M - Commerce
What is Driving M-Commerce
- Exponential growth of consumer interest and adoption of the Internet and
- Tremendous growth in mobile telephony; however, voice has become a
commodity and will no longer fuel revenue growth for operators.
- Development of real-time transfer of data over 2.5G and 3G networks will
enable faster data transmission and ‘always-on’ connectivity.
- The evolution of the handheld devices incorporating WAP and now GPRS.
- Mobile e—commerce market is worth $3.5 billion in 2000 and will grow to
over $200 billion by 2005 (Ovum).
- Cost of entry into mobile e-commerce is low for most entrants; for
example, a bank can implement a sophisticated m-banking solution in under
six months for around $1 million.
- The unique features of the mobile device such as its compactness for
convenience and personalized functions; subsequently, people have become
quite attached to their devices.
Attracting players from all economic sectors from technology, finance,
retail, media, all anticipating that m-commerce will increase customer
acquisition and retention and generate new revenue opportunities.