Interactive Commerce
April 2001

 

Daniel Callahan

Something In The Air

BY DANIEL CALLAHAN

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Technology Of Today Can Enable M-Commerce

According to Ovum, m-commerce is expected to generate $211 billion worldwide by 2005. This statistic, along with aggressive wireless Web development, demonstrates that something is in the air. Still many skeptics of the wireless Web feel that the coming 3G cellular technology will not be the answer.

Some are waiting for wireless standards to be firmly established before building out 3G networks. Predicted data rates of up to 2 Mbs are already being scaled back, and carriers are unlikely to lower their service fees after investing billions in licensing 3G frequencies. Limited radio spectrum and poor indoor coverage are also impeding enthusiasm, as well as the consumer's growing disenchantment.

One incentive for m-commerce development is, of course, the FCC's E911 mandate, which will require cell phone companies to deploy wireless device locating technologies (such as GPS) within 100 meters of use. This has prompted location-based technology companies to develop enhanced services beyond the emergency variety, and WAP providers are now forging partnerships with carriers to bring ubiquitous services to the consumer. Content providers will in turn have greater reach for widespread distribution, giving local businesses a little boost on slower days. It will also drive more opt-in traffic and increased minutes as consumers look forward to location-based deals on sports or theater tickets, time-sensitive digital coupons, etc.

To start with, there is a difference between m-commerce (B2C) and m-business (B2B), and the industry is somewhat divided on the issue of where to focus their energies. Some feel that the initial consumer fascination (and revenue) with mobile devices is already on the wane, and the vast majority of commerce will be in B2B rather than B2C applications. Jack Gold, vice president of META Group, feels that enterprises must enable complete mobile capability for customer and employee interaction, or else risk becoming non-competitive. This is just a case of making sure the horse is put in front of the cart. The Aberdeen Group has stated that "The novelty of mobile business solutions will not be what drives adoption -- realistic, usable applications that present enough value to the enterprise will drive market acceptance." In other words, once an enterprise has figured out how to help themselves with m-business, it can then develop that experience further to help consumers with m-commerce. Yes, it is another channel to be managed, but also another channel by which to reach the consumer.

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Interactive Commerce News

VeriSign Unveils New Range Of Payment Services
VeriSign has introduced a new range of wireless payment services, allowing mobile users, merchants, carriers, financial institutions, and enterprises to conduct payment transactions over the wireless Internet. The new service includes a managed payment gateway for WAP servers (through the wireless version of VeriSigns Payflow Pro SDK), network-based profile management to facilitate authenticated payments, and wireless POS solutions, transforming handsets carried by field personnel into virtual payment terminals. It leverages a scalable Internet payment platform and connects into every major payment network, including First Data (FDMS), Nova, Vital, EDS, Paymentech, and Telecheck, and has a direct connection into American Express.
www.verisign.com

Axis Teams With Registry Magic
Axis Communications has introduced its AXIS 9010 Bluetooth Access Points, supporting Registry Magics Consumer Payment Network solution. The AXIS 9010, part of the Axis Communications system platform for wireless connectivity, enables the creation of wireless ad-hoc connections to the Internet and LANs. Users of laptops, PDAs, and mobile phones that are equipped with Bluetooth wireless technology can use the Bluetooth Access Point to make a broadband connection to the Internet without having to detour through a mobile phone network. They also have access to e-mail and their corporate network. 
www.axis.com

Symbol Intros Wireless Client Bridge
Symbol Technologies has introduced an 802.11 and 802.11b (WiFi) wireless standards-based client bridge for 2 mbps Frequency Hopping or 11 mbps Direct Sequence wireless LAN infrastructures. The bridge connects a variety of devices to an existing wireless infrastructure, including POS systems and bar code readers. CB 1000, when installed with Spectrum24 wireless LAN adapters, extends wireless connectivity to normally wired equipment through industry-standard Ethernet or serial port connections. The CB 1000 features an accessible PCMCIA slot that adapts to Spectrum24 radios. 
www.symbol.com

Baltimore Technology In Ericsson Smartphone
Baltimore Technologies and Ericsson have announced that Baltimores digital certificate technology is embedded in the Ericsson smartphone R380 in order to allow secure transactions. Future Ericsson phones, such as the GPRS phone R520, will also be secured using Baltimore root certificates. Baltimore Telepathy root certificates are embedded into the WAP browsers of the latest Ericsson R380 phones (dual-band smartphones that combine the functions of a mobile phone with advanced communication features and PDA-like tools). The digital certificates are now embedded in all R380 models for use in GSM markets. We are delighted to cooperate with Ericsson to bring increased trust and security to mobile commerce. The inclusion of our root certificates in the new Ericsson smartphonehelps to move the market ahead, enabling the introduction of exciting new mobile Internet applications, said Paddy Holahan, executive vice president of Marketing at Baltimore Technologies. The Ericsson R380 includes Wireless Transport Layer Security (WTLS), which is also planned to be included in future phones.
www.baltimore.com, www.ericsson.com

Agilent Partners With Maxsys
Agilent Technologies has selected Maxsys Technologies as a key Premier Solution Partner (PSP) for Bluetooth, 802.11, Home RF, and other wireless networking test applications. Maxsys now becomes a primary global delivery mechanism for Agilents wireless networking RF test instruments employed in high-volume manufacturing. Agilent selected Maxsys because the companys technology allows it to develop from Agilents chip-level test systems and complete, package- and product-level Bluetooth solutions that can be customized for test applications across the entire wireless networking family, with minimum reengineering costs. We intend to leverage Agilent resources in the most effective way possible to offer our customers the very best in customized wireless networking RF test solutions, said William Elder, Maxsys executive vice president.
www.maxsys.com, www.agilent.com

VarTec Selects PriceInteractive
PriceInteractive has announced that it has been chosen by VarTec Telecom to analyze how VarTec can best implement advanced speech recognition. PriceInteractive will evaluate VarTecs current support system, analyze any gaps with CRM best practices, and provide recommendations regarding how speech technology can be utilized within their customer service operations. PriceInteractive will look specifically at the possibility of creating a self-service voice portal which will allow VarTec customers to obtain responses to their questions or order new services by speaking into any wireless or wireline phone. PriceInteractives SpeechPort service is a hosted offering that allows e-businesses, content providers, carriers, and portals to provide speech-activated enterprise and Web content to end users through a natural speech interface. SpeechPort is delivered through a state-of-the-art, multi-tier service infrastructure that pairs a speech rec engine from SpeechWorks with PriceInteractives carrier-grade telecom and wireless hosting facility. The service is built on a Java enterprise environment that allows rapid insertion of new technologies and expansion of additional capacity. 
www.vartec.com, www.priceinteractive.com

Integrated E-mail Function For eQueue
eOn Communications has announced the addition of a fully integrated, browser-based e-mail and chat management capability for its eQueue contact center solution. The open solution based on the Linux operating system delivers e-mail, Web chat, and voice through a single queue, enabling contact centers to more efficiently interact with their customers regardless of the media. The eQueue's e-mail management software provides contact centers the ability to answer customer e-mail inquiries responsively and in a cost effective manner, enabling businesses to retain customers and increase revenues. In addition to intelligently routing e-mail to the most qualified, available agent, the eQueue provides the ability to automate responses through the use of a shared common knowledge database. 
www.eoncc.com

Corechange Launches Coreport 3g
Corechange has introduced Coreport 3g, next-gen e-business access framework software for deploying any kind of portal, including mobile commerce. The Coreport 3g family has an open architecture and is built using industry standards. Single sign-on gives users access to authorized content and applications. Coreport Connectors provide a direct binding between the Coreport 3g user interface and applications and content, providing the same look, feel, and functionality of the native application. Coreport 3g for Windows runs on Microsoft Windows server platforms, and Coreport 3g for Java runs on a Java 2 Platform, Enterprise Edition application server. Mobile business users can select the relevant enterprise information and applications they need to access from wireless devices. Coreport 3g detects and presents the same user experience on wireless devices that include Pocket PC, Palm, RIM, and WAP-enabled and i-mode cell phones. 
www.corechange.com

Infonet And Comfone Partner
Infonet Services and Comfone have announced that they will jointly offer GRX services to GSM network operators. Comfone will market a GRX (GPRS Roaming eXchange) service that is built on the global ATM network of Infonet Services. The service is designed in full accordance with the IR.34 specification of the GSM Association. The architecture used to build the GRX runs on Infonets global network. The GRX offered by Comfone will be connected to other GRX service providers for global data roaming coverage. The paradigm shift from circuit-switched to packet-switched is the single most important step to the third generation of mobile telecommunications. GSM operators now have an alternative to the traditional interconnection over the fixed-line carriers, said Toni Stadelmann, managing director of Comfone. 
www.comfone.com, www.infonet.com

Brokat Announces Mobile Wallet Software
Brokat has announced the Brokat Mobile Wallet, a software product that enables the purchase of goods and services from any wireless device. Supporting credit, debit, micropayment, and pre- and post-paid accounts, the Brokat Mobile Wallet allows consumers to store their preferred payment and billing information in a centralized server-based wallet. It integrates with retail merchant sites to automatically populate the required information fields with payment and preference data from the consumers wallet profile. The Brokat Mobile Wallet offers transparent connectivity between front and back end systems. This is provided by Brokats e-services platform, Twister, a foundation that integrates applications with existing back office systems and scales to support concurrent users across multiple channels. The software works with all cellular phone protocols as well as wireless PDA devices such as Palm and Handspring. Brokat has a strategic partnership with Siemens to develop real-time payment solutions. 
www.brokat.com

PlanetHopper Launches Digital Deal
PlanetHopper has announced the launch of its Digital Deal system for the entertainment and services industries. Digital Deals are time-sensitive wireless coupons that empower businesses to fill seats and move inventory with advance or last-minute promotions via wireless platforms. PlanetHoppers technology enables delivery to almost all wireless devices. It is finalizing agreements with Atlantic Records, the Tampa Bay Devil Rays, and New Line Cinema to give them the ability to offer wireless promotions. Timing is everything in the entertainment and service industries, said Rachel Barenbaum, Founder and President of PlanetHopper. Businesses now have push-button control over their inventory and promotions. They dont need to lock themselves into a long-term offer through coupon books or mass mailers.
www.planethopper.com

ViaVis Announces Proximity Businesses
ViaVis Mobile Solutions has announced Proximity Businesses, a fully integrated automated location-based directory assistance software platform. Proximity Businesses enables network operators and portals to provide the consumer with value-added location-based services direct to their phones and WAP- and Web-enabled devices. At the foundation of the platform is ViaVis patent-pending Location Engine, which can be applied to both hardware and software Location Determination Technologies (LDT). The voice interface uses ViaVis patent-pending Geo-Spatial Referencing (GSR). In partnership with GPS or cellular tracking companies, ViaVis can provide mapping of business locations along street segments and cross streets in the users area. GeoSpatial Referencing (GSR) technology allows consumers to prompt for information in their area of interest. Proximity Businesses is available as a stand-alone server suite or as a turnkey/hosted solution. 
www.viavis.com

[ Return To The April 2001 Table Of Contents ]


Technology Of Today Can Enable M-Commerce

BY TOM ERSKINE

The technology widely used today to provide prepaid wireless services can be adapted to create a payment model for m-commerce. The reasons for doing so are compelling, not just for short-term revenue gains, but also to increase customer lifetime value.

The youth market presents an especially exciting opportunity for m-commerce and mobile entertainment offerings. The number of wireless users under 18 years old has exploded in the last year, according to The Yankee Group, from five percent in 1999 to 23 percent in 2000. The revenue forecasts for "m-tertainment" are also compelling: Yankee predicts that revenue from games, graphics, audio, and video will reach $1.13 billion by 2005, up from $41 million in 2000. At the same time, prepaid wireless will capture a larger percentage of wireless subscribers, with this number expected to reach 18.3 million between 2001 and 2003.

The real-time micro-transaction billing technology that powers prepaid wireless services today can be used to create an integrated prepaid wallet. Content such as ringing tones and MP3s can also be offered today. As wireless bandwidth increases, more advanced audio, video, and games can be offered, as well as short messaging services and purchases of low-price items like sodas, books, and CDs.

Carriers that adopt this model will be generating new revenues incrementally, while driving additional use of current voice and data services. The model will increase prepaid customer lifetime value by driving up the average revenue per user (ARPU). With the reduced churn that results from offering "stickier" m-commerce services, a carrier can increase a prepaid customer's lifetime value significantly. M-commerce services can raise a carrier's prepaid customer ARPU to $33 per month. Dividing ARPU by a carrier's churn rate creates a figure for customer lifetime value. So if churn is reduced to 2.4 percent, a carrier achieves a customer lifetime value of $1,375 per subscriber.

The integrated prepaid wallet model provides a simple payment vehicle that is easy for customers to adopt. With real-time, micro-transaction billing already in place for the delivery of prepaid wireless service, and with a youthful consumer base for m-commerce goods and services growing, all that is needed are the applications that bring the merchants and carriers together.

Tom Erskine is vice president for product development at Boston Communications Group. He can be reached at terskine@bcgi.net.

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