2001 Prentice Hall, Inc. All rights reserved. 1 Chapter 8, International Wireless Communications Outline 8.1 Introduction 8.2 International Regulation of Wireless Communications 8.2.1 3G Licensing Auctions 8.2.2 3G Licensing Effects 8.3 Worldwide Wireless Evolution 8.3.1 Technological and Cultural Factors Effecting Wireless Adoption 8.3.2 Applications 8.4 International Wireless Technologies and Markets 8.4.1 Asia and the Pacific 8.4.2 Europe 8.4.3 North, Central and South America 8.4.4 Australia and New Zealand 8.4.5 Africa
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2001 Prentice Hall, Inc. All rights reserved.
1
Chapter 8, International Wireless Communications
Outline8.1 Introduction8.2 International Regulation of Wireless Communications
8.3 Worldwide Wireless Evolution8.3.1 Technological and Cultural Factors Effecting
Wireless Adoption8.3.2 Applications
8.4 International Wireless Technologies and Markets 8.4.1 Asia and the Pacific8.4.2 Europe8.4.3 North, Central and South America8.4.4 Australia and New Zealand8.4.5 Africa
2001 Prentice Hall, Inc. All rights reserved.
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Chapter 8, International Wireless Communications
Outline8.5 Creating an m-Business with Global Capabilities
8.5.1 Choosing an International Market8.5.2 Internationalization and Localization8.5.3 Partnering and Hiring8.5.4 Payment Systems8.5.5 Distribution8.5.6 Legal and Taxation Systems8.5.7 Promotions
8.6 Future of Global m-Business8.7 Internet and World Wide Web Resources
2001 Prentice Hall, Inc. All rights reserved.
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8.1 Introduction
• International wireless communication technologies drive the global economy– US’ wireless penetration (% using service) lags behind other
countries
– Companies investing in wireless infrastructure, creating wireless-accessible content and developing wireless applications
• Business need to address global wireless market (globalization)
• Licensing– Governments partition communications spectrum and offer
segments to telecommunications companies
2001 Prentice Hall, Inc. All rights reserved.
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8.2 International Regulation of Wireless Communications
• Fractured networks/standards without international cooperation poor international wireless services
• International Telecommunications Union– Encourages government and company cooperation
– International Mobile Telecommunications group devoted to wireless issues
• Global System for Mobile Communications– GSM communications standard: most widely used
2001 Prentice Hall, Inc. All rights reserved.
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8.2.1 3G Licensing Auctions
• Governments sell licenses of 3G spectrum: high speed radio frequencies– Auction: to highest bidder
– Beauty contest: to best proposal
• Companies often purchase licenses outside home country
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8.2.2 3G Licensing Effects
• Spend large amounts on licenses but still need to develop network infrastructure
• Delays from deadlines, expenditures and limited licenses
• Partnering– Increases involvement and cash flow
• Concerns– 3G technologies untested
– High prices to recoup for high costs
– Some existing networks already achieve 3G speeds
– National commerce boundaries worldwide
2001 Prentice Hall, Inc. All rights reserved.
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8.3 Worldwide Wireless Evolution
• Technological and cultural differences between US and other countries affect wireless use and market penetration
2001 Prentice Hall, Inc. All rights reserved.
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8.3.1 Technological and Cultural Factors Effecting Wireless Adoption
• Underdeveloped regions use wireless infrastructure solutions (cheaper than wired)
• Standards
– US has multiple standards, phone disabled outside service area
– Many other countries are more standardized, have broader phone use
• Wireless Application Protocol– Enables wireless devices to access web servers
– Wireless Internet Portal: site with services specifically designed for wireless devices
2001 Prentice Hall, Inc. All rights reserved.
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8.4 International Wireless Technologies and Markets
• The international wireless market is developing rapidly– For example, over 300 million people outside the United
States had cell phones by the end of 2000
2001 Prentice Hall, Inc. All rights reserved.
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8.4.1 Asia and the Pacific
• Asia has a highly advanced wireless market– Japan, South Korea, and Taiwan all have high market
penetrations
– China has low market penetration despite 46.5 million subscribers
– India has large potential market
Country Subscribers (millions) Penetration
Japan 57.95 43.4
China 46.5 3.7
South Korea 27.5 53.3
Taiwan 11.45 51.6
Fig. 8.1 Top Asian/Pacific cell phone markets. Courtesy of Refreq.com.
2001 Prentice Hall, Inc. All rights reserved.
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8.4.2 Europe
• The European wireless market– Sweden, Italy, and Portugal have highest penetration
– Italy, UK, and Germany have most subscribers
• Ericsson (Sweden)– 30% world’s wireless market
– 50% 3G contracts
Country Subscribers (millions) Penetration
Italy 31.1 52.2
UK 25.5 42.9
Germany 25.0 30.2
France 21.1 35.5
Spain 16.4 41
Turkey 9.2 14
Netherlands 7.1 44.9
Sweden 5.4 60
Portugal 4.8 47.8
Fig. 8.2 Top European cell phone markets. Courtesy of Refreq.com.
2001 Prentice Hall, Inc. All rights reserved.
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8.4.3 North, Central and South America
• Brazil, Mexico, Canada, and Argentina have relatively high cell phone markets
• South America is attractive market for foreign investment
• Central America still slow to embrace technology
Country Subscribers (millions) Penetration
Brazil 14.4 8.3
Mexico 8.7 8.6
Canada 7.0 22.4
Argentina 4.7 12.7
Fig. 8.3 Top North and South American cell phone markets. Courtesy of Refreq.com.
2001 Prentice Hall, Inc. All rights reserved.
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8.4.4 Australia and New Zealand
• Australian government to auction 3G licenses in city-by-city auction
• 4 companies won 3G licenses after 6 month auction in New Zealand
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8.4.5 Africa
• African developments in wireless infrastructures attracts foreign investors– South Africa and Morocco are the leaders and have offered
3G licenses
– South Africa is one of the most mature wireless markets and one of the top 20 in the world with approximately 5.3 million cell-phone subscribers at the end of 2000
2001 Prentice Hall, Inc. All rights reserved.
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8.5 Creating an m-Business with Global Capabilities
• Globalization is often critical for business looking to expand growth and opportunities
• Issues to consider:– Will revenues cover costs?
– Will other cultures react positively to product?
2001 Prentice Hall, Inc. All rights reserved.
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8.5.1 Choosing an International Market
• Market Factors– Potential competitors and product saturation
– Per capita income
– Internet/technology rates
• Research Web Sites– U.S. International Trade Administration’s Office of Trade an
d Economic Statistics
– U.S. Office of Telecommunications Technologies
– Idiom Inc.
– Global Reach
– www.refreq.com
2001 Prentice Hall, Inc. All rights reserved.
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8.5.1 Choosing an International Market
• Registering new domain names for foreign countries– Internet Assigned Numbers Authority
– NetNames
2001 Prentice Hall, Inc. All rights reserved.
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8.5.2 Internationalization and Localization
• Internationalization: – restructuring software to process foreign variations
– Unicode: encoding system assigns numbers to characters
• Localization– translation and cultural adaptation of site
• Logos’ Multi-lingual e-translation portal:– translates words or phrases into different languages
• Human Translators for grammar, humor, culture– Aquarius: connects businesses with translators
2001 Prentice Hall, Inc. All rights reserved.
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8.5.2 Internationalization and Localization
• Localization Considerations– Language translation may affect space and positioning
– Cultural associations of color
– Localizing content
– Adapting icons and logos
– International pricing and exchange rates
– Web sites should retain overall company feel for global branding
• Levels of Information– Global Content: universal information
– Regional Content: product and marketing information
– Local Content: web site specific material on regional page
2001 Prentice Hall, Inc. All rights reserved.
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8.5.2 Internationalization and Localization
• Companies offering translation and localization solutions– eTranslate
– Bowne Global Solutions
– GlobalSight
– Idiom
– Lionbridge Technologies
– WorldPoint Interactive
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8.5.2 Internationalization and Localization
Logos dictionary query page with the English word “why” translated into several other languages. (Courtesy of Logos Group)
2001 Prentice Hall, Inc. All rights reserved.
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8.5.2 Internationalization and Localization
Aquarius.net translator search. (Courtesy of Language Networks BV)