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M-commerce to Rule

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DQI Bureau
New Update

Change has indeed been the hallmark of the past millenium. Technology being

the prime driver, this change has manifested itself in every walk of life. Just

as the companies had started to get their balance in the fast changing world of

Internet and e-business–wireless technology promises to be another wave of

dramatic change. "Mobile commerce" or "m-commerce" or

"wireless commerce"–as this phenomenon is being termed, has already

started changing the rules of the game on the Indian business front. An

integration of mobile communication technology with electronic and wireless

commerce offers significant business advantages and opportunities beyond

e-business. But then with many e-business ventures unable to live up to

consumers’ expectation, can this wave become India’s new economy tsunami? In

other words, has India matured to embrace and benefit from this upcoming

technology? Global projections are astonishing with Strategy Analytics

predicting the total revenue from m-commerce transactions to reach $200 bn by

2005. Statistical predictions in the Indian context too seem to be optimistic.

Remarkable cellular phone penetration (the most widely adopted wireless

information device), and the increasing Internet subscriber base in India has

definitely set a conducive ground for wireless commerce revolution.

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"Connectivity sans wire" is the basic requirement for wireless

commerce to take off. And as India gears up for the m-com revolution, a new wave

of wireless products and services have swept the market. Today Indian consumers

have a host of options available and thus can choose a mobile device that suits

his/her budget and lifestyle. Further, cell phone manufacturers, service

providers and software/ network providers have started coming together to let

the Indian consumers get a feel of the m-commerce phenomena. Indian cellular

players are continuously striving to delight customers by increasing their

coverage and introducing value-added services. Cellular infrastructure rollout

is faster than fixed line and it is estimated that the cellular subscriber base

will surpass that of the fixed line by 2008. In fact the growth of cellular

infrastructure in India is fast becoming an index of the development of states.

Apart from the metros, states like Maharashtra, Gujarat, and Andhra Pradesh are

getting extensive coverage in every district and town. However, due to the

growing competition, the cellular companies have shifted their focus from

coverage to consolidation, emphasizing more on innovative services and prices.

While 3G and its related services are some time away, Indian operators have

already started rolling out the midway 2.5G GPRS services, that provides a

glimpse of the potential of 3G. That is ample evidence to prove a wireless

revolution is round the corner or already flickering but is wireless commerce

equally inevitable? Using a wireless device for actual/real commerce is still in

its infancy worldwide. Although early winning m-commerce applications like

mobile messaging, ticketing, stock trading, banking have become widespread in

developed countries it seems to be gaining grounds in Indian market as well.

Banks are tying up with cellular service providers to provide a full range of

mobile banking facilities to its customers. HDFC bank is the first Indian bank

to offer mobile banking services followed by others like ICICI and Global Trust.

Web portals are increasingly becoming WAP enabled in order to exploit the vast

opportunity that e-commerce denied them due to its restricted accessibility.

So one can assume that the ground is conducive for a quantum leap. But

corporate India, aware of the ebb of the dotcom tide has lost its zeal of

accepting any new technology. Companies are cautiously looking forward to a

clear revenue model for business transactions over mobile devices. Apart from

the general m-commerce barriers like the lack of a consistent wireless standard,

security concerns, and device limitations, the other infrastructural hassles

specific to the Indian economy seem to be giving way, thanks to the telecom

sector boom. But then, smooth connectivity and speedy data access while on the

move, have yet to be effective enough to let the consumers have the real

"anytime, anywhere…" experience.

Prof SM Ozair and Saboohi Nasim The authors are faculty members in the MBA

department at Aligarh Muslim University. They can be contacted at mail@dqindia.com

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