text_TITL N:\work\projekty\šablony\sablony\logoC.wmf pruh_TITL Zápatí prezentace 1 Mobile Commerce In The Czech Republic Ondřej Částek castek@econ.muni.cz www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi Zápatí prezentace 2 What can you expect 1. 1.What is m-commerce 2. 2.Why should it be important 3. 3.Trends in m-commerce www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi Zápatí prezentace 3 Terms nLandline, n- main line or fixed-line - a telephone line which travels through a solid medium, either metal wire or optical fibre nMobile network carrier n- mobile network operator (MNO), also known as carrier service provider (CSP), wireless service provider, wireless carrier, mobile phone operator, or cellular company, is a telephone company that provides services for mobile phone subscribers www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi Zápatí prezentace 4 Terms nPostpaid n- on plan, tariff, tariff plan – use and than pay model. Usually period of one month and at least „base“ fee has to be paid. nPrepaid n- pay and than use model. Doesn‘t involve obligation to pay if you don‘t use the service, usually doesn‘t require a contract. nMobile technologies nInfrastructure operated by mobile network carriers n www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi M-commerce: definition n n nSet of processes which result in financial obligation and where at least one part is executed via mobile technologies n Zápatí prezentace 5 www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi Importance of m-commerce nFor economy nExpenses on mobile services (70 bil. CZK) nInvestments into mobile infrastructure (4.7 bil. CZK) nEmployment (20 thousand employees in this sector) n nFor businesses and individuals nOptimization of processes nNew applications (new services) n n n n n Zápatí prezentace 6 Data for 2011 Optimization: ČEZ in Romania (largest elektricity producer), data collection from 1 370 000 places, maintained by 181 employees. Proposed savings: 34 employees and 7 mil. CZK per year. www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi Importance for the economy nExample: Marketing spendings by mobile network operators n n1992: Czech telecomunications to SPT Telecom 10 mil. CZK n2000: SPT Telecom to Czech Telecom 250 mil. CZK n2002: Czech Telecom to Telefonica O2 500 mil. CZK n2002: Paegas to T-mobile 500-600 mil. CZK n2005/6: Oskar to Vodafone 500 mil. CZK n Zápatí prezentace 7 www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi n Zápatí prezentace 8 www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi n Zápatí prezentace 9 www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi n Zápatí prezentace 10 www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi Trends in m-commerce: penetration nPenetration CZ: 128.5 %, developed nations 117.8 %, Europe 119.5 %. nReal penetration: CZ in 2005: 76 %, 2008: 87.9 % Zápatí prezentace 11 mobilni telefony-pohlavi,vek Penetration in 2011 Penetration in CZ according to EC method (SIM cards used in last 3 months) www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi Trends in m-commerce: penetration n Zápatí prezentace 12 www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi Trends in m-commerce: penetration n Zápatí prezentace 13 Student Employed Unemployed Student Retired Mobile phone users according to economical activity (16yrs and older) www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi Trends in m-commerce: penetration n Zápatí prezentace 14 University High school Vocational training Primary education Mobile phone users according to education (16yrs and older) www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi Trends in m-commerce: prepaid vs. postpaid nPostpaid customers are much more profitable n- In 2008 Vodafone had about 50% customers on plans (= postpaid) and the ARPU of them was 966 CZK monthly. Compare to ARPU of prepaid customers 342 CZK nCustomers on plan are more likely to be loyal n- That is important because full portability of phone numbers was introduced Zápatí prezentace 15 Another point is, that low-income groups use rather postpaids, so for example in Australia mobile users were always likely to be on postpaid, but as the market is becoming more and more saturated, the providers are trying to get additional customers and these are mostly from the low-income group => so targeting to postpaid customers si the dominant strategy on Australian market nowadays. In 2007 was O2 overall ARPU 551 CZK and that was 989 CZK by customers on plan and 239 CZK by customers on prepaid. www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi Trends in m-commerce: data services nNowadays accesses to the internet from mobile network account for cca 20 % (in CZ in 2011) nThere are more and more services based on fast internet connection offered for mobile phones nCoverage with fast networks (3G) is higher and higher Zápatí prezentace 16 www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi 17 Expected services in 3G networks (Milvard Brown survey, CR 2005) 0 10 20 30 40 50 60 70 Portable travel guide Internet connectivity Mobile office Video call Push to talk File sharing Audio/video file download Push services Instant messaging/Chat Mobile (interactive) gaming Consumer Business The informants said, that they are willing to spend for these new services in average 480 Czech crowns monthly (which was quite optimistic, if you take into account that time spendings for voice and minimum data transfers (current monthly ARPU). 3G content (offered since 12/2005 in ČR) •Big brother type of entertainment •TV news •Traffic cameras •Music downloads •Online games www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi Trends in m-commerce: data services n Zápatí prezentace 18 Web pages browsing E-mail Social networks (Facebook) Large data downloads On line radio or TV On line gaming VoIP calls www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi Trends in m-commerce: data services n Zápatí prezentace 19 Standard Download speed theoretical Download speed real GSM 14,4 kbit/s 14,4 kbit/s HSCSD 115,2 kbit/s 43,2 kbit/s ISDN 1920 kbit/s 128 kbit/s GPRS 171,2 kbit/s 85,6 kbit/s EDGE 236,8 kbit/s 150 kbit/s CDMA2000 2457,6 kbit/s 300 – 1500 kbit/s UMTS 384 – 10 Mb/s 200 – 1800 kbit/s UMTS now faster www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi Trends in m-commerce: Use of mobile phones nThe start of use of mobile phones Zápatí prezentace 20 Age Cumulative frequency (%) 13 10,5 14 52,6 15 92,1 16 98,7 17 99 www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi 21 Why and how do people use mobile phones: Social connectivity (Morley, 2003) nMobile phone (MP) intensifies the social connectivity of the owner. To have MP means to be connected, to be a part of social network, to be available everywhere by everybody. When do I switch MP off (%) Never 69,9 Night 17,8 Other 6,8 Night + school 1,4 76 respondents between 17- 18, 2007 Half of the budget spent on using MP (students, 2007) www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi 22 Why and how do people use mobile phones: Attitude toward MP 1.If others had not have it, I would not have it too n The determinant here is the social network, social connectivity 2.I am addicted to MP n Saves time, is personal, not to have it is boring www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi 23 Why and how do people use mobile phones: MP – strongly personal thing nIshii, 2006: MP is not as much issue of mobility as issue of personalization and localization. n n 50 % of calls are made from home, 40 % from work and only 10 % outside these places n n Mobility is matter of place, time, and context Mobility – sign of a social status. However, owning and using MP is not explained only by greater mobility, but more importantly by greater personification, adjustment, adaption. www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi 24 Why and how do people use mobile phones: Mobility: place nPhysical motion from place to place Mobility: time nResults from physical mobility, means accelerating of processes, saving time, flexibility. nMicro-coordination, softening of time space and time dimensions www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi 25 Why and how do people use mobile phones: Mobility: context nCommunication face to face has to comply with context: environment, particular situation, mood. Mobile communication frees the participants of this. n Case: SMS vs videocalls n nDoes m-communication mean greater or lesser freedom? Situation: MP also creates the illusion of a private area in public space (calling or listening music in public transport) Freedom: matter of control www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi 26 Why and how do people use mobile phones: Mobility nDisconnectivity anxiety (Jim Taylor) nFeel of safety if in reach of own mobile phone nOwn world in the pocket n own world: social networks, contacts, pictures www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi 27 Why and how do people use mobile phones: Domestication of MP (Silverstone, Silverstone & Haddon) nInnovation is a process, not a single event nAssumptions: nlook behind function n(1) imaginativeness, (2) acquiring, n (3) materialization, (4) transformation Not only function matters, but also what is the symbolic meaning (social status?), how it changes identity of the owner/user 1.first news about the technology – we imagine, what is it, how to use, what the advantages might be 2.buying the technology, owning it for the first time 3.using and adjusting functions to the users’ needs 4.the technology becomes a part of users’ identity (pink laptop, hi-tech MP) 5.user becomes part of the technology? The technology changes the user? The landline: first in a hallway, than in other rooms and finally in bedroom. The way people use their MP matters: most SMS are sent at the beginning and at the end of working hours, than about 10:30 PM www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi 28 M-business applications: forms 1.m-Presence 2.m-Payment nm-Banking 3.m-Purchasing 4.m-Procurement 5.m-Shop 6.m-Auction 7.m-Care 8.m-Marketing 1.Ususally presentation of a business on WAP pages 2.Payments via Mobile phones. These have 2 advantages: a) user is not dependent on place, b) SIM cards provide good autentification options and security level •One of the most succesful applications of m-payments is m-banking (operating bank account via mobile phone) 3.B2B transaction, usually single 4.B2B purchases, but businesses are more interconnected 5.B2C, usually Logos, Ringtones, Software, Music, Videos 6.Auctions available via mobile phone 7.Call centers available from mobile phones www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi 29 Trends in m-commerce: M-marketing nForm of direct marketing nStill in its beginning nAny form of marketing activity via mobile phone 1.Addresses directly particular users 2.Reaches response rate approx. 15 % (almost three times more, than traditional telemarketing or direct mail) 3.Cheaper than traditional forms 4.Around 94 % of information is actually read and 23 % is forwarded to friends www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi 30 Trends in m-commerce: M-marketing (forms) 1.SMS messages 2.SMS competitions, voting, inquiries 3.Advergaming (via SMS, WAP, Java games) 4.Logos, ringtones 5.Bluecasting, cell broadcasting 6.Mobile tagging 1.Most used kind of M-marketing, for some time also the only kind. Nowadays not so favoured though, their similarity to spam on the side of addressee is too high, while on the side of sender too low: they cost much more than e-mails. Beside common advertising SMS can be found sponsored SMS and SMS, which reception is paid (In CR by Vodafone) 2.Premium SMS – common form, how users pay for their participating. But can be free (because of marketing purposes) 3.Can be used to introduce products 4. 5. Providing the content mentioned above via bluetooth or via push messages (typically in restaurants, shops or other business places) www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi 31 Mobile Tagging nA product bears a tagg nUser takes a picture of the tagg by mobile phone nApplication in mobile phone translates the picture into unique ID code, connects to server and provides link to webpages (or wappages) of product in question Subset of QR – Quick response codes – QR are subset of bar codes originated 1994, 2000 standardized as ISO norm high capacity, up to 30 % of its surface can be damaged without losing the information www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi 32 Mobile tagging – 2D code beetaggexamplestreamer In this example (BeeTagg) the „scanning“ with camera can be replaced by submitting the text and number to the software. The rest of process would be the same. www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi 33 http://is.muni.cz/ n www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi Trends in m-commerce: mobile payments 1.Premium SMS/MMS nMost known, most used, most expensive nMobile originated, mobile terminated 2.M-payment nThrough gateway like with credit card on internet, but phone number instead of cc number 3.M-purse (M-wallet) nConnected to bank account, credit card or prepaid amount. 4.NFC (near field communication) nNon contact short distance payment 5.M-banking Zápatí prezentace 34 1.Tickets (parking, cinema), visits at doctor´s office Price is deducted from prepaid credit or added to monthly bill. Commission for operator up to 50 %. 2.Commission for operator 10 – 40 %. 3.Commission similar to credit cards 1,5 % - 3,5 % 4.Instead of a credit card. Might be linked to prepaid credit or monthly bill, but does not have to. www.econ.muni.cz pruh+znak_ESF_13_gray4+bily_RGB pruh+znak_ESF_13_gray4+bily_RGB text_zahlavi Trends in m-commerce: mobile payments Method Cash Credit/debit card Non contact card Non contact sticker NFC SIM Time (s) 29 26 5 5 0,1 Zápatí prezentace 35 text_TITL pruh_TITL N:\work\projekty\šablony\sablony\logoC.wmf Zápatí prezentace 36 Thanks for attention