Mobile and Wireless Applications: Design and Integration in the U.S.

1
Mobile and Wireless ApplicationsDesign and
Integration in the U.S.

• Les Wanninger
• Carlson School of Management
• University of Minnesota
• Jyväskylän Yliopisto
• Summer School
• August, 2001

2
Mobile and Wireless ApplicationsU.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

3
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

4
The Global SMS Market

• SMS messages have exceeded the internets killer
  application, e-mail by more than double!
• Mobile has found its killer application SMS!

5
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

6
Catalog Industry Metaphor Electronic
Servicescapes
Receive Order, Assemble, Pack, Deliver
Advertising, sales, brokers, bricks
Communication to the Customer
Returns Customer Service
Information Systems, Analytical Tools, Customer
Operations Databases
Production, InventoryManagement
Customer Relationship Management
Order Fulfillment
Procurement, Suppliers
Payment Processes
Electronic Servicescape
Marketing Define Target Markets, Products,
Channels
Accounting, Invoicing, Payables, Receivables
Customers Suppliers

• Web Browser
• Mobile and Wireless

7
EMPS Electronic Mobile Payment System
Instead of all these...
THIS!
Debit/Credit cards
All cards in one chip inside your WAP-phone
Loyalty cards
Access codes to net-bank
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
Debit-/Credit card, bank log-on, club
membership, application downloading, etc.
8
The Enterprise Challenge

Carriers
Mobile
Protocols
Devices
Interface
Enterprise
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 Qualcomm Audiovox Motorola TouchPoint Eri
csson Motorola Mitsubishi Samsung Ericsson Mitsub
ishi Motorola Samsung Sanyo Alcatel Ericsson Motor
ola Samsung Nokia RIM Palm VII Palm !!!
V PcketPC Standard IVR Voice Browser V.V.S.
CDMA (Sprint, Verzion) TDMA (ATT) iDEN (Nextel
CDPD (ATT) iMode DoCoMo) GSM (Voice Stream
Worldwide
CRM
SFA
Sales
Phone
eBiz
FSA
Service
ERP
PM
Pager
Executive
Mobitext (Bell South) Palm.Net (Bell
South) CDPD (ATT) All Telcos
KM
PDA
SCM
Voice
Content
Other
Email
Future
Source META Group Inc.
9
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

10
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

11
Phone Data Entry

12
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

13
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

14
SchematicWeb Browsers, Servers, Internet
Addresses

• Local Browser _at_ Address B
• requests document C.htm from Server at Address
  A

http//A/C.htm/
Server _at_ A
Internet
Local Browser _at_ B
2. Server _at_ A Sends file C.htm to Browser B
through Internet
3. Browser _at_ B Reads and displays C.htm text
file
15
SMS Platform Analogy toWeb Browsers, Servers,
Internet Addresses

• Individual _at_ Mobile B
• Sends SMS message C through SMSC to Server at
  Mobile A

SMS Server _at_ A
GSM Network
Person _at_ Mobile B

• 2. SMS Server _at_ A
• Processes message C and prepares response
  message D
• Sends message response D to Individual B
  through Network

3. Phone Op System _at_ B Reads and displays
message D
16
EMPS Electronic Mobile Payment System
Instead of all these...
THIS!
Debit/Credit cards
All cards in one chip inside your WAP-phone
Loyalty cards
Access codes to net-bank
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
Debit-/Credit card, bank log-on, club
membership, application downloading, etc.
17
Designing MW Applications

• Process
• Iterative
• Business Case
• Requirements
• (Prototyping)
• Design
• Development
• Testing and QA
• Pilot
• Implementation
• QA and continuous improvement

18
Person to Person MessagingSame Carrier
GSM Network
Person A, Mobile A
Person B, Mobile B
Sonera SMSC, Service Center C
19
Person to Person MessagingDifferent Carriers
GSM Network
Person A, Mobile A
Person B, Mobile B
Sonera SMSC, Service Center C
Radiolinja SMSC, Service Center D
20
Many Persons to Business MessagingMany
Carriers
GSM Network
Person A, Mobile A
Person B, Mobile B
Sonera SMSC, Service Center C
Radiolinja SMSC, Service Center D
Company or ASP SMS Server, E
Operations Database
Content Provider
21
Design the EMPS Application
22
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

23
SMS Message Routing - Present

• At present, any SMS message sent between two cell
  phones within the same carrier network is merely
  routed through the carriers network in the
  carriers 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.

24
Current U.S. Inter-Carrier SMS Routing Method
25
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.

26
  Implications of 2.5G and 3G for U.S.
Intercarrier message routing

• In the case where a carriers 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 carriers 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.

27
Integration between email and SMS Unisys OMIS
28
Content how about SMS???Architecture Web-SMS
flow (Unisys Mobile Business Group)
SMS
5. SMS message with requested content arrives on
callers mobile
IVR
4. Content delivered to the SMSC
1. Call comes into Web-SMS
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
29
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.

30
Design the application infrastructure for SMS
Messages across Carriers in the U.S.
31
The Giga ViewHigh-Speed Wireless Data What,
When and Where?
Weston Henderek Industry Analyst June 18,
2001 Call in at 855 EDT (1) (973)
321-1020 Password ????
32
VoiceStream/ATT Wireless/Nextel
Upgradability to 3G
VoiceStream
International Roaming Coverage
ATT
Total Coverage
Nextel
International Partnerships
Prices
Corporate Discounts
Internet Commerce Support
Bundled Wireline Discounts
33
Sprint PCS/Verizon Wireless
Upgradability to 3G
Sprint
International Roaming Coverage
Verizon
Total Coverage
International Partnerships
Prices
Corporate Discounts
Internet Commerce Support
Bundled Wireline Discounts
34
The Wireless Protocol Hurdle Race
35
By 2006, Wireless Standards Will Converge
36
US Wireless Carrier Data Road Map
Carrier Today 2001 2002 2003 2004 2005
CDMA (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 1Xtreme 5.2Mbps 1Xtreme 5.2Mbps UMTS
ATT 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 Midyear 114Kbps GPRS Late year EDGE 384Kbps EDGE 384Kbps WCDMA 2Mbps UMTS WCDMA 2Mbps UMTS
Nextel 9.6Kbps iDEN data 56Kbps iDEN data service 56Kbps iDEN data service EDGE 384Kbps EDGE 384 Kbps Possible UMTS
37
Incompatible Technologies and Spectrum Shortage
Will Delay US Migration to 3G
Carrier Q4 2001 Q4 2002 Q4 2003 Q4 2004 Q4 2005 Q4 2006
Sprint PCS and Verizon cdma1xRTT 56-144K cdma1xRTT Enhanced 384-512K cdmaHDR 384K -1.5M cmda2000 1Xtreme 1-5.2Mbps
ATT Wireless and Cingular GSM-GPRS 56-114K GSM-GPRS 114-170K GSM-EDGE 256-384K WCDMA 384-768K WCDMA/ UMTS 768K - gt 2M
VoiceStream GSM-GPRS 56-114K GSM-GPRS 114-170K GSM-EDGE 256-384K WCDMA 384-768K WCDMA/ UMTS 768K - gt 2M
Nextel iDEN 40-56K iDEN-GPRS 56-114K iDEN-GPRS 114-170K iDEN-EDGE 256-384K
38
Incompatible Technologies and Spectrum Shortage
Will Delay US Migration to 3G (Cont.)
Carrier Q4 2001 Q4 2002 Q4 2003 Q4 2004 Q4 2005 Q4 2006
Sprint PCS and Verizon cdma1xRTT 56-144K cdma1xRTT Enhanced 384-512K cdmaHDR 384K -1.5M cmda2000 1Xtreme 1-5.2Mbps
ATT Wireless and Cingular GSM-GPRS 56-114K GSM-GPRS 114-170K GSM-EDGE 256-384K WCDMA 384-768K WCDMA/ UMTS 768K - gt 2M
VoiceStream GSM-GPRS 56-114K GSM-GPRS 114-170K GSM-EDGE 256-384K WCDMA 384-768K WCDMA/ UMTS 768K - gt 2M
Nextel iDEN 40-56K iDEN-GPRS 56-114K iDEN-GPRS 114-170K iDEN-EDGE 256-384K
39
Incompatible Technologies and Spectrum Shortage
Will Delay US Migration to 3G (Cont.)
Carrier Q4 2001 Q4 2002 Q4 2003 Q4 2004 Q4 2005 Q4 2006
Sprint PCS and Verizon cdma1xRTT 56-144K cdma1xRTT Enhanced 384-512K cdmaHDR 384K -1.5M cmda2000 1Xtreme 1-5.2Mbps
ATT Wireless and Cingular GSM-GPRS 56-114K GSM-GPRS 114-170K GSM-EDGE 256-384K WCDMA 384-768K WCDMA/ UMTS 768K - gt 2M
VoiceStream GSM-GPRS 56-114K GSM-GPRS 114-170K GSM-EDGE 256-384K WCDMA 384-768K WCDMA/ UMTS 768K - gt 2M
Nextel iDEN 40-56K iDEN-GPRS 56-114K iDEN-GPRS 114-170K iDEN-EDGE 256-384K
40
Incompatible Technologies and Spectrum Shortage
Will Delay US Migration to 3G (Cont.)
Carrier Q4 2001 Q4 2002 Q4 2003 Q4 2004 Q4 2005 Q4 2006
Sprint PCS and Verizon cdma1xRTT 56-144K cdma1xRTT Enhanced 384-512K cdmaHDR 384K -1.5M cmda2000 1Xtreme 1-5.2Mbps
ATT Wireless and Cingular GSM-GPRS 56-114K GSM-GPRS 114-170K GSM-EDGE 256-384K WCDMA 384-768K WCDMA/ UMTS 768K - gt 2M
VoiceStream GSM-GPRS 56-114K GSM-GPRS 114-170K GSM-EDGE 256-384K WCDMA 384-768K WCDMA/ UMTS 768K - gt 2M
Nextel iDEN 40-56K iDEN-GPRS 56-114K iDEN-GPRS 114-170K iDEN-EDGE 256-384K
41
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.

42
Giga Recommendations

• Dont expect 3G data rates before 2006.
• Opt for short-term contracts and centralized
  procurement.
• Plan to support at least two types of wireless
  devices.