©lawanninger 2001 mobile and wireless applications: design and integration in the u.s. les...
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©LAWanninger 2001
Mobile and Wireless Applications:Design and Integration in the U.S.
Les WanningerCarlson School of Management
University of Minnesota
Jyväskylän YliopistoSummer SchoolAugust, 2001
©LAWanninger 2001
Mobile and Wireless Applications:U.S. Opportunity and Challenges
• SMS Text Messaging is a “killer app” for MW
• Tremendous U.S. opportunities in adopting
successful SMS and i-Mode applications
• Focus on existing companies adding WM
Channels
• 3G is long term
• SMS Text Messaging and i-Mode Application Categories
• Text messages for social and entertainment
• Personal and business communications
• e- or m-Commerce communication channels
• m-Payments and billing
• SMS and i-Mode application platforms
©LAWanninger 2001
U.S. MW Applications – Current Status
• U.S. using e-mail based forms of text messaging
• “Wireless Internet” applications
• Extension of Internet and e-Commerce
experience
• Some of the issues
• Bandwidth, standards, devices – immature
• Carrier competition and interoperability
• Latency of e-mail based messaging
• Hype of MW
• Crash of dot-coms
• Always looking for the “killer app” – which is
only evident after-the-fact
©LAWanninger 2001
The Global SMS Market
• SMS messages have exceeded the internet’s killer application, e-mail by more than double!
• Mobile has found its killer killer application… SMS!
•Messages sent worldwide1999 5 Billion 2000 100 Billion•Global revenues from text messages & simple information services:2000 $13bn* 2004 $47bn*
•Biggest market will continue to be Europe
*Source: Ovum
©LAWanninger 2001
US Perspective on Design and Integration of WM Applications
• Focus on existing companies adding WM Channels
• Issues – technology, infrastructure, cultural,
interoperability across service providers and
geographies• Areas of required integration
• Legacy systems• Business processes• Technical –
• Wireless - Internet, SMS, WAP, GSM, GPRS, 3G, CDMA, TDMA, iDen, Bluetooth, …..
• Mobile Devices – Cell phone, SIM, PDAs, Laptops, …
• Mobile Devices as New Media• User Interface options and design factors • Platform options
• SMS, WAP, Web, TETRA, ……• Development tool options
©LAWanninger 2001
Catalog Industry Metaphor: Electronic Servicescapes
Marketing: Define Target
Markets, Products, Channels
Advertising, sales, brokers, bricks: Communicationto the Customer
ReceiveOrder,
Assemble, Pack, Deliver
Returns&
Customer Service
Production,InventoryManagement
Accounting, Invoicing, Payables, Receivables
Procurement,Suppliers
Payment Processes
Customers &
Suppliers
Electronic Servicesca
pe
InformationSystems, Analytical
Tools,Customer &OperationsDatabases
Order Fulfillmen
t
Customer Relationshi
pManageme
nt
•Web Browser•Mobile and Wireless
©LAWanninger 2001
Instead of all these...
Debit/Credit cards
Access codes to net-bank
Loyalty cards
Teemu Testihenkilö
Nihitsillantie 3 D
00020 MERITA
FINLAND
6789 7890 3562 3652 5674 4567 8767 6543 4235
6347
5678 5678 2341 2345 5678 4321 4321 7635 6353
7585
6789 7890 3562 3652 5674 4567 8767 6543 6373
5748
6789 7890 3562 3652 5674 4567 8767 6543 6363
3838
6789 7890 3562 3652 5674 4567 8767 6543 7378
3738
6789 7890 3562 3652 5674 4567 8767 6543 3737
3334
6789 7890 3562 3652 5674 4567 8767 6543 7363
8383
6789 7890 3562 3652 5674 4567 8767 6543 3838
3395
6789 7890 3562 3652 5674 4567 8767 6543 3142
8696
3456 2312 6543 8976 6778 4567 8976 6543 6272
7484
4567 8767 6543 5678 5678 2341 2345 5678 7474
8494
3456 2312 6543 8976 6778 4567 8976 6543 4848
4493
All cards in one chip inside your WAP-phoneAll cards in one chip inside your WAP-phoneAll cards in one chip inside your WAP-phoneAll cards in one chip inside your WAP-phone
SIM
Debit-/Credit card, bank log-on, club membership, application downloading, etc.
…THIS!
EMV
EMPS : Electronic Mobile Payment System
©LAWanninger 2001
The Enterprise Challenge
Enterprise
CarriersMobile Protocols DevicesInterface
CRM
SFA
eBiz
FSA
ERP
PM
KM
SCM
Content
Sales
Service
Executive
Other…
Phone
PDA
Pager
Voice
Future…
CDMA
(Sprint,
Verzion)
TDMA
(AT&T)
iDEN
(Nextel
CDPD
(AT&T)
iMode
DoCoMo)
GSM
(Voice Stream & WorldwideMobitext
(Bell South)
Palm.Net
(Bell South)
CDPD
(AT&T)
All Telcos
HDML 3.0
WML 1.1
HDML 3.0
HDML 3.0
WML 1.1
HDML 2.0
WML 1.1
eHTML
WML 1.1
WML 1.2
HTML
HTML
HTML
WML 1.1
VoiceXML
VoxML
NeoPoint
QualcommAudiovoxMotorolaTouchPoint
Ericsson
Motorola
Mitsubishi
Samsung
Ericsson
MitsubishiMotorolaSamsungSanyoAlcatelEricssonMotorolaSamsungNokiaRIM
Palm VII
Palm !!! & VPcketPC
Standard IVRVoice Browser
V.V.S.
Source: META Group Inc.
©LAWanninger 2001
SMS in Use
• Text Messaging - communications application• Contrast SMS with Instant Messaging, Chat, Internet
forms, etc.• Text Messaging - value added services
• Sonera m-broadcast of Sydney Olympic results, $3• Sonera ZED
• Platform for applications that communicate with text• Nordea, Yomi examples
• M-Payments
• Simple, intuitive, familiar phone interface• Keyboard not a significant limitation for entering text
• (QWERTY is not intuitive)• GSM bandwidth not a limitation for text messaging
• GPRS is here• Display screen not a limitation for text messaging
©LAWanninger 2001
Cell Phone – How it Works
• Phone has hardware-based, multitasking operating system and some writable memory
• Op System sorts and then processes incoming signals (from wireless service provider)• SMS or WAP Tone• SMS or WAP Icon or other picture• SMS or WAP text message• Voice• Data
• Op System processes outgoing signals (keypad, SIM card, voice and data)
• SIM card provides memory and processing capability Service provider information, security
©LAWanninger 2001
Phone Data Entry
©LAWanninger 2001
SIM Card
• Current - telecomm operator specific• SIM Tool Kit• Future –Smart Card, programmable via
application developer• “Smart mobile clients”• Organizations control applications and
revenue from them• Analogy: Mainframe to PC applications
©LAWanninger 2001
SMS as Application Platform
• Jups to describe in detail
• SMS Server – analogous to Web server• GSM Phone operating system
• Currently analogous to Web browser
• SIM cards• Operator specific – therefore differ• Different capabilities to process, store and
display
• Mobile phones and other devices• Different operating systems• Different capabilities to process and display
non-text components of text messages
©LAWanninger 2001
Schematic:Web Browsers, Servers, & Internet
Addresses
Server @ “A”
2. Server @ “A” Sends file “C.htm” to Browser “B” through Internet
1. Local Browser @ Address “B” requests document “C.htm” from Server at Address “A”
http://A/C.htm/
Internet
3. Browser @ “B” Reads and displays C.htm text file
Local Browser @ B”
©LAWanninger 2001
SMS Platform Analogy toWeb Browsers, Servers, & Internet
Addresses
SMS Server @ “A”
2. SMS Server @ “A” • Processes message “C” and prepares response message “D”• Sends message response “D” to Individual “B” through Network
1. Individual @ Mobile # “B” • Sends SMS message “C” through SMSC to Server at Mobile # “A”
GSM Network
3. Phone Op System @ “B” Reads and displays message “D”
Person @ Mobile # B”
©LAWanninger 2001
Instead of all these...
Debit/Credit cards
Access codes to net-bank
Loyalty cards
Teemu Testihenkilö
Nihitsillantie 3 D
00020 MERITA
FINLAND
6789 7890 3562 3652 5674 4567 8767 6543 4235
6347
5678 5678 2341 2345 5678 4321 4321 7635 6353
7585
6789 7890 3562 3652 5674 4567 8767 6543 6373
5748
6789 7890 3562 3652 5674 4567 8767 6543 6363
3838
6789 7890 3562 3652 5674 4567 8767 6543 7378
3738
6789 7890 3562 3652 5674 4567 8767 6543 3737
3334
6789 7890 3562 3652 5674 4567 8767 6543 7363
8383
6789 7890 3562 3652 5674 4567 8767 6543 3838
3395
6789 7890 3562 3652 5674 4567 8767 6543 3142
8696
3456 2312 6543 8976 6778 4567 8976 6543 6272
7484
4567 8767 6543 5678 5678 2341 2345 5678 7474
8494
3456 2312 6543 8976 6778 4567 8976 6543 4848
4493
All cards in one chip inside your WAP-phoneAll cards in one chip inside your WAP-phoneAll cards in one chip inside your WAP-phoneAll cards in one chip inside your WAP-phone
SIM
Debit-/Credit card, bank log-on, club membership, application downloading, etc.
…THIS!
EMV
EMPS : Electronic Mobile Payment System
©LAWanninger 2001
Designing MW Applications
• Process• Iterative
1. Business Case2. Requirements
• (Prototyping)3. Design4. Development5. Testing and QA6. Pilot7. Implementation8. QA and continuous improvement
©LAWanninger 2001
Person – to – Person Messaging:Same Carrier
SoneraSMSC, Service Center # C
GSM Network
Person A,Mobile # A
Person B,Mobile # B
©LAWanninger 2001
Person – to – Person Messaging:Different Carriers
SoneraSMSC, Service Center # C
GSM Network
Person A,Mobile # A
Person B,Mobile # B
RadiolinjaSMSC, Service Center # D
©LAWanninger 2001
Many Persons – to – Business Messaging:Many Carriers
SoneraSMSC, Service Center # C
GSM Network
Person A,Mobile # A
Person B,Mobile # BRadiolinja
SMSC, Service Center # D
Company or ASP SMS Server, # E
Content Provider
Operations Database
©LAWanninger 2001
Design the EMPS Application
©LAWanninger 2001
Intercarrier SMS Routing
• One basic difficulty in developing SMS based services is the variety of protocols used in SMS Centers (SMSC).
• The European Telecommunication Standards Institute (ETSI) has approved four SMSC protocols, each of which has a slightly different functionality and quite different character conversions:• SMPP (by Logica)• CIMD (by Nokia)• UCP/EMI (by CMG)• SMS2000 (by SEMA)
• Another difficulty is that most U.S. carriers use protocols other than GSM (CMDA, TMDA, Analog, iDen)
• Not all U.S. carriers have SMSCs and/or do not offer direct high speed connections
©LAWanninger 2001
SMS Message Routing - Present
• At present, any SMS message sent between two cell phones within the same carrier network is merely routed through the carrier’s network in the carrier’s SMS format (i.e., SMPP).
• In contrast, when an SMS message is sent to a cell phone in a different carrier network, the message is presently switched to SMTP (Simple Mail Transfer Protocol) and routed through the Internet to the other carrier who in turn switches the message from SMTP to their SMS format and routes the SMS message to the target phone.
• SMTP is a protocol for sending e-mail messages between servers. Most e-mail systems that send mail over the Internet use SMTP to send messages from one server to another. SMTP is also generally used to send messages from a mail client to a mail server.
©LAWanninger 2001
Current U.S. Inter-Carrier SMS Routing Method
©LAWanninger 2001
Current U.S. Inter-Carrier SMS Routing Method
• The previous figure is a scenario in which Cellular Operator “A” uses SMPP for SMS messaging and Cellular Operator “B” uses CIMD for SMS messaging.
• SMTP is a protocol for sending e-mail messages between servers. Most e-mail systems that send mail over the Internet use SMTP to send messages from one server to another. SMTP is also generally used to send messages from a mail client to a mail server.
©LAWanninger 2001
Implications of 2.5G and 3G for U.S. Intercarrier message routing
• In the case where a carrier’s 2G network and 2.5G network reside on the same physical network (i.e., a card swap is all that is required to upgrade the network), the SMS routing is largely unaffected.
• In the case; however, where a carrier’s 2G network and 2.5G network reside on different physical networks, the carrier must have an internal routing capability to switch SMS messages between the 2G and 2.5G networks. In this latter scenario, all messages remain in the single SMS format used by the carrier.
• The same scenarios will apply when upgrading from 2.5G to 3G.
©LAWanninger 2001
Integration between email and SMS – Unisys OMIS
©LAWanninger 2001
Content – how about SMS???Architecture – Web-SMS flow (Unisys Mobile Business Group)
smsc
web-sms
rex
mip
1. Call comes into Web-SMS
5. SMS message
with requested
content arrives
on callers mobile
2. Web-SMS sends a command to REX, which is client to Web-SMS, to fetch content in real time from the MIP
3. Content fetched from the MIP through an HTTP connection in HTML format. REX converts the content into an SMS message
4. Content delivered to the SMSC
SMSSMS
IVRIVR
©LAWanninger 2001
AS EUROPE ZOOMS AHEAD, U.S. FIDDLES WITH FORMATS (New York Times 07/27/99)
• Wireless service providers in Europe are pulling ahead of U.S. carriers in developing wireless data services.
• European carriers plan to take advantage of faster Web transmission technology and general packet radio service (GPRS) to deliver the services.
• GPRS, which will be available next year, will support transmission speeds fast enough to browse the Internet in full color. Users will also be able to use GPRS to stay connected to the Internet for an entire day. In offering GPRS, carriers will be able to charge subscribers based on the amount of data transmitted, rather than by the minute.
• While industry players in the U.S. are also pursuing wireless data, the market has been stymied by a lack of standards and carriers' differing opinions over which3G technology should be adopted.
• Europe's adoption of a single standard has helped carriers offer built-in paging and messaging functions years before such features were launched in the U.S.
©LAWanninger 2001
Design the application infrastructure for SMS Messages across Carriers in the U.S.
©LAWanninger 2001
Weston HenderekIndustry Analyst
June 18, 2001
Call in at 8:55 EDT
(1) (973) 321-1020Password: ????
The Giga ViewHigh-Speed Wireless Data:
What, When and Where?
©LAWanninger 2001
VoiceStream/AT&T Wireless/Nextel
Upgradability to 3G
International Roaming Coverage
International Partnerships
Corporate Discounts
Bundled Wireline Discounts
Internet Commerce
Support
Prices
Total Coverage
0
2
4
6
8
10
AT&T
VoiceStream
Nextel
Scores:
10 = Best ever
7 = Mature
5 = Viable
3 = Immature
©LAWanninger 2001
Sprint PCS/Verizon Wireless
0
2
4
6
8
10
Verizon
SprintUpgradability to 3G
International Roaming Coverage
International Partnerships
Corporate Discounts
Bundled Wireline Discounts
Internet Commerce
Support
Prices
Total Coverage
Scores:
10 = Best ever
7 = Mature
5 = Viable
3 = Immature
©LAWanninger 2001
The Wireless Protocol Hurdle Race
GPRS
EDGE
UMTS
iDEN
CDMAEuro-GSM
2003
2005
TDMA2001
©LAWanninger 2001
By 2006, Wireless Standards Will Converge
WCDMAWCDMA
cdma2000cdma2000
3G3G
20012001
WCDMA WCDMA GSM-GSM-GPRS
GPRS
1xRTT1xRTT56-144K56-144K
64-128K64-128K
GSM-GSM-GPRS
GPRS
iDEN-GPRS
iDEN-GPRSTDMA-GPRS
TDMA-GPRS(Japan)(Japan)
115-256K115-256K
20022002
GSM-GSM-EDGE
EDGE
3xRTT3xRTT384-512K384-512K
256-512K256-512K
20032003
HDRHDR384K-1.5M384K-1.5M
384-768K384-768K
20042004
WCDMAWCDMA
768-2M768-2M
20052005
1Xtreme1Xtreme1-5.2M1-5.2M
20062006
©LAWanninger 2001
US Wireless Carrier Data Road Map
Carrier Today 2001 2002 2003 2004 2005CDMA (Sprint PCS and Verizon)
14.4Kbps CDMA data
Late year CDMA 2000 1X 144Kbps
CDMA 2000 1X 144Kbps
CDMA 2000 1X Plus 300-500Kbps
CDMA 2000 1Xtreme5.2Mbps
1Xtreme5.2MbpsUMTS
AT&T Wireless
19.2Kbps CDPD data
GSM/GPRS 115Kbps data (limited availability)
GSM/GPRS 115Kbps service (better availability)
EDGE 384Kbps
EDGE 384Kbps
WCDMA 2Mbps UMTS
GSM (Cingular and VoiceStream)
9.6Kbps GSM data
Midyear114KbpsGPRS
Late year EDGE 384Kbps
EDGE 384Kbps
WCDMA2MbpsUMTS
WCDMA 2MbpsUMTS
Nextel 9.6Kbps iDEN data
56Kbps iDEN data service
56Kbps iDEN data service
EDGE 384Kbps
EDGE 384 Kbps
Possible UMTS
©LAWanninger 2001
Incompatible Technologies and Spectrum Shortage Will Delay US Migration to 3G
CarrierQ4
2001Q4
2002Q4
2003Q4
2004Q4
2005Q4
2006
Sprint PCS andVerizon
cdma1xRTT56-144K
cdma1xRTTEnhanced384-512K
cdmaHDR384K -1.5M
cmda2000 1Xtreme1-5.2Mbps
AT&T WirelessandCingular
GSM-GPRS 56-114K
GSM-GPRS 114-170K
GSM-EDGE 256-384K
WCDMA384-768K
WCDMA/UMTS768K - > 2M
VoiceStream
GSM-GPRS56-114K
GSM-GPRS 114-170K
GSM-EDGE 256-384K
WCDMA384-768K
WCDMA/UMTS768K - > 2M
Nextel iDEN40-56K
iDEN-GPRS56-114K
iDEN-GPRS 114-170K
iDEN-EDGE 256-384K
©LAWanninger 2001
CarrierQ4
2001Q4
2002Q4
2003Q4
2004Q4
2005Q4
2006
Sprint PCS andVerizon
cdma1xRTT56-144K
cdma1xRTTEnhanced384-512K
cdmaHDR384K -1.5M
cmda2000 1Xtreme1-5.2Mbps
AT&T WirelessandCingular
GSM-GPRS 56-114K
GSM-GPRS 114-170K
GSM-EDGE 256-384K
WCDMA384-768K
WCDMA/UMTS768K - > 2M
VoiceStream
GSM-GPRS56-114K
GSM-GPRS 114-170K
GSM-EDGE 256-384K
WCDMA384-768K
WCDMA/UMTS768K - > 2M
Nextel iDEN40-56K
iDEN-GPRS56-114K
iDEN-GPRS 114-170K
iDEN-EDGE 256-384K
Incompatible Technologies and Spectrum Shortage Will Delay US Migration to 3G
(Cont.)
TDMA to GSM transition issues will
cause major coverage and service issues for
corporate users.
TDMA to GSM transition issues will
cause major coverage and service issues for
corporate users.
©LAWanninger 2001
CarrierQ4
2001Q4
2002Q4
2003Q4
2004Q4
2005Q4
2006
Sprint PCS andVerizon
cdma1xRTT56-144K
cdma1xRTTEnhanced384-512K
cdmaHDR384K -1.5M
cmda2000 1Xtreme1-5.2Mbps
AT&T WirelessandCingular
GSM-GPRS 56-114K
GSM-GPRS 114-170K
GSM-EDGE 256-384K
WCDMA384-768K
WCDMA/UMTS768K - > 2M
VoiceStream
GSM-GPRS56-114K
GSM-GPRS 114-170K
GSM-EDGE 256-384K
WCDMA384-768K
WCDMA/UMTS768K - > 2M
Nextel iDEN40-56K
iDEN-GPRS56-114K
iDEN-GPRS 114-170K
iDEN-EDGE 256-384K
Incompatible Technologies and Spectrum Shortage Will Delay US Migration to 3G
(Cont.)
TDMA to GSM transition issues will
cause major coverage and service issues for
corporate users.
TDMA to GSM transition issues will
cause major coverage and service issues for
corporate users.
Network upgrade times will not be
reflective of actual coverage.
Network upgrade times will not be
reflective of actual coverage.
©LAWanninger 2001
Incompatible Technologies and Spectrum Shortage Will Delay US Migration to 3G
(Cont.)
CarrierQ4
2001Q4
2002Q4
2003Q4
2004Q4
2005Q4
2006
Sprint PCS andVerizon
cdma1xRTT56-144K
cdma1xRTTEnhanced384-512K
cdmaHDR384K -1.5M
cmda2000 1Xtreme1-5.2Mbps
AT&T WirelessandCingular
GSM-GPRS 56-114K
GSM-GPRS 114-170K
GSM-EDGE 256-384K
WCDMA384-768K
WCDMA/UMTS768K - > 2M
VoiceStream
GSM-GPRS56-114K
GSM-GPRS 114-170K
GSM-EDGE 256-384K
WCDMA384-768K
WCDMA/UMTS768K - > 2M
Nextel iDEN40-56K
iDEN-GPRS56-114K
iDEN-GPRS 114-170K
iDEN-EDGE 256-384K
TDMA to GSM transition issues will
cause major coverage and service issues for
corporate users.
TDMA to GSM transition issues will
cause major coverage and service issues for
corporate users.
Network upgrade times will not be
reflective of actual coverage.
Network upgrade times will not be
reflective of actual coverage.
Lack of multimode 3G
phones will prevent
interoperable global 3G standards.
Multinational companies
need to plan around this
issue.
Lack of multimode 3G
phones will prevent
interoperable global 3G standards.
Multinational companies
need to plan around this
issue.
©LAWanninger 2001
Trends in Wireless Technologies and Services
• Vendors will make big promises to promote early adoption.
• Corporate use will shape demand for wireless data.
• Mobile IP adoption will vary across geographies.
• Users will opt for “always-on” or international roaming.
• 3G wireless technologies will converge around two standards.
©LAWanninger 2001
Giga Recommendations
• Don’t expect 3G data rates before 2006.
• Opt for short-term contracts and centralized procurement.
• Plan to support at least two types of wireless devices.