Transcript ppt-understand-why-mobile-internet-is-different-09-2001

Understanding why Mobile is different
… and how to take advantage
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Welcome to the world of CONFUSION…
i-mode
Stinger
HSCSD
WAP
GPRS
JAVA
2G
SIM Toolkit
Internet in your pocket
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Internet evolves
Whatever the terms… facts remains the same…
Mobile Internet
Internet
Internet
Fixed Internet
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The Mobile Internet
Waves
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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
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Evolution of Mobile Systems
TDMA
CDPD
GSM
EDGE
GPRS
WCDMA
PDC
PDC-P
cdmaOne
Packet Data
cdma2000 1XEV
cdma2000 1X
2G
First Step into 3G
3G phase 1
Evolved 3G
 64 kb/s
64 - 144 Kb/s
384 Kb/s - 2 Mb/s
384 Kb/s - 8 Mb/s
2000/2001
2001/2002
2003+
Time
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Mobile Internet Evolution
2001-2002
2003
2004
2005
Messages
Information
Media
Entertainment
Multimedia
Conversation
Quality
Volume
Data Path
Capacity
Real time
Any access
We will talk more on applications…
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Elements of a successful Mobile
Internet application?
 Mobility
 Positioning
 Personalisation
 Transaction
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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
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Lessons learned from testing
Why Applications Fail
 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
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Lessons learned from testing
TCP over Wireless Networks
 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
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Lessons learned from testing
HTTP over Wireless Networks
 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
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Tips to build a good Mobile application
Protocol layer
 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
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Tips to build a good Mobile application
Application layer
 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!)
App
Layer
Protocol
Layer
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Tips to build a good Mobile application
User interface - Improving perceived performance
User
Interface
 Keep the user in control and informed
 Progress meters, connection status etc
 Abort buttons
App
Layer
 Give the user choices between increasing
persistency, cancelling and just keep waiting
 Pre-load data
Protocol
Layer
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And importantly ..
Testing
 Network performance tests
 Protocol / Standards conformance e.g. WAP, Parlay
 Device compatibility
 End-to-End testing
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Related Technologies
 Bluetoothtm
– Seamless connectivity
– Split Device Enabler
– Merging Technologies
• Camera’s
• Printer’s
• The Fridge ...
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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
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Always Connected, Always On-line
…thinking is free
GPRS Overview
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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 be
Always 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.
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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
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Circuit-switched data vs ...
Single timeslot supports
single user...
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… vs Packet-switched Data
…now the same number of
timeslots for circuit-switched
can support many more users.
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MSC/VLR
GPRS/GSM Network
BTS
BSC
HLR
SGSN
SGSN - Serving GPRS Support Node
GGSN - Gateway GPRS Support Node
GGSN
Internet
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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
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User perspective
WAP, SMS,WWW, IP, Email, Messaging
Service
Provider
Transparent Permanent IP Connection
Internet
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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)
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Welcome to
JAPAN
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The answers soon…
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The Success of DoCoMo – i Mode
Service starts on February 1999
More than 20 million subscribers. On average, i-mode user is paying an extra 15$ / month
• 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.
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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
With 100 Yen, you can’t afford a meal in Japan.
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- Great Marketing !
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Project : Inspector Gadget
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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.
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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
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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
92%
Ponsel
3%
PDA
Notebook
YES, they all have
Cellular phones!
23%
Desktop
65%
0%
20%
40%
60%
80%
100%
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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
SMS
Almost all respondents
Have experienced SMS.
Other Services like
Internet, e-mail and Fax,
are not appealing.
94%
Internet
8%
e-mail
15%
Fax
7%
0%
20%
40%
60%
80%
100%
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Cellular Phone Usage and Habit - SMS
Half of them sends more than
5 SMS per day.
Frequency of using SMS/day
21%
14%
< 3 kali
29%
36%
3 - 5 kali
5 - 10 kali
> 10 kali
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The Internet
Trends
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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+
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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.
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Internet Usage and Habit
Browse Time
22%
35%
<1 jam
1 - 3 jam
>3 jam
43%
e-mail received / day
37%
39%
1-5 kali
6-10 kali
> 10 kali
24%
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Preferred Applications or Sites – M Commerce
• There’s a prospect for M-Commerce. 35% of respondents
used web-commerce, with limited number of transaction
Value of Transactions
and small value.
6%
How many times do you have transcation last
month?
25%
21%
<100rb
100-300rb
300-500rb
>500
3% 1%
31%
1X
48%
2-3X
3-5X
65%
>5X
We are on trial phase for
e-commerce
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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.
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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
Other
Dewasa
Belanja
1%
1%
3%
Chat
8%
MP3
6%
e-mail
23%
Informasi Berita
22%
Search Engine
17%
Hiburan
0%
19%
5%
10%
15%
20%
25%
The top 4 applications are : e-mail, Information, entertainment,
and search engine.
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Preferred Applications or Sites
What about applications on mobile device?
Expected Applications on Mobile Internet
Other
0%
Dewasa
Belanja
1%
5%
Chat
MP3
6%
6%
e-mail
24%
Informasi Berita
26%
Search Engine
14%
Hiburan
0%
18%
5%
10%
15%
20%
25%
30%
The top 4 applications are : Information, e-mail, Search engine,
and entertainment.
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Expected Cost
As most of the respondents take Internet for granted, so do
how they expect the cost for mobile internet.
Expected Cost for Mobile Internet
9%
1%
44%
<100
100-300
300-500
46%
>500
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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.
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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 !
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