A day in the life through your new window to the World

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A day in the life through your new window to the
World
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Definition

• Mobile Commerce means providing the mobile
  consumer with the ability to purchase and receive
  goods and services securely via wireless
  technology
• Source Global mobile commerce forum
  

• The use of wireless technologies to provide
  convenient personalized and location-based
  services to customers, employees, and partners

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• What is Mobile Commerce?

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The mobile commerce arena
Info

Sport Weather Shares Hotels

• Cash
• Transactions

Vending
Tickets
Road, Automotive

• Shopping
• Loyalty

TOLL
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The m-Commerce Revolution

• 1. High mobile phone penetration 4 per PC
  worldwide
• 2. Convergence of the Internet and the mobile
  phone as well as mobile phone and PDA.
• 3. Transition to 3rd Generation (Europe and
  Japan take the lead)
• 4. Personalization, location-
  context-sensitive applications and services

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The m-Commerce Revolution

• 1. High mobile phone penetration 4 per PC
  worldwide
• 2. Convergence of the Internet and the mobile
  phone as well as mobile phone and PDA.
• 3. Transition to 3rd Generation (Europe and
  Japan take the lead)
• 4. Personalization, location-
  context-sensitive applications and services

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Hybrid Devices

• Both Pocket PC and Palm OS Flavors
• Phone
• Organizer/Address Functions
• Pager
• Email
• Web-browsing

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Peripherals
Digital Camera
Keyboards
Presenter To Go
GPS
Game Controller
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The Future Tablets?
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Wireless Subscribers Worldwide
SOURCE UMTS FORUM
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Electromagnetic Spectrum
LIGHT
HARMFUL RADIATION
RADIO
SOUND
VHF VERY HIGH FREQUENCY UHF ULTRA HIGH
FREQUENCY SHF SUPER HIGH FREQUENCY EHF EXTRA
HIGH FREQUENCY
SOURCE JSC.MIL
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Wireless Telephony
WIRELESS
AIR LINK
WIRED
PUBLIC SWITCHED TELEPHONE NETWORK
SOURCE IEC.ORG
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Cell Clusters
CELL 1 OVERLAPS 6 OTHERS DIFFERENT
FREQUENCIES MUST BE USED IN ADJACENT CELLS SEVEN
DIFFERENT SETS OF FREQUENCIES REQUIRED
SOURCE IEC.ORG
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Terminology and Standards

• Wireless standards
• Time-division multiple access (TDMA)
• Code division multiple access (CDMA)
• Both CDMA and TDMA subscriber grow
  (http//www.wirelessnewsfactor.com/perl/story/8003
  .html)
• Technical details can be found at
  http//www.cdg.org/tech/shosteck/white_paper.asp
• Wireless Application Protocol (WAP) and Wireless
  markup language (WML)
• http//www.w3schools.com/wap/default.asp
• W-CDMA (wideband)
• Good tutorial
• http//www.ieee.or.com/Archive/diversity_in_3g/div
  ersity_in_3g_files/frame.htm
• http//www.ericsson.com/mobileinternet/technologie
  s/index.shtml

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Multiple Access
Code Division
Time Division
Frequency Division
SOURCE WASHINGTON UNIV.
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Terminology and Standards (cont.)

• Wireless standards
• Mobile Internet and GPRS http//www.ericsson.com/g
  prs/doc/GPRS_Newsletter_k5.pdf
• Subscriber identification module (SIM)
• http//www.1.slb.com/smartcards/transactions/innov
  ations.html
• Voice XML (VXML)
• Enhanced data rates for global evaluation (EDGE)
• Universal mobile telecommunications system (UMTS)

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http//www.smartone.com.hk/e_sto_sma.html
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Space Division Multiple Access (SDMA)
MANY CELLS CAN SHARE SAME FREQUENCIES
IF SEPARATED IN SPACE
PATTERN CAN BE REPLICATED OVER THE ENTIRE EARTH
200 FREQUENCIES IN ONE CELL (capacity) TOTAL
NUM BER OFFREQUENCIES 1400 WORLDWIDE
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Cell Handover
AS PHONE MOVES FROM CELL A TO CELL B
CELL A MUST HAND THE CALL OVER TO B
PHONE MUST CHANGE FREQUENCIES CELL A
MUST STOP TRANSMITTING
Minimum performance contour
A
B
x
y
z
Handover threshold contour
SOURCE R. C. LEVINE, SMU
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Cell Sizes
GSM 100m - 50 km 250 km/hr
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Cellular Generations

• 1G 1979-1992 wireless technology
• Analog, circuit-switched (AMPS)
• 2G Digital, circuit-switched (GSM, Palm) 10 Kbps
• Advanced 2G
• Digital, circuit switched, Internet-enabled (WAP)
  10 Kbps
• 2.5G interim technology accommodates graphics
• Digital, packet-switched, TDMA (GPRS,
  EDGE)40-400 Kbps
• 3G (2001-2005) supports rich media (video clips)
• Digital, packet-switched, wideband CDMA
  (UMTS)0.4 2 Mbps (http//www.3gnewsroom.com/htm
  l/intro_3g/index.shtml)
• 4G next generation (2006-2010)
• Data rate 100 Mbps achieves telepresence

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http//www.3gnewsroom.com/html/intro_3g/index.shtm
l
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Attributes of Mobile Communication

• Attributes of m-commerce and its economic
  advantages
• Mobilityusers carry cell phones or other mobile
  devices
• Broad reachabilitypeople can be reached at any
  time
• Ubiquityeasier information access in a real-time
  environment
• Conveniencedevices that store data and have
  Internet, intranet, extranet connections
• Location Sensitivity of products and
  servicesknowing where the user is located at any
  given time

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Satellite Systems
GEO (Geo-stationary) (22,300 mi., cover
fixed region) high bandwidth, power,
latency MEO high bandwidth, power,
latency LEO (400 mi.) low power, latency
more satellites small footprint V-SAT (Very
Small Aperture) private WAN
SOURCE WASHINGTON UNIV.
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GPS Satellite Constellation

• Global Positioning System
• 25 satellites funded by DOD and operated by
  USAF.
• 6 orbital planes at a height of 20,200 km
• Positioned so a minimum of 5 satellites are
  visible at all times
• Receiver measures distance to satellite

SOURCE NAVSTAR
http//www.colorado.edu/geography/gcraft/notes/gps
/gps_f.html
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Automatic Vehicle Location (AVL)

• Benefits of AVL
• Fast dispatch
• Customer service
• Safety, security
• Digital messaging
• Dynamic route optimization
• Driver compliance

• Sample AVL Users
• Chicago 911
• Inkombank, Moscow
• Taxi companies

SOURCE TRIMBLE NAVIGATION
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GPS and Auto Insurance

• Need to rate drivers accurately
• age, residence and driving record not enough
• driving after midnight is 10 TIMES as risky as at
  800 a.m.
• commuting is the safest kind of driving
• parking in high-crime neighborhoods increases
  payout
• Progressive Insurance (Mayfield, Ohio)
• Autograph policy car is outfitted with GPS,
  cellular modem, microprocessor 256KB memory
• When ignition is turned on, car records location
  every six minutes
• Once a month, uploaded to Progressive by cell
  phone

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GPS and Auto Insurance

• Customer is billed retrospectively every month
• 25-50 savings in premiums
• Increases Progressives share but also gives them
  the right share (safe drivers)

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Location-Aware Applications

• Vehicle tracking
• Firemen in buildings, vital signs, oxygen
  remaining
• Asset tracking
• Baggage
• Shoppers assistance
• Robots
• Corporate visitors

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Automatic Identificationand Data Capture (AIDC)

• Problem how to obtain data from physical objects
• Examples product ID, price, serial number
• Bar code two-dimensional
• Magnetic stripe card
• Smart card
• Radio Frequency Identification (RFID)
• Real-Time Locating Systems (RTLS)

TAG
RFID CIRCUIT
WAND READER
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AIDC Applicationshttp//www.aimglobal.org/technol
ogies/intro.htm

• Highway toll collection
• Freight containers
• Animal identification
• Theft detection
• Inventory, asset management
• Traffic control
• Gas station billing

SOURCE TSS
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Wireless LAN

• Idea just a LAN, but without wires
• Not as easy since signals are of limited range
• Uses unlicensed frequencies, low power
• 2.4 GHz
• IEEE 802.11 (wireless ethernet)
• http//www.intelligraphics.com/articles/80211_arti
  cle.html
• WaveLAN 2 Mbps moving to 11 Mbps
• 5.2 GHz
• OFDM (orthogonal FDMA) modem technology (30 Mbps)
  IEEE 802.11
• Bluetooth
• http//www.wirelessdevnet.com/channels/bluetooth/f
  eatures/bluetooth.html

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Wireless LAN Components
Extended Range Antenna
WaveLAN ISA (Industry Standard Architecture) Card
WavePOINT II Transmitter
Ethernet Converter
11 Mbps WaveLAN PCMCIA Card
SOURCE LUCENT
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Wireless LAN Configurations
CLIENT AND ACCESS POINT
WIRELESS PEER-TO-PEER
BRIDGING WITH DIRECTIONAL ANTENNAS
MULTIPLE ACCESS POINTS ROAMING
UP TO 17 KM !
SOURCE PROXIM.COM
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Bluetooth

• A standard permitting for wireless connection of
• Personal computers
• Printers
• Mobile phones
• Handsfree headsets
• LCD projectors
• Modems
• Wireless LAN devices
• Notebooks
• Desktop PCs
• PDAs

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Bluetooth Characteristics

• Operates in the 2.4 GHz Industrial-Scientific-Me
  dical (ISM) (unlicensed)! band. Packet
  switched. 1 milliwatt. Low cost.
• 10m to 100m range
• Uses Frequency Hop (FH) spread spectrum, which
  divides the frequency band into a number of hop
  channels. During connection, devices hop from
  one channel to another 1600 times per second
• Bandwidth 1-2 megabits/second
• Supports up to 8 devices in a piconet (two or
  more Bluetooth units sharing a channel).
• Built-in security.
• Non line-of-sight transmission through walls
  and briefcases.
• Easy integration of TCP/IP for networking.

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Bluetooth Devices
ALCATEL One TouchTM 700 GPRS, WAP
ERICSSON R520 GSM 900/1800/1900
ERICSSON BLUETOOTH CELLPHONE HEADSET
NOKIA 9110 FUJI DIGITAL CAMERA
ERICSSON COMMUNICATOR
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Home and Office of the Future
Connected PC
Connected Families
SOURCE IEEE
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M-commerce vs E-commerce

• Frequently M-commerce is represented as a subset
  of all e-commerce thus implying that any
  e-commerce site could and should be made
  available from a wireless device
• This conclusion is misleading
• M-commerce should be recognized as a unique
  business opportunity with its own unique
  characteristics and functions, not just an
  extension of an organization's Internet-based
  e-commerce channel

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M-commerce vs E-commerce
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The Worlds Wireless Internet Users
  Source http//wwweurotechnologycom/imode/faq-wa
phtml
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Technology Trends
of main lines that are mobile phones

• By Year 2004
• Two in three telephones will be mobile
• Mobility becomes a lifestyle

Source Economist, 4 May 2000
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The Mobile Internet Value Chain
User
Device Manufacturer
Mobile Internet Access Provider (Network
Provider)
Infrastructure Vendor
Content Aggregator (Portal)
Application Service Provider
Content Provider
Content Creator
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Wireless Benefits and Advantages

• Provide people with a new life style with
  mobility
• Mobility to search and receive real-time dynamic
  information from the wireless network anywhere,
  anytime, and location
• Mobility to conduct business workflow, trading
  transactions, and events
• Mobility to connect to services for customers
• Mobility to learn, work, play, and communicate
  with each other
• For network vendors and organizations
• A complex, costly, and degradation-prone wiring
  infrastructure is no longer needed
• Ease of installation -
• With no wires to configure users can be added
  very quickly without the traditional waiting
  period associated with a wired network

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Wireless Benefits and Advantages

• For businesses
• Provide an end-to-end, flexible, mobile and
  personal channel to interact with customers
• Support all types of end-to-end application
  services to their customers in anytime, anywhere,
  and any device
• Provide new wireless solutions enable users to
  access information whenever and however they want
• Improve e-CRM (customer relationship management)
  in a mobile way that is any device, anytime,
  anywhere

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Needed Technologies and Solutions

• Bluetooth Networks and Technology
• Wireless LAN
• Cellular Network Systems
• Mobile Data Network Systems
• WAP (Wireless Application Protocol) - based
  Network
• Wireless Web or Wireless Internet (such as iMode)
• Location technologies
• Technologies for mobile terminal device
• Web phones, Handhelds, Pagers, PDAs, Pocket PCs

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Wireless Technologies
INTERNET
Cellular GPS
Wireless LAN
Fixed Wireless

• Last Mile Access

• PDAs, Cell Phones

• CORE Networks

• DATA/Voice integration

• 28GHz LMDS vs 57GHz U-NII
• 5 miles _at_ 45 Mbps P2MP
• 5 miles _at_ 155 Mbps P2P LMDS

• ISP providers
• Central Office Cellular

• Wireless Anywhere
• 840Mhz _at_ 15Kbps to 36Kbps

Core
Web Servers
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Mobile Commerce (M-commerce)
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Unique Characteristics

• Convenience and Accessibility
• In the traditional E-commerce world, people are
  constrained by time and place Not so in the
  M-commerce world where being seated at a PC is
  not a prerequisite for sending email, bidding on
  eBay, trading stock, or getting the latest sports
  results
• Localization
• With technologies like GPS (Global Positioning
  System) or TDA (Time of Arrival), M-commerce will
  enable users and merchants to push, receive, and
  access information and services specific to their
  location
• Personalization
• While personalization has started to make some
  strides with the wired web, the wireless world
  offers a vastly superior opportunity for
  companies to provide personalized, one-to-one
  services to its customers

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Unique Characteristics

• 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
• Form Factors
• The physical property of mobile devices (eg,
  screens, keyboards, weight) invokes a very
  different user experience from that of a desktop
  PC

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Evolution of M-Commerce Services
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Emerging Wireless Technologies

• Location-based Technologies
• Location capability allows a user to personalize
  information based on vicinity
• This technology will find increasing application
  by merchants or users wanting to push or receive
  location-specific information and services

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Social Issues in Mobile Commerce

• Security
• Unemployment/Employment
• Crime
• Health
• Quality of life
• The movie ?? (A nice one I recommend all of you
  to watch)

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The unbeatable ratio for Mobile Commerce
One Customer One Mobile
Device 11 relationship Mobile is the tool
to get goods and services to Customers any
where, anytime
Convenience
Convenience
Convenience
The ultimate delivery channel
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What are the Services Opportunities?

• Business and Technology Consulting
• Help clients understand the technologies and
  business opportunities
• Application Development
• More custom development with immature
  technologies
• Packaged Application Implementation
• Implementing mobile-enabled versions of
  enterprise apps (e.g., Siebel)
• Systems Integration
• Tying together legacy, e-business, and new mobile
  systems
• Others
• Network/Infrastructure consulting and services
• Support/Hosting/Maintenance/ASP

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Characteristics of m-Commerce Services

• Mobile commerce is more than offering access to
  e-commerce services from mobile devices.
• A genuine m-commerce service has to make sensible
  and creative use of the properties of mobile
  devices such as
• Portability - The customer can access services
  and be reached anywhere anytime.
• Trustworthiness - Sensitive information can be
  stored securely on the mobile device, secure
  transactions can be carried out.
• Localisation - Information and services can be
  adapted to the users position.
• Access to user profiles - Information and
  services can be adapted to the users
  preferences.

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Limiting technological factors

• Networks
• Bandwidth
• Interoperability
• Cell Range
• Roaming

• Localisation
• Upgrade of Network
• Upgrade of Mobile
• Devices
• Precision

• Mobile Middleware
• Standards
• Distribution

• Mobile Devices
• Battery
• Memory
• CPU
• Display Size

• Security
• Mobile Device
• Network
• Gateway

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Classification of Services

• Logistics and SCM
• Financial Services.
• Entertainment.
• Shopping.
• Information Services.
• Payment.
• Advertising.
• Tourism

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Payment for m-Commerce Services Billing Models

• There is a variety of possibilities for the
  provider to gain revenue from mobile services
• User pays by subscription for a single service.
• User pays for the services he has actually used.
  He can do this by using conventional payment
  methods, methods known from
• e-commerce or specific mobile payment methods.
• On registering for the service the user agrees to
  accept advertisements from third parties who pay
  for advertising.
• Integration into service packages. User pays an
  all-inclusive price. He might also get the
  package as added-value for his voice call
  subscription.

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New technical solutions the mobile wallet
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New technical solutions
Mobile wallet WAP customer experience -
Merchant site
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New technical solutions
Mobile wallet WAP customer experience -
Vodafone site
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New technical solutions
Mobile wallet WAP customer experience - confirm
payment
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Architecture of an m-Commerce Platform Players
and Components
Mobile services are based on a complex
technological and organisational infrastructure.
Qualified partners with a large span of core
competences have to cooperate to make them
possible.
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The i-mode Story

• The most popular wireless data service on the
  planet is i-mode with over 34 millions
  subscribers. Approximately one in four Japanese
  are using i-mode
• i-mode was developed by DoCoMo ( which means
  anywhere in Japanese) as a subsidiary of NTT
  (The Japans largest telecommunication service
  provider Nippon Telegraph and Telephone Corp.) in
  1992.
• i-mode (The i stands for information) is a
  wireless technology and service mark.
• The i-mode service, begun in Feb. 1999, enable
  users to access Internet services via their
  cellular i-mode phones.
• With each subscriber on average signing up for
  three additional services at 1 per month per
  service, NTT DoCoMo earns 36 per year per
  subscriber in incremental business.

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(No Transcript)
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• i-modes Success
• right technology right strategy right content
  right marketing

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What Is i-mode in Reality?

• A mobile phone with a larger-than-normal color
  TFT screen, containing both an Internet browser
  for browsing websites and an e-mail client
• Access well over 50,000 websites specifically
  designed for the smaller display, Nearly 3,000
  sites within DoCoMo's own portal ('iMenu') and
  50,000 other sites available
• e-mail client allows communication with not only
  other mobile phone users, but with e-mail users
  worldwide
• Incorporates Java technology to download dynamic
  applications

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iMode

• Telephone, pager, email, browser, location
  tracking, banking, airline tickets, entertainment
  tickets, games
• http//www.co-data-serv.net/00000fprun.checkcom/im
  ode_idx.htm
• NTT DoCoMo (??? means anywhere)
• Japan is the wireless Internet leader

SOURCE EUROTECHNOLOGY JAPAN K.K.
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iMode

• Sits on top of packet voice/data transport
• As of January 2005, gt 80 million subscribers
• 50,000 new ones per day
• 25 of Japan use iMode, which 40 of DoCoMo users
• 5000 official sites, 665 application partners
• 70,000 unofficial sites
• Fee based on data transmitted

SOURCES XML.COM, NTT
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iMode

• Phonetic text input (better for Japanese)
• SLOW 9.6 Kbps, but 3G will raise to 384 K in
  2001
• Uses cHTML (compact HTML)
• same rendering model as HTML (whole page at a
  time)
• low memory footprint (no tables or frames)
• Java port coming
• Standby time 400 min., device weight 2.4 oz.
  (74g)

SOURCES XML.COM, NTT
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iMode Operation
DoCoMo Packet Network (PDC-P)
iMode Servers
HTTP
PACKET DATA
SOURCE SAITO SHIN
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I. The Packet-switch Network (PDC-P) for
Internet Services

• Always-on' connection allows for quick access to
  Internet services
• Enables different pricing model for the end user,
  pay per packet (128 bytes) downloaded rather than
  for time online. The number of bytes downloaded
  tend to be very small

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WAP

• With the coming GPRS network of the GSM world,
  many claim that usage of WAP-based services will
  increase.
• This may be the case, but unless the situation
  for content providers is adjusted, there will
  still be a lack of content to access.
• The average user cares little for what is inside
  the box (that is, the technology) but cares to a
  great extent about what he or she can see on the
  screen (the content)

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II. Application Layer for Developers

• iMode uses cHTML which is simply an extended
  subset of the existing HTML Web standard.
• WAP uses WML which is a new language.
• iMode can immediately make use of the skills of
  current WWW developers, but those interested in
  producing content for WAP browsers must learn WML
  from scratch.
• As the WWW community migrates away from HTML and
  towards XML in the next few years, iMode may find
  that it's short-term stop-gap approach loses out
  to WAP's longer-term measured approach.

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Winning Strategy

• NTT DoCoMo is a mobile phone operator with a
  pre-existing billing relationship with the
  customer, it is possible to collect payment on
  behalf of content providers (CPs) for their
  services
• Payments are added to the user's phone bill every
  month and passed to CPs DoCoMo charges 9
  commission (30 of i-mode sites take advantage of
  this option)
• For competitive contents, CPs may receive revenue
  directly from the end user
• DoCoMo does not pay for contents and CPs do not
  have to pay for placement within the iMenu portal
  
• Partners need to conform to guidelines for
  content creation and go through a partnership
  approval process
• through this process the CPs receive advice from
  an experienced team, who having worked with
  thousands of content ideas and have insight into
  what really works

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The Right Services

• The selection of the best content for the end
  user, by a dedicated team of specialists, which
  makes i-mode so strong
• Develop the right 'portfolio' of content to
  attract both the right partners and the right
  users

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The i-mode Services

• The provided services for I-mode customers
• Voice communications
• A large number of sites by simply pressing the
  i-mode key.
• Over a dozen I-mode search engines and sites
  that provide a lot of information services on
  sports, stock quotes, maps, weather forecasts,
  restaurant coupon discounts, and horoscopes.
• The convenient and useful mobile commerce
  services, such as mobile banking, stock trading,
  and ticket reservations.
• i-mode is compatible with Internet e-mail and
  can also transfer mail between i-mode devices.
• Application downloads from more than 1600 web
  sites.
• As of July 2001, there were 25 million
  subscribers and more than 37,000 i-mode sites,
  including 1,420 preferred sites.

79
i-mode marketing

• Focuses on what the user can do rather than what
  technology is being used.
• Posters and commercials never used the word
  'Internet' or 'web' but rather focused on
  services such as transferring money with mobile
  banking or airline reservations
• Partner with Sun Microsystems, 'i-appli' was
  launched in January 2001

80
i-mode and Mobile Commerce

• Successful Business Models
• Brand building (or media mix)
• Customer relationship management
• Online retail
• Premium content
• Aggregation
• Business-to-business
• Advertising

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Brand Building and Media Mix

• Brand Building - Company has a corporate
  website which describes its products and services
  - a sales brochure, a billboard and a corporate
  profile all in one
• Media Mix - blending the content of i-mode with
  content in other media to help drive that
  business
• Ajinomoto - one of Japans largest producers of
  food products.
• offer a large database of recipes, A-Dish, as a
  service to their customers
• On i-mode, the same database of recipes is being
  provided and building the brand of Ajinomoto on
  the wireless Internet
• DoCoMo content team advise the company on the
  best way to present the content to the user, with
  the best functions for the mobile device.
• Attracting useful content to the i-mode service,
  and giving the partner company the opportunity to
  expand their brand into a new medium, a win-win
  relationship is developed

82
Customer Relationship Management (CRM)

• Providing support for ones customers, with
  useful online services in the mobile environment.
  (e.g., Shipment tracking service on the i-mode
  platform)
• Over 350 banks currently offer mobile banking
  services
• Most major credit card companies offer online
  services to their customers through i-mode
• DLJ Direct or Nomura Securities, offer real-time
  trading functionality to their account holders
• Insurance companies, from automobile and travel
  to life, provide clients with information and the
  ability to make transactions online
• CRM is always a wise investment, as it increases
  both the satisfaction and the loyalty of
  customers.

83
Issues

• Finding the right mix of applications for the
  mobile user
• Security - with end-to-end SSL from the 503i
  series of phones, and server-to-server SSL or
  dedicated line connections with the first two
  series of handsets, the banking industry has been
  willing and able to take the lead in wireless
  Internet and enjoy the benefits of mobile
  commerce

84
Online Retail

• Many retailers selling their wares over i-mode
  bookstores, music stores, game software vendors,
  flower shops, fashion boutiques, ticket agents,
  airlines and mail-order businesses
• Example Tsutaya
• has a large chain of video and CD rental stores
  Culture Convenience Club with a national
  coverage
• Tsutaya Online - the Internet branch of Tsutaya
• With i-mode users can search for titles on the
  move and check to see if the video they want is
  in stock. Using i-mode for coupons, which can be
  shown directly to the store staff, and
  permission-based direct mail, they have been able
  to increase sales and rentals.
• Using e-mail through i-mode, the frequency of
  click-throughs to an online purchase page was
  much higher than compared to the fixed-line
  Internet.

85
Issues

• Distribution system
• Payment method
• Brand familiarity and comfort (traditional
  retailer versus online-only retailer)
• Product type and usage frequency

86
Premium Content

• Millions of content providers providing a variety
  of content all for free in the fixed Internet
  world.
• There has never been a satisfactory way to
  receive payment from users
• i-mode has provided the missing link in the
  premium content model by providing a convenient
  way for users to pay and content providers to get
  paid
• If content providers wish to charge a monthly
  premium subscription fee for content (to a
  maximum of 300 yen, or approximately US3),
  DoCoMo collects that charge from subscribed users
  as part of their phone bill with 9 commission

87
Premium Content

• Premium services today range from news and sports
  information to entertainment services such as
  games, visual services and ringing tones
• The whole market for premium content on i-mode is
  estimated to be around 60 million per month
• News companies, who traditionally provide news in
  other media using advertising revenue, can now
  charge users small fees for essential information
• Entertainment companies, who have not yet found a
  true moneymaking model on the fixed-line
  Internet, can transform their properties into
  mobile content and begin to receive revenue
  (e.g., Walt Disney)

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Premium Content

• To make the premium service model work, the
  content provided must be of high quality
• is the content fresh? - is it something new that
  has never been tried and will it quickly attract
  new users?
• Does the content offer continuity? - is there
  something to attract the user back day after day
  to use the content and is the rate of refresh
  sufficient to satisfy the frequent visitor?
• Is the content deep? - by looking at, for
  example, the number of restaurants listed, the
  number of stories available and the number of
  ringing tones that can be downloaded?
• Is clear benefit for the user considered? what is
  stressed are the needs of the mobile user, or
  rather, the need for this content on the phone

89
Aggregation

• Restaurant guides, Real estate guides or Job
  search sites.
• The classic aggregator would be the yellow pages
  telephone directory
• While free to the user, companies pay for
  listings or extra advertising space
• The same model is used on i-mode. These
  aggregators of information develop a number of
  backend models so that costs do not have to be
  incurred by the users (e.g., job-seeking sites
  are free to the job seeker, but premium to the
  job poster)
• The key to this type of model is to develop the
  right win-win so that all partners can see the
  benefit

90
Business-to-Business

• i-mode is an attractive medium for
  business-to-business specialists to create and
  sell mobile workforce solutions to enterprise
  customers
• software packages for companies to allow their
  employees to access essential groupware packages,
  such as the scheduling of Microsoft Outlook,
  while on the move
• Custom-made enterprise solutions for such tasks
  as inventory management

91
Business-to-Business

• Sagawa Express is a freight transportation
  service company, offering delivery across the
  country
• NEC Corporation developed an i-mode CRM
  application Clarify eFrontOffice for the
  company to streamline communication between call
  centers and drivers in the field, and to correct
  mistakes which are often made in taking customer
  orders
• All drivers use i-mode phones to respond to
  customer requests at all times and to make
  reports and requests

92
Advertising

• With a much smaller screen, a banner ad takes up
  much more space than on a PC screen, and so the
  chance of a negative user reaction is always
  great
• Joint venture with Dentsu, Japans largest
  advertising agency, and NTT Ad, a member of the
  NTT Group to form a new company called D2
  Communications.
• The primary mission was to create an advertising
  model with meaning, and to use the mobile phone
  as more than just a billboard

93
Advertising

• Advertising on i-mode can be broken down into
  three schemes
• Simple banner ads, within content providers
  sites and the Weekly i-Guide area on NTT
  DoCoMos portal. Once a user clicks through a
  banner, takes the user to the advertisers
  website
• A dedicated Specials menu page on the i-mode
  portal, with links to special campaign
  information, coupons and more. Users can also
  register, so that the information can be more
  targeted
• Message Free service, which is a special push
  mail function of i-mode, in which transmission
  costs are born not by the user but by the
  advertiser

94
Horizontal Integration and the Expansion of
M-Commerce Opportunities
95
C-Mode Vending Machine
96
The Future
FOMA Visual Phone (by Matsushita)
97
The Basic Features of i-mode

• i-mode 2G service has a transmission speed of 9.6
  kbps.
• i-mode has the underlying packet-switching
  system.
• i-mode uses SSL or Secure Socket Layer, provided
  by RSA.
• i-mode uses Sun Solaris servers on the back end.
• i-mode service uses compression technology to
  increase the volume of data that is transmitted.
• i-mode service uses I-mode browser to interact
  with users
• i-mode uses Compact HTML (C-HTML) and proprietary
  protocol stack.
• i-mode provides an always-on service -gt no dial
  is needed.

98
The Basic Features of i-mode

• Suite of applications that make up the total
  iMode Service including
• Browser currently based on cHTML but changing
  to xHTML
• iMode Email client Proprietary HTTP Mail
• Security Stack based on SSL 3.0
• iMelody downloadable ringer tone service using
  MII
• iAnimation Animated GIF support in grayscale
  and color
• DoCoMo pictograms downloadable graphics such as
  a Pokemon (future of Japanese economy)
• i-appli Java service supporting application
  downloads

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101
i-mode Structure

• Connecting to sites, receiving messages and
  transmitting e-mail are done via the DoCoMo
  i-mode center.

102
iMode vs. WAP - Deployed Applications

• WAP in Europe uses text and no images small
  screen.
• iMode in Japan uses text and color images and
  larger screen.
• WAP is Marketed for business application
  (banking, stock portfolio, business news, flight
  booking).
• iMode marketed for consumer applications
  (restaurant guide, fun images, ringing melodies).

103
Challenges of i-mode

• i-mode's content seems to be heavily tied to
  Japanese culture and may not easily translate to
  other countries.
• cHTML is incompatible with full HTML.
• i-mode does not support security layer because
  it is not required for consumer applications.
• i-mode uses the PDC-P network which is not a
  world standard while other parts of the world
  like Asia and Europe have circuit switched
  networks in place.

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