M-commerce technologies services and business models pdf

Unlike subscriber services, metered services are based on actual usage rates. Matching buyers and sellers; 2. Facilitating the exchange of information, goods, services, and payments associated with market transactions; and 3. Providing an institutional infrastructure, such as a legal and regulatory framework, which enables the efficient functioning of the market.

The dynamics of the information presentation 2. The degree of customization 3. Is it real? Why is B2B e-commerce so attractive? How do we transform our organization into a digital one? What are the top challenges of EC? EC Prentice Hall By Prattusha Chakraborty. A structural analysis of business-to-business digital markets By fttt ssfsf. In the process, new business models are being invented. While each player is experimenting with its own variation, one thing is clear: mobile commerce often involves a complex web of business partners, from technology platform vendors to infrastructure equipment vendors and handset manufacturers, all the way to application developers, content and service providers, mobile telecom operators, banks, content aggregators, and mobile portals, to name just a few.

The result is an m-commerce jigsaw puzzle where each player can only hope to focus on a small subset of the entire value creation process. Mobile operators view m-commerce as an opportunity to reinvent themselves as sophisticated high-margin transaction support providers, service providers, and content aggregators. The success of this transformation depends to a great extent on their ability to leverage their existing customer relationship and build partnerships with a critical mass of content providers.

At the core of this strategy is the realization that whoever. Billing details, user location, and preferences are all critical to the delivery of convenient and highly personalized services, and represent a major asset in negotiating favorable revenue-sharing arrangements with content providers and advertisers.

Traditional Internet portals, banks, content providers, and a variety of new entrants are all pursuing somewhat similar strategies, each trying to leverage its advantage to build a closer relationship with the consumer and position itself at the center of the value chain. A first discussion of m-commerce business models is provided in Chapter 2.

More in-depth discussions are provided in Part Three, where we review different types of m-commerce services and the specific business models they give rise to. Interoperability Challenge M-commerce marks the convergence between a culture of openness and interoperability, which has been the Internets hallmark, and a world fragmented into pockets of competing mobile telecommunication standards.

Economies of scale, complex value chains, and consumer demand for global roaming and affordable services all require interoperability. Reconciling the many standards and technologies of the emerging m-commerce industry, from data transport to billing, location tracking, and payment, is no easy task. Throughout this book, we discuss a variety of efforts that aim at doing just that. Security and Privacy Challenges Security and privacy are yet another area where m-commerce imposes new constraints.

Vulnerability of the air interface, the limited computing power of mobile devices, and the low data rates and frequent disconnects of wireless communication all provide for challenging problems when it comes to guaranteeing end-to-end security.

As mobile devices proliferate and start being used to access corporate intranets and extranets, they also become increasingly tempting targets for hackers. However, probably one of the most challenging aspects of m-commerce has to do with finding solutions that reconcile users demand for highly personalized services with their desire for privacy.

There is a fine line between presenting consumers with useful services that are relevant to their location and preferences, and bombarding them with annoying. Security issues relating to mobile communication standards, Internet standards and mobile payment solutions are respectively addressed in Chapters 3, 4, and 5.

Privacy issues are discussed in several chapters, including Chapter 7. How This Book Is Organized We have tried to organize the chapters in this book in a modular fashion to accommodate the interests and backgrounds of as many readers as possible. We have also tried to keep a fairly informal style, while doing our best to introduce every single technical term and acronym by now, if you have read through this first chapter, you should realize that there are quite a few.

There is also a glossary of terms provided at the end of the book to save you from having to remember where each term was first introducedespecially if you do not plan to read every chapter. In general, we have assumed a fairly minimal technological understanding. If you are a manager who reads technology articles in publications such as The Wall Street Journal or BusinessWeek, you should have no problem following and will hopefully enjoy the many business discussions we have included.

On the other hand, if you are a developer who is already familiar with mobile communication technologies, Internet protocols, or encryption, you might want to just skim through the first few pages of chapters where we briefly review some of the basics associated with these technologies.

In general, we have tried to stay away from deep technological discussionsthere are a number of excellent textbooks on each of the technologies we cover, some of which are listed in the references at the end of this text. Instead, our goal is to give you a broad overview of the many technologies, services, and business models of mobile commerce.

In the process, we try to show how technologies and standards impact the business models of players across the value chain, and how existing and new business models and usage scenarios also drive the development of new technologies and standards. Specifically, the book is organized in three parts. Here, we attempt to understand what mobile commerce m-commerce is all about. We take a first look at m-commerce services and the business models of different players across the m-commerce value chain.

In the process, we also review the drivers behind the emergence of m-commerce, and explain how it differs from its older cousin, e-commerce. Hopefully, as you reach the end of this chapter, you will have realized that m-commerce is actually quite differentnot just in terms of technologies, but also in terms of services, usage scenarios, players, and business models.

In Chapter 2, we take a closer look at the many different categories of players found across the m-commerce value chain. We try to understand the context within which they operate, and how the opportunities and threats of m-commerce are already starting to impact their business models and their place in the value chain.

This includes a discussion of mobile operators, mobile portals, content providers, Wireless Application Service Providers WASPs , payment providers, location brokers, advertisers, handset manufacturers, equipment providers, and more. Chapter 3 starts with a brief introduction of basic mobile communication principles, and follows with an overview of the main 2G, 2. Rather than getting into the nitty-gritty of every single standard, our discussion focuses on major features introduced by different generations of technologies, such as packet-switched communication, always-on functionality, and faster data rates.

We examine key factors influencing the selection of one standard over another, as different mobile operators upgrade their networks. We also look at the timeframe associated with the transition to 3G and its impact on the development of successful m-commerce applications and services over the years to come. The mobile Internet is about adapting these standards to the specificity of mobile environments and the multitude of 2G, 2.

This chapter attempts to introduce some of the basic issues involved in reconciling two fairly different views of the world: the Internet view, and the mobile communication view. As we will see, much progress has been made in this area over the past few years, with Internet protocols being adapted to the demands of mobility and with the emergence of a de facto standard, the Wireless Application Protocol WAP , which has recently made significant efforts to converge with IETF and W3C standards.

The situation, however, is far from perfect, and security issues, for one, continue to require special attention. These and other considerations have important implications for players across the entire m-commerce value chain. Chapter 5: Mobile Security and Payment. While issues of security are addressed in Chapters 3 and 4, this chapter revisits some of them.

In particular, we provide an informal review of basic cryptography mechanisms used to support securityno, there will not be a single mathematical equation in the textand examine how these mechanisms are affected by the limitations of mobile devices and mobile communication networks. This includes a discussion of both secret and public key cryptography, and the increasingly important role of smart cards to support security on mobile devices.

The second part of this chapter is devoted to mobile payments, which rely heavily on the mobile security solutions discussed earlier in the chapter.

As we will see, mobile operators are trying to leverage their control of authentication mechanisms and their micropayment infrastructures, to become the mobile users preferred payment provider.

We review solutions and emerging standards that aim at circumventing this situation, as well as mobile payment solutions that extend approaches originally developed for the fixed Internet. Some of these efforts include using mobile devices as part of point-of-sale payment solutions, where they could replace cash and credit cards.

Part Three is where all the pieces come together. We begin by looking at m-commerce services available today. Our discussion covers both consumer services and business applications.

Here, we review mobile portals as well a number of more specific services such as mobile banking, mobile ticketing, or mobile entertainment.

In each case, we look at emerging usage scenarios and business opportunities and compare the approaches taken by different players. The chapter ends with a discussion of solutions aimed at empowering mobile workers by enabling them to remotely connect to the enterprises intranet and access a variety of business applications such as mobile sales force support, mobile ERP, mobile CRM, and mobile fleet management.

Many of todays m-commerce services remain very limited when it comes to offering customers services that are directly relevant to their preferences, location, or other contextual attributes for example, weather, people you are with, activities you are trying to accomplish, and so forth.

In this chapter, we introduce new solutions aimed at facilitating the personalization and contextualization of mobile services. This includes discussion of 3GPPs Personal Service Environment, which aims at providing a single repository for all the customers personal preferences, as well as similar efforts recently launched by industry leaders such as Microsoft or members of Suns Liberty Alliance.

This is followed by a presentation of new positioning technologies and the many location-sensitive services they entail. Here again, we look at the different players in the market and their business models. We conclude with a discussion of future context-aware solutions, based on ongoing research efforts in industry and academia.

Chapter 8: Early Lessons and Future Prospects. This is hardly a surprise, given the hundreds of billions of dollars at stake in infrastructure equipment, spectrum licenses, and projected revenue opportunitiesnot to mention the.

Internet gold rush mentality that characterized the late s. Since then, technological glitches, user complaints, poorly thought-out business models, and a number of other setbacks have forced many players to re-evaluate their forecast and strategies.

In this chapter, we review some of the early lessons of mobile commerce and attempt to provide more realistic predictions for the years to come, outlining both shortterm and long-term opportunities and challenges. Further Readings For those of you interested in further exploring some of the topics discussed in this text, we have included a list of references and Web pointers at the end of the book.

Introduction Before we delve into the many technologies, applications, and services of m-commerce, it helps to have an overall view of the m-commerce value chain.

While no two value chains are the same, the objective of this chapter is to introduce you to some of the main categories of players involved in the creation and delivery of m-commerce applications and services, to help you understand the role they each play and the context within which they operate.

This chapter also provides a first discussion of major m-commerce sources of revenue and business models. In Part Three, we will refine these generic models and look at some of their more specific instantiations in the context of different types of applications and services. As Figure 2. They generally fall into one or more of the following categories: I I I I. Infrastructure Equipment Vendors While they are not very visible to the consumer, infrastructure equipment vendors play a key role in m-commerce.

They provide the base stations, mobile switching systems, and other solutions necessary for the wireless transmission of voice and data. In , this market was already worth. Value Creation Figure 2. According to research firm Forward Concepts, as the number of mobile phone users continues to grow and as operators worldwide start deploying 2. With such huge sums at stake, it should be no surprise that equipment vendors have been among the most ardent proponents of the mobile Internet and m-commerce.

With a number of mobile operators strapped for cash following the purchase of spectrum licenses, they also found that they had no choice but to consent to major loans and other financial incentives to entice operators to go ahead with 2.

In the process, they have even more closely tied their fate to that of mobile operators, and find themselves to be major stakeholders in the m-commerce market. Key mobile infrastructure vendors include Ericsson, which in held close to 30 percent of the worldwide market, followed by Lucent, Motorola, which is working closely with Cisco, and Nokia, each with market shares around 10 percent at the time. As these companies battle for shares of the huge infrastructure market, they each benefit from different advantages.

As major mobile Internet stakeholders, infrastructure vendors are also playing a critical role in key standardization and interoperability initiatives, including: I I. The Mobile electronic Transaction MeT initiative, which focuses on the development of standards for secure mobile transactions. The Location Interoperability Forum LIF , whose objective is to provide for interoperability across different location-tracking technologies.

Over time, these technologies will likely be integrated into the 3G infrastructure, making it possible for someone to seamlessly access m-commerce services and applications across both wide area cellular networks and WLANs; for example, as users enter malls or airports, their devices will automatically connect through the WLAN.

Software Vendors Software vendors are another important, yet not very visible, part of the broader m-commerce value chain. They are the suppliers of operating systems, databases, microbrowsers, and other middleware technologies that are central to providing a secure and user-friendly experience to the mobile customer.

As mobile operators, handset manufacturers, mobile portals, and other m-commerce players pick among different software platforms, they inevitably limit the number of partners they can work with and services they can offer, due to numerous incompatibility problems across competing offerings. Windows CE and its Singer version specifically developed by Microsoft for mobile phones. The microbrowser war is dominated by Openwave formerly known as Phone. Key players in the mobile database market include Sybase subsidiary, iAnywhere Solutions, Oracle, IBM and a small number of other contenders.

Because of the variety of software solutions and the number of players in each market, a complete overview of this category of players is beyond the scope of this book. As can be expected, most of these players rely on business models that combine licensing, consulting and maintenance fees.

A growing segment of these companies also operate as WASPs. Content Providers Above all, m-commerce is about content and giving users access to a myriad of mobile services. As we already saw in Chapter 1, mobile services fall under a number of categories, giving rise to different possible sources of revenue and business models. Content can range from news to directory services, directions, shopping and ticketing services, entertainment services, financial services, and so forth.

Possible sources of revenue include subscription fees, transaction fees, share of traffic charges collected by the mobile operator, and various forms of sponsorship such as advertising, referral fees, and commissions.

They can be combined in a number of different ways. However, one can generally distinguish between the following core business models: I I. User Fee Business Models What better way to make money than to charge users for the content they access?

This model works as long as the content is compelling enough and it is regularly updated. Typical content that users will be willing to pay for can range from news, to traffic conditions, games and entertainment, to highly specialized information such as weather conditions at different golf clubs around town. Payment can be in the form of a subscription fee, on an actual-usage basis, or even a combination of both.

Subscription fees tend to be easier to collect than transaction fees, and provide a more predictable source of income. Independent content providers might find it more economical to rely on the mobile network operator for the collection of subscriptions, as in the current i-Mode model where DoCoMo keeps 9 percent of the fee it collects on behalf of official content providers see Figure 2.

A typical example of a content provider relying on this model is Bandai and its Chara-Pa service, which, for a dollar a month, allows customers to download one cartoon a day as a screensaver see Figure 2. By April , the. Figure 2. As of November , 30 percent of all official i-Mode content providers were charging a monthly subscription fee.

Usage fees are the ultimate source of revenue in the sense that they make it possible to charge for actual usage of a service, with each access generating additional revenue for the content provider. With the majority of mobile transactions involving small fees for example, 50 cents for driving directions or for a traffic update, or a dollar to download a song , this model is even more difficult for small content providers to implement on their own than the subscription model, requiring again that they partner with a mobile operator, a mobile portal, or some other third-party micro-billing provider.

Most of the sites that charge user fees also provide some content for free to entice customers to subscribe to their premium content. Shopping Business Models This model is fairly similar to the one of wired e-tailers see Figure 2. Players here sell goods and services over the mobile Internet, viewing it essentially as another distribution channel.

They include both pure-play Internet companies such as Amazon or Travelocity, as well as companies with a brick-and-mortar presence such as Fleurop Interflora. Clearly, only some categories of products and services are amenable to mobile shopping. It is unlikely that people will start buying cars from their mobile phones, while waiting in the subway. Buying movie tickets, arranging for last-minute travel reservations or purchasing CDs and flowers are likely to be among the most popular categories of mobile etailing services.

In the case of mobile ticketing, EMPS, a joint initiative between Nokia, Nordea, and Visa, is exploring solutions that will make it possible for users to download reservation information on their mobile phone and later beam it at airport and movie check-in counters, using technology such as Bluetooth.

As more autonomous forms of mobile shopping become available through the launch of shopping agents or shopbots , we might see a broader range of items purchased over the mobile Internet. Sites such as Yahoo! Mobile already offer wireless access to comparison shopping engines that search and compare prices among merchants registered with the portal. Payment also often involves a third party, not represented here, such as a credit card company, bank, or mobile network operator, which will generally keep a percentage of the transaction.

However, the mobile Internet shopping model is not just about overcoming the limitations of mobile devices. It also opens the door to much more convenient and more personalized, location-sensitive, and context-aware scenarios, where mobile users are presented with products directly relevant to their current locations or activities. This includes telling mobile users about nearby hotels if they are on a business trip, or nearby movies if they are looking for something to do in the evening.

In general, because they are so personal and follow you wherever you go, mobile devices are an ideal marketing channel for impulse buying. The mobile Internet also offers the possibility of anytime, anywhere extension to wired online auctions, making it possible for users to enter and follow auctions while on the move. Today, major online auction houses such as eBay already support wireless access to their sites.

Finally, mobile shopping combined with location-tracking functionality gives vendors the ability to automatically determine where a service or product should be delivered. This could prove particularly appealing to taxi companies or pizza delivery outlets. Note also that, while mobile shopping transactions tend to involve larger sums of money than those in the User Fee Business Model, they also generally involve third-party billing through credit card companies, banks, or mobile operators.

Marketing Business Models Brick-and-mortar companies and traditional online players can decide to simply use the mobile Internet as a marketing channel for their core business. Under this model, the company creates a mobile presence to reach existing and potential customers, but does not necessarily sell anything over the mobile Internet.

In other words, the mobile presence is subsidized by the companys core business, which can range from selling cars, CDs, or magazines, to renting videos or even offering education programs in the case of a university see Figure 2. Early experience with mobile marketing, as reported by companies such as Tsutaya, a video rental and CD retail chain with 1, outlets across Japan, suggests that, if properly used, it can be a very effective tool.

For example, Tsutaya lets its users enter their music preferences and sends them notifications when their favorite artists release new CDs or are scheduled to give concerts. As of late , Tsutayas mobile marketing. Their core business subsidizes their mobile Internet presence. The key to effective mobile marketing is knowing your customer and leveraging that knowledge to deliver highly relevant messages; namely, messages that reflect their personal preferences as well as possibly their locations or other contextual attributes.

Given the limited screen real estate available on mobile devices and the limited attention span of users, failure to deliver well-targeted messages can potentially backlash and antagonize users. Privacy laws and emerging anti-spamming legislation further protect consumers from unwanted marketing messages. Permission marketing approaches such as Tsutayas are often an effective way to obtain information about the user along with their consent to receive a certain number of notification messages each day.

Variations of this model include offering users to enroll in lotteries, giving away trial subscriptions to services, and so forth. Often, initial contact with users takes place over the wired Internet, where they are prompted to provide their personal details. This information is later used to send them targeted promotional messages on their wireless devices.

This includes the delivery of online coupons that can be saved on the device and later redeemed at retail outlets. Tsutaya has reported that, among its customers, mobile users who had received online coupons were 70 percent more likely to visit their stores and, on average, spent 59 percent more than their non-mobile counterparts. We report similar results later in the chapter, where we discuss Mobile Advertising Business Models.

Improved Efficiency Models Other content providers simply view the mobile Internet as an opportunity to cut costs and improve customer satisfaction. This is similar to the view many companies have of the wired Internet, where an online presence can help reduce operating expenses.

Mobile examples of this model include mobile banking, mobile trading, or mobile ticketing. These solutions make it possible for companies to cut down on personnel at branch offices, call centers, ticketing booths, and counters. They can also help disintermediate traditional business models, as in the case of airlines selling tickets directly to consumers instead of going through travel agencies.

All in all, conducting business over the mobile Internet can result in significant cost savings, offsetting the cost of mobilizing business processes. It helps make the companys operation less human intensive, while offering customers the added convenience of anywhere, anytime access to a number of banking, trading, and shopping services see Figure 2. In Japan, Daiwa Securities reported in late that 35 percent of its customers bought and sold stock over the Internet, with 20 percent of these transactions taking place over i-Mode, accounting for close to 7 percent of all their transactions.

Daiwa has also reported that its mobile online transactions were about 50 percent cheaper than traditional ones. Similar cost-saving and efficiency arguments can be made for business-tobusiness scenarios and business-to-employee scenarios, where mobilizing. Examples range from mobile groupware solutions to mobile sales force support applications that allow salespeople to access enterprise back-end systems, check product availability, and negotiate more competitive delivery dates with customers.

Advertising Business Models Advertising, the model of choice in the early days of the wired Internet, has shown its limitations, at least when used as the sole source of revenue. Yet it remains a valid model, offering content providers a valuable source of extra revenue. As already mentioned in our discussion of the Marketing Business Model, the small screen size of mobile devices requires a much more targeted approach to advertising than on the wired Internet.

This can be done by presenting users with ads that are directly relevant to queries they enterwhen the user is looking for a place to eat, present him or her with coupons for nearby restaurants. It can also involve collecting users preferences or developing solutions that will deliver ads that are sensitive to their current locations and other contextual attributes such as time of day or local weather conditions.

If it is sunny, tell the user about the ice cream place around the corner. Finally, different types of incentives can help make users more receptive to promotional messages.

This can include discounts on their mobile Internet plans. Some sites such Keitai Net in Japan go as far as paying users 15 yens per ad they click on. The advertiser generally pays a fee to the content provider for adding promotional messages to the content it delivers to mobile users. In practice, a number of variations of this model can be found, many involving intermediaries such as wireless advertising agencies, content aggregators, mobile portals, mobile network operators, or wireless ASPs.

Advertising fees can be computed in different ways. While many hybrid models exist, one often distinguishes between the following methods of computing fees: Flat fees. The simplest form involves charging the advertiser a flat fee in exchange for showing the ad over a given period of time. Variations might include wireless advertising agencies, working as intermediaries between advertisers and content providers. Traffic-based fees.

Like on the wired Web, traffic-based fees enable advertisers to pay based on the number of times their message is displayed. CPM or cost-per-thousand ad impressions is the standard metric being used here. Early wireless ad campaigns suggest that advertisers may be willing to pay substantially more for 1, ad impressions on the mobile Internet than on the wired one. This is in part explained by the small screens of mobile devices, as well as the higher success rates reported so far for wireless ad campaigns in comparison with traditional online ones.

Performance-based fees. Just like in the wired Internet space, advertisers will often demand fees that reflect actual results. Fees based on the number of click-throughs or call-throughs, or more generally, fees that depend on the specific action taken by the user cost-per-action such as subscribing to a service, as well as commission fees based on actual sales cost-per-sale , all fall under this category.

An example of this model is implemented by Japanese content provider GolfOnline. The company receives a commission from partnering golf courses on every reservation made via its site. Ads can be delivered in push or pull mode. In push advertising, ads are sent to the user, often in the form of short messages or alerts.

Privacy, consumer rights, and user tolerance considerations generally require approaches where the consumer opts in to receive push advertising messages.

In pull advertising, consumers view promotional messages in combination with content they retrieve while interacting with a particular Web site. Here, ads are delivered in response to user actions, such as looking for nearby movie theatres, rather than being pushed on them. Examples of wireless ads are shown in Figure 2. In a mobile advertising trial involving over different ads and the delivery of 2 million wireless ad impressions in late , wireless advertising company Windwire reported click-through and call-through rates ranging between 10 and 15 percent, in contrast to regular wired Internet click-through rates of 0.

Without a doubt, such high figures partly reflect peoples initial curiosity about the ads. At the same time, they suggest that mobile devices are at least as good an advertising medium as the wired Internet and quite possibly a better one. This is in part due to the limited screen sizes, which actually increase the chance of the user seeing any given ad. In the longer run, the ability to send targeted ads based on the users location or other contextual attributes should further increase the effectiveness of mobile advertising.

While other research firms are more cautious in their forecast, most. Revenue-Sharing Business Models As we saw in the User Fee Business Model, selling content directly to the consumer is not always an easy proposition, in part due to the marketing overhead and the need to often rely on third-party billing providers. In other situations, the information or services maintained by a company, while valuable, might not be sufficient for a standalone Web presence.

Instead, the content provider might have to rely on partnership arrangements with other companies that will combine its content with that of others in order to deliver a compelling service. Examples of content often falling under this category include local weather updates, traffic conditions, news updates, and games and other entertainment services. Revenue sharing generally involves collecting payment from the user and redistributing it across the different parties involved in delivering the service see Figure 2.

Companies such as Webraska, which provides driving maps, along with real-time traffic reporting, complete with alternate route suggestions, rely on revenue-sharing arrangements with mobile operators such as Orange, M1, or Voicestream. Webraska itself has revenue-sharing arrangements with other content providers such as Londonbased Trafficmaster, which supplies it with up-to-date traffic and travel-time information derived from a private network of bridge-mounted infrared sensors monitoring traffic speed on British roads.

Mobile game providers such as Digital Bridges or BlueFactory have similar revenue-. When the mobile content provider happens to be a mobile network operator, payment might be traffic-based.

Popular games like Digital Bridges Wireless Pet, where a mobile user has to care for a digital pet, have been reported to already have tens of thousands of users generating close to , hours of airtime per month for mobile operators across Europe.

As we will see later in this chapter, companies relying on revenuesharing arrangements with mobile network operators often view themselves as wireless ASPs WASPs.

This is the case of companies such as Webraska or BlueFactory. Content Aggregators Content aggregators focus on value creation by assembling content from multiple sources. Many mobile content aggregators focus on repackaging information for distribution over the mobile Internet. For example, Singapore-based BuzzCity aggregates, repurposes, and WAPenables local, regional, and international content through its djuice mobile portal, which is redistributed by mobile operators such as Telenor in Norway, DiGi in Malaysia, and TotalAccess in Thailand.

In general, independent mobile portals, most mobile network operators, and many wireless ASPs operate as content aggregators. Each of these categories of players is the subject of a section in the remainder of this chapter.

Mobile Network Operators With falling profit margins in the mature mobile voice markets of Asia, Europe, and North America, mobile network operators are under increasing pressure to turn to mobile data services and m-commerce for additional sources of revenue. In the process, they need to transform themselves from traditional mobile voice carriers to mobile Internet players that also cover more lucrative segments of the value chain see Figure 2.

This transformation means operating also as one or more of the following: Mobile Internet service provider. Offering Internet access to mobile users through plans that combine email and Web surfing. Mobile content provider. Leveraging their close relationship with the customer and their control of the first screen to deliver compelling information and services.

Mobile portal. Offering mobile users a one-stop solution for all their mobile Internet needs, from personalized content to messaging, calendar, and other Personal Information Management PIM applications and, in the process, positioning themselves as primary repository for the users personal information and preferences.

Mobile location broker. Leveraging information about the mobile users position to enter into profitable partnership arrangements with content providers, wireless ASPs, and portals. Mobile transaction provider. Taking advantage of their existing billing relationship with the customer and their micropayment infrastructure to collect fees on behalf of content providers.

The result is a number of possible business models combining different sources of revenue. Most mobile operators now offer Internet access plans to their users for a few dollars a month. Customers can buy products and get information about these products. Most of the E-commerce sites like Amazon have limited success in E-commerce.

However, one thing they all have common is that M-commerce is the important way to enhance their brands, increase their sales and products, and provide better services. In short the key feature of M-commerce is brighter than E-commerce. Business models issue by M-commerce. There are a lot of issues in business models. There are some common issues are. These issues are being common, but the major issue for companies is a wireless communication between customers and vendors.

The major task for business is how to provide services. For the business perception the word CRM customer relationship management allows for the business to manage their customer and vendors organization. No doubt M-commerce is need some specific area like Bank Transaction, Balance check, Check account information, etc.

Like connectivity problems, limited resources, etc. Each business has its own risk.