Mobile and Wireless Systems Beyond 3G: Managing New Business Opportunities

415 Pages·2005·7.58 MB·English

by  Nansi Shi

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Margherita Pagani
I-LAB Centre for Research on the Digital Economy,
Bocconi University, Italy
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Hershey • London • Melbourne • Singapore
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Copyright © 2005 by IRM Press. All rights reserved. No part of this book may be reproduced in
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Library of Congress Cataloging-in-Publication Data
Mobile and wireless systems beyond 3G : managing new business opportunities / Margherita
Pagani, editor.
p. cm.
Includes bibliographical references and index.
ISBN 1-59140-570-X (hc) -- ISBN 1-59140-544-0 (sc) -- ISBN 1-59140-545-9 (ebook)
1. Cellular telephone services industry. 2. Wireless communication systems. I. Pagani,
Margherita, 1971-
HE9713.M62 2005
384.5'35'0684--dc22
2004023609
British Cataloguing in Publication Data
A Cataloguing in Publication record for this book is available from the British Library.
All work contributed to this book is new, previously-unpublished material. The views expressed in
this book are those of the authors, but not necessarily of the publisher.
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Preface.............................................................................................................vi
Section I: Market View
Chapter I
3G Wireless Market Attractiveness: Dynamic Challenges for
Competitive Advantages...............................................................................1
Margherita Pagani, I-LAB Centre for Research on the Digital
Economy, Bocconi University, Italy
Section II: Determinants of Mobile Technology Adoption
Chapter II
Corporate Adoption of Mobile Cell Phones: Business Opportunities for
3G and Beyond..............................................................................................24
G. Keith Roberts, University of Redlands, USA
James B. Pick, University of Redlands, USA
Chapter III
Adoption of Mobile Data Services: Towards a Framework for
Sector Analysis..............................................................................................51
Elizabeth Fife, University of Southern California, USA
Francis Pereira, University of Southern California, USA
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Section III: Business Opportunities
with Mobile Services and Applications
Chapter IV
Incorporating Commercial Space Technology into Mobile Services:
Developing Innovative Business Models ................................................82
Phillip Olla, Brunel University, UK
Chapter V
Ubiquitous Commerce: Beyond Wireless Commerce ........................ 114
Holtjona Galanxhi-Janaqi, University of Nebraska – Lincoln,
USA
Fiona Fui-Hoon Nah, University of Nebraska – Lincoln, USA
Chapter VI
Tracking and Tracing Applications of 3G for SMEs............................ 130
Bardo Fraunholz, Deakin University, Australia
Chandana Unnithan, Deakin University, Australia
Jürgen Jung, Uni Duisburg-Essen, Germany
Section IV: Technical Challenges
Chapter VII
Next Generation Cellular Network Planning: Transmission Issues
and Proposals ............................................................................................. 156
Spiros Louvros, COSMOTE S.A., Greece
Athanassios C. Iossifides, COSMOTE S.A., Greece
Chapter VIII
Packet Level Performance Measurement Schemes and
Their Limitations....................................................................................... 183
John Schormans, Queen Mary University of London, UK
Chi Ming Leung, Queen Mary University of London, UK
Section V: Security Issues
Chapter IX
The Smart Card in Mobile Communications: Enabler of
Next-Generation (NG) Services.............................................................. 221
Claus Dietze, The European Telecommunications Standards
Institute (ETSI), France
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Chapter X
Recent Developments in WLAN Security............................................. 254
Göran Pulkkis, Arcada Polytechnic, Finland
Kaj J. Grahn, Arcada Polytechnic, Finland
Jonny Karlsson, Arcada Polytechnic, Finland
Mikko Martikainen, Arcada Polytechnic, Finland
Daniel Escartin Daniel, Escuela Universitaria Politecnica de Teruel,
Spain
Chapter XI
Security, Privacy, and Trust in Mobile Systems and Applications .... 312
Marco Cremonini, University of Milan, Italy
Ernesto Damiani, University of Milan, Italy
Sabrina De Capitani di Vimercati, University of Milan, Italy
Pierangela Samarati, University of Milan, Italy
Angelo Corallo, University of Lecce, Italy
Gianluca Elia, University of Lecce, Italy
Section VI: Turning the Threat into an Opportunity
Chapter XII
Visions for the Completion of the European Successful Migration to 3G
Systems and Services: Current and Future Options for Technology
Evolution, Business Opportunities, Market Development, and
Regulatory Challenges ............................................................................. 342
Ioannis P. Chochliouros, Hellenic Telecommunications Organization
S.A. (OTE), Greece
Anastasia S. Spiliopoulou-Chochliourou, Hellenic Telecommunications
Organization S.A. (OTE), Greece
Appendix..................................................................................................... 369
About the Authors..................................................................................... 388
Index............................................................................................................ 396
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With the rapid growth of the wireless mobile applications, wireless voice has
begun to challenge wireline voice, whereas the desire to access e-mail, surf the
Web or download music (e.g., MP3) wirelessly is increasing for wireless data.
While second generation (2G) cellular wireless systems, such as cdmaOne1,
GSM2 and TDMA3, introduced digital technology to wireless cellular systems
to deal with the increasing demand for wireless applications, there is still the
need for more spectrally efficient technologies for two reasons. First, wireless
voice capacity is expected to continue to grow. Second, the introduction of
high-speed wireless data will require more bandwidth.
While the current 2G technologies can support wireless data using cdmaOne
circuit switched data or general packet radio system (GPRS), there is clearly
the need for more spectrally efficient wireless technology given the limited
spectrum available in the wireless bands.
The ability to provide more spectrally efficient voice capacity and spectrally
efficient high-speed wireless data has been the focus of third-generation (3G)
technologies.
Three important changes have taken place over the last year that will force us
to change the way mobile networks develop services to their users:
• Changes in the expectations of users — the boundaries between “core”
network services and “value added services” in mobile communications
networks are increasingly blurred. Most importantly, the services and con-
tent that users expect to receive are no longer the massively produced
homogenous things of the past; they are tailored services that are prob-
ably only appealing to thinner segments of the population;
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• An imbalance between network operators and independent application
developers in the “value network” for the provision of network-dependant
services; and
• The long-awaited launch of next generation networks and handsets.
The answer to the above challenges lies in leveraging the deployment of next-
generation networks to bring in the myriad application developers into an envi-
ronment that harnesses their nimbleness. Network operators have today the
tools to deploy environments that would allow the challengers to work better by
working within, and in partnership with, the network operator. The opportunity
to the operators runs through a change in their engineering focus that will en-
able a dramatic change in their business model.
The business model calls for gathering as many of the small “challengers” in as
possible; making it worth their while to work with, rather than against, the op-
erator, and insuring that operators get a larger cut of any transaction than sim-
ply being a bit pipe.
This change in the business model would imply that today’s operators would
have to change their current focus and processes greatly. They would need to
recognize that their new “partners” are an integral part of the business strategy
and treat them accordingly, by providing easier access to operators’ business
processes.
A sea change in engineering focus will be necessary to allow this business
model to succeed. It will be necessary to change our understanding of what
“core network” and “value added services” (VAS) are. VAS infrastructure will
have to move to the core, at least intellectually. Moreover the nature of the
VAS infrastructure will have to change. Operators will steel need to deploy
robust “telco grade” systems, but these systems will be tooled to serve as the
launching pad for dozens, or thousands, of applications brought forward by the
new partners.
This book explores these challenges and their implications on the development
of future services.
Purpose of the Book
This book is a pioneering initiative to develop an interdisciplinary view of wire-
less systems, drawing upon the best work of diverse streams of economic and
technological researches.
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Researchers have conducted extensive studies and developed theories focused
on specific parts of the challenges generated by mobile and wireless systems.
This book draws together these varied perspectives and places them in the
hands of managers and students.
These insights have never been more needed. As the competitive environment
becomes increasingly dynamic, managers need fresh perspectives and a sharply
tuned understanding of business opportunities with mobile services and applica-
tions. This is the goal of this book.
Since the perspectives developed from different streams of research and theory,
there is not a perfect fit. Nor is the goal of this work to produce one formulaic
answer to the complex challenge of mobile and wireless systems. Instead, the
following chapters offer diverse perspectives on analyzing strategy and diverse
tools for formulating strategy.
Organization of the Book
The book is organized into six main parts and 12 chapters.
Section I (Chapter I) is intended to describe changes in competitive advan-
tages deriving from the development of Third Generation services. Chapter I
provides the theoretical framework of competitive analysis and it focuses on
value chain strategy framework giving an analysis of wireless market attrac-
tiveness and changes in competitive advantages. Five scenarios are outlined
and validated in order to analyze the behavior of systems not only in manage-
ment but also in environment change, politics, economic behavior.
Section II (Chapters II-III) considers determinants of mobile technology adop-
tion from the user’s context. In this part, Chapter II focuses on identifying the
technology and non-technology factors that corporations consider important in
their decision to deploy devices designed for mobile telephony and mobile data
services. It also considers the approval steps in decision-making, the extent and
importance of 3G and beyond as it relates to web-enabled cell phones, and the
functional areas of use of cell phones.
Chapter III discusses requirements for uptake to occur in specific sectors
where a value proposition for mobile data services has been identified and yet
adoption rates have varied. Adoption of mobile data services refers to organi-
zational-related solutions as well as service innovations related to the product
or service delivered to end-users.
Section III (Chapter IV-VI) surveys the most business opportunities with mo-
bile services and applications. In this part, Chapter IV presents a framework
derived from the literature to aid the development of viable business models
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expected from the amalgamation of mobile telecommunication and space infra-
structure. It also identifies the various actors involved in the delivery of these
services.
Chapter V introduces the basic ideas and characteristics underlying the con-
cept of ubiquity commerce. It discusses market drivers and applications of u-
commerce as well as the underlying technology and the benefits and challenges
of u-commerce.
Chapter VI explores the opportunities offered by 3G services/business appli-
cations to SMEs, making inferences from the long term research project and
providing a broad critical outlook on future opportunities for SMEs to benefit
from 3G services.
Section IV (Chapter VII-VIII) explores main technical challenges. In Chap-
ter VII a multi-layer ATM architecture is proposed for the interconnection of
current and future mobile communications nodes. Moreover, facing the huge
expansion of transmission interconnection network that will support current
and future generation mobile communications, a modification of the standard
ATM cell structure is introduced in order to efficiently support user mobility
functional procedures. The proposed ATM architecture is integrated over a
suitable, with respect to region and capacity, physical interface, consisting of
SDH or SONET for wide area topologies, wireless links for outdoor areas and
LED - POF combination for indoor areas. Being an interesting alternative over
copper or traditional fiber, POF characteristics, and performance issues are
analyzed.
New business opportunities for mobile, wireless and fixed networks are going
to require managed packet-based services; this requires SLAs that relate to the
level of QoS purchased, and the measurement (monitoring) of information loss
and delay at the packet level. Chapter VIII investigates the two available
measurement techniques: passive and active monitoring and it proposes some
ideas which may enhance accuracy.
Section V (Chapter IX-X) deepens security and privacy issues related to mo-
bile and wireless systems development. In this part Chapter IX focuses on
smart card in mobile communications as a service platform and as a marketing
instrument for the network operator. The (Universal) Subscriber Identity Mod-
ule—(U)SIM—is the network operator’s “business card” that is handed out to
the end-user. The design of the artwork printed on the smart card, the packag-
ing as well as the functionality directly influence the positioning of the opera-
tors’ brand in the market. The smart card as used in mobile communications
enjoys a high reputation and is very important for the network operators. It
does not only provide security and trust thus securing the revenues of the net-
work operator but is also a platform for value added services. Chapter X
focuses on wireless local area network security evolution and WLAN security
threats. Special attention is given to user authentication schemes and to protec-