©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

Email

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.