M-Commerce revision guidelines

					                          M-Commerce revision guidelines
Time: 2 HRS
Section A MC 10Q (total 20 Marks)
Section B SQ 5Q (4 marks each, total 20 Marks)
Section C LQ 5>3 (total 60 marks, 20marks each)
Section A MC (study by yourselves! @>@)

Section B (4 marks each)
1. What is MMS? Give one example
     Multimedia Messaging Services (MMS) is the capability to send and receive
     messages, utilizing the same media type. They are text, image, audio, video and
     any combination of the above.
     For example, video streaming service is MMS.

2.   What is Location based service? Give one example used by a company
     Location services are generally services that depend on knowledge of the
     geographic location of a mobile station. For example, the customer has his
     preferable movie, and then the cinema line can inform him of his most near

3.   What is Bluetooth? What is it for business use?
     Bluetooth is a replacement for a cable. It gets rid of cable to use simple PC/
     PDA to handset connections to implement in office LAN Access. Therefore,
     Bluetooth can assist the office staffs to work more efficient.

Bluetooth is A replacement for a cable.
Basic: Low Power RF - 1mW
10 metre Range (100 metre option)
721 kBps Data Transfer Rate
Synchronous & Asynchronous transmission
One-to-one and Piconets
2.45 GHz, worldwide availability
Spread spectrum, frequency hopping
Low Cost

4.   What are the differences between 2G and 2.5G (GSM and GPRS)?
      2G      Since 1993
              9.6K circuit switching
              Lower bandwidth
      2.5G    115bps support packet switching
              40K throughput
              Wider bandwidth

5.   What are the advantages of J2ME?
     - write Once, Run anywhere
     - Cross platform compatibility
          Dynamic delivery of applications and services
          Disconnected access
          Enhanced user experience
         Developer productivity and availability

Section C (5 choose 3, 20 marks each)

1.   What is the future service of 3G?
     Describe an example
     What is the business model? E.g. Revenue and cost
     What are their partners?
      Video streaming
         Video Streaming Platform enables encoding, decoding and the transmission
             of multimedia for streaming full motion video over wireless devices and
         Streaming mean – content stored at servers with the operator are being
             streamed. Sent on the fly. To the end users player
         Application: employee education, sales and customer training, meetings,
           product launches, collaboration, and customer service

        Business Model
         Cost: a server for streaming
                 An encoder
                 Data transmission costs
                Network Investment
                Portable media players

         Revenue: Only a data transmission fee is charged for users
                     Content provider may be required to pay system construction cost
        Partners:
          Content providers
          Mobile Network Operators

2.   Can I-mode success in Hong Kong? What are the reasons of success or not
     success in Hong Kong?


Reasons for I-mode success in Japan:
5.Why I-mode success:
Packet Switched Characteristics
deliver a high volume of access at low costs.
the majority of content focusing on text only, so 9.6Kbs can suffice
for today’s need.
Low Internet penetration rate
home PC & internet haven’t taken off.
i-Mode offers an attractive alternative.
Consumers Behavior
Read news and see pictures of their favorite movie stars and
favor in cartoons and icons.
crazy in new technology/product. (PS2, Game boy Advance)
Customers Focus
youth market - most loyal users are teenage girls.
easy to access the Internet “just one button”.
extremely small size handset with large displays, color screens
and polyphonic ringing tone.
The “Killer” Application
keep track of their email, news from daily newspaper.
enables downloads of the Bandai character, including a new image
every day
over 2 million subscribers, each paying about HKD20 per month
NTTDoCoMo gets benefit in NTT brand penetration & recognition.
strong negotiation power to build fruitful relationship with other
market players.
significant influence with telco hardware manufactures - handset
are best optimized for i-Mode.
Proprietary Solution
NTT owns the right to form of cHTML that is used in i-Mode
All handset manufactures must gain NTT approval before
launching any new product or services.
Have certain level control over the handset design
   - color LED displays
   - 10 lines data screen
Partner Relationship Management
flexible and open approach to partnership.
content plan should be approved by NTTDoCoMo - approval
depend on perceived quality, consumer desirability & have sufficient
staff for backup. (evaluation is about 6 months)
doesn’t charge fees for presence on i-Menu.
all premium service must use DoCoMo billing engine for which
there is a 9% commission.

   Japan has relatively lower Internet penetration rate as compare to Hong Kong
   Internet access is more expensive than I-mode, then Japanese turn to use I-mode
    to check their emails and web browsing
   Customers use I-mode in “niche time”, which mean they use about 3 minutes
    session and three to four times a day especially during their commute in train
   Flexible and open approach to partnership
    Doesn’t charge fees for presence on I-menu
    All premium service must use DoCoMo billing engine for which there is a 9%
Reasons for I-mode NOT success in Hong Kong
 Internet penetration rate is higher in Hong Kong and the monthly payment is
    relatively low because of the great competition of Internet Service Providers
 The traveling time is short and quick in Hong Kong
 Mobile operators charge much higher commission fees for content providers than
    in Japan, then this will discourage content providers to provide more different
    services to customers

3.    Please discuss the major obstacles of delivering mobile video services
     currently by the mobile operators in the world. When will it be successfully

     The major areas of obstacles are as follow:
     The first one is the bandwidth. The amounts of data that can be transmit from the
     host server to the handheld device in a period of time. For the current GPRS, the
     bandwidth is not wide enough to support the transmission of the large size video

     The second one should be the development of the technology level of mobile
     handheld devices. Such as the short lasting hour for the battery screen size is too
     small, resolution of the color displays is low, and the limited small storage spaces
     of the large file size video clips.

     Although the advance level of the development of handheld devices can support
     the video streaming and display, the device penetration is an obstacle. Since the
     devices usually cost a relatively high price in the early stage that released to the
   market, so, there may have only a small amount of the users which can apply or
   interested in the mobile video services.

   Another obstacle is about the cost. Cost from the service fee charged by the
   mobile operators. Since the file size for video is usually large and the low
   bandwidth which takes a long time for transmitting the video file. The service
   charge according the downloading time will be high.

   The last one is the compatibility problems. Different cell phone models may
   support different file formats. Besides, there should have an agreement on open
   standard media formats. (e.g. MPEG4, ISMA).

   With the development of the higher mobile technology level and the increasing in
   demand of different mobile services of the consumers, the estimation time for the
   mobile video services will be launched is about 1 to 2 years later.

3Video steaming:
-Different between video streaming and download ---property right
-Straming- Content stored at servers with the operator are being streamed send on the
fly to the end users player.
-downlopad- For content download the streaming server will reply the HTTP get
requests content wrapped in the MP4 file format.
Key Issue:
Device features & Price---Screen size, screen dimension, battery life, cost.
Agreement on open standard media formats---MPED, SGPP,ISMA
Device penetration
Service portfolio that match market segments.
Error-prone network- Deliver required Oos
Business models- The end-to-end approach
Digital rights management
Content management

4. What are the differences among wireless, 3G and Bluetooth?

Features             Bluetooth 1.1         Wireless LAN           3G (UMTS)
Data rate            1 MBPS              11MBPS                  2MBPS
Range of use         10M(actually within 2-8 km                  National
                     6 M)
Implementation       As build-in or        As add-on PC cards Handset /PC cards
                     add-on                and build-in
Power consumption low                      high                Low
Devices           Device peripherals:      Device peripherals: Mobile phone
                  Notebook, mobile         Notebook and PDAs
                  handset and PDAs
Potential market  PC and electrical    Private: SoHo,    Mobile
                  appliance            residential PC
                                       Public: Airport,
                                       Malls, hotspots
Device cost          Moderate (US$150) Moderate (US$150) High (US$700)
Accessing point      Not necessary         -Business class      expensive
cost                                       indoor: US $1000
                                           outdoor access point
                                           below US$5000
License              No                    No                   Yes
Timing               Currently use         Currently use         In the near future

5a. Why SMS services in Hong Kong cannot as popular as other countries? Give
    reasons to explain.

   Although SMS services is popular in the country like Philippine, this service is
   not so popular in Hong Kong, and this can be explained by the reasons below.

   The services charge for SMS in different mobile operators are similar, usually
   charged by a monthly fee plus usage fee, for example, each SMS message charge
   $1. Compared with other countries, the services charge is higher in Hong Kong.
   The second reason is the inconvenient input of text by using mobile phone. In
   order to send a Chinese message, sender has to input the text by using some
   special input method, like T9. Not all the users know how to input the Chinese
   text, since the input process is quite complicated and time consuming, compared
   with English. In addition, different mobile have different input methods, these
   would cause the SMS not successfully launch in Hong Kong.

5b. List out the critical successful factors of M-commerce.
Capital- the mobile operators have sufficient amount of capital to support the
investment on improvement on the current services. Further research and
development of the innovative ideas which have market vales, this also drive to

Technology- high technology level on both mobile services and the cellular phone
             For mobile services, new service launch to stimulate the
                customer demand (e.g. Video streaming)
                 Improve the security level (Confidential, Integrity, and
                For the cellular phone, higher color resolution displays, longer
                 battery life, multi-functional

 Marketing- Penetration of the service used and the mobile phone. This can be
              improved by a well marketing plan and effective promotion.

 Compatibility- with an agreement on the standard of network, programming
               language, hardware, and file formats.

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