1 Understanding why Mobile is different … and how to take advantage.

1

Understanding why Mobile is different … and how to take advantage

2

Welcome to the world of CONFUSION…

WAP

GPRS

HSCSD

Internet in your pocket

SIM Toolkit

2G

JAVAStinger

i-mode

3

Internet evolves

Internet

Fixed Internet

Internet

Mobile Internet

Whatever the terms… facts remains the same…

4

“Cut t

he Cor

d”

“Inte

rnet

in

your

poc

ket”

“Situ

atio

n

Centri

c”

The Mobile Internet Waves

5

Mobile Internet vs. Fixed Internet?

Limitations– Radio network issues

– Many new different devices (also a benefit!)

Opportunities– Enables totally new services

– Reach your market instantly

6

Evolution of Mobile SystemsEvolution of Mobile Systems

cdmaOne Packet Data

cdmaOne Packet Data

GSMGSM

TDMA CDPD

TDMA CDPD

cdma2000 1Xcdma2000 1X

EDGEEDGE

WCDMA

WCDMA

cdma2000 1XEVcdma2000 1XEV

2G First Step into 3G 3G phase 1

GPRSGPRS

PDC PDC-P

PDC PDC-P

64 - 144 Kb/s

Evolved 3G

384 Kb/s - 2 Mb/s 384 Kb/s - 8 Mb/s

Time2000/2001 2001/2002 2003+

64 kb/s

7

QualityVolume

Any access

Mobile Internet Evolution

MediaEntertainment

Capacity

MessagesInformation

Data Path

MultimediaConversation

Real time

2001-2002 2003 2004 2005

We will talk more on applications…

8

Elements of a successful Mobile Internet application?

Mobility

Positioning

Personalisation

Transaction

9

The Rules of the game ...

Design for Mobility– Access anywhere … in town, on the train, overseas

…. on the toilet!

Accommodate new (unpredictable) user behaviour– ‘Instant’ access on impulse– Personalise applications

Design for new payment model– Volume or subscription based charging

Keep it Simple and very easy to use

10

Applications cannot handle low bandwidth connections– Failure due to low throughput– Application freezes while trying to transmit/receive data– Application not optimised to limit data exchange

Applications cannot handle a loss in connection– Application times out and does not try to recover

Protocol stacks not generous to long delays and varying throughput

– TCP, HTTP

Latency in GPRS affects real time applications

Wasted Bandwidth– Excessive chatter - HTTP

Lessons learned from testingWhy Applications Fail

11

TCP over Wireless Networks

Lessons learned from testing

Lost Packets = Congestion ?– The delay and packet-loss could be very High

– TCP will think it’s a congestion and backs off– Reducing throughput– TCP makes a low bitrate Link even slower

TCP reacts badly to high latency– TCP loves Handshakes

– One TCP session => three packets are exchanged

– Slowing data transmission due to delayed acknowledgements

Slow start algorithm after interruptions

12

HTTP over Wireless Networks

Lessons learned from testing

HTTP 1.0...– Opens a separate TCP connection for each object on a web page

– Setup and shutdown of TCP connections usually cause the major delay

– Size of objects to small to reach the full bandwidth of the link due to the slow start mechanism of TCP

HTTP 1.1– Uses a persistent TCP connection for multiple requests

– No wasted time and network resources for multiple TCP handshaking

– Will use the full bandwidth of the link

– Supports compression of HTML files

The amount of packets sent is reduced by 60%

when using HTTP/1.1 instead of HTTP/1.0

13

Reduce unnecessary chatter

Recovery/restart algorithm as fast as possible

Know the protocols you are working with

HTTP and TCP can be very inefficient

WAP solves lots of problems for you Protocol Layer

Protocol layer

Tips to build a good Mobile application

14

Don’t take the connection for granted

Design for Interruptions

Use multi tasking, where possible

Use middleware if appropriate

Find the problems early

Use caching (but don’t rely on it!)

Protocol Layer

App Layer

Application layer

Tips to build a good Mobile application

15

Keep the user in control and informed

Progress meters, connection status etc

Abort buttons

Give the user choices between increasing persistency, cancelling and just keep waiting

Pre-load data Protocol Layer

App Layer

User Interface

User interface - Improving perceived performance

Tips to build a good Mobile application

16

And importantly ..

Testing

Network performance tests

Protocol / Standards conformance e.g. WAP, Parlay

Device compatibility

End-to-End testing

17

Related Technologies

Bluetoothtm

– Seamless connectivity– Split Device Enabler

– Merging Technologies• Camera’s• Printer’s• The Fridge ...

18

Conclusion

Many enablers exist already today

GPRS is a foundation and a key concept shift - it prepares us for 3G

Applications must be carefully designed. They must be robust and carefully tailored to suit the mobile user

19

Always Connected, Always On-line…thinking is free

GPRS Overview

20

What is GPRS? (Consumer Point of View)

GPRS is a new mobile network service that offers a permanent data connection to it’s subscribers.

For the first time, subscribers could beAlways Connected, Always Online

Subscribers are seamlessly connected to their ISP, service providers and corporate networks.

Is a complement to the GSM network, upon rollout, GPRS will enjoy the full coverage of GSM today.

21

GPRS – Technical Point of View

GPRS is a packet service for GSM

Specially designed to work within existing network (not a completely new system, but rather an upgrade that empowers existing network)

Co-exists with existing circuit switched services

Packet data transmission all the way to user

Interworking with data networking (e.g. IP)

Multi slot (8 TS) gives ~ 115 kbit/s

22

Circuit-switched data vs ...

Single timeslot supports single user...

23

… vs Packet-switched Data

…now the same number of timeslots for circuit-switched can support many more users.

24

BTSBSC

MSC/VLR

HLR

Internet

SGSNGGSN

SGSN - Serving GPRS Support NodeGGSN - Gateway GPRS Support Node

GPRS/GSM Network

25

GPRS – Network Architecture

GGSN – Gateway GPRS Support Node– Interface towards external (packet) data

networks– Packet routing to SGSNs

SGSN – Serving GPRS Support Node– Packet routing to/from SGSN service areas– Control, session mgt, mobility mgt, ciphering/

authentication– Signaling exchange with MSC/VLR

26

User perspective

Internet

Service Provider

Transparent Permanent IP Connection

WAP, SMS,WWW, IP, Email, Messaging

27

What do you need as a GPRS user?

Devices that are GPRS equipped, such as:– Mobile Phones– PDAs - Symbian, Psion, Palm, Windows CE– Laptops - GPRS Modem / GPRS Modules

Appropriate subscription, ie a SIM that is data enabled

ISP provider (probably your network provider)

28

Welcome to JAPAN

29

The answers soon…

30

The Success of DoCoMo – i Mode

More than 20 million subscribers. On average, i-mode user is paying an extra 15$ / month

Service starts on February 1999

• At first, i-mode was actually aim for corporate

user,

but it was then the young culture who absorb

the

concept

• Soon enough, applications are aim to the

YOUNG

market, such as : games, ringtones,

screensaver,

e-mail, etc.

• The most favorable applications : virtual

fishing,

cosmo nova (intergalatic strategy

simulation), Word

Neverland (virtual life), and GP car racing.

• Women are the most advanced users of i-

mode

• Starts to take-off when rate is affordable

• The working culture in Japan support the

success

of i-mode. Many people spend their time on

the

road.

31

32

33

34

35

With 100 Yen, you can’t afford a meal in Japan.

Case Study : Bandai Carappa

• Character Distribution Service - Hello kitty, etc. - 1 image per day - 100 yen / month• 10% of i-mode users subscribe - 10% of 20 million = 2 million• How much the revenue? - 2 million x 91 yen = 188 million yen (1.7 million USD)• How much is the cost? - Few persons, server systems, etc. - It doesn’t matter the number of subscribers• Bandai just up-date new images

36

37

- Great Marketing !

38

39

• Project Inspector Gadget is a small quantitative research conducted during IITELMIT (27-31 May 2001), to help determining the right pathway towards the success of Mobile Internet in Indonesia. 350 questionnaires are analyzed

• Why? because, there are no documentation on our local market concerning the issue of Mobile Internet.

• To gain better understanding of local market behavior.

Project : Inspector Gadget

40

Respondents Profile

• Mostly Male with 70 : 30 comparison• Aged above 20. 35% on 20-25 and 65% above 25

• Most of the female respondents failed in completing the items asked in the questionnaire

• Most of them (62%) are employee from private sectors

41

Respondents Profile• 66 % earn a bachelor degree (S1),• 58 % spend 1-3 million / month on household

expenses,• 47 % travel out of town 2-5 times / month,• Car is the main transportation vehicle (62 %),• They spent 1-3 hours on the road daily (54 %).Gadgets Own

65%

23%

3%

92%

0% 20% 40% 60% 80% 100%

Desktop

Notebook

PDA

Ponsel

YES, they all haveCellular phones!

42

Cellular Phone Usage and Habit - SMS

The basic form of mobile internet is very popular!Messaging (SMS) is hitting high, even for this profile. SMS is not just belongs to the YOUTH. Cellular Usage

7%

15%

8%

94%

0% 20% 40% 60% 80% 100%

Fax

e-mail

Internet

SMS

Almost all respondentsHave experienced SMS.Other Services like Internet, e-mail and Fax,are not appealing.

43

Cellular Phone Usage and Habit - SMS

Frequency of using SMS/day

14%

36%29%

21%

< 3 kali

3 - 5 kali

5 - 10 kali

> 10 kali

Half of them sends more than5 SMS per day.

44

The InternetTrends

45

Global Internet Trends Reports

Research in 27 countries resulted :• 420 millions people have access to the NET.• US and Canada is the no.1 internet population with 41% global share.• Asia Pacific has 20% of the share.• Korea is dominating Asia Pacific with 45% share of the region.• South Korea, Australia and Taiwan account 86% share of the region.• Home access is more a common source for internet access rather than work-based access.• Percentage of people with internet access is age 16+

46

Internet Usage and Habit – Inspector Gadget

• Almost all of them have access to Internet (93%),

• but only half of them (57%) own an internet account.

• They take internet access and information for GRANTED.

• Of course then, source of access is from the office (71 %)

• 92% spent less than 300.000 / month for internet.

• 78% surf the net more than 1 hour each day.

• 35% surf the net for more than 3 hours!

• Messaging (e-mail) again contribute a significant role. 71%

received more than 6 e-mails per day.

47

Browse Time

22%

43%

35%

<1 jam

1 - 3 jam

>3 jam

e-mail received / day

39%

24%

37%1-5 kali

6-10 kali

> 10 kali

Internet Usage and Habit

48

Preferred Applications or Sites – M Commerce

• There’s a prospect for M-Commerce. 35% of respondents used web-commerce, with limited number of transaction and small value.

How many times do you have transcation last month?

65%

31%

3% 1%

1X

2-3X

3-5X

>5X

Value of Transactions

25%

48%

21%

6%

<100rb

100-300rb

300-500rb

>500

We are on trial phase fore-commerce

49

Preferred Applications or Sites – M Commerce

Reasons for not using Web-Commerce :• Security• More convenient to ‘feel’ the items• Doesn’t own a credit card• Questioning the quality of product

Net-Banking :• 35% of the respondents have experienced Net-banking.• BII, KlikBCA, Panin, HSBC, Niaga, Bali, etc.

50

Preferred Applications or Sites - Messaging• Again, messaging (e-mails) plays a significant role. It is the most frequent accessed by respondents.

Applications on Fixed Internet

19%

17%

22%

23%

6%

8%

3%

1%

1%

0% 5% 10% 15% 20% 25%

Hiburan

Search Engine

Informasi Berita

e-mail

MP3

Chat

Belanja

Dewasa

Other

The top 4 applications are : e-mail, Information, entertainment,and search engine.

51

Preferred Applications or Sites

Expected Applications on Mobile Internet

18%

14%

26%

24%

6%

6%

5%

1%

0%

0% 5% 10% 15% 20% 25% 30%

Hiburan

Search Engine

Informasi Berita

e-mail

MP3

Chat

Belanja

Dewasa

Other

What about applications on mobile device?

The top 4 applications are : Information, e-mail, Search engine,and entertainment.

52

Expected Cost

Expected Cost for Mobile Internet

44%

46%

9% 1%

<100

100-300

300-500

>500

As most of the respondents take Internet for granted, so dohow they expect the cost for mobile internet.

53

Mobile Internet in Indonesia

• Currently, Indonesia is very much a voice-oriented

market.• WAP services is delivered through independent service companies which create more costs.• WAP fail because of : slow, difficult and expensive, whilst the technology was introduced as Mobile Internet (reality is far low than expectation). On the other hand, there are more than enough contents and applications to run! • Availability of WAP phones (very limited models).• The low penetration of Internet itself. Currently only 700.000 paid internet users and 1.3 million internet freebies, totaling 2 million users (source : Komputer Aktif, Magazine). The small numbers is also because of very low numbers of active PC distributed in Indonesia.

54

Mobile Internet in Indonesia

• Fax and data is rarely used, but the potential is massive.• Cellular will overcome fixed by Q2, 2002.• SMS (known also as data service) is rapidly taking up. We might see the same pattern with the Philippines. Average 5-6 million messages sent/day.• Internet users is not boom yet in Indonesia. Internet usage is still low but also growing.• The slow growth of internet users is due to unavailability of necessary equipment (only 2.5 million PC’s) and internet charging.• Mobile Data is an alternative to access the internet world if it can fulfill these aspects : pricing, ease of use, content / applications, and of course attractiveness of the product.

MOBILE DATA ERA WILL COME !

55