By Norman Sadeh
Acknowledgments xi
Part One The M-Commerce Revolution 1
Chapter 1 M-Commerce: What’s the Buzz All About? 3
Introduction 3
What Is M-Commerce? 5
NTTDoCoMo’s i-Mode Portal 5
Nordea’s WAP Solo Mobile Banking Service 9
Webraska’s SmartZone Platform 11
The Forces Behind the M-Commerce “Revolution” 14
Proliferation of Mobile Devices 14
Convergence of Mobile Telecommunication
Networks and the Internet 16
Transition Toward Third-Generation
Telecommunication Technologies
and Higher Data Rates 18
Explosion of Personalized, Location-Sensitive,
and Context-Aware Applications
and Services 21
What’s So Special about M-Commerce? 22
The Usability Challenge 23
New Usage Scenarios 24
New Business Models 25
Interoperability Challenge 26
Security and Privacy Challenges 26
How This Book Is Organized 27
Part I: The M-Commerce Revolution 28
Part II: The Technologies of M-Commerce 28
Part III: M-Commerce Services Today
and Tomorrow 30
Further Readings 31
Chapter 2 A First Look at the Broader M-Commerce Value Chain 33
Introduction 33
Infrastructure Equipment Vendors 34
Software Vendors 36
Content Providers 37
User Fee Business Models 38
Shopping Business Models 40
Marketing Business Models 41
Improved Efficiency Models 43
Advertising Business Models 44
Revenue-Sharing Business Models 47
Content Aggregators 48
Mobile Network Operators 48
Mobile Portals 52
Third-Party Billing and Payment Providers 55
Mobile Device Manufacturers 56
Wireless Application Service Providers (WASPs) 57
Location Information Brokers 59
Concluding Remarks 61
Part Two The Technologies of M-Commerce 63
Chapter 3 Mobile Communications: The Transition to 3G 65
Introduction 65
Mobile Communications: A Quick Primer 66
Historical Perspective 66
Basic Architecture 68
What Is So Special about Mobile Communication? 69
Basic Multiplexing Schemes 70
Separating Uplink and Downlink Traffic 76
The 2G Landscape 76
A Closer Look at GSM 78
A Word about Roaming and Billing 82
Transition Toward 3G 83
GSM Migration 84
TDMA Migration 91
PDC Migration 92
CdmaOne Migration 92
Concluding Remarks 94
Chapter 4 The Mobile Internet 99
Introduction 99
Putting Things in Perspective 100
What Happens When We Try to Run TCP/IP
on a Mobile Network? 102
Mobile IP: Routing Packets to Mobile Nodes 103
TCP: The Wireless Link Requires
Special Treatment 105
The Mobile Internet: Early Precursors 107
Enter the Wireless Application Protocol 110
Overview of the WAP Architecture 111
WAP Gateway and Legacy Protocol Stack 112
Operating without a WAP Gateway 113
A Closer Look at the WAP Protocol Stacks 113
WAP Legacy Protocol Stack 114
WAP Protocol Stack for Fast Bearers
with Built-In IP 117
The Wireless Application Environment 119
The WAP Usability Saga 122
Evolving Application Architectures—
How Open is the Mobile Internet? 125
A Word about Java and MExE 128
Concluding Remarks 129
Chapter 5 Mobile Security and Payment 131
Introduction 131
Revisiting Security: The Role of Cryptography 133
Secret Key Cryptography 134
GSM’s SIM-Based Authentication:
An Example of Symmetric Cryptography 136
Public Key Cryptography 137
Digital Signatures 140
Certificate Authorities 141
Combining Public and Secret Key Cryptography 142
Message Authentication Codes 143
The Combinations Are Many 143
Revisiting WAP Security and the Role of the
WIM Module 144
Mobile Payment 146
Mobile Payment Standardization Efforts 154
Different Mobile Payment Scenarios 154
MeT in Slow Motion 155
Concluding Remarks 156
Part Three M-Commerce Services Today and Tomorrow 157
Chapter 6 Mobile Commerce Services Today 159
Introduction 159
Revisiting Mobile Portals 162
Voice Portals 165
Mobile Information Services 166
Mobile Directory Services 166
Mobile Banking and Trading 167
Mobile E-Tailing and E-Ticketing 170
Mobile Entertainment 173
Digital Bridges: A Typical Game ASP 176
Mobile Business Applications and Services 177
Concluding Remarks 179
Chapter 7 Next-Generation M-Commerce 181
Introduction 181
Next-Generation M-Commerce Scenarios 182
Personalization 185
3GPP’s Personal Service Environment 186
Microsoft’s .NET Passport 186
Location-Based Services 189
A Brief Overview of Competing Positioning Solutions 191
Handset-Based Positioning Solutions 191
Network-Based Positioning Solutions 193
A Fragmented Landscape 194
SignalSoft: An Example of a Location-Based
Service Provider 195
Toward Context-Aware Services 197
Concluding Remarks 200
Chapter 8 Early Lessons and Future Prospects 201
Recalibrating Early Expectations 201
Early Success Ingredients 203
From Killing Dead Time to Context-Awareness 204
From Authentication and Billing to Personalization 206
Convergence of the Fixed and Mobile Internet 207
Concluding Remarks 208
Glossary 209
References 229
Index 239
About the Author 255
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