTLS/SSL sessions and handles incoming requests from your WAP phone. Although
in theory, the gateway could also be made to convert the HTML page content itself on-
the-fly as well, there are some problems. HTML pages can be full of graphics and with
inline scripting. Converting these to WML may return something that is not of any
relevance to anybody.
Some of the WAP Gateway products that are now coming on to the market (such as
Nokia's WAP Server) also provide hosting capabilities themselves. In future it could be
possible to integrate your WAP Server into the mobile network to gain information
about the subscriber's location.

4.3. WAP server

A WAP server is simply a combined web server and WAP gateway. It is usually
residing either on the ISP’s infrastructure or on end-user organization’s infrastructure.

Figure 2: WAP's Optional Proxy Model Supports Network-Based Optimizations

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5.0 WAP—USES

E-mail: Using WAP phones, one can access and exchange e-mails.
Personalized information access: The user could maintain a phone book or an
address book on a WAP-enabled phone.
Personal banking: Banking and insurance are purported to be the other sectors
where WAP is predicted to make a significant difference. In banking, for instance, a
WAP gateway can provide user access to payment services
Personal billing information: This enables the user to perform online shopping as
well as make online payments.
Financial information: Financial services includes Banking, Bill-paying, Stock trading,
Funds transfers and many more
City direction guides: The user can obtain small road maps on his WAP phone which
will guide him.
Infotainment: This includes interactive information as well as other entertainment like
games and chat.
• Online, real-time, multi-player games
• Downloadable horoscopes, cartoons, quotes, advice
Location-based services
• Real-time traffic reporting
• Event/restaurant recommendation
• Highly customized ads
• Instant messaging
Travel services
• Schedules and rescheduling
• Reservations
M-Commerce - Shopping on the go
• Instant comparison shopping
• Impulse buying
• Location-based special offers and sales

6.0 WAP-LIMITATIONS

WAP services—expensive: Most WAP based services used CSD (Circuit Switched
Data) as its underlying bearer. So the cost poses a deterrent as CSD requires its users
to remain connected to the network for full interaction.
Small screen of WAP device: For example, the NOKIA N97 has a screen size of 3.5”
making it difficult for the user to view data properly
Hardware Factors: These devices have hardware factors (limited battery life, limited
RAM and ROM) and user interface considerations, such as one-finger navigation, that
challenge traditional Internet application design.
Data rate in WAP: The current wireless applications and its usefulness are limited by
the lower bandwidth that is about 9.6Kbps. With the advent of GPRS, the data rate can
be increased up to 117KbpsCarriers worldwide are upgrading their existing networks
with higher-speed bearers such as General Packet Radio Service (GPRS) and High-
Speed Circuit-Switched Data (HSCSD) and introducing higher bandwidths and speeds
in third-generation (3G) wireless networks such as W-CDMA. These higher capable
network bearers permit new types of content (e.g., streaming media) and provide an
'always on' availability. These new aspects of the serving networks permit new
operational activities.

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7.0 SUMMARY

WAP provides a markup language and a transportation protocol that opens the
possibility of the wireless environment and give players from all levels of the industry
the opportunity to access an untapped market that is still in its infancy.
The bearer-independent nature of WAP has proved to be a long awaited breath of
fresh air for an industry riddled with multiple proprietary standards that have suffocated
the advent of a new wave of mobile-internet communications. WAP is an enabling
technology that, through gateway infrastructure deployed in mobile operator's network,
will bridge the gap between the mobile world and the internet, bringing sophisticated
solutions to mobile users, independent of the bearer and network.

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 M COMMERCE

8.0 WHAT IS M-COMMERCE?

M-Commerce has been defined as the "use of handheld wireless devices to

communicate, interact, and transact via high-speed connection to the Internet." With
the introduction of advanced phone technology, consumers of mobile devices will be
able to access content and services anytime, anywhere. For example, they will be able
to use wireless devices to access banking accounts and pay bills, receive stock quotes
and initiate buy/sell transactions, or receive special promotions and generate orders
from any place at any time.

9.0 WHAT IS DRIVING M-COMMERCE?

Consumer interest of Mobile shopping has increased to a great level. Internet and e-
commerce has become common to everyone and its adoption. Growth of mobile
telephone has shown in huge figures. Data transfer can be done in real time. The
advent of the handheld devices incorporating WAP, GPRS, EDGE etc.

10.0 USES OF M-COMMERCE

 Purchasing airline tickets

 Purchasing movie tickets
 Restaurant booking and reservation
 Mobile Banking
 Hotel booking and reservation
 Auctions
 Mobile Brokerage
 Location based services
 Information services
 Content purchase & delivery
 Mobile marketing

11.0 DISTINCTION BETWEEN E - COMMERCE & M – COMMERCE

Technology E-Commerce M-Commerce

Device PC Smart phones, PDAs

Operating System Windows, Linux, Symbian, Windows

MAC OS Mobile, Palm OS, Pocket
PC
Presentation HTML, XML HTML,WML,WXML
Standards
Browser Internet Explorer, Safari, Mini Opera, Nokia
Chrome, Firefox Browsers and Java
based browser
Bearer Network TCP/IP GSM, GPRS, EDGE,
3G,

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 12.0 M-COMMERCE IN INDIA

Low-value transactions
Music downloads, logo downloads, picture downloads, ring tone downloads, etc.

High-value transactions
Credit and debit card transactions, point-of-sale terminals, going to the merchant
location and paying through the handset. Booking of cinema tickets also can be done
easily on mobile. Besides train tickets are also be booked on the mobile.

13.0 USER AUTHENTICATION

The user authentication comprises of the following steps:

1. The user visits a merchant site.
2. The merchant server sends the content to the mobile phone via the WAP gateway.
3. The user wants to authenticate himself toward the merchant. The authentication
request is sent to the WAP gateway, which sends it to the Mobile ePay. The Mobile
ePay sends it to the merchant server.
4. The merchant server generates an authentication message, e.g., a random number,
and sends it to the Mobile ePay, which sends it to the SMS-C (Short Message Center).
The SMS-C delivers it to the SIM on the mobile phone.
5. The SIM asks for permission to sign.
6. If the user accepts, the SIM performs the signing
7. The SIM sends it back to the SMS-C, which sends it to the Mobile ePay.
8. The Mobile ePay generates an electronic signature by using the received digital
signature.
9. The Mobile ePay sends the complete electronic signature to the merchant server.

14.0 PAYMENT FROM WAP PHONES

The payment comprises of the following steps:
1. The user visits a merchant site.
2. The merchant server sends the content to the mobile phone via the WAP gateway.
3. The user wants to buy. The request is sent to the WAP gateway, which forwards it to
the Mobile ePay. The Mobile ePay delivers it to the merchant server.
4. The merchant server sends an offer to the Mobile ePay.
5. The Mobile ePay sends a request for payment type to the browser via the WAP
gateway.
6. The user selects the payment type, e.g., prepaid account, credit cards, etc., and
7. The payment type is sent to the Mobile ePay via the WAP gateway.
8. The Mobile ePay sends the contract to the SIM via the SMS-C. The contract
captures all the information about the transaction, e.g., user id, merchant id,
merchandise, etc.
9. After asking for confirmation from the user, the SIM performs the signing.
10. The SIM sends the digital signature back to the Mobile ePay via the SMS-C.
11. The Mobile ePay executes the necessary transactions according to the payment
type. This may include transactions towards financial institutions in case of payment by
credit card.
12. The Mobile ePay sends a confirmation to the merchant server.
13. The merchant server returns a URL for the continuation of browsing.

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14. The mobile ePay generates a receipt and sends it together with the URL for
continuation to the browser via the WAP gateway.
The browser can then continue with the browsing from the received URL. The
shopping is hence completed.

15.0 SECURITY CONCERNS

Compared with the wired counterpart, wireless communications are more vulnerable.
Although most wireless data networks today provide reasonable levels of encryption
and security, the technology does not ensure transmission security in the network
infrastructure. Data can be lost due to mobile terminal malfunctions. These terminals
can be stolen and ongoing transactions can be altered. In short, the mobility enjoyed
by mobile commerce also raises many more challenging security tasks. Serious
consideration must be given to the issue of security as mobile commerce applications
play an increasingly significant role in our daily business and personal life. Research
on how to improve security in mobile commerce must be carried out due to the
vulnerability of mobile devices and wireless networks. To meet security requirements
including authentication, integrity, confidentiality, message authentication, and no
repudiation in mobile commerce, additional security software and information (e.g.,
certificate, private, and public keys) will have to be installed on mobile devices.
Nevertheless, due to the limited computing resource of mobile devices, at some point it
will be necessary to establish additional servers to store information, perform security
checking, and conduct electronic payment on behalf of mobile devices.

16.0 CONCLUSIONS

Despite the skepticism around mobile commerce (e.g., Dugan, 2000), we share the
industrial and academic communities' optimism. Though there remain a great number
of technical, regulatory, and social challenges to overcome for their further
development, we believe that mobile devices will continue to develop and incorporate
additional functionality in the coming years and that the end result will be a global
marketplace of mobile commerce.

As wireless technologies evolve, the coming mobile revolution will bring dramatic and
fundamental changes to business strategies, enterprise resource planning, supply
chains, and customer relations. This revolution has already begun, but it is still in its
infancy. When complete, the revolution will impact numerous facets of everyday life. It
will provide important data in real time to assist decision makers, exert great influence
on the ways businesses communicate and develop relationships with consumers, and
ultimately transform the way we do business.

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