Chapter Nine: Mobile Computing and Commerce 1

ONLINE FILE W9.1 EC Application

I-MODEi-mode is to mobile portals what eBay is to auction sites,Amazon.com is to online retailing, and Google is to searchengines. It has been extremely successful in the largeJapanese cellular phone market and closely scrutinized forkeys to its success.

i-mode was developed by Japan’s telecommunicationsgiant Nippon Telegraph and Telephone (NTT) and is controlledby NTT’s DoCoMo (DoCoMo means “everywhere” in Japanese).As of September 2004, there were 42 million i-mode users inJapan and 3 million in other countries, mostly Europe.

i-mode users can send and receive e-mail as well asSMS text messages. i-mode users also have access to theWeb and can visit Web sites that offer video games, newsand weather reports, train schedules, city maps, ringtonemelodies, event ticketing, and much, much more.Entertainment services have proven to be the mostpopular; downloadable wallpaper images and ringtones formobile phones have been the most profitable for contentproviders (Krishnamurthy 2001).

One aspect of i-mode that has drawn considerableinterest from other mobile portal operators is thedistinction between official and unofficial Web sites.Official Web sites, as approved by DoCoMo, are easilyaccessible to users; any charges incurred when visiting orusing the site appear on the individual’s monthly i-modebill. Unofficial sites can only be accessed if the user hearsabout it from outside i-mode; the URL must be enteredmanually; and these sites must establish separate paymentarrangements or make money in other ways. The official i-mode Web sites, 83,000 of them as of September 2004,are a large revenue generator for DoCoMo; thus the stronginterest of other mobile portal operators.

What are the reasons for i-mode’s success? First is itsstrong connection with NTT. NTT owns an advanced packet-switched network that was made available to DoCoMo. NTThas a strong brand position in Japan, and its NTT connec-tions gave DoCoMo the clout it needed to form partnershipswith handset manufacturers. Second is the nature of thewired versus wireless Internet access market in Japan.Japan has a relatively low level of PC penetration and ahigh level of mobile phone penetration. Also, PC-basedInternet access is billed by the minute, making it muchmore expensive than the one-price-for-unlimited-access

model used in most other countries. Both factors favorwireless communications services over wired rivals in theJapanese market. Third, NTT DoCoMo has partnered withofficial outside providers to deliver content and services tocustomers. This is a win-win arrangement for both DoCoMoand the content providers. NTT DoCoMo makes its profitsfrom the traffic on its network and the 9 percentcommission from transaction charges on its billing system.Partners get privileged access to a large customer base anddo not need to build a billing system. Fourth, in additionto a small monthly fee (US$2.70 as of November 2004),users pay for network traffic based on the number ofpackets they send, not for the amount of time spent online.In addition, i-mode users pay through what is perhaps theworld’s first successful implementation of a micropaymentssystem. Fifth, the handsets are well designed and easy touse, with special appeal to the Japanese audience. Sixth,cultural factors, such as the Japanese love for gadgets,have contributed to i-mode’s success.

In recent years, NTT DoCoMo has expanded its i-modeservice model beyond Japan. Investments and partnershipshave been arranged with telecommunications providers inHong Kong (service started in May 2000), Europe, SouthKorea, Taiwan, and Brazil. In 2002, a partnership betweenNTT DoCoMo and AT&T Wireless led to the introduction ofmMode, a mobile Internet service similar to i-mode, in theUnited States.

Initial indications are that NTT DoCoMo has notexperienced the same degree of success in these marketsas i-mode has in Japan. As the list of success factorspresented earlier indicate, i-mode owes much of itssuccess to the particular circumstances and nature of theJapanese market. The ability for NTT DoCoMo to replicate aformula for success outside the Japanese market has yet tobe determined.

Questions1. Why is i-mode considered to be a mobile portal?

2. What factors have led to i-mode’s success in Japan?

3. What is the win-win situation for NTT DoCoMo andofficial site content providers?

2 Part 4: Other EC Models and Applications

Online File W9.2 War Driving and War Chalking

Why would anyone pay $8 a day or $30 a month for Wi-Fi access when it is readily available in many locations for free?Because it is relatively inexpensive to set up a wireless access point that is connected to the Internet, a number of busi-nesses offer customers Wi-Fi access without charging them for the service (Richtel 2004). In fact, one organization,FreeNetworks.org (freenetworks.org) was founded to support the creation of free community wireless network projectsaround the globe.

In other cases, spillover signals and poor security measures allow users to surreptitiously make a connection to aWLAN. How? First, to ensure adequate coverage throughout a building or home, a strong signal strength may be set. Forexample, if a wireless access point is installed in the front of a home, and the signal range is set to reach upper bedroomsand the back yard, the signal will also be detectable from the street. Second, although Wi-Fi does have a built-in securitysystem known as Wireless Encryption Protocol (WEP), many small business owners and homeowners with WLANs never turnit on. Similarly, for their own convenience or via an oversight, many WLAN owners do not employ password protection. Asa result, they sponsor an open and free network connection to anyone who happens to be in the range of connecting witha wireless device that can pick up the signal.

Knowing this, a small number of people have made a hobby out of war driving. War driving is the act of locating open(unsecured) WLANs while driving around a city or other geographic area (see wardriving.com). To war drive, a person needsa vehicle, a computer or PDA with a wireless card running in promiscuous mode, software that will probe for access points,and an antenna that can be mounted on top of or positioned inside the car. A knowledgeable war driver is able to detect asignal, intrude into the network, obtain a free Internet connection, and possibly gain access to important data and otherresources of the legal owner. The term war driving is derived from the term war dialing, a technique in which a hacker pro-grams his or her computer to call hundreds of phone numbers until a modem answers, which indicates a dial-up connectionto a computer. War dialing is demonstrated in the movie War Games, which features Matthew Broderick performing thetechnique.

A related practice is war chalking. Once an open Wi-Fi connection is found, it can be identified by symbols on a side-walk or wall to indicate nearby wireless access. The term war chalking was inspired by the practice of hobos during theGreat Depression who used chalk marks to indicate which homes offered food or shelter.

One of the primary aims of people engaged in war driving is to highlight the lax security of Wi-Fi–based networks.This motivation seems warranted. In November 2003, Toronto police investigated a parked car and found that the driverwas naked from the waist down with a laptop computer on the front seat, playing a child pornography video that wasbeing streamed from an insecure residential hotspot. An attorney speculated that if homeowners are negligent in settingup proper security, they could be held accountable for activities carried out on their networks, including criminal activitiessuch as launching spam, distributing viruses, stealing data, or downloading child pornography (Shim 2003).

In Douglas County, Colorado, the sheriff’s department is establishing a Wi-Fi patrol; police cars will be equipped towar drive and note down open Wi-Fi access points, with the goal of alerting owners (if they can be found) that theyshould lock down their Wi-Fi networks.

REFERENCES FOR ONLINE FILE W9.1Krishnamurthy, S. NTT DoCoMo’s I-Mode Phone:

A Case Study, 2001. paginas.fe.up.pt/ipc/suporte/teoricas/docomo_final.pdf (accessed February 2008).

nttdocomo.com (accessed February 2008).

Chapter Nine: Mobile Computing and Commerce 3

Online File W9.3 Wi-Fi Mesh Networks, Google Talk, and Interoperability

Researchers in India have developed a protocol that will enable wide area coverage of Wi-Fi networks, which are called Wi-Fi mesh networks. With the conventional Wi-Fi networks that are common in Internet cafés and airports, radio signalsare exchanged between portable devices and the base station, which has a wired connection to the Internet. Their range is100 meters or less. With a Wi-Fi mesh network, several nodes can exchange radio signals with each other as well as withthe devices. The range of a Wi-Fi mesh network is up to 40 kilometers and at speeds up to 20 faster than traditional Wi-Fi.This arrangement provides wider geographic Wi-Fi coverage at lower cost than a series of conventional Wi-Fi networks,because not all of the nodes have to be wired to the Internet.

Another development is Google’s Google Talk service, which allows for voice connections and IM. In May 2006, Googleand Nokia launched a handheld Internet browsing device that contained Google Talk, which relies on Wi-Fi instead of cellphone networks. As many as 300 municipalities, including San Francisco, Philadelphia, Suffolk County in Long Island, NewYork, and the entire state of Connecticut plan to offer the Wi-Fi service free of charge. Initially, because of the differentprotocols, the device cannot call regular phones. However, cell phone equipment manufacturers, including Avaya, CiscoSystems, and Motorola, are testing devices that have both Wi-Fi and cell phone network capabilities. For example,Motorola partnered with eBay’s VoIP provider Skype. Customers with Wi-Fi–enabled mobile phones will have the option ofusing Skype’s service in place of a landline service as long as they are within range of a Wi-Fi signal. Once out of Wi-Firange, the phone switches to cellular technology. Sales of mobile phones with both cellular and Wi-Fi capability will bebooming by 2010, according to a study by market research company In-Stat.

REFERENCES FOR ONLINE FILE W9.2Shim, R. “Wi-Fi Arrest Highlights Security Dangers.”

CNET News, November 28, 2003. news.zdnet.com/2100–1009_22–5112000.html (accessed January2004).

Techdirt.com. “Car 802.11b Where Are You?” June 29,2006. techdirt.com/articles/20060629/1843240.shtml(accessed February 2008).

REFERENCES FOR ONLINE FILE W9.3Fleetwood, C. “New Nokia, Google Partnership

Highlights WiFi Trend.” CNNMoney.com, May 12,2006. cellular-news.com/story/17361.php (accessedFebruary 2008).

Technology Review. “Long-Distance Wi-Fi.” October2005.

4 Part 4: Other EC Models and Applications

Online File W9.4 Nordea’s WAP Solo Banks Portal

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EXHIBIT W9.4.1 Nordea’s WAP Solo Banks Portal

Chapter Nine: Mobile Computing and Commerce 5

Online File W9.5 Wireless Advertising in Action

The following are a few examples of wireless advertisement campaigns or trials currently underway.Vindigo (vindigo.com) has a large database of customers (over a million as of May 2004) who are willing to accept

promotional materials on their wireless devices. This is known as permission marketing. The users download special soft-ware to their PDAs that enables Vindigo to deliver timely, accurate information about places to go and things to do intheir area. Along with every listing, the company can deliver a customized message to the users at a time and place whereit is of most interest to them and they are most likely to act on it.

The company targets ads by city (New York, San Francisco, Los Angeles, etc.) and channel (Eat, Shop, or Play).Vindigo tracks which ads a user sees and selects, and even allows a user to request information from an advertiser via e-mail. Vindigo determines a user’s location through GPS or by asking which neighborhoods the user wants to be matchedwith. For example, an Italian restaurant chain could use Vindigo to send a message to anyone looking for Italian foodwithin a few blocks of one of its locations. The restaurant could provide the user with directions to the restaurant andeven offer a list of specials on the menu.

MyAvantGo (avantgo.com) has several thousand content channels and over 8 million registered users (AvantGo 2004).The content is delivered to PDAs and handsets running Palm or PocketPC operating systems. MyAvantGo offers an m-businesschannel and direct promotions, delivering advertising from some of the world’s top brands, including American Airlines,Chevy Trucks, the Golf Channel, CNN, the New York Times, and Yahoo!

Hoping to become the king of location-based Web domains, Go2 (go2online.com) helps mobile travelers find everythingfrom lodging (choose go2hotels) to Jiffy Lube stations. Partnering with Sprint, Nextel, Verizon, and BellSouth, Go2 makesits services available on every Web-enabled phone, Palm i705, and BlackBerry RIM pager in America. Entering “JiffyLube” orhundreds of other brand names into the Go2 system will bring up the nearest location where a shopper can find that productor service.

Another aspect of wireless advertising is getting paid to listen to advertising. As in the wireline world, some con-sumers are willing to be paid for exposure to advertising. In most places where it was offered in the United States, thisservice was a flop and was discontinued.

In Singapore, though, getting paid to listen to advertising works very well. Within a few months of offering the ads,more than 100,000 people subscribed to the free minutes in exchange for listening to the ads offered by SingTel Mobile(Eklund 2001). Subscribers to SingTel’s service fill out a personal questionnaire when they sign up. This information is fedinto the Spotcast database and encrypted to shield subscribers’ identities—Spotcast cannot match phone numbers withnames, for example. To collect their free minutes—1 minute per call, up to 100 minutes a month—subscribers dial a four-digit code, then the phone number of the person they want to talk to. The code prompts SingTel to forward the call toSpotcast and in an instant Spotcast’s software finds the best ad to send to the subscriber based on the subscriber’s profile.

REFERENCES FOR ONLINE FILE W9.5Avantgo.com. avantgo.com (accessed February 2008).Eklund, B. “Wireless Advertising’s Home of the Free.”

Red Herring, March 6, 2001. redherring.com/mag/issue94/650018065.html (no longer available online).

go2online.com (accessed February 2008).vindigo.com (accessed February 2008).

6 Part 4: Other EC Models and Applications

ONLINE FILE W9.6 EC Application

U.S. FLEET SERVICES AND WIRELESS NETWORKINGStarted in 1997, U.S. Fleet Services has grown to be theleading provider of mobile, onsite fueling in the UnitedStates, with customers such as FedEx, Home Depot, Coca-Cola, Nabisco, Office Max. It has over 3,000 facilitiesthroughout the United States and Canada. Using trucksthat resemble home fuel-delivery vehicles, U.S. Fleettravels to its customers, refueling the customers’ vehiclesonsite, usually during off hours. U.S. Fleet had consideredbuilding a wireless network for its drivers, but decidedagainst it. Managers considered the project to be too hardand too expensive given the expected ROI. However,toward the end of 2001, they changed their minds.

Although a mobile wireless solution was the end goal,the first step in the project actually involved theimplementation of an ERP system. This was followed by aWeb-based application built on top of the ERP thatprovided customers with information about their fuelconsumption and taxes, enabling them to do better fleetmanagement. Finally, U.S. Fleet equipped its drivers withhandheld devices that could communicate with thecompany’s intranet using Wi-Fi.

The handheld device U.S. Fleet selected was theIntermec 710 (intermec.com). According to the architect ofthe U.S. Fleet system, this device was selected for anumber of reasons. Besides having a built-in bar-codescanner, it also runs Microsoft’s Pocket PC operatingsystem, supports Visual Basic programs, handlesCompactFlash cards, and has an integrated wireless radiofor short range Wi-Fi communications. The device is fairlylightweight with a drop resistant case that is sealed toprotect against harsh weather conditions.

The system works as follows: Branch managers enter adelivery route and schedule for each driver into a centralizeddatabase via the company’s intranet. Each driver starts the

shift by downloading the route and schedule over thecompany’s Wi-Fi network into a handheld. When the driverreaches a customer stop, the handheld is used to scan abarcode attached to the customer’s truck. This provides thedriver with the type of fuel required by the truck. Afterthe truck is fueled, a meter on the delivery truck sends awireless signal to the handheld. The handheld then syncswith the meter, capturing the type and quantity of fueldelivered. The data are stored on the handheld’sCompactFlash memory card. When the driver returns to thehome base, the data are unloaded over the Wi-Fi network tothe central database. At this point, the data are available forU.S. Fleet and its customers to analyze.

Before the handheld computers were deployed, driverswould record the data manually. The data were then faxedfrom the branch offices to headquarters and entered byhand into the system. Not only were there delays, but thedata were also subject to entry errors at both ends of theline. The company and its customers now have accuratedata in a timely fashion, which provides the company withfaster invoicing and cash flow. On average, the new systemhas also enabled drivers to service six to seven more stopsper shift.

Questions1. What systems did U.S. Fleet have to put in place

before implementing its wireless solution?

2. Why did U.S. Fleet select the Intermec 710 handhelddevice? How does the device communicate with thecompany’s intranet?

3. What are the major benefits that U.S. Fleet has real-ized by combining handheld devices with Wi-Fi?

REFERENCES FOR ONLINE FILE W9.6Ludorf, C. “U.S. Fleet Services and Wireless Networking.”

Transportation Technology Today, August 2002,pp. 12–15.

usfleet.com (accessed February 2008).

Chapter Nine: Mobile Computing and Commerce 7

ONLINE FILE W9.7 EC Application

MOBILE WORKPLACE APPLICATIONS FOR CUSTOMERSUPPORTThe following are two scenarios of wireless applications formobile employees.

Sales SupportLinda is a member of the field sales team at Theru Tools (a fictitious company). Each day she drives out to hercustomers in a van stocked with products. For each sale,she has to note the customer name, the number and typeof products sold, and any special discounts made. Thisrecord keeping used to be done manually, and many errorswere made, leading to customer complaints and lost sales.

Theru implemented a system using low-cost butpowerful handheld wireless devices. Using Mobile Sales (an application for handhelds), accessed via themysap.com Mobile Workplace, Linda and her coworkers inthe field now have information at their fingertips,including updates on new products and special promo-tions. Linda can place orders without delay and getimmediate feedback on product availability and deliverytimes. What’s more, the system can prompt Linda as sheenters orders, and it also can make plausibility checkson the orders, eliminating many of the errors associatedwith the manual process. It also checks to see if she isgiving the right discounts to the right customer, andimmediately triggers the invoicing process or prints outa receipt on the spot.

Customer Service SupportMichael works for Euroblast, Inc. (another fictitiouscompany) as a service engineer. It is his job to provide

time-critical maintenance and support for the company’scustomers’ electromechanical control systems. To do so, heneeds to know immediately when a customer’s system isfaltering, what is malfunctioning, and what type of servicecontract is in effect.

Michael does not need to carry all of this informationin his head, but instead has it in the palm of his hand.With only a few taps of a stylus, Michael accesses themysap.com Mobile Workplace for all the data he requires,including the name and address of the next customer heshould visit, equipment specifications, parts inventorydata, and so forth.

Once he has completed the job, he can report backon the time spent and materials he used, and these datacan be employed for timely billing and service qualityanalysis. In addition, his company is able to keep trackof his progress and monitor any major fluctuations inactivities. As a result, both Michael and his supervisorsare better informed and better able to serve theircustomers.

Questions1. How has the introduction of handheld wireless

devices changed sales support at Theru tools?

2. What benefits does Euroblast receive from MobileWorkplace? How does Michael benefit? What are thebenefits for Euroblast’s customers?

REFERENCES FOR ONLINE FILE W9.7SAP. “CRM and the mySAP.com Mobile Workplace”

(a publicly available brochure from SAP). 2000.sap.com. “SAP xApps for Mobile Business: SAP xApp

Mobile Service,” 2006. sap.com/solutions/xapps/

mobilebusiness/index.epx (accessed February2008).

8 Part 4: Other EC Models and Applications

Online File W9.8 Location-Based Technologies

Providing location-based services requires the following location-based and network technologies:

◗ GPS locator. A GPS locator is included in the mobile device to determine the location of the person carrying the mobiledevice.

◗ Position-determining equipment (PDE). This equipment identifies the location of the mobile device (either through GPSor by locating the nearest base station). The position information is sent to the mobile positioning center.

◗ Mobile positioning center (MPC). The MPC is a server that manages the location information sent from the PDE.◗ Location-based technology. This technology consists of groups of servers that combine the position information with

geographic- and location-specific content to provide a service. For instance, location-based technology could present alist of addresses of nearby restaurants based on the position of the caller, local street maps, and a directory of businessesorganized by location.

◗ Geographic content. Geographic content consists of streets, road maps, addresses, routes, landmarks, land usage, zipcodes, and the like. This information must be delivered in compressed form for fast distribution over wireless networks.

◗ Location-specific content. Location-specific content is used in conjunction with the geographic content to provide thelocation of particular services. Yellow-page directories showing the location of specific business and services exemplifythis type of content.

The accompanying diagram shows how these technologies are used in conjunction with one another to deliverlocation-based services.

GPS

Cellular Phone Station

GPSHandset

Internet

ServiceCenter

ContentsCenter

LocationServer

GPS System

Source: MapInfo Corporation. “MapInfo Envinsa™” mapinfo.com/industries/mobile (accessed June 2003).Used with permission.

Chapter Nine: Mobile Computing and Commerce 9

REFERENCES FOR ONLINE FILE W9.8MapInfo Corporation. MapInfo Envinsa. extranet.

mapinfo.com/products/overview.cfm?productid =1825 (accessed February 2008).

MobileIN.com. “Location-Based Services.” 2004.mobilein.com/location_based_ser vices.htm(accessed February 2008).

The ProblemBuses in certain parts of San Francisco have difficulty keeping up with the posted schedule, especially during rush hours.Generally, buses are scheduled to arrive every 20 minutes, but at times passengers may have to wait 30 to 40 minutes. Thescheduled times become meaningless and passengers are unhappy because they waste time.

Online File W9.9 Nextbus: A Superb Customer Service

GPS Satellites

NextBus Information

Center

World Wide Web

Real-Time Arrival

Predictions

Location andBus ID Reported

to AutomaticVehicle Location(AVL) at NextBus

Information Center

0100100 1010110 1100100 1011010 1001010

0100100 1010110 1100100 1011010 1001010

0100100 1010110 1100100 1011010 1001010

Real-Time Passenger Messages

Transit Management Information

Wireless Phone and Mobile Devices

Shelter Signs and Public Displays

Pole Signs

Wireless Communication

Wireless Communication

22 Fillmore 7 min & 12 min

NextBus Operational Model

Source: Used with permission of NextBus Information Systems, Inc. Copyright © 2005.

(continued)

10 Part 4: Other EC Models and Applications

The SolutionSan Francisco bus riders carrying an Internet-enabled wireless device, such as a cell phone or PDA, can quickly find outwhen a bus is likely to arrive at a particular bus stop. The NextBus (nextbus.com) system tracks public transportation busesin real time. Knowing where each bus is and factoring in traffic patterns and weather reports, NextBus calculates the esti-mated arrival time of the bus to each bus stop on the route. Arrival times also are displayed on the Internet and on a pub-lic screen at each bus stop.

The NextBus system has been used successfully in several other cities around the United States, in Finland, and inseveral other countries. The exhibit on the previous page shows how the NextBus system works. The core of the NextBussystem is the set of GPS satellites that let the NextBus information center know where a bus is located. Based on a bus’slocation, the scheduled arrival time at each stop can be calculated.

Currently, NextBus is an ad-free customer service, but in the near future advertising may be added. Because the sys-tem knows exactly where a rider is when they request information and how much time they have until their next bus, inthe future, the system may send the rider to the nearest Starbucks for a cup of coffee, giving them an electronic discountcoupon.

The ResultsPassengers in San Francisco are happy with the system; worries about missing the bus are diminished. A similar system isused in rural areas in Finland, where buses are infrequent and the winters are very cold; passengers can stay in a warmcoffeehouse not far from the bus stop rather than wait in the cold for a bus that may be an hour late. A bus company canalso use the system to improve scheduling, arrange for extra buses when needed, and improve its operations.

Online File W9.9 (continued)

REFERENCES FOR ONLINE FILE W9.9ITS America. “NextBus Expands Real-Time Transit

Information in the Bay Area with AC Transit.” ITSAmerica, August 9, 2001. nextbus.com/corporate/press/#actransitExpansion (accessed February 2008).

Murphy, P. “Running Late? Take the NextBus.”Environmental News Network, September 7, 1999.

enn.com/enn-features-archive/1999/09/090799/nextbus_4692.asp (no longer available online).

nextbus.com (accessed February 2008).

Chapter Nine: Mobile Computing and Commerce 11

OnStar is a subscription-based communication, monitoring, and tracking service for safety and security operated byGeneral Motors (onstar.com). As of 2005, it is a standard feature for several General Motors vehicles, and it will be standardon all new GM vehicles sold in North America by 2007. It also is available on the Acura RL and MDX. Other manufacturersoffering OnStar include Audi, Subaru, and Volkswagen. The service is available for all vehicles that have the factory-installed OnStar hardware.

The service consists of both communication, through mobile phone networks, and tracking by GPS technology. Driversand passengers can use its audio interface to contact OnStar representatives for concierge-like and emergency services thatcan initiate an action when vehicle telemetry indicates an emergency (for instance airbag deployment). OnStar’s innova-tive three-button system offers:

◗ 24-hour access to expertly trained, caring advisors◗ A connection to emergency assistance◗ Access to OnStar Hands-Free Calling

When a driver presses the red OnStar Emergency button or blue OnStar button, current vehicle data and the user’sGPS location are immediately gathered. This information is then sent to OnStar. OnStar Emergency calls are routed tothe OnStar Center with the highest priority. As of 2008, two OnStar centers exist, located in North Carolina andToronto.

GM Advanced Automatic Crash Notification SystemThe GM advanced automatic crash notification (AACN) system uses front and side sensors as well as the sensing capabili-ties of the Sensing and Diagnostic Module (SDM) itself. The accelerometer located within the SDM measures the crashseverity. In the event of a moderate to severe front or side-impact crash, data are transmitted from the affected sensors tothe SDM. The SDM sensor also can identify a rear impact of sufficient severity. Regardless of whether the airbags deploy,the SDM transmits crash information to the vehicle’s OnStar module.

Within seconds of a moderate to sever crash, the OnStar module will send a message to the OnStar Call Center (OCC)through a cellular connection, informing an OCC advisor that a crash has occurred. A voice connection between the advisorand the vehicle’s occupants is established. The advisor then can conference in 911 dispatch or a public safety answeringpoint (PSAP) to determine if emergency services are necessary. If the vehicle’s occupants do not respond, the OCC advisorcan provide the emergency dispatcher with crash information from the SDM, and the dispatcher can identify what emer-gency services may be appropriate. Using the GPS satellite, OnStar advisors are able to tell emergency workers the locationof the vehicle. The number and location of sensors and SDM may vary depending on vehicle models.

Online File W9.10 OnStar

REFERENCES FOR ONLINE FILE W9.10How Stuff Works. “OnStar.” 2007 howstuffworks.com/

onstar.htm (accessed February 2008).Wikipedia. “OnStar.” 2007 en.wikipedia.org/wiki/

OnStar (accessed February 2008).

12 Part 4: Other EC Models and Applications

ONLINE FILE W9.11

SECURITY APPROACHES FOR MOBILE COMPUTINGWEPWEP (wired equivalent privacy) is a security protocol forWi-Fi networks that encrypts the communications betweena mobile device (e.g., a laptop, tablet PC, PDA) and thewireless access point. WEP provides weak encryption,meaning that it is secured against casual hacking aslong as the person setting up the network turns on theencryption. Unfortunately, many small business owners andhomeowners operating a WLAN fail to do just that.

Although WEP offers a measure of security, thetrade-off is inconvenience. In order to employ WEP, allWi-Fi users must be educated on how it works, theircomputers must be reconfigured to connect to the network,and the encryption code must be changed frequently.Additionally, every authorized user must be given theencryption key, which means that a lot of people will becarrying around the keys to the network. In largercompanies, if a hacker can gain access to the encryptionkey or can get through the WEP security in some otherway—which is easily done with readily available software,such as AirSnort (airsnort.shmoo.com) or WEPCrack(wepcrack.sourceforge.net)—the damage is often greater,because companies have a habit of installing their wirelessaccess points behind their firewalls.

There are alternatives to WEP. If a company is concernedabout the security of wireless data communications, it canuse VPN technology to create a secure connection over thewireless link. Also, a new Wi-Fi security standard—Wi-FiProtective Access (WPA)—is under development. Thisstandard has the backing of the Wireless Fidelity Allianceand the Institute of Electrical and Electronics Engineers(IEEE). WPA provides enhanced encryption and supports userauthentication, something that was missing from WEP. Thealliance has already begun certifying Wi-Fi products withWPA security. This enhanced security may encourage morebusinesses to experiment with Wi-Fi over the coming years.For details, see Fikes (2003).

SIM-Based AuthenticationGSM and its 2.5G and 3.0G counterparts all include SIM.This module is usually implemented as a smart card thatcontains an authentication key along with other vitalinformation about the subscriber. The authentication keyalso is stored on a “home location registry,” which canbe thought of as a database that is part of the mobilenetwork. When the phone is turned on, the user is asked toenter a PIN number. This protects the cell phone againstillegal use if it happens to be stolen or lost. If the PIN is

correct, the cell phone and the network engage in a“challenge-response” process of authentication. A networkauthentication center sends a random number to the cellphone’s SIM. The SIM computes a “signed response” bycombining the random number with its authentication key.The signed response is sent over the network to theauthentication center, which performs the same computa-tion using a copy of the authentication key stored on thehome-location registry. If the signed response matches thevalue computed by the authentication center, then the cellphone is authenticated. After that, communication takesplace through “symmetric encryption,” using a key gener-ated by both the authentication center and the SIM.

Although SIM cards protect against unauthorized useof a particular subscriber’s account, they do not preventthe use of a stolen cell phone. If a thief steals a phone,the thief can simply replace the existing SIM card withanother one and sell it on the open market. The police inAmsterdam employed an interesting method to thwart thispractice. Using a cell phone’s International MobileEquipment Identity number, the police are able to trackdown the mobile phone number being used on the stolenphone. Once the number is known, the police employ aspecial computer program to send out an SMS message tothe stolen phone every 3 minutes. The message reads,“This handset was nicked [stolen]; buying or selling it is acrime. The Police.” Obviously, this makes the stolen phonea lot less attractive to prospective buyers (Evers 2001).

WTSL and WIMThe transmissions between the WAP gateway and the Webserver can be secured through the wired Internet securityprotocols discussed in Chapter 10 (e.g., PKI, SSL, and TSL).These protocols cannot be used on the mobile side of thegateway. Instead, WAP relies on the Wireless Transport LayerSecurity (WTLS). Like its wired counterpart (TSL), WTLSenables encrypted communications between a mobile deviceand the WAP gateway. Additionally, WTLS supports the keyelements of PKI—public and private encryption keys, digitalcertificates, digital signatures, and the like.

A wireless identity module (WIM) can be used in com-bination with WTLS. A WIM is a smart card device, much likea SIM (and, in fact, can be implemented on a SIM). It isdesigned to hold the security keys and digital certificatesused by the gateway and the Web server to encrypt/decryptcommunications. One of the advantages of a WIM is that itcan be issued by a bank or other financial institution tohandle m-commerce payments and transactions.

Chapter Nine: Mobile Computing and Commerce 13

REFERENCES FOR ONLINE FILE W9.11Evers, J. “Dutch Police Fight Cell Phone Theft with

SMS Bombs.” IDG News Service, March 27, 2001.archives.cnn.com/2001/TECH/ptech/03/28/SMS.bomb.idg (accessed February 2008).

Fikes, B. “Unguarded Wireless Networks a Snap for‘Stumbling.’” Californian North County Times,January 12, 2003. nctimes.net/news/2003/20030112/53511.html (no longer available online).