The Origin of M-commerce

1.6.1 The Origin of M-commerce

So-called mobile e-commerce (M-commerce), refers to the e-commerce with the combination of Internet and mobile communication equipments, such as a laptop, cellular phone and PDA(personal digital assistant, PDA),etc. The perfect connection of mobile communication technology and others created mobile e-commerce, but it is service that really and truly boosts market development. Mobile e-commerce can provide the following services: PIM(personal information), banking business, transaction, shopping, services based on location, amusement

Introduction to E-commerce

etc. Without doubt, m-commerce cannot carry out all business, which is similar to the traditional wired e-commerce. For instance, in some cases, goods are tangible (CD drivers, computer hardware and book etc.), but in some cases, goods are digital (software distribution, capital transfers etc.).

The mobile e-commerce has turned into the new direction for the e-commerce because of its speed, convenience, and ubiquity. John, Diphyl, the American San Francisco Terrifia Company, which is responsible for keeping track of the development of telecommunication industry, once said that “in the long term, M-commerce has a bigger potential over the traditional e-commerce”. The reason why wireless e-commerce enjoys the advantages over the traditional wired Internet e-commerce lies in that m-commerce possesses some incomparable advantages. According to Xie Taoling, m-commerce product control Director of AC, Only by m-commerce can difficulties in business be resolved anytime and anyplace.

Along with the globalization of information technology revolution, mobile phones have become the most vigorous up-&-coming star in Chinese telecom- munication. With reinforced communication capability, China has transformed into the largest mobile phones country in the world. Therefore, m-commerce in China will have a brighter future.

Looking back the history of mobile phones in China, it can be approximately divided into three phases. Phase One (1987ü1993), the initial stage. It mainly is to meet the users’ urgent need. Phase Two (1994ü the first half year of 1995), the development stage. 90 trillion MHz cellular phones in China became the widest and largest network in international network. Phase Three (from the second half year of 1995 up till now), the improvement stage. The introduction of world advanced GSM, digital mobile phone system symbolizes that our country mobile communication has entered into digital era from the single simulation system.

In the meantime, the development of mobile phones in our country went through the process from the east to the west and from cities to countryside. The utilization ratio of mobile phones has positive correlation with economic development. Thanks to the governmental support and growth in living standard, mobile phones in China have quickly developed, at the average annual rate of growth of 100%. Along with the decline of mobile phones price and the adjustment of mobile communication fee, the market will grow more rapidly.

M-commerce in China. Mobile Internet in China has made a good momentum of growth and presently m-commerce has been put into practice. China Mobile has applied simultaneously “Global System for Mobile Communications”, the wireless application protocol (WAP, for short) commercial test network in such six big cities as Beijing, Tianjin, Guangzhou, Hangzhou, Shenzhen etc., which enables WAP phone users to enjoy roaming business. At the same time, Shanghai Mobile has applied WAP website (wap.sh.chnmobire.net) and succeeded in establishing m-commerce system for enterprises such as Shanghai Mailing Aquarius Co., Ltd. and Huayin Technical Co., Ltd. etc. Ebang.com, Toecom.com.cn, sohu, alibaba

1 Fundamentals of E-commerce

are ready to or have provided m-commerce. Sohu and Nokia have declared to cooperate in wireless network service.