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Cmpe 472 Wireless Internet and M-business Introduction Wireless technology turns e-business into m-business, or mobile business Internet+wireless+e-business = M-Business Going on-line anywhere at anytime and using multiple devices New business opportunities

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cmpe 472

Cmpe 472

Wireless Internet and M-business

  • Wireless technology turns e-business into m-business, or mobile business
  • Internet+wireless+e-business = M-Business
    • Going on-line anywhere at anytime and using multiple devices
    • New business opportunities
  • Exponential growth (keeps growing)
    • No of mobile internet service users: 1bn by 2004 (the Economist 2001).
characteristics of m business
Characteristics of M-business
  • Ubiquitous computing
    • Anywhere, any time
    • Conveninet, instant connectivity
  • Very personal
    • Device owner has an exclusive access to the contents/ services
    • Service providers know who the owner is
  • Varied users, usage contexts
    • Elementary school students, parents, old people
    • Location and context-sensitive apps and services
    • Work-play: business purpoes and personal fun
  • People seem willing to pay for mobile services
drivers of m business
Drivers of M-business
  • High mobile phone penetration: 18mm subscribers (Finland: 80%, HK: 90%)
  • Convergence of the internet and the mobile devices
  • Improvements in technology (bandwidth, device functionalities): transition to the 3rd generation
  • Declining prices: device, service prices
  • Explosion of e-commerce in general: more opportunities available on-line, i.e., more opportunities for m-business
  • M-business based on mobile devices can help developing countries fill the gap of digital divide:
    • More internet users in China than the US by 2005.
m business applications
M-business Applications
  • Current applications
    • Conduct on-line transactions
    • Make purchases
    • Send e-mail
  • Future applications
    • A wireless office
    • In-hand, on-the-go entertainment
    • Migration from a PC-centric to a multi-device model
wireless devices
Wireless Devices
  • Wireless development
    • First-generation wireless technology was the cellular phone
    • Second generation wireless technology, which includes digital cellular phones, is currently in use worldwide
    • Third generation (3G) technology will enable wireless devices to send and receive data as much as seven times faster than a standard 56 K modem (0.4 to 2m bps)
  • Wireless devices
    • Personal digital assisstants (PDAs)
    • Digital cellular phones
    • Two-way pagers, laptops,...
phone evolution roadmap
Phone Evolution Roadmap

Timing of mass

Market adoption

20th century

Late 90s



Text messages

Colour graphics



Video streaming

Pull text content

Graphical content



Bluetooth, GPS


Wireless in





Cord in home

information appliances
Information Appliances
  • Clear trend for the convergence of several mobile devices including intelligent home appliances
  • PDA phone: PDA + cell phone
  • Phones with MP3 player, voice recorder, digital camera, GPS
  • Wireless control of refrigerator, TV, DVD through a cell phone
key characteristics of wireless device
Key Characteristics of Wireless Device
  • Ubiquitous interactivity
    • Personal device: always handy and available at all times on a person
    • User identity: the device carries its user identity; distinctly personal and the usage can be tracked down to an individual rather than households (e.g. PC)
  • Location aware
    • Easy to track down where the user physically is as long as the wireless device is on (using GPS)
    • Important marketing implications
some limitations of current wireless devices and services
Some Limitations of Current Wireless Devices and Services
  • Need huge investment for infrastructure
    • GSM to 3G costs 200-300% of GSM investment
  • Service is not universally available and still relatively expensive
  • Limited bandwidth restricts the amount of data that can be sent over the wireless network as well as the speed
  • Wireless devices have significantly smaller memory capacity and less powerful processors than desktop computers
  • Small screen, keyboard: usability, navigation problems
some limitations of current wireless devices and services cont d
Some Limitations of Current Wireless Devices and Services (cont’d)
  • Lack of contents
  • Rapidly developing standards
  • Legacy of wire-line internet
  • Security (viruses, tapping, hacking)
  • Safety (radiation, brain cancer?)
  • However, wireless technology is growing rapidly
wireless access
Wireless Access
  • International Telecommunications Union (ITU) definition:
    • Wireless access is an application of radio technology and personal communication systems. The key characteristic of wireless access is the use of a multiple access radio system instead of wires (e.g. copper or coaxial cables) in the distribution/ access network.
    • Wireless channel: between users/ terminals and wireless networks.
limited wireless communication channels
Limited Wireless Communication Channels
  • Frequency assigned to wireless communication is limited
  • Explosive growth of demand
  • Critical qustion: find more efficient ways of using the assigned frequency band so that multiple users can gain simultaneous accesses
  • What technology manipulates: three dimensions (space, frequency, time)
space division multiple access sdma
Space Division Multiple Access (SDMA)
  • Frequency reuse
  • A covered area (e.g. Bebek) is divided into many small cells
  • A channel (frequency band) used in one cell to be reused by a different user in another cell as long as there is ENOUGH SEPARATION between the two cells to minimise interference
cell clusters
Cell Clusters

Actual coverage

Area of Cell 3


Cell 1 overlaps 6 others

Different frequencies must

be used in adjacent cells

Seven different sets of

frequencies required

Cell 7


Cell 4

Cell 5

Actual coverage

Area of Cell 1


Many cells can

share same

frequencies if

separated in


Pattern can be

replicated over

the area

fdma tdma
  • FDMA (Frequency Division Multiple Access)
    • Each channel uses a different frequency bandwidth
  • TDMA (Time Division Multiple Access)
    • Assign a frequency band for multiple channels by slicing time slots
    • Each channel uses certain time slots
    • There is some downtime: not using a channel all the time
    • Global System for Mobile Communications (GSM)
  • CDMA (Code Division Multiple Access)
    • Assign a large frequency band for multiple channels
    • Calls are split into packets and the packets are tagged with identifying codes
    • Often in the format of FDMA+CDMA
    • Considered most efficient; creating capacity triple that of comparable TDMA
    • Generally CDMA>TDMA>FDMA
types of multiple access
Types of Multiple Access

Frequency Division


Code Division


Time Division


Call 4

Call 9

Call 8

Call 7

Call 3

Time vs Frequency



Call 6

Call 5

Call 4


Call 2

Call 3

Call 2

Call 1

Call 1




Everyone talks in a

different room to

prevent interference.

Since the conversation

can’t be heard from

another room, it can be

filtered from the other by

going to the other room.

Within each room,

everyone takes turns

talking to prevent

İnterference. Within each

room, one person is

talking at once, so they

must talk fast to say


Everyone speaks a

different language at the

same time in the same

room. Since each language

is unique, one may be filtered

from another.

Conversational Analogy

mobile technology generations
Mobile Technology Generations
  • First
    • Analog, circuit-switched
  • Second
    • Digital, circuit switched (GSM, CDMA) 14.4 kbps
  • Advanced second
    • Digital, circuit switched, internet enabled (WAP) 14.4 to 64 Kbps
  • 2.5
    • Digital, packet-switched, TDMA (GPRS, EDGE), CDMA 40-400 Kbps
  • Third
    • Digital, packet-switched, wideband CDMA (UMTS, CDMA2000, W-CDMA) 0.4-2Mbps
  • Fourth
    • Data rate 100 Mbps; achieves “telepresence”
mobiletechnology time frame
MobileTechnology Time Frame





Concentrates mobile industry on connectivity & inter-operability

Starts Consumer Interest in Data Services

Introduces packet-based systems

Commercial data services launched

Usage indicates demand picture and leads the way to 3G

Data speeds reach levels eough for streaming

Platforms & technologies evolve, costs decline to reach mass market



  • 2G: second generation technology category for digital cellular networks
  • 2.5G: umbrella term for technologies designed to add 3G capabilities to existing cellular networks
  • 3G: new digital cellular network technology designed to enable very fast data transmission speeds and delivery of multimedia content.
glossary cont d
Glossary (Cont’d)
  • AMPS: advanced mobile phone service, analog cellular network system used in the US
  • EDGE: enhanced data rate for GSM evolution, an enhancement to bring the data-transmission rate of TDMA network up to the speed of basic 3G networks (2.5G)
  • GPRS: general packet radio services, an enhancement designed to introduce packet-switching to GSM networks (2.5G).
glossary cont d24
Glossary (Cont’d)
  • ITU: international telecommunication union, the standards body of the telecom industry
  • IMT-2000: international mobile telecommunications 2000, an ITU initiative aimed at harmonising the various efforts under way to create 3G networks
  • CDMA2000: an implementation of wideband CDMA backed by the US and Korea; a 3G network type
glossary cont d25
Glossary (Cont’d)
  • SMS: short message service, a means of conveying messages upto 160 characters long to and from GSM cell phones
  • WCDMA: an implementation of wideband CDMA supported by Europe and Japan; a 3G network type; also known as UMTS (universal mobile telecommunications service) in Europe
  • Cdma2000 and WCDMA share basic technology (CDMA). WCDMA marks a break in technology for GSM network operators, whereas cdma200 isa logical development for CDMA networks.
wireless technology evolution
Wireless Technology Evolution








14.4 Kbps

64 Kbps

100-170 Kbps

2 Mbps

Very fast



























cdma2000 vs wcdma
  • WCDMA (Europe and Japan) vs CDMA2000 (US and Korea)
  • WCDMA seemed to be the de-facto standard only 2-3 years ago, but things changed
  • CDMA2000 increases its market share fast (50% increase for the last 3 years)
  • Two representative 3G services available now
    • Japan (FOMA: freedom of mobile multimedia access)
    • Korea: (CDMA2000 1xEV-DO: evolution-data optimised)
m business
  • E-business using wireless devices with internet access
  • New possibilities for commerce beyond internet access
  • Enormous potential in many areas (B2C, B2B)
  • Currently B2C wireless apps are more rapidly emerging
new competition new opportunities
New Competition, New Opportunities
  • Wireless technology is attracting interest from virtually every industry, creating interesting competitive and partnership opportunities
    • Mobile service providers vs banks
    • Automotive multimedia m-commerce apps
location aware apps
Location-aware Apps
  • Vehicle tracking
    • Automatic vehicle location (AVL): using GPS device installed in a vehicle
    • Can be used for rapidly dispatching taxis, ambulances, police vehicles, trucks
    • Can be used for navigating optimal routing in unfamiliar geographical areas or heavy traffic
    • Can also be used for tracking cargo, delivery, baggege, giving customers more accurate info
automatic vehicle location
Automatic Vehicle Location

Base Station


Mobile GPS Unit



location aware apps34
Location-aware Apps
  • Shopper assisstance, product location, and shopping
    • Provide shoppers ads, promotional events, price alerts at a shopping mall
    • Allowing shoppers to locate and compare products using aDB containing info on products, locations of stores, and distance from the users’ current location, alleviating the need to visit several stores in a particular area
    • Allowing shoppers to buy on-line using a mobile device
    • Can be applied to mobile retailing, ticketing and reservation
location based services involving maps
Location-based services involving maps


Enhanced billing

Personalised portals

Buddy finder

Emergency assisstance

Find nearest services

find location







location aware apps36
Location-aware Apps
  • E-911 (Enhanced 911)
    • Mandates wireless carriers to provide location-identification capabilities that enable rescuers to locate 911 callers
    • Designed to improve emergency response time
    • Interest increased after 9/11, earthquakes, etc.
    • Can be used for rescuing people in a disaster area
  • Firemen, emergency crew, doctors, patients assistance
    • Firemen in a building under fire (automatic warning signal for oxygen remaining)
    • Sending doctors vital signs of patients in critical situations
    • Patients with Alzheimer’s: exact location, the location of the nearest police station and contact information for family members
telematics or telemetry
Telematics (or Telemetry)
  • Integration of
    • Wireless communications
    • Vehicle monitoring systems
    • Vehicle location devices
  • Diverse apps for cars
    • Remote vehicle diognostics
      • Install GSM chip sets in cars to monitor performance and to provide an early warning message to the manufacturer indicating what problem is occuring
    • Emergency breakdown service (Mercedes Benz)
    • Multimedia services and m-commerce right on the dashboard
    • Smart traffic products:
      • Nokia: by 2010 every vehicle will have its IP address
mobile financial apps
Mobile Financial Apps
  • Likely to be one of the most important components of m-business
  • Involve a variety of apps
    • Mobile banking, brokerage, money transfer
    • Can turn a mobile device into business tool, replacing bank, ATM
    • Easy identification and authentication both for restricted access and for payment purposes, even replacing credit cards
mobile financial apps39
Mobile Financial Apps
  • Micro-payment: small purchases such as vending through a wireless network
    • Can be implemented in several ways
      • Per minute phone call charge equal to the cost of vending item (Sonera for Pepsi)
      • Pre-paid numbers purchased from a service provider, bank, or credit-card co
  • To support financial transactions including micro-payments, amobile service provider could act as a bank, competing with a bank

A wearable bank

  • Cell phone
  • Pager
  • PDA
  • PC
  • TV
  • Card
  • ATM
mobile inventory management mim
Mobile Inventory Management (MIM)
  • Involves location tracking of goods, services, and possibly inventory
  • Rolling inventory
    • Involves multiple trucks carrying a large amount of inventory while on the move
    • Whenever a store needs certain items, it can locate a truck and JIT can be performed
  • JIT delivery of components in an assembly plant
    • New components required can be moved by a supplier at a certain speed after receiving a signal from the components reaching the assembly line or from the assembly line itself
    • Possible adjustment of assembly speed to match the arrival time of components
  • Java-enabled iButton
  • Communicates by contact at 142 Kbps
  • Small memory chips (ROM, RAM) in a stainless steel can
  • Uses: authentication, e-payment, access
mobile security system
Mobile Security System
  • Remote surveillance
  • Remote alarm verification
  • Monitor from work, abroad
  • A wireless technology that provides short-range, high-speed voice and data communication between a variety of mobile digital devices
  • Conceived by Ericsson in 1994
  • Bluetooth Special Interest Group (1998)
    • Initially comprising Ericsson, IBM, Intel, Toshiba and Nokia
    • Developed an open specification for the technology and to encourage cross-platform capabilities for the different wireless devices
    • Currently over 2000 companies are supporting the standard and Bluetooth-enabled devices
bluetooth apps
Bluetooth Apps
  • Can create a personal area network (PAN)
    • Can be used to create wireless offices
    • Can remote control digital appliances at home
  • Mobile transactions between users and fixed points such as cash registers, vending machines, ticket readers
  • Ad hoc conferences among business users by establishing a temporary wireless LAN
    • Face-to-face meetings with shared computing resources allowing temporary documents and apps sharing
  • Advertising, conveying info
blip zone
  • Bluetooth Local Infotainment Point
  • A small hub unit, with a 10-meter radius, and with Bluetooth connectivity
  • ınstalled at strategic places, providing people with info depending on their immediate situation and location
  • Shopping malls, buses, bars, restaurants will use BLIP as an infrastructure element to distribute info relevant to their businesses
bluetooth chracteristics
Bluetooth Chracteristics
  • Packet switched
  • Uses radio frequency band (2.4 GHz) available worldwide, allowing for global compatibility
  • Lower power (1 milliwatt) making it suitable for small, battery-operated devices
  • Data transfer capability between devices: 10 – 100 meter range, bandwidth 1-2 mbps
  • Supports upto 8 devices in a network
  • Built-in security (encryption, authentication)
  • Non line-of-sight: penetrating walls and avoiding obstacles
wireless fidelity wi fi
Wireless Fidelity (Wi-Fi)
  • Increasingly popular networking standard used to create wireless LANs in homes/ offices
    • Provides broadband internet access to PCs and laptops within a few hundred feet (300ft) of a Wi-Fi base stationin hot-spots where people can log onto wireless networks
  • Technical standard IEEE 802.11
    • 802.11b: popular standard for wireless LAN, speed up to 11 Mbps at 2.4GHz band, typically 500k-1M
    • 802.11a: just start to be introduced, speed up to 54 Mbps at 5GHz band (less conjested, less inteference)
    • 802.11g: new standard being developed, up to 22-5Mbps at 2.4GHz band (extension of 802.11b)
wi fi cont d
Wi-Fi (Cont’d)
  • Why attractive?
    • Cheap, fast (both set-up and use) broadband connection
    • Especially for small businesses or frequently moving companies
    • Wireless home networking
  • Some concerns
    • Security, interference (micro-wave owenns, garage doors), network slow-down
    • Network hopping: can share a connection with other people (free-riders), hard to monitor unauthorised uses
    • Can not maintain a connection outside the range of the hot spot
  • Could be complementary to 3G wireless
    • Seamless roaming between Wi-Fi hot spots and cellular network
home and office of the future
Home and Office of the Future

Office laptop

Connect to office LAN


Home printer acces

Surf from anywhere

Share files

Mobile display pad

Electronic program guide

Read&set security system

Home theater control

Display news headlines

Family car

Trip navigation downloads

Download news/ entertainment


Internet pipe

Ethernet or

Home PNA

Main home PC

Cordless phone

Remote speech recog

Call by name

Build shopping lists

Additional PC

Fridge pad

Family calendar

Recipe display

Build shopping lists

Voice messaging

Kids room PC

Printer access

Internet access

File access