India has more than 50% of its population below the age of 25 and more than 65% below the age of 35. (Source: Wikipedia). There are more than 125 million internet users with India being among the top three fastest markets in the world. Adding to the statistics there are total 875 mobile subscribers out of which 522 are urban subscribers and 353 are rural subscribers [Source: Telecom Regulatory Authority of India (TRAI)] Advances in wireless mobiles and rapid development in communication technologies have diminished the geographical boundaries to a large extent. Long gone are the days when people would visit two or three stores before deciding where to purchase from. Comparisons in the products are now being done through wireless e-commerce also known as mobile commerce or m-commerce.

Technopedia explains wireless e-commerce (also called mobile commerce or m-commerce) as the promotion, buying and selling of goods and services through electronic data communication networks that interface with wireless (or mobile) devices. These wireless devices interact with computer networks that have the ability to conduct online merchandise purchases. Mobile - Commerce is just one of the many subsets of electronic commerce, which includes all e-commerce transactions, carried out using a mobile (hand held) device. In fact the main difference in m-commerce and e-commerce definition lies in the use of the wireless net for performing financial, services and purchases. The user can modify the service of any financial institute or banks if gets improved product and service or user is discontented with the service of the subscribing company. Mobile has played a massive role in communication technology through its resourcefulness and dominance. The ubiquity and easy usage has further made it extremely popular across the globe. It has already surpassed the fixed phone in the world. In spite of huge popularity of mobile commerce, it is still in the early stage and can be further developed in to all the fields, which influence the human life.

While electronic commerce (e-commerce) referred to as the promotion, buying and selling of goods and services through electronic data communication networks continues to have a profound impact on the global business environment, technologies and applications that have begun to focus more on mobile computing and the wireless web. Techopedia explains mobile applications as a move away from the integrated software systems generally found on PCs. Instead, each application also abbreviate as ‘app’ provides limited and isolated functionality such as game, calculator or mobile web browsing. The simplest mobile apps take PC-based applications and port them to a mobile device. Although applications may have avoided multitasking because of the limited hardware resources of the early mobile devices, their specificity is now part of their desirability because they allow consumers to hand-pick what their devices are able to do. This booming fame has forced the corporate world to develop a new commerce platform that can reach to masses. This paper provides an overview of some of the relevant technologies, applications and issues in the relatively new field of wireless e-commerce. The paper also discusses such innovations and how they are changing the way consumers gather, process, and interact with information.

PURPOSE OF STUDY:

1. To provide reasons for mobile commerce as an emerging mode of business.

2. To discuss various applications of mobile commerce.

3. To study the growing demand of mobile-apps as a mode of mass communication.

4. To understand the issues and challenges related to mobile commerce.

5. To study the benefits derived to people and organizations from m-commerce.

RESEARCH APPROACH:

Considering the descriptive nature of the research on m-commerce, it is difficult to group the literature under any specific disciplines. Further evidence of this can be seen from the fact that m-commerce articles are scattered across various journals in disciplines such as business, management, marketing, information technology etc. A depth research has been done to obtain as much as possible data about Mobile Commerce. In this work, secondary source of data collection has been used such as the websites, internet, magazines, journals etc. by analyzing the historical data from previous researches, firm disclosure data and sector reports. Secondary data was collected with a thorough examination to provide a comprehensive discussion.

REVIEW OF LITERATURE AND DISCUSSIONS:

Mobile Internet: Way- To- Go- Purchase Platform Today

It seems like only yesterday that e-commerce revolutionized traditional commerce. We have evolved to the next stage of commerce. Now, transacting from the desktop computer seems more like a restriction than liberation. Such growth is expected not only because devices are better and cheaper, but also because cost of accessing data has fallen almost 90% in the last one year. The cheery on cake is that services like downloads are now as low as Rupee 1 per video. Hand held devices that can access the Internet are revolutionizing “traditional” e-commerce and this commerce on mobile devices is called as “mobile commerce” or “m-commerce.” In India, the % curves for desktop internet v/s mobile internet usage have diverged; mobile internet traffic now outweighing desktop traffic. The reasons for such a rise are the many. The major ones are:

a. Affordability of mobile devices like cell phones and tablets are far more than desktop and laptops. For instance local handset market Karbonn has launched 50 smartphones from 2011-13 from as low as Rs. 3,500 to Rs. 20,000. Nokia has launched 16 Lumia devices, 10 in year 2013 and two in January 2014.

b. A large young customers do their shopping, hotel reservations and book tickets using their mobiles.

c. 3G services that started in 2012 led to surge in demand as its quality is far better than earlier generation of services. On 3G the download speeds are about 8mbps compared to the earlier generation of GPRS and EDGE services of a mere 14-144kbps, thus number of users who access the internet through 3G network have grown portraying effective mobile connectivity.

d. Mobile payment is now a new mode of payment as an alternative to traditional mode of cash and cheque.

e. Mobile is now emerging as a platform for mass communication when compared to e-commerce where people have to be online to watch the advertisement, thus enhancing its penetration.

f. Mobile tariffs are the cheapest in India as compared to the world.

g. Download speeds have multiplied and the cost to download have dropped dramatically from two paise for every 10kb for both 2G and 3G services, that is a drop of 90% in 2G rates and a 33% reduction for 3G services.

h. In 2013, apps started taking off and that made a big difference. People are getting to know the difference between an app and a browser and now they are experiencing the ease of apps which in turn increases mobile internet use.

Changing Demographics of Young India:

As per the statistics of the recent study made on m-commerce following points emerged that might throw certain light on the shifting trends of e-commerce to m-commerce:

a. Consumers in India are among the world leading the demand for mobile commerce services, with 97 percent of consumers asking for more mobile interactions with banks, telcos, retailers, utilities, and other businesses, according to an SAP study.

b. 63 percent of consumers access the Internet on their mobile phones at least once a day.

c. Most of the mobile owners turn to their mobile phones for bill payments (78 percent), bank transactions (72 percent), and for setting up a new account (74 percent).

d. More than half of the consumers in India indulge in mobile purchases for entertainment services, games, and music downloads.

e. The number of mobile internet users is going to reach 155 million in India by the end of March 2014 and 185 million by June 2014 maintaining a Q-o-Q growth of 20%, according to ‘Mobile Internet in India 2013’ report, released by Internet & Mobile Association of India (IAMAI).

f. Services used on mobile internet % of users for E-mail is 95, entertainment is 93, gaming is 81, general browsing is 76, social Networking is 71, official work is 58 and shopping is10. (Souce: IAMAI)

g. As recently suggested in the Mobile Internet Consumer report by Vserv.mobi, consumers in India are driven to purchase goods using their mobile phone by exclusive offers and coupons.

Wireless Technology Continue to Evolve

Wireless means that transmission of any form of data—text, voice, video or image—is conducted through radio waves, infrared waves or microwaves rather than using wires. Therefore, mobile wireless technologies is defined as any wireless technology that uses radio frequency spectrum in any band to facilitate transmission of text data, voice, video, or multimedia services to mobile devices with freedom of time and location limitation. Now anyone can access to all kinds of information, e-mail, databases, news, stock quotes and company reports even from their car, without having a desktop computer. India has started witnessing such applications. Wireless technologies have come as a boon to those who are always on a move and yet want to stay connected. This is one of the pillar technologies of m-commerce that supports the development of m-commerce applications. It provides wireless networks and network standards such as Global System for Mobile Communication (GSM), Bluetooth, Wireless Local Area Network (WLAN), General Packet Radio Service (GPRS), Third Generation (3G) Network etc.

Various applications of M-Commerce: Sector wise classification

a. Travel and Ticketing: By utilizing the B CODE technology or NFC1 technology one could use the mobile phone as a means receiving E-Tickets. B CODE tech consists of sending text SMS which is scan able from the mobile phone display screen through the related set. So by receiving the chosen SMS, the ticket is practically received and one could present the mobile phone to the scanning machine at the ticket receipt spot.

b. Commerce: There are many examples showing how mobile commerce helps commerce. For example, consumers can buy products from a vending machine or pay a parking fee by using their cellular phones, and mobile users can check their bank accounts and perform account balance transfers without needing to go to a bank.

c. Education: Similar to other wired technologies, mobile wireless technologies have first been used in industry sectors such as business. The movement of mobile wireless technologies in education is a recent trend, and it is now becoming the hottest technology in higher education.

d. Enterprise Resource Planning (ERP): In the coming mobile commerce era, users will want to be able to have access to the right resources and work as efficiently as possible– whether they are traveling, seeing a customer or working at other remote locations– with their ERP systems. They attempt to connect employees to their work more effectively than ever before by enabling mobile phones and other wireless devices to become a new kind of tool to seamlessly exchange information, automate data entry and perform a range of transactions anytime, anywhere.

e. Entertainment: Entertainment has always played a crucial role in Internet applications and is probably the most popular application for the younger generation. Mobile commerce makes it possible to download game/image/music/video files at anytime and anywhere, and it also makes on-line games and gambling much easier to access and play.

f. Health Care: The cost of health care is high and mobile commerce can help to reduce it. By using the technology of mobile commerce, physicians and nurses can remotely access and update patient records immediately, a function which has often incurred a considerable delay in the past. This improves efficiency and productivity, reduces administrative overheads, and enhances overall service quality.

g. Inventory Tracking and Dispatching: Mobile commerce allows a business to keep track of its mobile inventory and make time-definite deliveries, thus improving customer service, reducing inventory, and enhancing a company‘s competitive edge.

h. Traffic: The passengers in the vehicles and the pedestrians are all mobile objects, ideal clients of mobile commerce. Using the technology of mobile commerce one can easily improve the flow of traffic in many ways. For instance, a mobile handheld device have the capabilities of a GPS, such as determining the driver‘s exact position, giving directions, and advising on the current status of traffic in the area. A traffic control center could also monitor and control the traffic according to the signals sent from mobile devices in the vehicles.

Mobile Apps: Convenience at a Click

With the increase in the adoption rate of smartphones, chances to download free app or purchased one from Android Market, Blackberry App World, Apple’s App Store or Nokia’s Ovi Store serves many need like entertainment, productivity, social networking, games, etc. This is referred as mobile apps revolution and it is predicated as that mobile usage rate will soon overtake PCs. From booking travel tickets, hailing cabs to eating out, shopping, gaming, reading all can be done by downloading apps on smart phones. But what makes the apps market hot is explained below in the classification framework proposed on the observations of the researcher portraying the application of m-commerce in different categories.

M-Commerce Issues and Challenges: Hiccups on the way

a. Most mobile users (about 90%) have a device that costs below Rs.5000 and these are either feature phones with no browsers or good only for 2G services.

b. Entry level smart phones are 2G based. A 3G smart phone cannot come below Rs.4000 as the chipset cost is higher for 3G and royalty has to be paid to the service provider for a 3G phone.

c. Another problem is the lack of local language content.

d. The entry level phones have a limited screen size, below 3 inches which is too small to easily read a text larger than a tweet or to watch a cricket match or browse a shopping site.

e. The number of users subscribing to a 3G plan is limited. There are only 22 million people using the better 3G services and this is a challenge to the growth of mobile internet.

f. Privacy is another issue related to the growth of m-commerce. For all kind of monetary transactions or other services one need to disclose his identity which many a times creates a huge problem for the customer.

g. The major growth factor that makes mobile commerce successful is the data transmission bandwidth, which is as compared to other countries is very limited.

Source: Classification of Mobile Commerce and Mobile Applications, Franz Lehner and Robert T Watson (Research Directions)

Benefits of Mobile Commerce for People and Organizations

Apart from the above mentioned utility of mobile commerce there are more benefits associated with it. By utilizing mobile commerce the user is simply and at every place and times, able to access his/her own data. The main advantage of M-commerce comparing to E-commerce also exists in. In fact while the use of E-commerce is provided only when the user is at his/her own home or workplace or in any other location he/she has to access media such as, Internet, TV etc. m-commerce merely need a mobile-phone.

a. Context-specific services – M-Commerce makes it possible to offer location based services, which are specific to a given context (e.g. time of the day, location and the interests of the user).

b. Time-critical situations - The ubiquity and immediacy of Mobile Commerce allows user to perform urgent tasks in an efficient manner, irrespective of his current geographic location.

c. Spontaneous decisions and need- Spontaneous needs are not externally triggered and generally involve decisions that do not require a very careful consideration, e.g. purchase decisions involving small amounts of money.

d. Efficiency increases: Mobile Commerce helps increase the productivity of the workforce by increasing the efficiency of their daily routines. Time (employees) can use ‗dead spots‘in the day, e.g. during the daily travel to and from workplace, more effectively.

RESULTS AND ANALYSIS OF THE REVIEW:

a. The study of research indicates that the accelerated growth of mobile commerce in the country with 80% of the population making parallel usage of the mobile phones other than just calls and text messages is the outcome of disposable income, a young and educated population, rising use of social media and technology, increasing internet penetration reaching into smaller cities and evolution of the online market place model.

b. While challenges persist but once users gets hooked to mobile internet they are unlikely to ever give it up. It is expected that by 2017, 40% of the total mobile connections will be either 3G or 4G in India. The next five to ten years promise a big opportunity in online commerce because of the young India who is going online on their I-pads and smart phones that is becoming a habit for them to interact with one another.

c. According to World Bank study, every 10% increase in mobile phone penetration yields 0.81% of annual economic growth. Mobile internet will only accelerate growth.

CONCLUSION:

With the rapid proliferation of mobile devices, including mobile phones, PDAs, and handheld computers mobile commerce is viewed as the next generation e-commerce. The ease of communication with goods and service presenters, in 24 hrs and without any locational limitations, has caused an everyday popularity increase in mobile trading. Both the telecommunications industry and the business world are starting to see m-commerce as a major focus for the future. As m-commerce applications and wireless devices are evolving rapidly, one will take forward the other one towards empowering innovation, versatility and power in them. There will come a time when mobile internet will become an essential service like water and electricity.

REFERENCES:

1. http://www.indiadigitalreview.com/article/2013-trends-maturing-e-commerce-india

2. All India Management Association, Management Journal, Volume 51, Issue 1

3. The Economic Times (Newspaper): The Economic Times Connect magazine, January 12-18, 2014, pg.22-23

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9. http://www.academia.edu/1470067/FROM_MOBILE_TO_MOBILE_COMMERCE_AN_OVERVIEW_IN_THE_INDIAN_PERSPECTIVE

10. A review for mobile commerce research and applications by E.W.T. Ngai and A. Gunasekaran (http://jpkc.fudan.edu.cn/picture/article/217/23/6e/762567a44cf68799c9d29061e876/07232a48-ff95-4158-ba31-7bdc820dd0d0.pdf)

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13. Mobile Commerce beyond Electronic Commerce: issue and challenges by Dr. Asghar Afshar Jahanshai (www.academia.edu/1470066/MOBILE_COMMERCE_BEYOND_ELECTRONIC_COMMERCE_ISSUE_AND_CHALLENGES\)

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16. http://www.trai.gov.in/WriteReadData/WhatsNew/Documents/English-Activity-Report-2013.pdf

Received on 10.01.2014 Modified on 20.01.2014

Asian J. Management 5(2): April-June, 2014 page 150-154