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CHAPTER 6 Wireless, Mobile Computing and Mobile Commerce

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1 CHAPTER 6 Wireless, Mobile Computing and Mobile Commerce
Copyright John Wiley & Sons Canada

2 CHAPTER 6: Wireless, Mobile Computing and Mobile Commerce
6.1 Wireless Technologies 6.2 Wireless Computer Networks and Internet Access 6.3 Mobile Computing and Mobile Commerce 6.4 Pervasive Computing 6.5 Wireless Security Issues Copyright John Wiley & Sons Canada

3 Copyright John Wiley & Sons Canada
LEARNING OBJECTIVES Describe the four main types of wireless transmission media. Identify at least one advantage and one disadvantage of each type. Discuss the basic purposes of short-range, medium-range, and long-range networks. Explain how businesses can use at least one technology employed by each type of network. Copyright John Wiley & Sons Canada

4 LEARNING OBJECTIVES (CONTINUED)
Discuss the five major m-commerce applications. Provide a specific example of how each application can benefit a business. Define “pervasive computing.” Describe two technologies that underlie this technology. Provide at least one example of how a business can utilize each one. Identify the four major threats to wireless networks. Explain, with examples, how each one can damage a business. Copyright John Wiley & Sons Canada

5 Copyright John Wiley & Sons Canada
OPENING CASE CASE 6.1 The Battle for the Mobile Wallet The Problem To satisfy customers and keep their business, retailers are looking for strategies to speed up the checkout process and improve the overall customer experience. One strategy is to rely on customers’ smart phones as a replacement for all of their credit and debit cards. Instead of swiping a plastic card at the checkout counter, consumers merely wave their phones a few inches above a payment terminal. This process uses a contact-free technology called near-field communications or mobile wallet. : Source: Slavoljub Pantelic/ Shutterstock Copyright John Wiley & Sons Canada

6 Copyright John Wiley & Sons Canada
OPENING CASE The Problem (continued) The issues are: major battle among large corporations for market share (Visa, MC, PayPal, etc.) companies (i.e. Starbucks) are developing proprietary mobile wallet technologies retailers, have to install terminals that accept mobile payments Copyright John Wiley & Sons Canada

7 Copyright John Wiley & Sons Canada
OPENING CASE The Solutions Mobile phone carriers. Three large cellular providers in Canada—Bell, Rogers, and TELUS—have a joint venture called EnStream that creates a digital wallet into which customers of card-issuing banks can easily move their accounts. Credit card issuers. In 2000, RBC (Royal Bank of Canada, and BMO (Bank of Montreal, formed a joint venture called Moneris ( Moneris allows consumers to make purchases with the tap of a button, instead of having to enter their credit card number, billing address, and other information each time they make a transaction. Click on the hyperlinks in this slide to connect access the various Websites. Copyright John Wiley & Sons Canada

8 Copyright John Wiley & Sons Canada
OPENING CASE The Solutions (continued) Technology companies. Google has its own payment system called Google Wallet ( PayPal has developed PayPal X, which has evolved into X-Commerce ( Individual companies. Starbucks has a pay-by-phone service ( and Tim Hortons has similarly gone to paperless payments (although it is not considered a mobile wallet). You can use a debit card, credit card, or load money onto your Tim Hortons card for contact-free payments. Click on the hyperlinks in this slide to access the various Websites. Copyright John Wiley & Sons Canada

9 Copyright John Wiley & Sons Canada
OPENING CASE The Results The potential for large revenue streams is real, because mobile wallets have clear advantages. For example: Which are you more likely to have with you at any given moment—your phone or your physical wallet? Also, keep in mind that if you lose your phone, it can be located on a map and remotely deactivated. Plus, your phone can be password protected. Your physical wallet, however, does not have such tools. Copyright John Wiley & Sons Canada

10 Copyright John Wiley & Sons Canada
OPENING CASE Discussion What are the benefits and drawbacks for using the Mobile Wallet? For consumers? For retailers? Copyright John Wiley & Sons Canada

11 Copyright John Wiley & Sons Canada
OPENING CASE What We Learned From This Case The opening case describes the intense competition among large and small companies for access to the vast sums of money generated by the form of wireless communications called mobile commerce. Copyright John Wiley & Sons Canada

12 Copyright John Wiley & Sons Canada
WIRELESS V. MOBILE Wireless means exactly what it says: without wires. In contrast, mobile is something that changes its location over time. Some wireless networks, such as MiFi are also mobile. Others, however, are fixed. For example, microwave towers form fixed wireless networks. Copyright John Wiley & Sons Canada

13 Copyright John Wiley & Sons Canada
DEFINITIONS Mobile computing involves a real-time, wireless connection between a mobile device and other computing environments, such as the Internet or an intranet. Mobile commerce (m-commerce) involves e-commerce (EC) transactions that are conducted with a mobile device. Pervasive computing (ubiquitous computing) means that virtually every object has processing power with wireless or wired connections to a global network. Copyright John Wiley & Sons Canada

14 Copyright John Wiley & Sons Canada
WIRELESS DEVICES Wireless devices provide three major advantages to users: They are small enough to easily carry or wear. They have sufficient computing power to perform productive tasks. They can communicate wirelessly with the Internet and other devices. Copyright John Wiley & Sons Canada

15 CAPABILITIES OF WIRELESS DEVICES
Cellular telephony Bluetooth Wi-Fi Digital camera Global positioning system Organizer Scheduler Address book Calculator access Short message service (SMS) Instant messaging Text messaging MP2 music player Video player Internet access QWERTY keyboard Copyright John Wiley & Sons Canada

16 6.1 WIRELESS TECHNOLOGIES
Individuals find wireless devices convenient and productive to use for several reasons: They can make productive use of time that formerly was wasted (for example, the time spent commuting to work on public transportation). Because people can take these devices with them, their work locations are becoming much more flexible. Wireless technology enables working time to be scheduled around personal and professional obligations. Copyright John Wiley & Sons Canada

17 6.1 WIRELESS TECHNOLOGIES (CONTINUED)
Wireless devices: are small enough to easily carry or wear, have sufficient computing power to perform productive tasks and can communicate wirelessly with the Internet and other devices. Copyright John Wiley & Sons Canada

18 HISTORY OF THE CELL PHONE
Check out the history of the cell phone in images Clicking on the link above will take you to the photo essay on cell phones. Copyright John Wiley & Sons Canada

19 THE POWER OF CELL PHONES
By 2011 there were 6 billion (representing more than 85 percent of the world’s population at that time). This represents the fastest global diffusion of any technology in human history. Cell phones have made an even bigger difference in less time in underdeveloped areas where land lines are scarce. Cell phones have become the driving force behind many modernizing economies. Copyright John Wiley & Sons Canada

20 THE POWER OF CELL PHONES (CONTINUED)
Cell phones can heavily influence politics. Your cell phone now can be your wallet. In many large cities, cell phones are being used to transmit real-time traffic information, such as automobile speeds, the extent of traffic jams, and expected travel times, and to pay for parking. Femtocells work with any cell phone, and they relieve congestion on cell towers and cellular frequencies by creating extra capacity at very low cost. Copyright John Wiley & Sons Canada

21 WIRELESS TRANSMISSION MEDIA
Wireless media, or broadcast media, transmit signals without wires. The major types of wireless media are: microwave satellite radio infrared Copyright John Wiley & Sons Canada

22 SATELLITE FOOTPRINT COMPARISON
Figure 6.1 Comparison of satellite footprints. Satellite transmission systems make use of communication satellites. Currently, there are three types of satellites around the earth: geostationary (GEO), medium-earth-orbit (MEO), and low-earth-orbit (LEO). Each type has a different orbit, with the GEO being farthest from the earth and the LEO the closest. Copyright John Wiley & Sons Canada

23 WIRELESS TRANSMISSION MEDIA (CONTINUED)
Microwave Transmission Satellite transmission Geostationary Orbit (GEO) Middle Earth Orbit (MEO) Low Earth Orbit (LEO) Internet Over Satellite (IOS) Radio Microwave transmission systems transmit data via electromagnetic waves. These systems are used for high-volume, long-distance, line-of-sight communication. Line-of-sight means that the transmitter and receiver must be in view of each other. Satellite transmission systems make use of communication satellites; three types of satellites, each in a different orbit: Geostationary (GEO): Geostationary earth orbit satellites orbit 35,900 kilometres directly above the equator, maintain a fixed position above the earth’s surface because at their altitude, their orbital period matches the 24-hour rotational period of the earth, receivers on the earth do not have to track GEO satellites, excellent for sending television programs to cable operators and for broadcasting directly to homes. Medium-earth-orbit (MEO): located about 10,354 kilometres above the earth’s surface, require more satellites to cover the earth than do GEO orbits because MEO footprints are smaller. MEO satellites have two advantages over GEO satellites: They are less expensive, and they do not have an appreciable propagation delay. Low-earth-orbit (LEO): are located 640 to 1,125 kilometres above the earth’s surface, they have little, if any, propagation delay, move with respect to a point on the earth’s surface and therefore must be tracked by receivers. LEO satellites are more difficult to track than are MEO satellites because LEO satellites move much more quickly relative to a point on the earth, they consume less power and cost less to launch than do GEO and MEO satellites. Internet over satellite: enables users to access the Internet via GEO satellites from a dish mounted on the side of their homes. Radio transmission uses radio-wave frequencies to send data directly between transmitters and receivers. Copyright John Wiley & Sons Canada

24 HOW THE GLOBAL POSITIONING SYSTEM WORKS
Click here to go to a link explaining GPS capabilities. The global positioning system (GPS) is a wireless system that uses satellites to enable users to determine their position anywhere on the earth. GPS is supported by 24 MEO satellites that are shared worldwide. The exact position of each satellite is always known because the satellite continuously broadcasts its position along with a time signal. By using the known speed of the signals and the distance from three satellites (for two-dimensional location) or four satellites (for three-dimensional location), GPS software can find the location of any receiving station or user within a range of three metres. GPS software also can convert the user’s latitude and longitude to an electronic map. Copyright John Wiley & Sons Canada

25 Copyright John Wiley & Sons Canada
GPS SYSTEMS Commercial use of GPS for activities such as navigating, mapping, and surveying has become widespread, particularly in remote areas. Figure 6.2 Obtaining GPS information in an automobile. Copyright John Wiley & Sons Canada

26 Copyright John Wiley & Sons Canada
OTHER GPS Three other global positioning systems are either planned or operational: Russian GLONASS European Union GALILEO China BEIDOU Three other global positioning systems are either planned or operational: The Russian GPS, called GLONASS, was completed in The system fell into disrepair, however, with the collapse of the Soviet economy. In 2010, GLONASS achieved 100 percent coverage of Russian territory. The European Union GPS, called Galileo, has an anticipated completion date of 2015. Finally, China expects to complete its GPS, called Beidou, by 2020. Click on the hyperlinks in this slide to access information on GLONASS & GALILEO Copyright John Wiley & Sons Canada

27 Copyright John Wiley & Sons Canada
INFRARED A test to see if your TV remote control is working Infrared light is red light that is not commonly visible to human eyes; common uses are in remote control units for TVs, VCRs, DVDs, CD players. You can use the digital camera on your cell phone to see if your TV remote control is working. Digital cameras are sensitive to infrared light, so if you point your TV remote control at your cell phone, its digital camera will pick up the infrared beam if the remote is working. (As in the image above.) Copyright John Wiley & Sons Canada

28 6.2 WIRELESS COMPUTER NETWORKS AND INTERNET ACCESS
Short range wireless networks Bluetooth, Ultra-Wideband, Near-Field Communications Medium range wireless networks Wireless Fidelity (Wi-Fi), Wi-Fi Direct, MiFi, Wireless Mesh Networks Wide area wireless networks Short-range wireless networks Short-range wireless networks simplify the task of connecting one device to another by eliminating wires and enabling users to move around while they use the devices. In general, short-range wireless networks have a range of 30 metres or less. Medium-range wireless networks Medium-range wireless networks are the familiar wireless local area networks (WLANs). The most common type of medium-range wireless network is Wireless Fidelity, or Wi-Fi. WLANs are useful in a variety of settings, some of which may be challenging. Wide-area wireless networks connect users to the Internet over a geographically dispersed territory. Copyright John Wiley & Sons Canada

29 SHORT RANGE WIRELESS NETWORKS
Bluetooth Ultra-Wideband Near-Field Communications Copyright John Wiley & Sons Canada

30 Copyright John Wiley & Sons Canada
BLUETOOTH Click here to access industry information on Bluetooth Bluetooth ( is an industry specification used to create small personal area networks. Bluetooth 1.0 can link up to eight devices within a 10-metre area with a bandwidth of 700 Kbps (kilobits per second) using low-power, radio-based communication. Bluetooth 2.0 can transmit up to 2.1 Mbps (megabits per second) and at greater power, up to 100 metres. Copyright John Wiley & Sons Canada

31 Copyright John Wiley & Sons Canada
ULTRA-WIDEBAND (UWB) Ultra-wideband (UWB) is a high-bandwidth wireless technology with transmission speeds in excess of 100 Mbps. Example: streaming multimedia from, say, a personal computer to a television. This article discusses the use of UWB in fire-fighting. Ultra-wideband technology enables firefighters to detect people behind walls, or in smoke-filled environments with zero visibility. Copyright John Wiley & Sons Canada

32 NEAR-FIELD COMMUNICATIONS (NFC)
Near-field communications (NFC) has the smallest range of any short-range wireless network. It is designed to be embedded in mobile devices such as cell phones and credit cards. Near-field communications (NFC) has the smallest range of any short-range wireless network. It is designed to be embedded in mobile devices such as cell phones and credit cards. Example: swiping your device or card within a few centimetres of point-of-sale terminals to pay for items. Copyright John Wiley & Sons Canada

33 MEDIUM RANGE WIRELESS NETWORKS
Wireless Fidelity (Wi-Fi) Wi-Fi Direct MiFi Wireless Mesh Networks Wireless Fidelity (or Wi-Fi) is a medium-range wireless local area network (WLAN), which is basically like a wired LAN, but without the cables. In a typical configuration, a transmitter with an antenna, called a wireless access point, connects to a wired LAN or to satellite dishes that provide an Internet connection. Copyright John Wiley & Sons Canada

34 Copyright John Wiley & Sons Canada
A WI-FI HOTSPOT A wireless access point provides service to a number of users within a small geographical perimeter (up to about 60 metres), known as a hotspot. MiFi is a small, portable, wireless device that provides users with a permanent Wi-Fi hotspot wherever they go. Thus, users are always connected to the Internet. The range of the MiFi device is about 10 metres. Figure 6.3 Wireless access point. Copyright John Wiley & Sons Canada

35 WIRELESS MESH NETWORKS
Corporations are integrating Wi-Fi into their strategies. For example, Starbucks, McDonalds, Tim Hortons, Indigo, and Second Cup offer customers Wi-Fi in many of their stores, primarily for Internet access. Mesh networks use multiple Wi-Fi access points to create a wide area network. Mesh networks could have been discussed in the long-range wireless section, but they appear here because they are essentially a series of interconnected local area networks Figure 6.4 Starbucks’ patrons using Wi-Fi. Copyright John Wiley & Sons Canada

36 WIDE-AREA WIRELESS NETWORKS
Cellular Radio 1st Generation 2nd Generation 2.5 Generation 3rd Generation (3G) 4th Generation (4G) Wireless Broadband or WiMax Cellular Radio: use radio waves to provide two-way communication Cellular telephones provide two-way radio communications over a cellular network of base stations with seamless handoffs. The technology has progressed through several stages. First generation (1G) cellular used analog signals and had low bandwidth (capacity). Second generation (2G) uses digital signals primarily for voice communication; it provides data communication up to 10 Kbps. 2.5G uses digital signals and provides voice and data communication up to 144 Kbps. Third generation (3G) uses digital signals and can transmit voice and data up to 384 Kbps when the device is moving at a walking pace, 128 Kbps when it is moving in an automobile, and up to 2 Mbps when it is in a fixed location. 3G supports video, web browsing, and instant messaging. Fourth generation (4G) is not one defined technology or standard and has been rolled out in some countries. It has been in use in Canada since 2012 The International Telecommunications Union has specified speed requirements for 4G: 100 Mbps (100 million bits per second) for high-mobility communications such as cars and trains, and 1 Gbps (1 billion bits per second) for low-mobility communications such as pedestrians. Wireless Broadband or WiMax: access range up to 31 miles and data-transfer rate up to 75 Mbps Copyright John Wiley & Sons Canada

37 Copyright John Wiley & Sons Canada
CELLULAR RADIO This slide illustrates how the cell phone communicates with radio antennas, or towers, placed within adjacent geographic areas called cells. A telephone message is transmitted to the local cell—that is, the antenna—by the cell phone and then is passed from cell to cell until it reaches the cell of its destination. At this final cell, the message either is transmitted to the receiving cell phone or is transferred to the public switched telephone system to be transmitted to a wireline telephone. This is why you can use a cell phone to call other cell phones as well as standard wireline phones. Figure 6.5 Smartphone and GPS system. Copyright John Wiley & Sons Canada

38 WIRELESS BROADBAND OR WIMAX
Worldwide Interoperability for Microwave Access, popularly known as WiMAX: has a wireless access range of up to 50 kilometres, compared with 100 metres for Wi-Fi has a data-transfer rate of up to 75 Mbps is a secure system, and it offers features such as voice and video antennas can transmit broadband Internet connections to antennas on homes and businesses several kilometres away can provide long-distance broadband wireless access to rural areas and other locations that are not currently being served Copyright John Wiley & Sons Canada

39 6.3 MOBILE COMPUTING AND MOBILE COMMERCE
Mobile computing has two major characteristics that differentiate it from other forms of computing: Mobility Broad reach Mobile computing: refers to real-time, wireless connection between a mobile device and other computing environments, such as the Internet and an intranet. Mobility means that users carry a device with them and can initiate a real-time contact with other systems from wherever they happen to be. Broad reach refers to the fact that users carrying an open mobile device can be reached instantly, even across great distances. These two characteristics, mobility and broad reach, create five value-added attributes that break the barriers of geography and time: ubiquity, convenience, instant connectivity, personalization, and localization of products and services. Copyright John Wiley & Sons Canada

40 Copyright John Wiley & Sons Canada
MOBILE COMPUTING Five value-added attributes of mobile computing: Ubiquity Convenience Instant connectivity Personalization Localization of products and services Ubiquity: mobile device can provide information and communications regardless of user’s location. Convenience and Instant Connectivity: Internet-enabled mobile device makes it easy and fast to access the Web, intranets, and other mobile devices without booting up a PC or placing a call. Personalization: information can be customized and sent to individual consumers (e.g., as a short message service). Localization of products and services: knowing a user’s location helps companies advertise their products and services. Copyright John Wiley & Sons Canada

41 Copyright John Wiley & Sons Canada
MOBILE COMMERCE The development of m-commerce is driven by the following factors: Widespread availability of mobile devices No need for a PC The “cell phone culture” Declining prices Bandwidth improvement Mobile commerce (or m-commerce) is e-commerce (EC) transactions that are conducted in a wireless environment, especially via the Internet, can be transacted via the Internet, private communication lines, smart cards, and other infrastructures, and, creates opportunities for businesses to deliver new services to existing customers and to attract new customers. Copyright John Wiley & Sons Canada

42 MOBILE COMMERCE APPLICATIONS
Location-Based Applications and Services Financial Services Intrabusiness Applications Accessing Information Telemetry Copyright John Wiley & Sons Canada

43 LOCATION-BASED APPLICATIONS
Location-based mobile commerce is called location-based commerce or L-commerce. Shopping from Wireless Devices Location-based Advertising Location-based Services Shopping from Wireless Devices – online vendors allow customers to shop from wireless devices. Location-based Advertising is when marketers know the current locations and preferences of mobile users, they can send user-specific advertising messages to wireless devices about nearby shops, malls and restaurants. Location-based Services provide information to customers about local services and conditions via cell phones. Copyright John Wiley & Sons Canada

44 USING GOOGLE EARTH FOR LOCATION-BASED SERVICES
Click here to access industry information on Google Earth Google Earth provides symbols that include: icons for photographs taken of the area, icons for information about the area, and icons for specific businesses that are in the area and are of interest to the user. Copyright John Wiley & Sons Canada

45 MOBILE COMMERCE APPLICATIONS
Financial Services include: Banking Wireless payments & micropayments Money transfers Wireless wallets Bill-payment services Mobile Banking: Many banks now offer access to financial & account information, the ability to transfer funds, and receive alerts on digital cell phones, smart phones, and PDAs. Wireless Electronic Payment Systems: these systems transfer mobile phones into secure, self-contained purchasing tools capable of instantly authorizing payments over the cellular network. Micropayments: electronic payments for small purchase amounts (generally less than $10). Mobile (Wireless) Wallets: technologies that allow cardholders to make purchases with a single click from their mobile devices. Wireless Bill Payments: Services provided by banking institutions that allow customers to pay their bills directly from their cell phones. Copyright John Wiley & Sons Canada

46 ACCESSING INFORMATION
Mobile Portal Voice Portal Mobile Portal: aggregates and provides content and services for mobile users that include news, sports, , entertainment, travel and restaurant information; community services; and stock trading. Voice Portal: is a Web site with an audio interface and can also be accessed through a standard phone or cell phone. Copyright John Wiley & Sons Canada

47 Copyright John Wiley & Sons Canada
TELEMETRY Examples of Telemetry Applications Medicine Automobiles Find My iPhone Copyright John Wiley & Sons Canada

48 Copyright John Wiley & Sons Canada
6.4 PERVASIVE COMPUTING Pervasive computing, also called ubiquitous computing, is a world in which virtually every object has processing power together with wireless or wired connections to a global network. Two technologies provide the infrastructure for pervasive computing: Radio Frequency Identification (RFID) Wireless Sensor Networks Copyright John Wiley & Sons Canada

49 RADIO-FREQUENCY IDENTIFICATION (RFID) TECHNOLOGY
A QR code is a two-dimensional code, readable by dedicated QR readers and camera phones. RFID systems use tags with embedded microchips, which contain data, and antennas to transmit radio signals over a short distance to RFID readers. A typical barcode, known as the Universal Product Code (UPC), is made up of 12 digits that are batched in various groups. Radio-frequency identification (RFID) technology allows manufacturers to attach tags with antennas and computer chips to goods and then track their movement through radio signals. RFID was developed to eventually replace barcodes. Two systems are being developed to replace barcodes: QR (for “quick response”) codes and RFID systems. Figure 6.6 QR code, RFID tag, and barcodes. Copyright John Wiley & Sons Canada

50 Copyright John Wiley & Sons Canada
QR CODES QR codes have several advantages over barcodes: can store much more information than barcodes. data types include numbers, text, URLs, and even Japanese characters size is small because they store information horizontally and vertically more resistant to damage than are barcodes can be read from any direction or angle, so the possibility of a failure in reading a QR code is reduced. Copyright John Wiley & Sons Canada

51 Copyright John Wiley & Sons Canada
RFID TAGS There are two basic types of RFID tags: Active RFID tags use internal batteries for power, and they broadcast radio waves to a reader. Passive RFID tags rely entirely on readers for their power. See video illustrating an example of the commercial use of RFID RFID systems use tags with embedded microchips, which contain data, and antennas to transmit radio signals over a short distance to RFID readers. The readers pass the data over a network to a computer for processing. The chip in the RFID tag is programmed with information that uniquely identifies an item. It also contains information about the item such as its location and where and when it was made. Figure 6.7 Small RFID reader and RFID tag. Copyright John Wiley & Sons Canada

52 Copyright John Wiley & Sons Canada
BARCODES Anatomy of a 12-digit barcode (UPC): first digit identifies the item type next five digits identify the manufacturer next five identify the product last digit is a check digit for error detection Copyright John Wiley & Sons Canada

53 WIRELESS SENSOR NETWORKS
Wireless sensor networks (WSNs) are networks of interconnected, battery-powered, wireless sensors called motes that are placed into the physical environment. Motes: collect data from many points over an extended space contains processing, storage, and radio-frequency sensors and antennas “wakes up” or activates for a fraction of a second when it has data to transmit Copyright John Wiley & Sons Canada

54 6.5 WIRELESS SECURITY ISSUES
There are four major threats to wireless networks: Rogue access point War driving Eavesdropping RF (Radio frequency) jamming Wireless is a broadcast medium, and transmissions can be intercepted by anyone who is close enough and has access to the appropriate equipment. Rogue access point: is an unauthorized access point to a wireless network. War driving: is the act of locating WLANs while driving around a city or elsewhere. Eavesdropping: refers to efforts by unauthorized users to try to access data traveling over wireless networks. RF (Radio frequency) jamming: is when a person or a device intentionally or unintentionally interferes with your wireless network transmissions. Copyright John Wiley & Sons Canada

55 Copyright John Wiley & Sons Canada
CHAPTER CLOSING Four main types of wireless transmission media: microwave transmission, satellite transmission, radio transmission, infrared Three types of networks: short-range wireless, medium-range wireless and wide area networks Five major m-commerce applications: location-based services, mobile financial applications, intrabusiness applications, accessing information, telemetry Copyright John Wiley & Sons Canada

56 CHAPTER CLOSING (CONTINUED)
Two technologies provide the infrastructure for pervasive computing: radio-frequency identification (RFID) and wireless sensor networks (WSNs). Four major threats to wireless networks: rogue access points, war driving, eavesdropping, and radio-frequency jamming Copyright John Wiley & Sons Canada

57 Copyright John Wiley & Sons Canada
CLOSING CASE CASE 6.2 Mobile Reading with Kobo The Problem In the early 2000s, sales of books at Indigio were declining, and the publishing industry was reeling due to the many changes brought by the Internet. Books could be purchased online all around the world, and were increasingly available in e-book form. In July 2010, Kobo launched a physical e-reader at Indigo stores and gained market share by becoming a low-cost leader. Now, Amazon, Barnes and Noble, and Apple have a large user base buying their books and apps. Copyright John Wiley & Sons Canada

58 Copyright John Wiley & Sons Canada
CLOSING CASE The Solutions Kobo implemented rapid and frequent hardware innovation, staying at the low end of the price scale. Kobo introduced an open-standard policy. Rather than using a private book format (like Amazon), Kobo’s books are sold in epub format, the most common format used for e-books. Kobo also encourages community among its readers. The biggest difference is that Kobo is in bookstores, meaning book lovers can buy their readers the same place they go to touch and feel their favourite books. Copyright John Wiley & Sons Canada

59 Copyright John Wiley & Sons Canada
CLOSING CASE The Results As of March 2015, Kobo had millions of active readers in over 190 countries, and Kobo customers can read Kobo books from other platforms, including BlackBerry, Apple, and Android. Copyright John Wiley & Sons Canada

60 Copyright John Wiley & Sons Canada
CLOSING CASE Discussion Explain why it is important for a company like Kobo to continue to innovate its hardware. How has wireless technology contributed to the pace of innovation? Why is Kobo’s position on standards (i.e., the use of the epub format) relevant to its success? Why does Kobo provide apps for multiple platforms (i.e., BlackBerry, Apple, and Android)? Copyright John Wiley & Sons Canada

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