Mobile Data Magazine

37366MDM2_OmslagNytt 2000-10-11 18.40 Sida 1

MOBILE DATA MAGAZINE

NO. 2 2000.

AR, AT, AU, BU,

BR, BE, CA, CL,

CO, DE, DK, FI,

FR, GB, IN, ID,

IE, IT, KR, CN,

LB, MX, NL, NO,

PE, PL, SG, SE, 2 TR, US, VE. MDM www.ericsson.se/mobitex M-COMMERCE:NEWM-COMMERCE:NEW GOLDGOLD RUSH RUSH p.10 p.10

GUEST PROFILE: PUTTING THE DOT IN WAP p.5

PARKING VIOLATORS FACE OBSTACLES p.9

SECURING THE WIRELESS INTERNET p.18

800 MHZ OPENS NEW MOBITEX MARKET IN CHINA p.22

DM210 PACKS POWERFUL PUNCH p.23

AUSTRALIA CATCHES THE WAVE p.24 37366MDM2_Content(2-3) 2000-10-07 19.35 Sida 2

2 CONTENTS...OCTOBER 2000 MOBITEX FOR 5 M-COMMERCE GUEST PROFILE: DOTWAP 10 Mobile Data Magazine talked to Guy Glover, the man who intends to NEW GOLD RUSH put the dot – the Internet – in WAP STARTING – Wireless Application Protocol. To this end, dotWAP is launching the The year of awareness for mobile e-commerce is here, Palm V Wireless Cradle, which will and Mobitex is uniquely positioned in this emerging bring interactive applications to market. Our theme article examines the criteria for new markets. successful m-commerce applications and explains why Mobitex is taking the market by storm.

13 6 FERTILE GROUND FOR BUSINESS NEWS M-COMMERCE MOA meeting agenda · Korean Mobitex operator Intec is introducing a Airwaves keep water flowing · broad range of interactive services as it re-launches its Retailers face showdown · network under new ownership and significantly · Go America heads north expands coverage. Included among these services is a · Mobitex operators in the news wireless stock trading application supported by a · Wireless data seals the deal new handheld wireless device being introduced by Parking violators face invisible parent company CNI simultaneous with the launch. · obstacles

16 NO TIME TO WASTE 22 San Francisco-based start-up Neomar is in a hurry to PRODUCT NEWS exploit the opportunities emerging in the m-com- 800 MHz opens new Mobitex market in China merce market. With a solid WAP platform and a · number of impressive partnerships in place, the com- DM210 modem packs powerful punch · pany has a first mover advantage that makes it a play- Palm VII support for enterprise applications · er to watch. · Popular Palm VII gets better · Australia catches the wave IM:Work– web-based management for the · mobile workforce 37366MDM2_Content(2-3) 2000-10-07 19.36 Sida 3

CONTENTS...OCTOBER 2000 3

STRATEGY: SECURING THE WIRELESS INTERNET 18 Security is of vital importance in creating the wireless Internet and opening the market for m-commerce. Certicom, a Canadian company working in both Canada and the US, has per- fected next-generation elliptic encryption technology that is being used to enhance security in Mobitex applications and create a wireless Public Key Infrastructure that will ensure rapid market growth.

OUTLOOK: CREATING STANDARDS FOR M-COMMERCE 26 Although often criticized, standards are essential in emerging markets in which there are few clear leaders and players from many different industries. A survey of the standards underlying m-commerce reveals that Ericsson takes this work seriously and that Mobitex provides an extremely secure infrastructure.

28 WANDA WAVE On a cable car climbing the hills of San Francisco, Wanda finds herself wondering about elliptic curves, philanthropic billionaires and the perils of wireless communications.

RAM Mobile Data, Netherlands: www.ram.nl LINKS RAM Mobile Data UK: www.ram.co.uk Rogers AT&T Wireless, Canada: www.rogers.com United Wireless, Australia: www.uw.com.au Ericsson Mobile Data Design AB Companies and organizations featured in this issue: S:t Sigfridsgatan 89 Buybuddy, Canada: www.buybuddy.com S-412 66 Gothenburg Broadbeam, US: www.broadbeam.com Sweden CNI, Korea: www.cni.co.kr phone: +46-31-344 00 00, fax: +46-31-344 60 33 Dotwap, Australia: www.dotwap.com Mobitex information: Final analysis, US: www.finalanalysis.com www.ericsson.com/mobitex, www.mobitex.org GoAmerica, US: www.goamerica.com Mobitex e-mail addresses at Ericsson: Imedeon, US: www.imedeon.com Marketing and sales [email protected] Maxon UK: www.maxon.co.uk Customer support [email protected] Mobitex Operators Association: www.mobitex.org Mobitex training center [email protected] Neomar, US: www.neomar.com Ericsson links: Clyrcom (Normadic), Australia: www.nomadicglobal.com Ericsson: www.ericsson.com Palm Inc, US: www.palmpilot.3com.com Ericsson’s website for Network Operators: Research In Motion RIM, Canada: www.rim.net www.ericsson.com/wireless 724 Solutions, US: www.724solutions.com Ericsson’s website for Mobitex: www.ericsson.com/mobitex Tardis transcommunications, UK: www.tardismobile.com/ Mobitex operators & associations featured in this issue: Teklogix, Canada: www.teklogix.com BellSouth Wireless Data, US: www.bellsouthwd.com Tibco, US: www.tibco.com Intec, Korea: www.intectelecom.co.kr WAP Forum: www.wapforum.com/ Mowic, Sweden: www.mowic.se WMO, Netherlands: www.wmo.nl 37366MDM2_Business(4-9) 2000-10-07 19.20 Sida 4

4 PUBLISHERS’S NOTE

Dear Readers In my role as the new publisher of Mobile Data Magazine, pany’s new TWM III device for Mobitex is a sleek and I am pleased to present our latest issue, which is dedicat- attractively priced handheld device that was developed ed to mobile e-commerce, or m-commerce. As you will and manufactured entirely in-house. Backed by such see in this issue, this is a red-hot market in which Mobitex resources and with an ambitious business plan, Intec will has a clear first-mover advantage. The time to get started breathe new life in the market for Mobitex in Asia. with m-commerce is now! In Australia, dotWAP is also launching a new Securing the wireless Internet, the business mission of Mobitex device designed for the popular Palm V organiz- Certicom, which is featured in our Strategy article, is obvi- er and targeting interactive applications. Although initial- ously the key to opening this huge market. Although most ly focused on its home market, dotWAP has plans to of the attention seems to be focused on the US, it is a curi- launch its services in Asia and Europe. ous fact that Canadian companies are leading the way. Ericsson is proud to announce a new series of In addition to Certicom, which this summer was Mobitex products for the 800 MHz frequency band. The named by Business Week as one of Canada’s five hottest Base station and modem will be field-tested during the high-tech stocks, you can read about 724 Solutions, autumn and become commercially available next year. another Canadian company that is helping to deploy the Target markets for the products include China, but the wireless Public Key Infrastructure that will provide the new base stations will be attractive in many regions in foundation for explosive growth in m-commerce. which the 900 MHz frequency band is not available or Canadian Mobitex operator Rogers AT&T Wireless and already in use by GSM systems. leading Canadian commercial banks were instrumental in The new 800 MHz base stations are further proof of deploying the first wireless banking applications on the Ericsson’s continuing commitment to Mobitex techno- RIM 950 Inter@ctive Pager, a PDA that coincidentally is logy. Mobitex continues to advance its positions around made in Canada. the world. There is no question that the North American mar- As usual, our magazine is full of news about Mobitex ket offers unparalleled opportunities for Mobitex, as and the exciting world of wireless data communications. interactive applications enter their second phase and m- If there is anything that we have missed in your market or commerce takes off. As several of our sources point out, an important story that you think we should write about, Mobitex provides the three essential components for m- please let us know. At Mobile Data Magazine, our job is to commerce: coverage, infrastructure and devices. help you continue to promote Mobitex as the world’s most Evidence that the m-commerce revolution will not be cost-effective technology for the greatest number of wire- confined to North America comes from Korea. Local less data applications. Mobitex operator Intec, operating under new management and ownership, is in the midst of a very ambitious re-launch of its service in which wireless banking and trading will play a leading role. CNI, Intec’s new owner, is a large and extremely focused company that is moving aggressively to open new markets for interactive applications in Korea. The com- Pontus Lindqvist

MDM NO.2 2000 / POSTAL ADDRESS: Ericsson Mobile Data Design AB S:t Sigfridsgatan 89, SE-412 66 Gothenburg, Sweden, e-mail [email protected], internet www.ericsson.se/mobitex. PUBLISHERS: Pontus Lindqvist. EDITOR: Ingrid Wallgren, tel: +46 31 344 64 40, e-mail [email protected]. CONTRIBUTOR AND EDITORIAL CONSULTANTS: Alan Sheats, Eva Jonsson-Wallin, Bugli Company AB Stockholm, Sweden, e-mail [email protected]. LAYOUT: Peter Menke, Citat Solutions/Annika Rehn, Citat Media Production. WEB LAYOUT: Henrik Kool. PRINTED BY: Alfredssons Offset AB, Bollebygd, Sweden. PRE PRESS & REPRINTS: Citat Media Production AB, Gothenburg, Sweden, e-mail [email protected]. MOBILE DATA MAGAZINE: is published under Swedish press law by Ericsson Mobile Data Design AB in cooperation with The Bugli Company. The opinions expressed in Mobile Data Magazine are not necessarily those of Ericsson Mobile Data Design AB. Mobile Data Magazine is distributed to the international telecommunications community in more than 50 countries. 37366MDM2_Business(4-9) 2000-10-07 19.20 Sida 5

GUEST PROFILE 5

400 MHz Mobitex networks may never be the same again. Australian start-up dotWAP is now launching its Palm V Wireless Cradle for 400 and 900 MHz Mobitex networks as the platform for a new service featuring interactive applications that the new wireless ISP hopes to make available around the globe.

Left: Guy Glover, managing director dotWAP Right: Ross Symons, technical director dotWAP obile Data News talked to managing Mdirector Guy Glover, the man who promises to put the dot in WAP. Why did you elect to develop your What markets will dotWAP target? What is dotWAP? own WAP platform? We are targeting the Asia Pacific region with a Our vision is to bring the Internet – the dot – to Our ambition was to support many devices of focus on Hong Kong and Singapore, Europe, par- mobile devices – WAP. We want to help individ- many different sizes. Our WAP browser can ticularly Scandinavia, and North America. uals and organizations experience the freedom of accommodate both a Palm device with a relative- the new mobility by enabling them to be perma- ly large screen and a smartphone. Thus far, people in Asia and Europe have nently connected to the Internet, no matter what not been able to experience the kinds of personal communications device they carry or How is the Palm V Wireless Cradle being interactive applications that have taken where they are located in the world. packaged in Australia? the North American market by storm. How In Australia, our product will be bundled with the will they react? Is dotWAP’s a service provider Palm V and sold through retail channels. We We have seen a gap in the marketplace that we or a hardware vendor? want to deliver a superior out-of-the-box experi- intend to fill. DotWAP wants to kick-start the We will position ourselves as a wireless ISP ence with great content, and we will provide a market for interactive applications and services in (Internet Service Provider). Our business will be customized product for major retailers. these regions by delivering a superior online providing end-to-end wireless Internet access and experience for people with 400 MHz devices. content solutions for companies and individuals. How are dotWAP’s products and services The dotWAP Palm V Wireless Cradle is our first- being received in Australia? Are there specific enablers, such as a high generation product. Mobitex is our first choice as Australia is an excellent test market with a sophis- level of e-mail use, that will drive the a carrier technology, and the Palm OS is our first ticated and diverse user base and very fast take up adoption of interactive applications in choice for our software platform. However, we of technology. Initial reactions and interest from your target markets? will remain both device- and network agnostic the press have been very positive, and we are con- The first wave of interactive messaging applica- and build our business as a wireless ISP on a sub- fident of success. We are lining up retailers and tions is already a huge success in North America, scriber basis. partnering with service and content providers that so that market will obviously be different, with will allow us to create a very compelling offering. greater emphasis on customized services and m- How was the Palm V Wireless Cradle commerce applications. In Europe and Asia, how- developed? In what manner did Palm Who are dotWAP’s business partners? ever, where people have as yet had limited ability Computing contribute? Are these global partners or will there be to experience the freedom of interactive applica- The Palm V Wireless Cradle was developed by local partners in local markets? tions and the new mobility that truly small wire- dotWAP in Australia where we received consider- A strong product offering demands local partners less devices enable, many of the applications that able help from our local partners ClyrCom, which in all markets, but we are naturally also seeking have proven successful in North America will be developed the NMX400 and NMX920 radio global partnerships. With respect to content market-openers. Wireless e-mail will be impor- modems that we use, and United Wireless, which providers, we are somewhat US-centric, but our tant, but people will quickly move beyond that is the local Mobitex operator. We have an excel- offering will be based on partnerships with local and want timely access to useful information and lent relationship with Palm, which helped us retailers and service providers, as well as local and personalized services while on the move. optimize our product for the Palm V. global content providers. 37366MDM2_Business(4-9) 2000-10-09 12.58 Sida 6

MOA MEETING AGENDA

MOBILE The Mobitex Operators Association will hold its annual meeting in Gothenburg, Sweden from October 22 to 25, 2000. The MOA meeting is an open forum and registration can be made at www.mobitex.org. BUSINESS The following agenda has been set for the meeting: Sunday, 22 October Welcome reception and cocktails NEWS Monday, 23 October Sessions, Technical Guidance Council Meeting Tuesday, 24 October Sessions, MOA Dinner Wednesday, 25 October Executive Board meeting

The meeting will include an exciting session program plus an exhi- bition featuring products and services offered by MOA associate members and Ericsson business partners. Session topics include the following: · Wireless Internet – WAP and alternatives, business opportunities for Mobitex operators · Relaunch of Intec Telecom Korea – Applications, markets, timetable, new terminals · DotWAP – New hardware platform and messaging/wireless Internet service for Palm V family · Birka Energi – Automatic Meter Reading (AMR) application sold by Mowic and Schlumberger · Teklogix – Case study which integrates Mobitex with WLAN · Broadcast – Business opportunities using broadcasts · Vertical market success stories · New business model through professional services · Satellite update · GPRS vs. Mobitex – Performance, terminals, applications · Mobitex road map and sales update

NEW MOA ASSOCIATE MEMBER Final Analysis, an entrepreneurial Dynamics, Raytheon and L3 way for new networks on land wireless data system to deliver aerospace and telecommunica- Communications. Headquartered and sea. affordable solutions for personal tions company, was recently in suburban Washington, DC, Final Analysis has estab- messaging, asset tracking, remote elected to associate membership Final Analysis is one of only two lished a strong, committed team monitoring and control. It in MOA. The company is build- American commercial companies to build its global wireless data already has two satellites in ing a global wireless data system to have built and launched low- system and implement new serv- experimental operation. and will launch a constellation of earth orbiting satellites that oper- ices worldwide. The company will Final Analysis will be low earth orbit satellites to ate in UHF/VHF frequencies. launch its satellites with Polyot, an active participant in the deliver innovative, affordable Through its FAISAT global wire- the Russian aerospace company. MOA meeting in Gothenburg. solutions aimed at mass markets. less system, the company is posi- The payloads will ride the COS- Please join us in welcoming The company, already grant- tioned strategically to deliver MOS, the most reliable launch them to the MOA family. ed a commercial license by the communications services that vehicle in its class in the world. Additional information about US FCC, has strategic equity extend the service coverage of ter- The company plans a phased the company is available at: partnerships with General restrial networks and forge the implementation of its global www.finalanalysis.com. 37366MDM2_Business(4-9) 2000-10-09 12.58 Sida 7

BUSINESS NEWS 7

AIRWAVES KEEP RETAILERS FACE WATER FLOWING SHOWDOWN The Dutch water management system for scheduling preventa- ware from CRM Vision for dis- company Waterleiding Maat- tive maintenance. Supervisors patching and Tensing/SKS for schappij Overijssel (WMO) is planned the work and issued service information and using PC taking to the air to keep the work orders, which were collect- hardware from Dutch supplier water flowing. A new applica- ed by service engineers at Micropoint. tion operating over Dutch regional centers each morning. “Breakdowns are now Mobitex operator RAM Mobile Emergency service required reported to the supervisor elec- Data’s wireless data network when a customer reported a leak- tronically,” says Johan Jonker, gets service engineers to mainte- age or a malfunctioning water project coordinator at WMO’s nance sites more quickly and meter, for example, was handled logistics and purchasing depart- minimizes service interruptions. separately by the customer serv- ment. “The supervisor then uses WMO delivers drinking ice department, which passed the CRM Vision software to and industrial water to business- the request on to a supervisor at send a work order directly to the Canadian retailers had better watch es and homes in the Dutch the maintenance and manage- service engineer’s laptop com- out for customers carrying wireless province of Overijssel, the ment department, who was then puter. The supervisor has a real- BlackBerry 950 devices. Thanks to a Noordoostpolder coastal region forced to poll the service staff time overview of each engineer’s recent agreement between Canadian and two municipalities in the by phone to find an available schedule and can manage work Mobitex operator Rogers AT&T province of Drenthe. The water engineer. loads more efficiently. Both par- Wireless and BuyBuddy, an Internet- system operated by the WMO ties can signal changes in work based comparison shopping service, consists of some 11,000 kilome- states in real time.” consumers will be able to get infor- ters of pipelines, 27 pumping LEAKS The Mobitex application mation on the lowest available prices stations, 19 water towers and 57 STOPPED MORE not only makes dispatching of while the salesperson is still reciting reservoirs. The WMO has an service orders more efficient. the spiel. extensive maintenance and man- QUICKLY The new system provides infor- BuyBuddy offers Canadian con- agement system that ensures Thanks to the Mobitex network, mation at the maintenance site sumers a comprehensive range of that water is received at the this has all changed. After exten- that helps the service engineer services. These include information right time and the right place. sive evaluations, the WMO get the job done more quickly. about more than 30,000 hardware, Previously, the public utili- decided to implement a wireless “With the Tensing/SKS software and consumer electronics ty used a primarily paper-based data application based on soft- software, service engineers can products, as well as free value-added click on a map to indicate the content and services and easy access location of a leak and immedi- to prices, consumer reviews and ately access information about product ratings. Now this list is the relevant locks,” explains being expanded to include a wireless Johan Jonker. “This enables shopping comparison service for them to issue warnings to affect- Canadian consumers. ed addresses before the water is “As a result of our content cut off. This is particularly partnership with Rogers AT&T important for customers, such as Wireless, Canadians are able to make dentists and hospitals that their wireless devices an important depend on water. The supervisor part of their daily shopping experi- also has access to the same infor- ence,” says Mike Abramsky, CEO of mation, thus facilitating com- BuddyBoy. “Imagine strolling the munications between the cen- aisles of your favorite electronics tral office and the field.” store and being able to get instant Other water companies access to product reviews and throughout the Netherlands Canadian comparison pricing. have shown strong interest BuyBuddy gives the consumer more in WMO’s solution, reports power than ever before.” Johan Jonker, and his depart- Retailers be warned. Sales- ment expects to work with persons who claim to offer the low- other companies in the future est price will need to watch out for to help them implement simi- consumers armed with wireless lar systems using the Mobitex devices. With the entire Internet network. behind them, these consumers are going to call the unsuspecting salesperson’s bluff. www.buybuddy.com 37366MDM2_Business(4-9) 2000-10-09 12.58 Sida 8

8 BUSINESS NEWS GO AMERICA HEADS NORTH

GoAmerica, a leading wireless customers to browse the Internet pleased to bring the wireless Internet service provider, over their BlackBerry Wireless Internet to Rogers AT&T cus- announced recently that its handhelds within the extensive tomers in Canada, and look for- Go.Web™ technology is now Rogers AT&T Mobitex Network ward to creating a unique available as a pre-loaded applica- in Canada. Canadian brand and content offer- tion on RIM’s BlackBerry wire- “Our relationship with ing via our Go.Web™ service.” national roaming on a large scale less handhelds. The BlackBerry Rogers AT&T Wireless marks A notable feature of this new between two Mobitex networks. wireless e-mail solution is mar- GoAmerica’s geographical expan- agreement is that GoAmerica For GoAmerica subscribers, it keted by Rogers AT&T Wireless, sion, and the widespread accep- subscribers will be able to use will represent a new dimension in Canada’s largest wireless commu- tance of our unique Go.Web™ both Rogers AT&T Wireless’ net- convenience and a significant nications provider. The strategic technology and service,” says work in Canada and BellSouth advance for Canadians doing relationship between the two Aaron Dobrinsky, president and Wireless Data’s network in business in the US. companies enables Rogers AT&T CEO of GoAmerica. “We are the US. This will enable inter- www.goamerica.com

MOBITEX OPERATORS BELLSOUTH component in the new wireless WIRELESS DATA joint venture being formed by BellSouth Corporation and SBC NAMES NEW Communications, is a nationwide IN THE NEWS PRESIDENT company that boasts an annual subscriber growth rate of 150 RAM MOBILE tion for the benefit of our cus- On August 21, 2000, Donald percent and over 7,500 business DATA UK SOLD tomers, partners and employees.” Kovalevich assumed the position customers, including 164 of Tardis was previously one of of president and CEO of Fortune 1000 companies. TO TARDIS RAM’s seven premier business BellSouth Wireless Data. A vet- Tardis Transcommunications Plc, partners and one of the operator’s eran of the wireless industry, www.bellsouth.com a wireless data communications, largest customers. In a statement Kovalevich previously served as transport telematics and remote issued in conjunction with the both president and general man- monitoring systems company, has acquisition, Tardis notes that “the ager of Houston Cellular acquired all shares in the British improving capability of commu- Telephone Company and as chair- Mobitex operator RAM Mobile nications networks, whether voice man of Galveston Cellular Data from BellSouth Wireless or data, increase opportunities to Partnership since 1994. Data. The announcement comes handle data for both business and “This is an outstand- at a time of strong growth in the personal use. Use is expected to ing opportunity to build on UK wireless data market. RAM grow substantially, and with the the solid foundation that is has already signed the two introduction of WAP devices giv- in place at BellSouth biggest contracts in RAM’s his- ing access to the mobile Internet, Wireless Data and to take tory since being acquired, setting the use of data to provide services the company to an even the new relationship off to a fly- to individuals will become much higher level of success,” ing start. greater. There are also many says Donald Kovalevich. “This is an exciting time for opportunities within the busi- “BellSouth Wireless Data RAM, and this decision repre- ness-to-business marketplace as clearly is a company on the sents an important landmark in companies use new technologies move with a solid employee the company’s development that to improve business efficiencies. base, an impressive array of gives us the freedom to act quick- Courier companies, parcel deliv- solutions and services, ly in a fast moving market,” says ery companies, field service organ- industry-leading partners Richard Pullin, managing direc- izations and transport companies and a fast growing list of tor of RAM Mobile Data. “RAM are adopting these technologies customers. I look forward is fast becoming the provider of to provide better service to their to leading this team as it choice for mission-critical mobile customers.” continues to raise the bar in data solutions. This transaction the marketplace.” gives us the future environment BellSouth Wireless we need to capitalize on that posi- www.ram.co.uk Data, which will be a key 37366MDM2_Business(4-9) 2000-10-09 12.58 Sida 9

BUSINESS NEWS 9

WIRELESS DATA PARKING VIOLATORS SEALS THE FACE INVISIBLE OBSTACLES

A familiar sight in Amsterdam a “busy” signal. This guarantees are the traffic posts adorned with fast and secure processing of DEAL three crosses used to prevent reports and no lost messages. parking in restricted areas. Currently, however, the munici- FLEXIBLE pality of Amsterdam is testing an alternative system for restricting ENFORCEMENT parking. This system signals ille- The project was initiated by gal parking with the help of city engineering consultants at detection loops buried in the Ingenieursbureau Amsterdam. In ground and RAM Mobile Data’s addition to RAM Mobile Data Mobitex network. Netherlands, project participants The detection system works include Stork Infratechniek and wirelessly exchange pricing, with induced current. One or Omron. Currently in the testing availability and technical more induction loops buried in phase, the system is functioning information. Interactive the ground are connected to a con- well, although some practical Messaging PLUS gives troller and a radio modem, The problems remain to be solved. Tibco reps the ability to induction loop signals parked These include determining the respond to clients’ ques- cars, and the controller deter- ideal diameter for detection tions quickly and provide mines whether a report is to be loops and fine-tuning the system complete and detailed sent through to the central com- so that it does not react to pass- information even when puter at the City Surveillance ing cars. they are in meetings. Service. The report is sent via the The advantages for Amster- “Using Interactive Messag- radio modem over RAM Mobile dam are several. The system is Tibco Software Inc., a leading ing PLUS, I was able to close a Data’s Mobitex network. As soon much less expensive than main- provider of real-time infrastruc- significant deal by discreetly for- as the report is received, a patrol taining traffic posts. It also ture software for e-business, has warding a technical question to car can be sent to investigate the allows certain vehicles to be equipped 200 of its sales, Tibco during a sales meeting,” violation. exempted. A truck loading or marketing and field service rep- relates Mashruwala. “Within Sending reports to the City unloading goods, for example, resentatives with Interactive minutes, I had answers and was Surveillance System using wire- can now be allowed to park for a Messaging PLUS from BellSouth equipped with the information I less data communications has short time, during which detec- Wireless Data to better respond needed to formulate a response two advantages. Firstly, it is not tion loops are temporarily deacti- to potential and current clients and provide more detail than the necessary to use a fixed connec- vated. Finally, the elimination of and improve on-the-go com- client expected.” tion to the controllers. Secondly, unsightly traffic posts helps to munications. The cutting-edge Tibco employees also save and more importantly, Mobitex make Amsterdam a more attrac- wireless data service has already time by communicating with is a packet-switched network. tive city. had a dramatic effect on the way Interactive Messaging PLUS. This means that a large number Tibco employees collaborate. Instead of interrupting a meeting of reports can be processed simul- “As many of our representa- to answer a page or cell phone taneously and that there is never The city of Amsterdam hunts down the tives conduct business while on call, employees can respond dis- parking violators with wireless tecnology. the road, we need a tool that creetly to messages sent from Test site at Lauriersgracht. allows us to wirelessly exchange other handheld devices or information in a timely manner Internet e-mail by typing a few wherever we are. Using one-way short sentences from the palm of pagers and cell phones, we were their hands. missing a critical aspect of “Interactive Messaging PLUS mobile communication – the allows my staff and me to commu- ability to respond immediately,” nicate vital information immedi- says Raj Mashruwala, executive ately, without causing a disrup- vice president of sales, marketing tion, helping to make us a more and worldwide operations for efficient organization,” concludes Tibco Software. Mashruwala. With Interactive Messaging PLUS, Tibco representatives can www.tibco.com 37366MDM2_Theme(10-21) 2000-10-07 23.03 Sida 10

Mobile electronic commerce or m-commerce will be a huge market. Estimates vary, but most analysts agree that half or more of all wireless devices used for Internet access will also be used for m-commerce. With the number of cellular phones fast approaching the one billion mark and the tremendous growth predicted for WAP, the numbers quickly become mind-boggling. The total e-commerce market, of which m-commerce as yet only accounts for a small share, is already worth billions of dollars. 37366MDM2_Theme(10-21) 2000-10-07 23.03 Sida 11

CUSTOMER PERSPECTIVE 11

“Cross-partnerships

nalysts expect that the market will at THREE Cs FOR will be the rule as A least double in size each year for the foreseeable future and that the global m-com- SUCCCESS the m-commerce merce market may be worth as much as USD 45 The shake-out among dot-coms over recent billion by 2005. months, however, has made many people leery “This year will be the year of awareness for of e-commerce. Many investors have revised market opens up.” m-commerce,” predicts Fred Chieux, vice presi- their strategies and are now focusing on compa- dent for business development at Neomar. “By nies operating in the B2B (business-to-busi- 2002, we will see full-scale deployment, and at ness), rather than the B2C (business-to-con- that time the leaders will be the companies who sumer) sector. Even such high-fliers as WIRELESS BANKING TO got out there today. The time to get started in Amazon.com and eBay seem to have lost their m-commerce is now.” luster. In this new business climate, there is OPEN THE MARKET every reason to ask why the prospects for Wireless banking and trading are an example of m-commerce should be different. an application that meets these criteria. Stock COMPELLING The prospects for m-commerce are brighter trades, payments for purchases, online banking ADVANTAGES OF because m-commerce is truly different. The most and other financial services are ideal products in distinguishing feature is naturally mobility. The that they are inherently digital transactions. WIRELESS ability to make purchases and conduct transac- Financial institutions also have substantial com- Unlike conventional e-commerce, which uses a tions anywhere at any time adds real value for the puting resources and back office systems in fixed Internet connection, m-commerce offers user and makes m-commerce applications more place for handling millions of transactions and the added value of mobility that makes it much attractive than similar e-commerce applications can reduce their own costs by letting customers more compelling for end users. In addition, based on a fixed connection for many types of access them over the fixed or wireless Internet. wireless solutions for electronic transactions are transactions. Users are willing to pay a premium Growing Internet use is already trans- inherently more secure than those implemented for such services, as long as the cost is reasonable forming the banking industry, and there is over the fixed Internet, thus alleviating one of in relation to the perceived value of the service. every indication that financial institutions will the foremost impediments to the acceptance of Certain types of goods and services are more be the leaders in opening up the m-commerce online shopping among consumers. suitable than others for m-commerce applica- market. There are already several examples of Another dimension that will grow in tions. Few people would use a PDA or a mobile successful wireless banking and trading applica- importance as m-commerce services and appli- phone to buy a car, for example. Renting a car, tions in Canada and the US, but there is activi- cations gain in popularity is positioning. however, as well as purchasing airline tickets, ty in several other regions indicating that wire- Wireless networks normally require informa- making hotel reservations, banking, accessing less banking and trading are growing fast. tion about the user’s location in order to locate the steadily growing number of information “We see a tremendous market for our new subscribers and to support such functions as services and buying a surprisingly wide variety wireless trading application,” says Won Baek, roaming. Many wireless devices thus already of goods, including books, CDs and souvenir CEO of Korean Mobitex operator Intec. “The have a basic capability to display information items, are ideal applications for m-commerce. Korean economy is booming again. Hundreds based on the user’s location, and exploiting this In all these examples, an m-commerce of thousands of Koreans own stock, and the capability in m-commerce services and applica- solution allows people to make a purchase when exchanges are eager for us to bring more users tion will increase the value for the user. and where the need or desire for a particular online. We expect to see tens of thousands of Mobitex networks provide an excellent product or service arises. People’s plans change new subscribers using our wireless trading medium for m-commerce. Recent network as the day progresses, and they often need to application over Intec’s Mobitex network.” enhancements and advances in software devel- change travel arrangements and reservations opment have contributed to creating an infra- accordingly. If some event during the day cre- CROSS-PARTNERSHIPS structure for m-commerce that few other wire- ates a desire to buy a particular book or record, less networks can match. It is therefore hardly being able to order it immediately using a wire- ESSENTIAL surprising that m-commerce is generating con- less device is truly convenient. If a particular Banks and financial institutions will not only siderable excitement in the Mobitex communi- stock in an investor’s portfolio hits a pre-deter- open up the market for m-commerce. Because ty and that both established companies and new mined sell point, the ability to conduct a trade security is of fundamental importance for these players are rolling out products and services for from an airport lounge is not only convenient. It applications and services, banks and financial this new growth market. can save a considerable sum of money. institutions will legitimize m-commerce. A recent study by Ovum sums up these fac- Currently ordinary consumers are reluctant to tors as the three Cs: convenience, cost and com- use wireless devices for electronic transactions, pulsive. Service providers whose m-commerce but this resistance will fade as security improves. services and applications offer high convenience, The trust that consumers place in banks low or acceptable cost and are compulsive to use and financial institutions will obviously be a key

are the ones most likely to succeed. factor. Wireless operators, service providers and 37366MDM2_Theme(10-21) 2000-10-07 23.04 Sida 12

12 CUSTOMER PERSPECTIVE

WHEN DOT-COMS FALTER The segmentation of the mobile e-commerce space presented in the Ovum study suggests why many dot-coms are faltering. Regardless of whether electronic transactions are con- ducted over fixed or wireless networks, the sale of services and information is likely to dominate over physical goods, since the product is often already in digital form and thus can be delivered over the network. Goods, on the other hand, require a separate logistics system for distribution. By focusing on the business-to-consumer (B2C) segment, many dot-coms are compounding the problem. With the excep- tion of music, games, films and other forms of entertainment that can be easily rendered in digital form, consumer goods must be delivered to millions of homes. On the other content providers, however, also have a unique than electronic commerce over fixed networks hand, business-to-business (B2B) applica- opportunity. A wireless device that is carried at for those players launching applications that tions in this segment typically involve trad- all times is a personal tool with which users also meet the three Cs for success. ing in raw materials or components between develop a very close relationship. Delivering per- As stated at the outset, mobility is the procurers and suppliers who already have the sonalized m-commerce applications and services most compelling feature of m-commerce appli- necessary logistics systems in place for hand- on such devices that not only meet the three Cs cations and services. The number of wireless ter- ling the goods. of convenience, cost and compulsiveness, but minals (including cellular phones) is already Another interesting aspect of this seg- also are perceived as totally secure and reliable greater than the number of PCs and is growing mentation is that many services cut across will instill a very deep customer loyalty. more rapidly. Wireless terminals are also much the line between the B2B and B2C seg- This represents not only an opportunity, more personal devices that allow anywhere/any- ments. This suggests that such services as but also a threat. No one owns the customer time access, making m-commerce a much dif- airline ticketing, banking and financial today. Instead, the customer will adopt the ferent experience than Internet shopping. trading, and various loyalty schemes could financial provider, carrier or device maker by Adding location-based applications and initially target mobile professionals and that choosing to build his or her personal world based services to what is already a highly personalized they could migrate downwards to the con- on their products. Cross-partnerships will be the device has the potential to deliver tremendous sumer market as the service matures and rule as the m-commerce market opens up. value to users. Today, the m-commerce market competition increases. For mobile users, Few companies understand this as well as consists of relatively simple applications and services and information may also have a Neomar. The San Francisco-based start-up has services that are characterized by low media and higher value if availability and delivery are moved quickly to enlist a wide range of partners security requirements and single partnerships keyed to the user’s current location. who support its WAP-based microbrowser and between the operator and a service or content mobile portal. These partners include device provider. Over the next two years, a new market manufacturers, operators, service providers, will emerge in which wireless PKI (Public Key content providers, software companies and Infrastructure) guarantees security, WAP termi- financial institutions. Neomar is well-posi- nals can access a wide range of personalized and tioned to exploit its first mover advantage and location-based applications and services, and will be one of the companies leading the way as more value can be delivered to end users. For the m-commerce market explodes. companies willing to enter the kinds of cross- partnerships required to create the personal electronic marketplace, the business opportuni- THE RUSH IS ON ties will increase proportionately. In its report Mobile E-commerce: Market Strate- Mobitex is uniquely positioned in this gies, Ovum sees m-commerce as the new gold emerging market. No other currently avail- rush. In going on to describe the formidable chal- able technology can match Mobitex in provid- lenges facing the players rushing into this mar- ing the infrastructure, security and devices ket, the authors wryly observe: “It has been said needed to jump start the m-commerce mar- of the California gold rush that the only people to ket. The new gold rush is on, and the time to make real money were those selling shovels.” get started is now. While these words of warning must be taken very seriously, m-commerce really is different and offers a much more attractive market 37366MDM2_Theme(10-21) 2000-10-07 23.05 Sida 13

Korea is fertile ground for the new interactive services that Intec is introducing in conjunction with the relaunch of its Mobitex network. At nearly 60 percent, mobile phone penetration is approaching Scandinavian levels. PC penetration is also high, and Internet usage will soon top 20 percent. Some three million South Koreans are already mobile Internet users. 37366MDM2_Theme(10-21) 2000-10-07 23.06 Sida 14

SHIFT TO INTERACTIVE During the same period the share price index doubled. Although growth has slowed, Koreans APPLICATIONS remain avid traders. Although conventional applications for vertical The new TWM III that Intec is launching markets, such as the transport industry will con- for its wireless stock trading service should prove tinue to play an important and growing role in popular with these investors. Sleek, small and the Korean operator’s business, the new services capable of running for weeks on a single battery, constitute a clear shift of emphasis to interactive the new wireless device was designed by CNI applications and services for a broader market of with traders in mind. It is attractively priced and business professionals and consumers. makes using the wireless trading service easy. Among the interactive applications and “With so many retail investors tracking the services that Intec will be offering are several stock market on an almost hourly basis, we forms of interactive messaging, information believe that this will be an extremely successful services, m-commerce applications, including a service,” notes Won Baek. “With our service, wireless stock trading application, and games. users will be able to track their portfolios in real Interactive messaging services will include time, using a device that allows them to execute wireless e-mail, two-way paging and an instant trades instantaneously from any location.” messaging services that will allow users to chat in real time. GAMES FOR “We see a very promising market for interactive messaging services, but we believe that SPARE MOMENTS perating under new ownership, Intec has wireless stock trading will be the killer applica- Somewhat more unusual, at least among estab- O formulated an aggressive business plan tion,” says Won Baek. “There are already many lished Mobitex operators, are Intec’s plans to to exploit this vast potential. The Mobitex net- tens of thousands of clients trading stocks using launch interactive games. Although the busi- work is being rapidly expanded in terms of both fixed and wireless Internet connections, and the ness case for interactive gaming applications coverage and capacity. A broad range of new stock exchanges are eager for us to bring even would be dubious to say the least in North interactive applications and services are being more subscribers online.” America or Europe, Asian countries are differ- introduced. Intec’s parent company CNI has ent. As Japanese cellular operator NTT designed and produced new wireless devices AVID WIRELESS DoCoMo’s extremely popular i-Mode service that will be launched simultaneously with the shows, interactive games are very attractive new services. TRADERS among certain user groups. “The Korean economy is showing strong The Korean stock market is different. Online Initially, Intec plans to include only the growth again,” notes Intec president and chief trading has turned into a national obsession, game of Go in its service offering. This ancient executive officer Won Baek. “Although Korea accounting for 70 percent of e-commerce trans- game has a huge following in Korea and is was severely affected by the Asian financial cri- actions in Korea, according to the Boston already played extensively over the Internet. If sis, our economic recovery has been particularly Consulting Group. Retail trades initiated by any interactive game can draw Korean wireless strong, with growth now actually exceeding the small investors also account for 70 percent of data subscribers, then it is surely Go. best years of the late 1980s and early 1990s. We the volume on the main Seoul Stock Market. “Existing Internet servers featuring Go believe that our timing in launching the new Driven by these day traders, Internet trading pair up players more or less randomly,” notes services is excellent.” grew nearly 1,000 percent over the past year. Won Baek. “With our service, we will give

THE FASCINATING that vary from one to nine. Newspapers in Japan and elsewhere in Asia devote daily columns to GAME OF GO the game, and professional competitions are One of the world’s oldest games still played in its arranged throughout Asia at both the national original form, Go is believed to have originated and international level. Prizes in these competi- in China between three and four thousand years tions, which can last for months, are often as ago. It was brought to Japan over 1,200 years large as those in professional golf tournaments. ago, but it was known in Korea before that time. Go is a deceptively simple game, played on Today, it is estimated that some 25 million a board with a grid of 19 horizontal and 19 ver- people, most of them is Asia, play the game reg- tical lines. These 361 intersections are the posi- ularly. Players are ranked by degrees of strength tions on which the players may place their 37366MDM2_Theme(10-21) 2000-10-07 23.06 Sida 15

CUSTOMER PERSPECTIVE 15 “Intec will be offering interactive messaging, infor- new messages arrive. Several functions are mation services, included to support the wireless stock trading application, so that users will be able to execute trades easily and quickly. a wireless stock CNI is also developing new wireless credit authorization terminals (CATs) that Intec will trading application, use to open new vertical markets. “With wireless CATs, our intention is to replace wireline- and games.” based CATs with CNI’s wireless terminals. These terminals will provide faster transaction times and lower communication costs, says Won Baek.”

TAKING MOBITEX TO A NEW LEVEL players more choices in selecting an opponent “We see our new Mobitex services as the future so that players will be more closely matched of wireless data in Korea,” continues Won Baek. in skill and thus be able to play a more “Currently there are competing services avail- satisfying game.” able, but we see today that they have reached the limits of development. With our new serv- STRONG PARENT ices, we are just starting what we expect will be a very rapid and exciting period of growth.” COMPANY When the planned network build-out is New wireless devices for Mobitex will play a completed by mid-2002, Intec’s Mobitex network key role in the launch of the new services. The will be second only to BellSouth Wireless Data’s showcase piece will be the new TWM III, a network in size. With the new interactive appli- sleek handheld device that rivals such products cations and services that the Korean operator is as the Palm VII in design and functionality. launching and a highly mobile and technological- The TWM III is designed and manu- ly sophisticated customer base, the number of factured by Intec’s parent company subscribers can be expected to increase rapidly. Communication Network Interface (CNI), an “The people at Intec and CNI are very tal- innovative technology and network services ented and extremely focused,” commented MOA company founded in Seoul in 1990. CNI has executive director Jack Barse, upon returning designed wireless terminals for several systems, from a visit to Korea this summer. “They have a including Mobitex, DataTAC and paging sys- very ambitious business plan and are determined tems, and has its own manufacturing facility. to take wireless data to a new level in Asia. We The new wireless handheld terminal was wish them the best of luck.” designed specifically for the new services that Intec will be launching on October 15. Several types of wireless messaging services will be supported directly, with instant notification when

stones. The white player has 180 white stones, A string is captured when there are no more to its form and rules, Go is ideally suited to play while black stones number 181. The objective adjacent empty positions. on the Internet. Today there are a large number of the game is to take or surround as much space Typically, a game of Go does not begin to of sites at which players may engage an oppo- as possible. take form until 30 to 50 moves have been made. nent in a game of Go. There are even Java The rules of Go are simple, but the combi- Complete games often involve 200 to 250 applets for Go, but as yet computers have not nations are virtually infinite. The two players moves. After the initial moves, the board has been able to beat humans. Instead, computers alternate in placing a stone of their own color on been compared to an artist’s pencil study prior to and the Internet are helping to increase the pop- an empty intersection. Stones cannot be moved, beginning a painting. A finished game maps the ularity of this ancient game and allowing people but they can be captured. The unit of capture contest of two minds, and one of the ancient to interact in a game that has been described as is a string, meaning a group of stones of one names for Go translates as “hand conversation.” more intellectually challenging than chess. color that are connected along the board lines. Because it is so simple, at least with regard 37366MDM2_Theme(10-21) 2000-10-07 23.06 Sida 16

Neomar is a young company that has quickly positioned itself to rapid growth, what are the options?” asks Fred exploit the tremendous potential of Chieux rhetorically. “If you’re involved in m-commerce, it’s a no-brainer. An open standard like the emerging m-commerce mar- WAP is necessary to achieve a Web-like effect. A standard allows us to take the focus off application ket. Founded just over a year ago, development and reduce time to market.” Neomar got off to a flying start by SECURITY IS THE developing the world’s first com- GATEKEEPER Neomar has built an end-to-end wireless solution mercially available WAP micro- based on WAP. In addition to the Neomar Microbrowser, this solution includes the Neomar browser for wireless PDAs. The WAP Gateway and the recently released Enterprise Content Server. The microbrowser is company already has an impressive installed on the wireless PDA, while the Neomar WAP Gateway is normally installed behind a cor- list of business partners and enter- porate firewall or off-site at a wireless ASP (application service provider). The WAP Gateway prise customers. retrieves WML (wireless markup language) content from accessible Web servers using standard URLs and delivers it to the WAP microbrowser. The Neomar Enterprise Content Server is a wireless application server that allows enterpris- es to customize and control the applications and business content viewed by employees over wireless devices. It is designed to help companies aggregate and prioritize wireless access to ecently, Neomar also secured first-round WEB-LIKE EFFECT the most relevant applications and content by R financing totaling USD 7 million from department or even by individuals within each Research in Motion Limited and 724 Solutions WITH WAP department, thus increasing productivity com- Inc., thus ensuring continued fast growth. “We chose to support Mobitex and the RIM and pany-wide and delivering business-critical con- “This year will be the year of awareness for Palm devices first, because the network was tent anytime, anywhere. m-commerce,” asserts Fred Cieux, senior vice already in place and the coverage was there,” “With the increased use of wireless devices president for corporate and business develop- says Fred Chieux. “Here in the US, BellSouth in the enterprise, it is imperative that companies ment at Neomar. “By 2002, we will see full- Wireless Data’s network provides superb cover- provide their employees secure, easy access to scale deployment, and at that time the leaders age and reliable and affordable wireless data the applications and information they need to will be the companies who got out there today.” communications.” do their jobs, not just sports scores and weather In this market, Neomar aims to be the lead- Equally important was the company’s deci- forecasts,” notes Fred Chieux. ing provider of services that enable business-to- sion to base its products and services on the WAP Adding business critical information and m- business, enterprise and mobile professional wire- (Wireless Application Protocol) standard. Today, commerce transactions to the WAP services avail- less applications on PDAs (Personal Digital Assis- there are nearly 300,000 WAP developers, and able on a wireless PDA raises important security tants). To achieve this objective, Neomar is work- the WAP Forum’s membership has grown to issues. Security is not a concern in services that ing with leading Internet content, service and some 550 companies. deliver sports scores and other casual information, technology providers to bring a full suite of wire- “If I want to develop applications and servic- but banks and enterprise customers have higher less services to business and enterprise customers. es for the new wireless PDAs that will generate demands. Security is an area in which Neomar 37366MDM2_Theme(10-21) 2000-10-07 23.07 Sida 17

CUSTOMER PERSPECTIVE 17 “With the alliances that we have forged, Neomar has clearly secured first-mover first major enterprise customer. Negotiations advantage in the are also in progress with several other Fortune 500 enterprise customers. In addition, Neomar WAP-based wireless expects to announce shortly that a reseller agreement has been reached with a major con- services market.” sulting firm that will market the Neomar products to its corporate customers. “With the alliances that we have forged and the recognition among customers that we have achieved, Neomar has clearly secured first-mover works closely with Certicom, from which the advantage in the WAP-based wireless services YOUR CUSTOMER IS company has licensed key technology. market,” emphasizes Fred Chieux. “For m-commerce, security is the gate- IN MOTION keeper,” explains Fred Chieux. “Without secure 724 Solutions has a vision of the Personal end-to-end solutions there will be no market, THE FUTURE IS NOW Electronic Marketplace, an environment no matter how compelling the applications and Although a strong supporter of standards such where consumers will have personalized and services are in other respects. That’s why we as WAP, Neomar is a data-centric company integrated access to their trusted financial have licensed Certicom’s WTLS Plus technolo- that targets PDAs exclusively. “We don’t do and retail relationships, complemented by gy and will be the first company to support phones. We leave that to Phone.com,” jokes high-value informational content. Mobility, their wireless PKI (Public Key Infrastructure).” Fred Chieux. “For our business, we believe that convenience, choice and robust technology PDAs are the right device and that a data-only will enable customers to easily create their network like Mobitex is the best.” own personalized world of e-banking, e-bro- FLAWLESS EXECUTION “WAP and GPRS will undoubtedly be a kerage and e-commerce services. Neomar’s execution in pursuing its strategy has very powerful combination, but that won’t No enterprise will actually own its cus- been nearly perfect to date. Among the com- happen overnight,” continues Fred Chieux. tomers. Instead, customers will adopt the pany’s first announcements were agreements “GPRS is going to show that voice and data are financial provider, carrier or device maker by with Palm Computing and Research in Motion very different markets. Obviously, people are choosing to build a personal world based on that the Neomar WAP microbrowser would be still going to talk, and they will continue to their products. Cross-partnerships will allow supported on those companies’ wireless PDAs. carry their mobile phones. But for the applica- financial services providers, carriers and This was quickly followed by agreements with tions and services that we provide, wireless device makers to grow by sharing access to Certicom to license its security technology and PDAs are simply a better choice.” client bases. The development of multi- WTLS Plus toolkit for inclusion in Neomar’s For now, Neomar will therefore live in faceted partnerships will be the only way any products and an agreement with BellSouth peaceful co-existence with WAP phones, which enterprise can respond to change in a timely Wireless Data to support the Neomar micro- Fred Chieux does not perceive as either a threat manner or provide sufficiently rich services browser on BellSouth-enabled wireless hand- or an opportunity at this time. He also points that will appeal to restless customers and held devices and to include support for out that Neomar’s products not only support attain the critical mass needed to achieve Neomar’s WAP gateway and portal as part of Mobitex, but also are available on a CDPD- sustainability. the operator’s MyBiz Interactive service. enabled version of the Palm Pilot. Moreover, Confirmation that Neomar was on the right Fred Chieux assures us that Neomar will be a track and that the company was recognized in the player when cellular voice networks become industry as the leading provider of WAP-based data-centric but that the company is not hold- services for PDAs came when a deal was struck ing its breath for that day to come. with 724 Solutions to license Neomar’s WAP “The future is being created now,” asserts solution for incorporation into the company’s Fred Chieux. “We firmly believe that wireless Financial Services Platform. Backed by Internet access will soon surpass fixed access and Certicom’s wireless security technology and built that m-commerce will be a huge market. But we according to the rigid security specifications of need to exploit our first-mover advantage to the leading global financial institutions, the 724 ensure that we will be the leader in that market. Solutions Financial Service Platform is used by We chose WAP because it is an open standard such customers as Citibank, Bank of America, that can drive Web-like growth, the BellSouth Bank of Montreal and Wells Fargo to provide an Wireless Intelligent Network because it provides Internet infrastructure solution that allows them the coverage that we need now, and Certicom’s to offer personalized and secure online banking, WTLS because it provides the security that brokerage and e-commerce services. financial institutions and consumers demand. In More recently, Neomar announced that it getting where we want to be tomorrow, there is had signed up Credit Suisse First Boston as its simply no time to waste today.” 37366MDM2_Theme(10-21) 2000-10-07 23.07 Sida 18

When a speaker from RSA Security, one of the leading companies in the data security industry, made the statement at the 1998 Certicom PKS conference that wireless PDAs, such as the Palm VII Connected Organizer, would never be able to offer secure data communications, Certicom representatives had to chuckle. 37366MDM2_Theme(10-21) 2000-10-07 23.07 Sida 19

TECHNOLOGY/STRATEGY 19

”Security and efficiency

utside the conference hall in the exhibi- goes down as security goes up! Commercial are compelling user tion area, Certicom engineers were giving security using the RSA algorithm needs key requirements.” O a live demonstration of what the industry sizes of 1024 bits or more. This means RSA is leader said was impossible. Using a Palm VII, too cumbersome for many m-commerce and they were demonstrating secure communications wireless data applications. So Certicom has per- using ECC (elliptic curve cryptography) encryp- fected ECC, which can offer comparable security tion and strong authentication over BellSouth with key sizes of 163 bits. Today we offer both Wireless Data’s Mobitex network. ECC and RSA in our products to enable our cus- Today, no one in the data security industry tomers to deliver effective, secure solutions is laughing about Certicom. Both prior to the across as many wireless platforms as possible.” 1998 conference and over the following years, people have been taking the pioneering compa- APPLICATIONS DRIVE TYPES OF ny very seriously as it continues to raise the standard for security solutions for the mobile SECURITY CRYPTOSYSTEMS computing and wireless data markets, includ- Although ECC technology gives Certicom a There are two broad classes of crypto- ing m-commerce, using its advanced, next-gen- competitive advantage in the marketplace, it is systems called symmetric-key and pub- eration ECC technology. applications that drive security. In general, lic-key systems. In symmetric key sys- “At Certicom, we are fond of saying that increasing levels of security are needed as tems, the same key is used for both we own the next-generation of encryption tech- mobile users conduct transactions with greater encryption and decryption. Symmetric- nology,” says Prakash Panjwani, Sr. Director of business value. Certicom has identified e-com- key cryptosystems, such as DES (Data Wireless at Certicom. “Of course, that’s a very merce, financial transactions and healthcare as Encryption Standard) developed by strong statement, but we feel that it is also three application areas for which security IBM in the mid-1970s, can be highly completely objective. Existing encryption tech- demands are particularly high. efficient, but they have the important nology is 20 years old. Certicom has pioneered Many mobile users want to shop securely drawback that each pair of users who ECC technology that is specifically designed for online and access financial information, such as wish to communicate must maintain a mobile and wireless environments, and we are real-time stock quotes and bank balances. In common and secret key. confident that it will provide security for the Certicom’s view, security requirements for these While symmetric-key crypto- next 20 years.” applications are moderate. The Web model for systems have a long history, public- secure transactions using SSL (Secure Sockets key systems were introduced as Layer) for encryption and transport integrity is recently as 1976. These use a public EFFICIENT YET SECURE sufficient. There is no immediate need for key that can be freely distributed and Elliptic curve cryptography was introduced as strong client authentication. a mathematically related secret or recently as 1985. Certicom has been extremely Mobile execution of financial transactions, private key. The first practical public- active in both basic research in ECC and however, such as wireless banking or stock trad- key system was RSA encryption ECDSA (Elliptic Curve Digital Signature ing demands a greater level of security. Strong developed at MIT in 1978 by Rivest, Algorithm), and in standardization work in client authentication is required to ensure that Shamir and Adleman. such bodies as ANSI, ISO and IETF. These the source and destinations for the data are Modern cryptographic research efforts have revealed that ECC has several trusted. Transaction integrity is required to is mainly focused on public-key sys- advantages over RSA encryption and some com- ensure that a transaction initiated by the client tems, since these are considered the pelling benefits for wireless applications. has not been altered. In addition, the technolo- most secure and the most desirable In comparisons with RSA, ECC delivers gy should support non-repudiation, meaning in many respects. In addition to the substantially greater security with significantly that it should generate verifiable evidence that benefits of simplified administration smaller key sizes. In fact, Certicom’s data sug- the transaction has been authorized by the deriving from public keys, these gests that an ECC key size of just 163 bits pro- client and cannot be repudiated. systems typically also support digital vides the same security as 1,024 bit RSA Healthcare applications have very strict signatures and thus meet requirements encryption keys. This not only means that it confidentiality requirements to protect the for real-time user and data-origin provides higher security with fewer bits than secrecy of patient data. In most respects, the authentication and non-repudiation. RSA, ECC is also significantly more efficient in level of security must be as high as, or higher Furthermore, they provide the basis for terms of computational overhead, key size and than, that demanded for financial transactions. a public key infrastructure (PKI) in bandwidth. These are important advantages on A healthcare-related transaction must be prop- which certificate authorities (CAs) can what Certicom sometimes refers to as con- erly authorized, and strong client authentica- act as trusted authorities, issuing digi- strained devices, such as the Palm VII or the tion is therefore an important ingredient in tal signatures for use in secure elec- RIM 950, which are limited in terms of pro- such applications. tronic transactions. cessing power, storage capacity and bandwidth. “Efficiency and security are both compelling user requirements in wireless”, says Prakash Panjwani, “but traditionally efficiency 37366MDM2_Theme(10-21) 2000-10-07 23.07 Sida 20

20 TECHNOLOGY/STRATEGY

”Certicom has identified e-commerce, financial transactions and healthcare as three application areas for which security less banking and trading applications based on MAKING WAP SECURE demands are Neomar’s WAP microbrowser and hosted on the “Certicom is a strong supporter of WAP and has Palm VII and RIM 950 devices operating over made important contributions to the WAP BellSouth Wireless Data’s Mobitex network. particularly high.” standard,” says Prakash Panjwani. “WAP is one “We work closely with 724 Solutions and of the key standards for secure mobile e-com- Neomar, which are also valued Certicom cus- merce. It provides the framework for enabling tomers,” says Prakash Panjwani. “These compa- Internet access, e-commerce and other advanced nies are leaders in providing innovative solu- services on wireless devices, including highly tions that will play a key role in growing the m- constrained PDAs, pagers and mobile phones.” commerce market. By partnering with such cus- Certicom offers a complete security solu- tomers and leading wireless carriers, such as tion for WAP. The two primary components of BellSouth Wireless Data, Certicom is securing this security solution are communication securi- the wireless Internet and opening the market ty provided via WTLS (Wireless Transport for the explosive growth that we foresee in Security) and SSL (Secure Sockets Layer), and mobile e-commerce.” end-to-end transactional security provided via For the Mobitex community, the lessons application-level security functions (digital sig- could not be clearer. Certicom and its business natures and field-level encryption) and the asso- partners are securing the wireless Internet using ciated Public Key Infrastructure (PKI). next-generation technology. With Mobitex pro- Existing customers who will be able to use viding the coverage, a wireless PKI solution this wireless PKI solution and 724 Solutions’ being deployed by industry leaders and powerful Financial Services platform include Citigroup, and inexpensive wireless devices readily avail- Bank of America, Bank of Montreal, Key Corp. able, all the components are in place. Thanks in and Mastercard. In several cases, these cus- large part to Certicom’s efforts, e-commerce is tomers are already offering or plan to offer wire- now ready to go mobile.

EXTENDING IP FOR Applicability of IPsec implementations communicating applications, while being inde- over wireless networks is still being researched. pendent of the application protocol, meaning WIRELESS SECURITY Most IP implementations for Mobitex and other that other protocols can be layered on top of it. Security in data communications can be imple- wireless networks use a native protocol at the TLS 1.0 currently has the status of a draft mented at several different levels. IPsec, for network layer that is highly optimized for the Internet standard. The specification was example, is an Internet protocol designed to network in question. In addition, wireless IP authored by two Certicom engineers. provide security for all data packets at the net- implementations commonly employ the connec- The WAP Forum has standardized a ver- work layer. It consists of two parts called the tionless Universal Datagram Protocol (UDP) sion called wireless TLS (WTLS) that is special- Authentication Header (AH), which provides communications instead of the connection-ori- ly optimized for wireless networks. One of the data-origin authentication for data packets, and ented Transport Control Protocol (TCP) normal- most important optimizations is that WTLS, the Encapsulation Security Payload (ESP), ly used in fixed networks, since the data packets unlike TLS, can be used over an unreliable (con- which in addition to the data itself, specifies the used for datagrams carry far less overhead. nectionless) transport layer, such as UDP. WTLS security parameters required to determine how Transport Layer Security (TLS) is another is thus highly compatible with existing wireless the data was encrypted. When used with a tun- Internet security protocol that was designed to IP implementations. Certicom provides WTLS neling protocol such as L2TP (Layer 2 sit above the transport layer where UDP and for Mobitex and other wireless networks. Tunneling Protocol), IPsec provides an extreme- TCP are used. TLS is the successor to SSL ly secure and relatively efficient means of com- (Secure Sockets Layer) and is designed to pro- municating over the public Internet. vide privacy and data integrity between two 37366MDM2_Theme(10-21) 2000-10-07 23.07 Sida 21

SECURING THE PALM™ VII HANDHELD SERIES Certicom worked closely with Palm, Inc. to secure the company’s Palm VII handheld series. Palm knew that its revolutionary new products would need built-in security for wireless applications such as banking and e-commerce. They also wanted users to be able to connect to the The suite of WAP specifications, which are all placed behind a firewall, where it is only acces- Internet right out of the box, and needed a way derived from equivalent Internet standards sible by trusted clients. to authenticate without requiring a service established by the IETF, provides the founda- However, stronger authentication, such provider. Security from Certicom provided the tion for a wireless Public Key Infrastructure as digitally signed transactions, can also be solution for both challenges. solution that supports strong user and data- employed to plug this gap. Strong client “Certicom’s advanced elliptic curve tech- origin authentication, as well as digital signa- authentication and digital signatures provide nology allows Palm to provide commerce- tures. The two primary components of this a higher level of security at the application strength security over limited bandwidth net- security solution are communication security level than WTLS and SSL and ensure end-to- works. Security Builder provided security for provided via WTLS (Wireless Transport end transactional security. In WAP, this is our product,” says Scott Lincke, director of Security) and SSL (Secure Sockets Layer), and achieved using a client crypto API referred to wireless products for Palm, Inc. end-to-end transactional security provided via as the WMLScript Crypto API. WMLScript In order to address Palm’s needs for application-level security functions (digital is a simple scripting language that allows authentication and encryption, Certicom cus- signatures and field-level encryption) and the client-side processing and can instruct the tomized a version of its cutting-edge ECC associated Public Key Infrastructure (PKI). client to invoke application-level functions, toolkit Security Builder®, fitting it into only In the wireless PKI solution launched by such as digital signing. To invoke digital sig- 29K of memory. Using this ECC library, the Certicom and 724 Solutions, communication- natures on client devices, each client must Palm VII handheld executes a 163-bit elliptic level security between the WAP client and have a private/public key pair, which implies curve Diffie-Hellman (ECDH) key exchange the WAP gateway is provided via Certicom’s that a PKI must be designed to support using the public key of a Palm.Net™ server, WTLS Plus™ Toolkit. Based on Certicom’s issuance and management of public keys and which is stored in the device’s memory. A ses- ECC technology, this product has been deliv- associated certificates. sion key encrypted with ECDH is then returned ered to leading customers in the mobile e- Certicom’s wireless PKI solutions is to the Palm, which allows it to fall back to commerce industry. WTLS Plus has also been based on open standards like WAP PKI and DESX symmetric-key encryption. licensed by Neomar for its WAP microbrows- IETF CMP which will allow it to interoperate Using ECDH and DESX, Certicom’s er, portal and gateway products and by 724 with other standards-based PKI solutions. encryption ensures the security of the data trav- Solutions for its Financial Services Platform. Certicom is also very active in interoperabili- eling over the wireless link between the Palm ty testing in such bodies as the PKI Forum (http://www.pkiforum.org) along with other VII handheld and the Palm.Net service. Palm TRANSACTIONAL Computing’s servers are secured with Internet- PKI vendors like IBM, RSA, Entrust etc. standard SSL. Any remote host that supports SECURITY “The PKI portal technology that we are developing with Certicom is the first of its SSL acts to secure the Palm wireless connection As Certicom rightly points out, the bridging end-to-end. Certicom’s ECC is the strong, effi- kind for wireless financial services. 724 of two secure connections at the WAP gateway Solutions is rolling it into the Financial cient security that makes these wireless applica- constitutes a point of vulnerability. “This has tions possible. Services Platform, allowing us to build on our been regarded as ‘gap-in-WAP’ by some security and truly remain a leader in offering media, since data coming from a mobile client secure wireless financial services solutions,” and being forwarded to an Internet server is says Greg Wolfond, CEO of 724 Solutions. available as plain text for a brief moment,” notes Prakash Panjwani. “Whether this is a security concern depends on two factors: security policies implemented by the operator for access to the WAP gateway and the sensitivi- ty of the information being transferred.” Most wireless operators routinely maintain secure facilities, since authentication of network devices requires storage of secret keys and other information for which security must be guaranteed. The same applies to enterprise data centers where WAP gateways may be implemented. In effect, the WAP gateway is 800 MHZ MOBILE OPENS NEW MOBITEX MARKET DATANEWS IN CHINA

Ericsson is announcing a new “These new products series of Mobitex products for the demonstrate Ericsson’s continu- 800 MHz frequency band. The ing commitment to advancing new BRU 3800 radio base sta- Mobitex technology,” states tion, which is based on the same Pontus Lindquist, general man- design as existing units for the ager for Mobitex at Ericsson 900 MHz band, will use an Mobile Data Design. “Mobitex is uplink frequency in the range the de facto international stan- from 819 to 825 MHz and a dard for narrowband wireless data downlink frequency of 864 to communications, and the new 870 MHz. Complementing this base station will open major new product is the new M3080 markets in countries where exist- Mobitex OEM Radio Modem, ing Mobitex frequencies are not expected to start in mid-2001. addition to Mobitex’ strengths in which is based on the same plat- available.” The new BRU 3800 will have the interactive applications, we have form as the existing M3090 prod- same specifications as the existing seen a tremendous surge in tradi- uct. The new base station and BRU 3900 in almost all respects. tional vertical markets, such as modem are primarily intended POWER BOOST An important difference, howev- transportation, point-of-sales, for the Asian market, where there IMPROVES er, is that output power will be telemetry and emergency serv- is considerable interest for doubled from 3 to 6 W. This will ices. In these markets, handheld Mobitex from paging operators in COVERAGE increase surface coverage and and wearable devices will allow China. Operators in other regions A prototype version of the BRU indoor penetration, compared paging operators to create new where the 900 MHz frequency 3800 is nearing completion. with previous products. value-added services, and the band is unavailable or occupied Deliveries of limited volumes for For terminal products, BRU 3800 will open new mar- by GSM 900 systems, however, installation in several test net- Ericsson is launching the M3080 kets for these applications.” For will doubtless also find the new works in China will begin later OEM radio modem for Mobitex. further information about test base station an attractive option. this year. Volume deliveries are The 800 MHz unit will have all network and activities in China the features of the existing M3090 please contact Jenny Huang, at product, including onboard appli- [email protected] cation (OBA) support and an optional Java virtual machine www.ericsson.se/mobitex (JVM). Prototypes of this unit will be available in the same time frame as the BRU 3800, with volume deliveries determined by customer demand. “We are very excited about prospects in the 800 MHz market” says Olof Nellgård, area manager for the Asia Pacific region. “This is an ideal frequency band for Mobitex, since it allows relatively easy migration of existing 900 MHz products. We expect to see suppliers moving quickly to bring extremely compact and low-power terminal devices to the Chinese market. In PRODUCT NEWS 23

DM210 PACKS POWERFUL PUNCH

Tiny and truly portable, Maxon’s which is the first DM210 radio data modem is an and designed to exciting new product from a operate in the 415 to leading manufacturer of 400 460 MHz frequency MHz modems. The new range, will be available in DM210, which complements October, according to Maxon. Maxon’s highly successful This product can be used on DM200 radio data modem, is European and some Asian designed for low power con- Mobitex networks operating on a second serial port for commu- sumption and battery operation. the 450 MHz band. One month nicating with the MiniApp3 Although it measures just 95 x later, the company will launch firmware. Both the modem and 70 x 25 mm, the DM210 packs the DM200S, which will operate application parameters can be up to 5 W power in four incre- on frequencies from 400 to 445 configured using an intuitive mental stages. Receiver sensitiv- MHz, making it suitable for use Windows interface. ity is 113 dBm. in the UK. The application, which is

“We believe that the normally hosted externally to the VII PALM SUPPORT FOR ENTERPRISE APPLICATIONS DM210 is the lowest cost, most POWERFUL DM210, uses the second parallel highly-featured 400 MHz APPLICATION port to communicate with the Mobitex modem available on the SUPPORT onboard MiniApp3 firmware, Palm and Broadbeam an- market,” says Steve Carroll, which in turn can control nounced that Palm VII sup- engineering and commercial Building on the previous genera- the modem, the 12 I/O lines and port has been added to director at Maxon Europe. tion of tools for the widely the companion GPS module. Broadbeam’s middleware suite. “With the new MiniApp3 deployed DM200 series prod- Input/output data and GPS The two companies are co- firmware, the DM210’s versatile ucts, MiniApp3 makes it easier information can thus be read by operating to encourage devel- I/O and serial interface options than ever for developers to the application program or sent opment of enterprise applica- and the companion GPS module, design powerful wireless data out over the modem. tions. By building applications the DM210 is ready to power a applications. In addition to the The DM210 is thus a very on Broadbeam’s stack, devel- new generation of Mobitex MASC port for native Mobitex versatile product that can sup- opers can gain direct access to applications.” commands, which uses a stan- port a wide range of wireless data corporate data resources as well Maxon is actually introdu- dard serial connector, the applications. As if these already as to Palm.Net. Developers cing two products. DM210, DM210 features 12 I/O lines and impressive capabilities were not who enroll in a promotional enough, Maxon engineers are program can get discounts on intent on adding new features the software tools as well with an eye to supporting the as on the Palm.Net service. growing number of IP applica- Commercial availability is tions running over Mobitex. scheduled for Q3. “Right now, we have several working prototypes of a www.broadbeam.com DM210 running TCP/IP using a protocol stack that we have implemented in firmware,” reveals Steve Carroll. “I would emphasize that this is still a prototype at this stage, but we will be demonstrating it at the MOA meeting in October. A As shown, all MASC commercial product with this functions (PacketAT) option will be available in the operate with serial port 1 very near future.” and all MiniApp functions operate with serial port 2. www.maxon.co.uk 24 PRODUCT NEWS

POPULAR PALM VII GETS BETTER

In August, Palm Computing cations. This added capacity face demonstrates that quick, swelling to more than 400, users released en enhanced version of allows the new unit to store streamlined access to accurate, want more room for applications the popular Palm VII Connected about 400 e-mail messages, 30 Web-based information almost and more out-of-the-box content. Organizer called the Palm VIIx. add-on applications, 100 web anytime, anywhere has tremen- We’ve delivered both at the At the same time, the price of the clipping applications, 8,000 dous value for today’s busy pro- same price-point, which adds up original wireless organizer was addresses, about 8 years of fessionals,” said Byron Connell, to tremendous value for our reduced. appointments and about 300 vice president, Consumer customers.” Priced at USD 499, the new to-do items. Markets Group at Palm, Inc. Palm VIIx features a fourfold “Our customers’ enthusias- “With the unlimited volume www.palm.net increase in memory to 8 MB and tic response to the Palm VII and service plan and the number 40 bundled web clipping appli- our elegant web clipping inter- of web clipping applications

AUSTRALIA CATCHES THE WAVE The Intelligent Network operat- Clark, newly appointed CEO of expanded to increase both geo- ed by Australian Mobitex opera- United Wireless. “Now we can graphic coverage and capacity. tor United Wireless will provide look forward to a continued With a population of 17 mil- the communications link for the strong relationship with lions this represents a sizeable new Palm V Wireless Cradle to dotWAP as a strategic alliance market for a new generation of be launched by dotWAP across partner as we ride the wireless interactive applications that Australia later this year. The wave together.” includes interactive messaging, dotWAP product will transform United Wireless’s Mobitex information services and m-com- the Palm V into a powerful network currently covers merce. “If the success of the Palm instant messaging and WAP Australia’s mainland capital VII and other interactive wireless device that will connect mobile cities and regional areas, offering devices in North America is any users to the Internet and a range national and regional coverage to indication, Australian Mobitex of services and applications to be over 80 percent of the country’s operator and its business partner included in the dotWAP offering. population. Contiguous coverage dotWAP can look forward to a “The new millennium has extends from Newcastle to surging wave of new growth,” says been accompanied by a massive Wollongong, from Brisbane to Per-Erik Sundström, manager for increase in the profile and func- the Gold Coast and from after-market sales at Ericsson. tionality of wireless technologies Melbourne to Geelong. The net- and applications,” says Peter work is continually being www.uw.com.au

Ericsson has produced a new network implementation, opera- NEW brochure for after-market sales. tion and management and can The new brochure contains infor- relieve operators of many tasks BROCHURE mation about the services that for which qualified specialists services Mobitex Ericsson can offer under the head- must otherwise be employed. Grasp the full of your MAKES LIFE potential network ings of consultancy services, The new brochure is avail- UIDE G ICES SERV implementation services, compe- able for downloading and order- EASIER tence development, maintenance ing on the Mobitex website and support. at www.ericsson.com/mobitex. As the new brochure Questions about after-market explains, these services can make sales can be addressed to Per-Erik life significantly easier for oper- Sundström, manager for after- ators. Ericsson’s experts are market sales, at experienced in all aspects of [email protected]. BUSINESSPRODUCT NEWS 25 IM:WORK – WEB-BASED MANAGEMENT FOR THE MOBILE WORKFORCE

Atlanta, Georgia-based iMedeon, architecture,” says Joe Mediate, a provider or web-based applica- president and CEO of iMedeon. tions for workforce management, “Furthermore, our ASP (Applica- recently announced version 2.0 of tion Service Provider) delivery iM:Work, the company’s flagship model speeds implementation product. Optimized for field serv- and dramatically lowers the total ice organizations, iM:Work fea- cost of ownership.” tures wireless connectivity for The wireless connectivity real-time decision making and that is the foundation for supports Mobitex and several iM:Work enables real-time other wireless networks. Modules decision making that delivers include iM:Field for field work staff, skills, equipment and parts order processing and iM:Collect to the right location at the right for mobile data collection. time. “Service organizations In addition to these two field need better utilization of modules, iM:Work includes the people, faster customer iM:Dispatch module, which is an response and a friend- intelligent resource deployment lier customer-facing tool for mobile work dispatching, organization – all the and iM:Workcenter, which is the way to the field,” adds hub of the series from which work Joe Mediate. dispatching, crew administration, The iM:Work soft- work order generation and re- ware suite is thus porting functions originate. designed to dramatical- Completing the core modules is ly improve cross-orga- the iM:Optimizer module, which nizational performance creates optimized schedules and through field-service routes, and iM:Analyzer, which is optimization. Current a results performance manager. iMedeon clients include The iM:Portal module pro- Nextel Communica- vides the web interface and sup- tions, Verizon Wireless, ports a set of application portals Powertel, Wisconson that facilitate bi-directional com- Public Service munications between front and and Detroit back-office systems. These are Water and generic plug-ins that support Sewer. integration between iM:Work, web-based applications and lega- www.imedeon.com cy systems or pre-built plug-ins that are designed for integration between iM:Work and compli- mentary systems.

REAL-TIME DECISIONS “For field service organizations, our magic is the combination of vision, functionality, wireless communications and web-based A camel, according to an old joke, is a horse designed by a committee. Standards are regarded similarly by many people as being unnecessarily burdened by features added by committees that have not been con- cerned about performance. WAP (Wireless Application Protocol), which has been roundly criticized in recent months, would What is SET? The SET specification is an open technical stan- be regarded by such people as a perfect dard for the commerce industry developed by Visa and MasterCard as a way to facilitate example of this phenomenon. secure payment card transactions over the Internet. SET relies on cryptography and digital certificates to ensure message confidentiality and security.

Who is supporting SET? bjective observers, however, recognize What is WAP? Originally released in 1997 by MasterCard and that standards are necessary. In certain The Wireless Application Protocol (WAP) is the Visa, SET has been adopted by some 300 organ- O situations, letting the market decide on de facto world standard for providing Internet izations in 35 countries worldwide. An impor- a standard is simply not an option. The inter- communications and advanced telephony serv- tant factor in this growth was the announce- operability that a standard ensures may be a ices on digital mobile phones, pagers, personal ment in 1999 of a memorandum of understand- more important criterion than performance in digital assistants and other wireless terminals. ing between Ericsson and Visa. Today, the SET creating a market. This is particularly true in The WAP specification is actually a suite of pro- specification is administered by SETCo, a com- virgin markets, such as the wireless Internet, tocols for wireless networks based on existing pany funded by MasterCard and Visa. in which there are many stakeholders from Internet standards, such as XML and IP. a number of industries but few established market leaders. How do WAP and SET work together? Realizing the market potential for Who is supporting WAP? WAP and SET are used together when an m-commerce requires not only WAP but a The WAP specification is administered by the m-commerce application involves a payment number of other standards, such as SET WAP Forum, an industry association originally card. SET is a transaction-layer protocol that (Secure Electronic Transactions). This article formed in 1997 by Ericsson, Motorola, Nokia provides application-specific security. WAP, or attempts to place these standards in relation and Phone.com. Today, the WAP Forum has more accurately WTLS (Wireless Transport to Mobitex and to present the standards bod- over 500 members, including handset and ter- Layer Security) is a session layer protocol that ies and industry organizations working to minal manufacturers representing 90 percent of works through WIM (WAP Identity Module) at ensure that they are supported in the wireless the world market and carriers representing the layer below SET to implement the services devices and services offered to consumers. more than 100 million subscribers worldwide. that the application-layer security requires. OUTLOOK 27

“In certain situations,

What other organizations are involved in to get all these consumers to start using mobile letting the market setting standards for m-commerce? e-commerce is a standard which makes it safe MeT (Mobile Electronic Transactions) is an and easy to use.” decide on a standard open initiative among terminal manufacturers Ericsson, Motorola and Nokia intended to har- What about the critics who say that “WAP is simply not an option.” monize existing technical standards (WAP, is crap?” PKI, etc.) so that the mobile Internet will be as “We need to be realistic,” says WAP Forum easy to use as possible. MeT recently began a chief executive Scott Goldman, who was quick collaboration with the Global Mobile to address the critics in a recent issue of operators to provide additional customer service Commerce Forum (GMCF), which is a cross- Ericsson’s Contact (August 24, 2000). “There’s channels (for example, using a microbrowser to industry initiative for developing secure pay- been a lot of hype in the past, ads showing a provision a new feature),” says Jack Barse. ment methods on all available technical plat- guy in a café, his feet up on the table, surfing “Given that Mobitex is now an accredited form. Started last year by MasterCard, the the Internet at light speed in full color. transport for WAP, Mobitex operators are GMCF now has some 200 members. “But that’s not what WAP is. The differ- working with terminal and gateway manufac- On another front, Radicchio was formed in ence between accessing the Internet on your PC turers to offer WAP-based products and service 1999 as a global partnership of companies and and accessing it on a WAP device is like the as specific markets demand. For example, WAP organizations committed to the development of difference in dining at a buffet and ordering services, based on Neomar’s WAP browser and secure wireless e-commerce and to the promo- room service. At a buffet, you can sample all gateway, are currently in end-user trial in the tion of PKI (Public Key Infrastructure) for wire- the offerings and go back to put whatever you US and Canada. Both RIM and Palm handhelds less devices and networks. Radicchio now has like on your plate. With room service, like can use Neomar’s browser to access data using more than 50 members, including MasterCard, WAP, you are presented with a menu, you order both BellSouth Wireless Data’s and Rogers Visa, Ericsson, Certicom and 724 Solutions. what you want and it is delivered to you.” AT&T Wireless.”

What is Ericsson’s role in these initiatives? Why isn’t WAP more popular? Do MOA members perceive the opportunities for WAP over Mobitex, particularly Ericsson is a founding member of most of these Speaking at the Unwired Universe 2000 con- with regard to m-commerce? organizations and works actively in all of them. ference this summer, Scott Goldman was once The company thus takes standardization efforts again quick to cite evidence for an “over- “The opportunity for network operators to fulfill very seriously and allocates significant re- whelming momentum” behind the protocol. customers’ needs for access to Internet-based sources for this work. “Since January, the number of WAP developers information is tremendous,” notes Jack Barse. “Ericsson’s ambition is to formulate an has risen from 30,000 to 300,000,” he says. “Mobitex operators indeed recognize the oppor- environment which allows mobile operators, “Forum membership has grown from 250 to tunities before them. Mobitex is very nearly an financial institutions and other service providers 5000, and the number of WAP websites has ideal transport for WAP. With our low-latency, to facilitate secure mobile transactions,” says exploded from 240 to 24,000. There are 139 packet switched networks we can offer users a Jan Ahrenbring, vice president of marketing carriers with 200 million subscribers who have much more satisfying experience today than cir- and communications at Ericsson Mobile either launched WAP or are testing it.” cuit switched (voice) networks. This is in contrast Communications. “Ericsson estimates that to cellular operators who are only now admitting that WAP doesn’t work very well over voice net- by 2004 there will be around one billion How was WAP added to Mobitex, and in users of mobile telephony works and telling people that they will like WAP what ways is MOA active as an organiza- much better when they roll out GPRS.” and some 600 million tion in standards bodies and industry mobile Internet sub- associations that promote the protocol? scribers worldwide. What is Ericsson’s strategy for WAP over The most important “MOA itself does not participate directly with Mobitex? thing that is needed standards bodies,” says MOA executive director Jack Barse. “Instead, our collective interests are “We welcome the addition of Mobitex as a represented by our members. In this case, WAP transport,” says Pontus Lindqvist, direc- Ericsson prepared the technical and business tor for Mobitex infrastructure at Ericsson cases for Mobitex as a WAP transport, and pre- Mobile Data Design. “WAP is an integral part sented them to the WAP Forum on our behalf. of Ericsson’s overall strategy for creating the That is the typical model that we have used in wireless Internet. Obviously, we also believe the past, and expect to use going forward.” that Mobitex is an ideal transport for WAP and that handheld PDAs such as the RIM and Palm devices, are a much richer and more functional Is support growing for WAP within MOA? platform for m-commerce applications. WAP “Initially, most operators perceived WAP as over Mobitex is the right solution for the either aimed at cellular phone users (as a means m-commerce market and represents a tremen- of handset users interacting with Internet-based dous opportunity for everyone involved with information) or as a mechanism for cellular Mobitex.” WANDA WAVE

Safety in numbers

From my vantage point on a cable car, the hills of San I had been meaning to buy their latest album but not got- Francisco certainly looked like a reasonable real-world ana- ten around to it. Using the Palm, I could have it instantly, log of elliptic curves. Perhaps I should have been looking at or at least have it waiting for me when I got back home. the scenery, but my mind was teeming with all that I had The Amazon Anywhere icon was right there on the screen, learned about encryption and wireless Internet security and my fingers were itching. M-commerce, I realized, was during my visit in the Bay area. The figures were simply going to be a dangerous thing for a compulsive shopper. mind-boggling. At the junction of Hyde and Lombard Streets at the MIPS years were required to break a cryptosystem, my top of Russian Hill, I could no longer ignore the spectacu- friends at Certicom assured me. This standard unit of meas- lar scenery. To the right I could see a beautiful view of the ure represents one year of computing time on a machine city below and the hairpin curves descending the steepest capable of performing one million instructions per second. portion of Lombard Street establishing its claim to fame as According to the experts, reasonable security currently cor- “the crookedest street in the world.” Straight ahead was the responded to 1012 MIPS years, since this would require breathtaking descent down Hyde Street to the San most of the computing power on the planet to work for a Francisco Bay and the popular Fisherman’s Wharf area. considerable amount of time. In this case, a considerable As the cable car went over the brink of the hill, my amount of time was apparently one trillion years. In per- stomach seemed to lighten, and I felt slightly dizzy. The car spective, the nearly two hours that I had spent waiting to seemed to be in free fall, gaining speed at a sickening pace get on the cable car were thus less than the blink of an eye. as it raced down towards the bay. That’s when I looked up Unfortunately, the steady advance of technology also at the gripman, who was grinning broadly, as he pulled poses threats. As astronomical as the numbers might seem, back on the handle that would pull tight the grips beneath billions of MIPS years of computing power might soon be the car on the cable running beneath the street, thus slow- available to hackers. Still, it was comforting to know that ing our perilous descent. for the moment at least, it would take 10,000 computers Evidently this was just his way of providing a little about 96,000 years to break the 163-bit keys used for ellip- thrill for the tourists. Feeling the cable once again taking tic curve cryptography. control of the car’s descent and my stomach settling back If this was the case, the web clipping application that into place, however, I reflected that wireless communica- I used on my Palm VII for booking airline tickets could tions perhaps were not always a good thing. Sometimes include a payment function that I would feel secure in cables were probably safer. using. After all, I could be completely sure that there would be no danger of a few extra zeroes being added to the amount paid to the airline. Of course, there would also be absolutely no risk that Bill Gates or some other philanthropic billionaire would be able to deposit a few million in my bank account by mistake. Looking at the stores around Union Square as the cable car climbed up towards the top of Nob Hill was slightly discomforting. As usual, I had exceeded my shopping bud- get on this trip. The clothes offered in the exclusive stores surrounding the square had been simply impossible to resist, and electronic payment using my credit card was easy and quick. Now m-commerce services were being readied to allow me to make purchases anywhere at any time. Latin rhythms drifting from an apartment window caught my attention. It was a song called A Puro Dolor, but who was the artist? I was already reaching for my Palm VII to do a search, when the name came to me: Son by 4.