Mobilizing World

Gonca Telli Yamamoto. Mobilized Marketing and the Consumer: Technological Developments and Challenges. Hershey, PA: Business Science Reference, 2010.

The human being benefits from his or her ability to communicate and turn knowledge into action in order to sustain its ability to survive on this planet, the earth. As a result of the fast life conditions imposed on humanity, point-to-point relationships have begun to be established in a faster way and the idea to use technology to acquire and share knowledge has become widespread. Doing the right thing leads to improving and advancing the standard of life. The products of the mind can now be produced easier than ever by scope of technology. Intercommunication between people begins with talking; humans first talk and then express his or her emotions and opinions.

Mobile telephone is the name of the latest technology which creates a worldwide area to talk in. One can easily notice how much the sector and its applications have developed only by looking at the first mobile phone which was launched in the world. Motorola Dyna TAC 8000x is one of these telephones. Its dimensions are 13x1.75x3.5. This is a brick-size device and you had to pay US $3,995 to own it in 1983. In return, what you would get was just a telephone which provides just voice communication and which could be used while moving. This affected concurrently users, families, types of entertainment even health issues and payments. The positive and negative effects have appeared in the evolutionary stage. Like the virtual environment (Han, Kim & Lee, 2005), the mobile environment which is used in order to cover customers' needs for communication, information and entertainment is related to marketing with its different spirals and own sanctions.

In this chapter we would like to give short notices for future researchers about the present conditions of major important topics and some new trends of these subjects.

From its giant size and price since 1983, mobile devices have been circulating rapidly and permanently. At present, the costs paid for these telephones with enhanced technology and reduced dimensions have sharply fallen and almost disposable mobile phones have begun to take their places in the market. These developments showed the people of the world the ease of mobile life, and enabled the appearance of new and different demands. The diversification and increase of demands arises a different market and understanding of market based on mobility.

Mobile telephone operating systems, which have turned into one of the investment areas of giant capital, are gradually gaining value. The value of rights won through tender for operation license has reached billions of dollars in Europe. The income provided by those who use the system flows through a different channel and it is collected in certain accounts. These revenues, where many a little makes a nickel, have reached appetizing sizes. The more the number of users (clients) the bigger the income equivalence is which indicates that the sizes of business will reach enormous levels. Although the shares to be obtained from this growth are related with the level of development, they are shared among those who are included in the technological production or hardware/software stages. In this regard, supporting local developments and keeping open the ways to rightfully benefit from sharing may greatly contribute to world peace.

The Mobile Family


Telephone communication which was initially realized from city to city and then from country to country has caused new advancements in the daily lives of people. However, at present, in addition to communication with far distances, the requirement of the family and the individual to communicate with the mobile phone has gradually increased interaction via mobile communication and made it more influential. The formation of the mobile family seems as one of the elements that keep the family together. With the establishment of mobile networks, inter-city and international access has become easier which has in turn affected both business life and family life. Mobility, which affects new generation behaviors, enables the creation of certain common family forms other than the nuclear family. Big families come together at certain times of the week or month and create a different togetherness, or groups which come together with certain purposes continuously communicate with each other similar to a family and they are used in developing structures against individualization. Mobile devices provide significant benefits to the mobilization of the individual in the society because mobile communication can be enabled under every condition: home, travel, etc. Possession of mobile phones by everyone regardless of age and gender creates certain flexibilities in life. Leading flexibilities include the monitoring of children and young people such as understanding and identifying their needs just by pushing a button. On the other hand, a continuously carried mobile phone is considered as a reliable tool to follow up children especially by parents, and it helps the security of the family. Knowing who does what, where and when is important in terms of people who are under danger. Nevertheless, their frantically frequent use by curious people due to the monitoring function may result in the consideration of mobile phones as trouble-making instruments.

Family and business issues have started to be more connected and blended to each other. The mobile family could be created due to the new protecting systems both in the house and on the members of the house. But family concerns and intercommunications have become different. The value of the mobile phone has increased further for the family as it also provides a kind of interaction especially for family members who have long travel programs for business or for introverted people. Therefore, phone users and their tendencies affect general and special applications.

Mobile Phone Users


The mobile phone is among the fastest communication instruments, but it has gained meaning beyond communication in our lives and turned into a platform that fulfills the functions of all devices which deliver activities such as informing, entertaining, measuring and evaluating. At present, the most important purpose of the mobile phone is to reach others either through texting or calling. Although the mobile phone is used to cover needs in general (to talk and communicate), it also addresses the different purposes of use; for example, the chronometer, clock and agenda, photo camera, gaming, entertainment, Internet, map, telephone index, voice recorder, remote control, music, radio, notebook, communication lists, etc.

The habit of using mobile phones has become widespread for almost every age. Sometimes it is even given to babies like a toy. Children who have not even learned how to read and write turn on the mobile phone and play various games while they can also change the melody of the phone or use many functions of the phone.

From a customers' point of view, services provided to customers in parallel to both the extra features of mobile phones and to its ability to build communication are important. People are now paying attention whether the mobile phone has the features to facilitate their daily lives, to add entertainment to their times, and to provide information to them. Individuals may, for the time being, prefer to use certain functions available on mobile phones with other tools. Most of the respondents benefit from the speaking and messaging features of mobile phones rather than their large-scale features. Looking at utilization areas, most people can actually be satisfied with phones which can call and message to a desired number, or mostly have music broadcast, clock and some other small functions.

Users may also build an emotional connection and a deep relationship with these instruments which are also considered as close friends by users (Wehmeyer, 2007; Jarvenpaa & Lang 2005).

In personal communication; sight, hearing, touching, tasting and smelling senses are used first. Speaking allows expressing the receptions received from all senses. Therefore, speaking has a comprehensive feature which is used in transferring any kind of perceptions. Speaking, written, image or video messaging can easily be made by using mobile phones. The feature of increasing the speed of communication of campaigns that are realized by service providers should not be ignored. The young segment, which covers an important place among mobile phone users, also pays attention to the cost; therefore, they prefer messaging in general. Options and features such as listening to music, watching cinema, and playing games are among the activities which can be carried out during a journey even while walking.

A study oriented towards mobile phone use was made in 2007 in Istanbul, Turkey as a face to face questionnaire with 1370 mobile phone users (Yamamoto, 2007). 32.4% of the mobile phone users also use mobile phone for other purposes than mobile communication. This indicates that the non-communication features of new telephone production influence the consumer. In this research on the mobile phone, although speaking and SMS took the largest share, those who use it only for talking and texting account for 49%. Mobile phone is emphasized not as a toy but as a necessity. On the other hand, it is normal to see that the usage ratios are separated among different features because everyone has different requirements and hobbies with regard to other features of mobile phones than talking and texting. Features such as sending SMS, listening to music, games, Internet, and chat are used by people to fill in their free times and to meet their entertainment needs that have remained in their personal preferences.

Also, as the high portion of talking is followed by SMS and Bluetooth, it can be considered as a proof that this service and technology has been settled in our country.

In Turkey, young people benefit from the speaking features of the mobile phone by 27%. This supports the opinion that the function related with communication changes and differentiates towards more economic channels. The reason of the fact that the extra features of mobile phone cannot yet hold an effective portion is probably because these activities remain outside of the actual purpose of the mobile phone.

The ratio of donations through mobile phone appears low. It can be due to not finding this method reliable, or that people are unaware of such a use.

When a customer selects a mobile phone service provider, the intra-network and inter-network costs are considered very important. The importance attached to cost is 41.5%. Service providers that offer lower cost lines are mostly preferred because frequently speaking customers make use of different price lists and advantages. Prevalence is also considered as a very important aspect in selecting a mobile phone service provider (by 36.7%) because the more the customers use the selected GSM operator, the higher the benefit will be (especially through discount campaigns). The ratio of being influenced by the price when buying a mobile phone appears very high. High prices can lead the buyer to think that the telephone is nice, because of associating quality with price. People are influenced by the price of the mobile phone, and sometimes, the higher price makes the mobile phone more attractive.

Regardless of the income level, people are willing to make mobile phone calls at a lower price in a wider coverage area with uninterrupted access. Other features of mobile phone are considered as secondary. The phone that has the price that is the most affordable and the features sufficient to cover a user's needs is considered as the ideal phone. When replacing their telephones, people generally tend to wait for campaign periods thinking that the price would decrease in time rather than immediately buy at very high prices. The costs of mobile phone calls are calculated according to the unit rates identified by operators, and they are collected from the user under various names such as credit cost or calling invoice cost. Most people are concerned about high cost request and change their operators if an opportunity to adopt a low-cost network is provided.

It is not possible to say that mobile phone users attach importance to the feature of upgrading to a higher model apart from those innovators who are willing to create prestige among mobile phone users by renewing their telephone models. In fact, most people do not have concerns about owning new mobile phone models. Those who think that they cannot keep pace with the speed of the technology by upgrading to a higher model tend to replace their mobile phones when they run out of order. People that directly support the aspect of upgrading to a higher model can achieve their goals only when they reach a stimulating scale.

Some mobile phone users may replace their mobile phones because they are worn out due to very frequent use or due to insufficient power-up time or the lack of functions they require, or due to the quick breaking down of mobile phones. These are also opportunities for them to upgrade their mobile phones when they consider buying a model with more advanced features.

GSM operators with very wide coverage areas are taken into consideration first. Actually, if really serious disconnections occur during communication, then there would be no point of using these devices. However, 3G technology and further developments will be directed towards rapidly eliminating these problems on communication networks.

From the customer's point of view, lines are important in terms of delivering service. From the mobile phone users' point of view, the function of a line is more important than the brand name. The brand name gains importance when it is identified with functionality. Brand, which is considered as one of the most important value increasing elements in certain societies, is not given a prominent status here.

People have more pragmatic opinions about using second hand or lower model phones. They can also change their GSM operators depending on the discount packages. The use of a present GSM operator by everyone in the family is mostly influenced by advantages which may be obtained through the same line. The same line owners would not think of changing their operators so long as they talk at a lower cost and pay less money. The free text messaging or bonus credits on the same operators are applied as solutions to reduce the cost.

Many brands introduce more beautiful and stylish models in order to make use of aesthetical elements. The thing the mobile phone user who is located on a different scale wishes is the personal identification with the mobile phone after buying it rather than the image of the mobile phone during its entry into the market. Here, personal identification means finding the device which represents the features and elements the consumer likes, and anything that reflects on the consumer.

From an individuals' point of view, the existence of differences arising from style and aesthetics is natural. After the elements based on financial opportunities are excluded, the ratio of being influenced by style increases. The reason can be based on people's devotion to design, elegance, and etc. During relationships with outsiders, physical appearance is always paid attention by everyone. The stylish and affordably priced telephones are considered as ideal telephones. Appearance-related elements can be shaped according to the personal tastes of people such as color, voice, voice-related toning, bearing apparatuses etc. Individuals emphasize the importance of having an appearance in accordance with their personalities.

As a high level of being influenced from aesthetics is considered as the expression of different tastes, it is considered to be reflected by the personalities of people. The rapid development and decreasing cost of technology gradually moves mobile phones away from the symbols of certain statuses, and requires other additives to raise status. Mobile phone producers are probably aware of that as they are spending efforts to develop more styles, artistically-designed smaller mobile phones. In time, with the inclusion of jewels into mobile phones, raising the prestige with really high-valued telephones has become possible. The presentation of highly priced telephones to groups which do not abstain from paying high prices depending on admiration values will contribute to marketing.

Groups that still remain novitiate are not influenced by the data download speed. This is probably because they are not familiar with the technology or because these technologies have not reached them. Groups that have just begun to use mobile phone perceive the interaction mostly by talking and texting. Mobile phones featuring new functions and other services of operators are not widely used yet, and consumers refrain from any additional costs that might incur by given services.

Those who use mobile phones for games are mostly very young and young users. In addition to its innovations, mobile phones have also reflections in our lives with their social influences.

Mainly the following factors come forth when using mobile phones:

  • Ability of use

  • Expansion date and size of mobile phone

  • Usage frequency and continuity

Mobile phone advertisements and promotions also emphasize these features. Besides, instead of the features which cannot be caught up with technologically, mobile phone producers are now trying to emphasize the allure of the mobile phone.

Mobile phones have become a piece of our lives and have some meaningful things of life such as entertainment, games and education which also change with these mobile devices.

Mobile Entertainment (Mobile Multimedia Services)


As mentioned in our previous sections on changes and customers, mobile phones have obviously changed our lifestyles in the last ten years. In this sense, the structure of entertainment, which has an important place in our life, is also changing and evolving. Mobile entertainment is a new concept which mixes entertainment, education and telecommunication industries together and they can be considered as entertainment-oriented activities with the development of personal technology while moving or at any geographical location. From this perspective, targeting the correct people among the users of mobile technologies is essential from the mobile technology producers' point of view. Especially creating a rich environment in terms of targeting methods in the entertainment sector, mobile instruments have the abilities to employ many entertainment-oriented functions and features. From the point of view of entrepreneurs in the entertainment sector, this will imply making better use of the mobile environment and the creation of projects oriented towards entertaining customers (Yamamoto, 2008). Really, when entertainment is moved to the mobile environment, it really is activated with certain new methods such as the separation of a whole into pieces or the reformation of the whole (Shiffman, 2008, p.7). Many things from the buzz spread through mobile phone to mobile games which can be included in mobile environment. Actually, coming together to play games in the social network environment is also included in this concept. Mobile entertainment can be separated into various categories in terms of individuality, age, number of users, and simulation:

  • Individual entertainments which are directly realized via mobile phone (mobile phone games, trivia, etc.).

  • Entertainments where the mobile phone is used as an instrument and which bring together members of the social network (social network games, dating etc.).

  • Entertainments where the media is employed by many users and entertainments which provide feedback as mobile (contests and games, gambling, trivia, etc.).

  • Information and entertainment provided by replacing other media instruments with mobile phones (TV, radio, music, video, web site, sports news, puzzle, sudoku etc.)

  • Games and entertainments created by the mobile users themselves.

The services given via mobile phone can actually be classified as personal entertainment services or bulk entertainment services within themselves.

Mobile phones can be defined as a mass media instrument which is created with general individual participation. Most mobile phones feature TV. The number of mobile phone subscribers is much higher than that of Internet subscribers. 31% of the global expenditure consists of delivering music on a mobile phone basis, and the number of mobile phones in the world is nearly five times higher than that of automobiles. Video games account for 20% of the software income obtained from mobile phone. Advertising, news, TV, Internet, social networks, even Hollywood movies and new publications also take their share from this expansion.

According to Juniper Research, mobile entertainment products and services are expected to reach 64.8 billion dollars in 2012. The entertainment services of Juniper Research are divided into seven categories:

  • Mobile gambling

  • Mobile adult services

  • Mobile games

  • Mobile music

  • Mobile TV

  • Mobile video

  • Mobile user-creative content

  • Mobile infotainment

Here, the biggest growth is expected in mobile gambling which could climb to 3.2 billion dollars. Also, social networking services are expected to reach 5.7 billion dollars. Ringtones and wall papers, which have turned into conventional services, are considered as bulk mobile services. However, the methods of use change rapidly and create a more flexible and complex mobile entertainment environment where various elements such as multi-player games, social network services or videos can be used together.

Mobile websites (WAP sites) can also be shown as another way of reaching mobile entertainment. Websites, on the one hand, present entities of brands, and on the other hand, they can be considered as a separate entertainment channel for users (4INFO, 2008). Mobile entertainment websites serve for delivering news or information rather than text messaging. These channels can diversify and suggest their own entertainment values through the creation of a geographical branding or a clear benefit for the customer.

At present, mobile video still constitutes a small market. However, if such types of structures are conducted with the social sharing logic, then they will result in a brand new and different type of creative consumer group similar to the previously-mentioned micro-celebrities. People like the efforts to show many things of entertainment, and humor, and they also aim to influence each other through physical appearances. This type of approaches may also cause the development of a buzz-type of new-age advertising. On the other hand, rapid sharing of movies which are not shown only by professionals but also by amateurs as adult entertainment is also possible. The viral impact in the entertainment media can rapidly spread around either in a positive or negative manner. Negative links may grow and lead to social problems. Therefore, the issues of revising the moral and legal aspects of mobile entertainment, and increasing them to the norms which do not exceed legal dimensions will keep people busy.

According to Merisavo et al, in the study of Bauer et al. on 1028 people, the entertainment and informative values are considered the strongest impulses in the adoption of a mobile advertisement. Mobile advertisements with such high entertainment and informative elements are approached positively and it is thought that they can be used in order to increase behavioral tendency to use mobile services. In the research of Pura (2005), it was identified that the organization of location-based SMS services according to environmental conditions was convincing and with financial value highly influential in mobile service use.


Table 1. Mobile phone services and delivery methods
Content/ServiceDelivery Methods
(Source: Developed from Mobile Sport & Leisure Essentials (3rd ed.) White Paper Juniper Research http://juniperresearch.com/shop/viewwhitepaper.php?id=79&whitepaper=38.)
General newsText messages and warnings
Financial newsPicture messages and warnings
Telephone guides and other guidesVoice messages and warnings, sound clips
Weather forecast and travel informationVideo clip download
Traffic dataStreaming video, watch while ringing videos
Astrology, signsWall paper graphics
Comics, cartoonsVoting
Sports servicesChat
Monitoring ServicesLocation
Navigation servicesBetting and games websites
Celebrities related group services
TV, movie related group services
Social services
Games
Gambling
Other services

Television, which has been added among the functions of mobile phone, gradually turns into a very important issue. Actually, these devices have been tried in Japan only for approximately two years and certain standards are required to be created in the world. On the other hand, users of mobile devices are very keen on downloading music, image and video. These aspects are especially drawing the attention of the young generation.

According to Patrick Parodi, the global president of Mobile Entertainment Forum (MEF), in mobile entertainment, there is a tendency from the “producer-push” oriented approach to the “user-pull” oriented approach in order to create a mobile entertainment value chain with all players. Also it indicates that the mobile entertainment venture, which is funded with advertising, would revive not only mobile entrepreneurship but also many other contributing fields.

Even pranks on mobile phone are now offered by mobile service providers. For example, if someone wants to make a prank to his or her friend by changing his or her voice, then he or she can call the related number of the service provider who gives this service, and select the voice of a child, woman or man and speaking with the desired voice tone is enabled (Sabah, 2008). Such ventures show how much the entertainment sector has developed and differentiated. Also voices of secret witnesses are modified in order to prevent their identification in courts and on TV.

The content created by the user gradually gains importance in the mobile world. Owners of mobile contents may be a cinema, or music studio, a publisher or a newspaper. These organizations or institutions can own the title of the content. In order to present private content on mobile devices, the consent of their titleholders is required (StrategyAnalytics, 2008).

Mobile phone first brings into mind the following general groups and content as well as delivery methods. Delivery methods and contents are different according to the universality or specialty of the content and service (See Table 1).

Mobile Music


As a result of technological developments, the use of music exceeds beyond accustomed channels, and a certain new music broadcasting benefitting from the Internet, GSM networks and digital media players is observed. Mobile music has a feature based on any type of music consumed through the use of the mobile environment. This music may be melodies or tunes either directly stored in the software of the mobile device, supplied from the Internet via mobile operators or sent from personal mobile device to personal mobile device.

With personal or local value, these pieces of music may also create a value while they are distributed via mobile line. The use of the music environment on the mobile system turns into an important aspect of marketing. Increasing the frequency of use, publication rights, legal sanctions, etc. are the issues that are required to be solved within music marketing.

According to Takeishi and Lee, owing to technological innovations in music creation, production, recording, playing, distribution, promotion and advertising, the structure of the music industry is also changing and new population music styles as well as ways of performance and methods of use are forming (2006).

At present, a piece which is compiled, arranged or composed by an artist can be marketed as tens and even hundreds of different products. At present, a multi-optional feature arises for individuals for building communication between them and the artists or works of artists they like. If they desire, customers may buy a piece of music and download it from the mobile environment as they are presented, they can obtain music work from the mobile system as a CD, put pictures of their favorite artist or album as a wall paper to his or her mobile phone, use favorite melodies as ringtones, watch them as music videos, be a friend with other fans in a social network, or make a subscription or send them as a gift. In short, many customers can obtain these different products and services from different platforms and use them in different ways. Therefore, the mobile communication environment is an environment that enables acquiring music and being involved in social environments which are formed around music.

Table 2.Global digital revenues of industry
Global Digital Revenues of Industry (2007)
IndustryDigital %
(Source: IFPI, PWC Global Entertainment and Media Outlook.)
*US only
Recorded Music15
Newspapers7*
Films3
Books2

There are certain important issues which put a brake on the digital music industry. For example, the understanding and ability to serve other systems with systems in the music sector or receiving services from them in order to provide common active operations of exchanged services has not sufficiently developed yet. Digital rights management (DRM) standards of different service and equipment providers are different. According to DRM standards, registered software can be used only with leading equipment brands. Also, marketing investment is required for mobile music services as a new style. The related offerings to the customer in the mobile sector have not fully appeared yet. Opportunism or piracy, which aims to exploit work and obtain unjust earnings by benefitting from the broadcasting area is in question. Researches indicate that excluding games the most developed area among other creative performances in the entertainment industry in terms of digital income earning is mobile music. In the global digital income spread, registered music accounts for 15%, which is almost twice of newspapers (7%). Movies and books respectively account for 3% and 2% (Table 2).

Mobile music has significant marketing potential. At present, the most popular music format is master tones, which present a fragment from the original music. In 2007, the sales of complete song downloads have increased. Compared to the same period of 2006, its sales increased from 6% to 12%. The share is expected to increase further according to the created images or melodies of favorite artists as a mobile personalization component demanded by the customer.

Meanwhile, mobile music faces certain challenges. Especially a limited number of marketing activities, preventive data responsibility and penalties, gaps and weaknesses of customer-oriented presentations, low penetration in developed instruments, the factors related with the transformation between mobile phone generations are considered as some of the barriers that affect the mobile music market.

Various issues such as the quality of service provided by the network of mobile music applications, ability to roam around various networks and the management of location are gaining importance. Also pricing, protection of legal rights, matching the customer's requests with the content provided in the mobile environment, and overcoming synchronization problems between the user's equipment and the system are among the other important issues (see Table 3).

Having taken its potential place among new mobile business modes which have appeared after 2007, mobile music addresses to potential expansions from a marketing point of view. Among them, various models can be mentioned such as a la carte download music services, subscription services, and advertising supported music services (see Table 4).


Table 3. Mobile music applications
Mobile ApplicationsImportance of Networking RequirementsCertain Points
Mobile Music/Music on-demandQuality of Service (bandwidth requirements, delay and delay variation, tolerable loss ratio)• Pricing issues (on demand, subscription, free with mobile advertising, etc)
Roaming Across Multiple Networks (continued connectivity, network availability, wider wireless coverage)• Legal issues (copyrights & undefined copyright owners)
Location Management (location tracking for determining the location of an object, location database for storing and location information)• Matching contents to user preferences
• User synchronization


Table 4. Emerging business models for mobile music distribution
A-la-carte download services
Subscription services
Consumers offered more non-DRM download services
Advertising-supported services
Record labels go direct to fans
Brand partnerships

A-la-carte download services appear as the most prominent among these models. As an example iTunes has become the third largest music retailer of the US, catching up with the sales of Amazon and Target. Subscription services of companies such as Napster are also growing because iTunes provides this service only for the devices it has defined while it fails to provide services for other devices. This limitation causes the rise of certain new services offered by mobile operators and ISP's. Certain problems occur because inter-operators operation is not possible in the music industry and certain major record companies and major technology developers have not joined or are reluctant to join it, and the possibility of offering download services that remain outside of Digital Rights Management can be in question. Advertising-supported models suggest various methods to promote new pieces of music, and they work in parallel to social networks. Record companies sign license agreements with social networks such as MySpace, YouTube and Imeem and obtain the right to broadcast their music videos via those channels and get stake from advertising revenues.

A fan can send listened music or watched video to other people or groups online at the same time. The number of sharing increases by multiples and sometimes, an artist can reach thousands of fans in only a couple of seconds (Scott G, 2005). This can be used equally in the same manner with mobile devices after 3G, and the ability to share music via different chains will be benefitted.

Records with new music videos can directly be sent by through the web sites of artists to their fans. Record companies among music producers make use of the artist and brand cooperation opportunities through the pieces of music sent via mobile system.

Here, the purpose is to highlight those music interactions in mobile environment and mobile music, which uses portable technology. This should be perceived as a new domain. Also, mobile devices, which now mean more than just being portable devices, create a chance to evaluate personal performances by covering issues such as music production, sharing and mixing, and those who share temporary music, create new user groups in P2P and distributed network structures. People and groups that benefit from this system are able to distribute oral, musical or written elements, which they have obtained from strangers in the same location, to their friends at different locations, and perform distant actions without requiring central supervision.

The conversion of electronic devices into miniature sizes and high capacity warehousing capability develop the ability to keep music collection at a single place, and mobile phones with gradually enhanced MP3 features turn into musical platforms that fulfill the purposes of other devices with these features. Mobile telephones facilitate music transfer as they are ready for network communication anytime.

There are two different opinions about mobile music content share.

  • The first one is free of charge through using the same features of free downloading and finding everything, same as the primary applications of Internet.

  • The other opinion is valid use in return of the fee paid for copyrights.

However, the system is currently unclear regarding the payment of value for music to be used. Figure 1 simply explains the copyright payment system with a scheme. Here, the users download mobile music in return for free, and the copyright benefit is paid to the copyright owner via an official body.

According to Schmidt (2008), information products are intangible products distributed via digital forms and electronic networks. Free rider phenomena and “privacy” will lead music or art work creators and distributors to develop copy protection or digital rights' management systems, and the existing service will be converted into a special and physical product.

Sports and Mobile Applications


Sports have been a very important event of humans since ancient times. It is good for body and mental health. Even when not doing it, watching or being a fan are important circumstances for many people's lives. Therefore, while mobile phones are penetrating our lives, the impact on sports should not be forgotten. Sports draw the attention of many people in the world, and news related with sports or issues such as subscribing to sports clubs or supporting a team or a sportsman constitute an important part of our lives. Although people do not deal with the sports themselves, they may watch them, follow up and provide material or moral support in order to fulfill their motives as a supporter.

According to Juniper Research (2006), the total share of mobile sports in the entertainment and information market (content and messaging) activities such as SMS, MMS, chat, wallpaper and image, video clip and streaming video services is approximately 4.17 billion dollars. The figure is forecasted to reach 9.5 billion dollars in 2001. However, the mentioned figure should be considered as an average of the total expenditure. Mobile sports are one of the fastest growing sectors in the mobile industry. 1 billion dollars of assets of sports content and services in 2006 are expected to reach 3.9 billion dollars in 2011 after the expansion of 3G technologies to all regions and enrichment of mobile sports content with an increasing number of licenses. This estimation suggests that sports content and services will increase by 41% by 2011.


Table 5. Sports related contents and services
Content/ServiceDelivery Methods


  • Match results,

  • Goals,

  • Score tables,

  • Injuries,

  • Transfers

  • All interesting news,

  • Striking comments from professional columnists,

  • Live Narration,

  • Goal or latest minute videos,

  • Games such as Olympic race, FIFA, Pro-evolution Soccer,

  • Quizzes and games related with football or any other game that receives high interest at the location,

  • Quizzes related with sports,

  • Other.

Text messages and reminders
Picture messages and reminders
Voice messages and reminders, voice clip, live narration
Video download
Streaming videos
Wall papers, graphics
Voting
Chat
Location

Table 5 indicates sports related content, entertainment products and certain methods of delivery in mobile content. These types of services, in addition to the information and results related with match scores, goals, score tables, players' conditions, and comments, information and performances requested by a more different mass who is interested in contests and games can also be included within communication services. The ability to play sports-related games on mobile phones individually or in groups is also in accordance with considering mobile phone as a different platform for betting.

Leading barriers related with mobile sports services are the users' lack of experience, localization and optimization, and limitations related with digital rights. If a visual presentation is realized, then other challenges such as delays, network or device limitations can also be in question.

Sports mobile presentations are mostly those which are prepared for the supporters of football teams. Clubs who wish to attract supporters' interest and sponsors come together and benefit from mobile communication. For example, in the USA National Football League, the New Orleans Saints have seriously benefitted from mobile efforts, which brought great efforts for the team with the support of its fans. A sponsor, a mobile service provider and a TV channel were also involved in this practice in order to create a mobile database. The created database facilitated identifying the potential to watch matches on the sports channel. The supporters were asked to send the name of their most favorite player as text messages, and so, the material support of the supporters was obtained.

Mobile sports is not only limited to football, but it has the potential to grow and expand with software to serve and satisfy people on issues related with baseball, basketball, golf, tennis, car races and other sports branches.

Mobile Game


Digital games, which have entered our lives with Internet and computer technologies, can now be offered via mobile instruments. Games were considered as the leader of services provided to people, who want to spend time by using the mobile phone, and they are becoming more diversified and the mobile game industry is gradually developing. A very significant piece of online time is spent on gaming. This trend will continue to increase in 2009 with new games entering our lives. With the inclusion and joint use of more different brands and offline channels, users are expected to become more involved. Game fictions that include social network features (comparison of the results by the users themselves, competing with friends, etc.) may attract a higher interest.

Video games which can be played on mobile phones and which are produced by some famous brands are developed in a manner to address those who demand different styles of games to vary in different ways with single players, multi-players or teamwork. Mobile game modules have various payment options such as pay for the download, free game, and pay for single game. In terms of subscription, games are separated as free subscription and advertising-supported.

Those who develop mobile games make plans mostly according to the following features and design of different games:

  • Technology games, (games embedded to telephone or device, SMS/MMS games, demo games, J2ME games, BREW games, independent Operating System (OS) games etc.)

  • Number of players (Multiplayer/Single player)

  • Style (excitement, logic/puzzle/skill games, sports and race games, arcade, role playing games, card and casino games, FIL games, adult games, lifestyle games, etc.)

Mobile games are among the most popular and most consumed mobile services.

They are developed by considering the systems of the games that are established in mobile instruments. Therefore, the content may be different in terms of size and complexity. For example the Nintendo's GameBoy, Sony's PSP, Nintendo's DS are game instruments based on a denser wireless and media utilization capacity and Internet. Although the programming of Internet and media communication devices is difficult, it is possible to make use of a stronger media interaction in activities such as games, entertainment, sports and music, etc. (Quinn, 2008).

According to Finn (2005), if a generalization is to be made, then mobile games can be separated as conventional computer and console games transferred to mobile platforms and the games that employ SMS. SMS games which turn into an interactive channel to respond to TV shows and contests can be used in many situations and areas. The main evidential point of these games is the turning of the mobile phone into a game and entertainment instrument. Therefore, mobile games can be defined as those which people can benefit from or participate in willing to play the game at any location. However, obviously, there are certain differences between the behaviors of mobile players and classical players.

In a research conducted by Nielsen Entertainment for Nokia in six countries and on 1800 people, 80% of the mobile phone game players play a minimum of once a week, while 34% play every day. The average daily gaming time is identified as 28 minutes; the average time is 39 minutes in India, 31 minutes in the US, and 29 minutes in Thailand. 61% of mobile gamers stated that they play it when they are mobile and 62% when they are at home. The ratio of mobile phone players who stated that they play mobile games instead of waiting in their free times is 56%.

According to the study, people pay more attention for new mobile games to cover their game requirements. Nokia multimedia game director Jaakko Kaidesoja confirms and expresses that users expect better graphics, better content and better games.

According to the research of M:Metrics about gaming and game downloading by consumers in the US and in Europe, due to the reasons such as pricing preference limits and being uninterested, mobile phone users do not buy any other games after buying one. The study -made in 2006 - indicates that among the registered mobile phone users, those who downloaded games is 4.2% in the UK, 2.5% in Germany and 2.7% in the US. Buying games is directly related with mobile phone shopping, and there is no regularity associated with the selling stages. It has been identified that 30% of game downloaders are first time downloaders, and the purchasing ratios of new registrars has been identified as low, and the ratio of repeated downloads do not exceed 20-30%.

M: Metrics senior analyst Seamus McAteer indicate that there is no restrictions regarding the addition of new games to operator portals, and these data indicate that operators should spend more effort in order to download a mobile game. In the same research, it is stated that the ratio of those who played mobile games in March 2006 among the total registered mobile phone users is 23% in German, 32% in the UK and 24% in the US.

Adult Content


When divided according to ages, it is quite natural to have differences between the contents of children and young people, and that of adults. There are certain differences between information and culture games that refer to every age and adult content. According to Juniper Research, the global market for adult content is very big. This figure includes books, magazines, strip clubs, toys, movies, DVD, telephone and online content that totaled approximately 100 billion dollars in 2006. Game-type materials with audio-visual features are considered as the most popular and profitable products. The study highlights that the media where these games are presented is used in making the mobile device or communication channel more popular with mobile content or is considered as the main income generating element.

Mobile Adult Content Product Types


They can be separated as purchasable contents and natural contents as a factor in preferring certain mobile devices and features. However, the content obtained from both types can be classified as follows in general.

  • Text based adult content (printed media and publication products, word guess and mathematical operation games, encyclopedic information, etc.)

  • Visuals (Photographs, drawings, holograms, clocks, calendars, map schemes, diaries, telephone books, daybooks, etc.)

  • Sounds (Moantones)

  • Erotic games for adults

  • Video-based services (transfer of short erotic movies, etc. videos and images)

  • Intermediation services in purchasing (provides connection with organizations or websites which provide the above-mentioned services).

Juniper Research estimates that the above-stated figures would increase to 2.2 billion dollars in 2008 and to 4.9 billion dollars in 2013.

Certain new legal regulations about adult content are being prepared in many countries. Certain private conditions are required to provide adult content in the UK. Such conditions were evaluated within the 2006 Independent Mobile Classification Structure and the major standards were identified as Independent Mobile Classification Body [IMCB] rules. Applications are allowed only if they are in accordance with these standards. The main element of these rules can be summarized as the classification of 18 plus commercial content without damaging the independent classification structure.

The following services are those included within the framework of IMCB classification.

  • Pictures,

  • Video and audio materials,

  • Mobile games which also include Java games,

Certain services have also been included in this group in 2006:

  • Premium-paid text, audio and only audio services formerly organized by ICSTIS (regulated phone-paid services in the UK) phonepatplus.org.

  • Gambling services (these services are subject to UK laws).

  • Moderated and non-moderated chat rooms (non-commercially moderated chat rooms if they are for 18+).

  • Location Based Services

  • Contents developed by members such as web logs.

  • Contents accessed via Internet or WAP where the connection is provided by mobile operator only

The following content is allowed for contents related with the 18 plus age group. Bad speeches which repeatedly and frequently include the issues of drinking or gambling type of activities that are illegal for non-adults, real or real-like sexual activities, nudity and drawings containing violence, illegal drug taking, horror content or content which encourages activities containing violence such as head butt or pulling ear.

The expected thing from mobile operators in this regard is to identify the age range of users and prevent the delivery of the foregoing content to those who are below 18, and to prevent the delivery of subscription-requiring content to everyone.

The market of adult services with a 1.4 billion dollars income in 2006 is expected to grow slightly over 2.7 billion dollars in 2009 and reach 3.3 billion dollars in 2011. Also, it is possible to say that the most profitable market in terms of mobile adult services is Europe which can afford high prices followed by the Asia-Pacific market. In the 2006-2011 period the income of mobile adult entertainment services is estimated at 14.5 billion dollars, Europe accounting for 39%, and the Asia Pacific for 33% (Gibson, 2006).

It is expressed that erotic games and entertainment constitute a major part of the adult entertainment sector. It is stated that the primary impulses that affect demand in this market are very stable. At present, the mobile channel is regarded as the last considered distribution channel in this respect; however, after the development of monitoring abilities with transfer to 3G, development opportunities in this regard will become more concrete. 3G has increased the abilities to transfer images and graphics through mobile video. The most intriguing and interesting subjects will be distributed in this way. These services, which initially entered mobile communication as test services and evolved in time, have now left their places to high-quality drawings and video content. Mobile adult video services are expected to account for 50% of the global market, reaching 1.7 billion dollars in 2009 and 2.4 billion dollars in 2011. The ratio of income from video based services is predicted to be 70% of the entire content income in 2011 (Gibson, 2006). In the same research, it is indicated that previous adult content modules have been successful in fields such as media, press, cinema, DVD, PPV (Payper review) and TV, and this channel would also be at least as profitable as the above-mentioned fields of the industry.

Furthermore, as mobile channel transfers adult content in a more different and personalized way than other classical channels, there is an expectation that a wider audience can be accessed via this channel. After gambling is allowed via mobile basing on an unlimited time and money spending, gambling will provide a much more different adult content than that is offered from current channels. This will require the presentation of the adult content in a more different way. Mobile is entertaining and it can satisfy immediately. The identification of up- to-date soft games that are openly presented to the public, the identification of the number of participants and bonus amounts, and with its immediate announcement, it is thought that mobile games will gradually become more effective.

It is possible to say that the development of the market in terms of mobile adult content would result in many legal issues and social sensitivities. Illegal attitude and practices are the most important factors which would restrict the growth of the mobile adult market.

With the inclusion of mobile-content related similar discussions in the academic area and popular media, and discussion of its impacts on society, mobile forms will remain on the agenda all the time, and consumers will always tend to receive games and services in mobile form. The first 3G operator of Australia became the first Australian intermediary company to present Playboy content and target the access market in 2004. On the other hand, with Three, in addition to the services to see playboy girls that have existed since 1960, the cybergirl of the month and playboy videos have also been broadcasted since 2001 (Three 2004).

With a similar approach, many software developers are working and trying to take place in the market with different products that present adult content for mobile computers (Manjoo, 2001). As they are adult-focused, they include explicit XXX rated pornography games, puzzles and videos. Nevertheless such products will be turned into more influential products only after 3G, when full motion videos can be played on high resolution displays of mobile devices.

Mobile Gambling


Mobile gambling is another entertainment alternative for mobile users. The varieties of Mobile Gambling are generalized under three headings.

  1. Casino games

  2. Lotteries

  3. Bets

  4. Betting exchanges

Gambling in conventional format is gambling played in special format casinos and they are the leading of the brightest forms among gambling games. The most important point in terms of mobile communication is the adaptability of all mentioned forms of gambling online and to the mobile environment. As these games rely on fine graphical designs and challenging and high speed connections, they can be expected to become more popular with 3G networks and advanced devices. The awarded talent games market is also growing with the support of new technologies, and games with prizes are also increasing. Such games with awards create a new massive market which is adopted by wide masses.

Lotteries are among the most commonly used commercial practices of gambling. Such games have been traditionalized and they mean some sort of harmless entertainment rather than gambling for most people.

This is also related with how easy the users play the game. Mobile gambling presentations can be based on the idea of regarding these people as the ideal candidates. Sports bets are a type of gambling and they are one of the earliest forms transferred to mobile platform, where the customers could easily adapt into. Here, playing the game while watching any sports contests or at any desired time, place or situation is the thing that attracts customers.

Therefore, the leader of present-time gambling activities is sports bets. They are performed by well-known betting brands on mobile sports pages, which expand their customer portfolio through new channels on the mobile system. Due to its structure, mobile channel both has certain advantages and disadvantages regarding the delivery of mobile gambling services. They will also shape the future services and distribution speed of those services. The constraints and limitations on mobile gambling are indicated in Table 6. The constraints and limitations are almost identical to those of mobile adult content.

The increase and speed of the expansion of mobile phone use by individuals is encouraged by various factors such technological developments and personal trends and the increase in spendable income while a balance is tried to be maintained with its restriction through various factors such as legal regulations, laws, individual and corporate conservatism.

It is foreseen that the income created in the European and Asian Pacific markets in 2007 and 2008 and totaling around 5 billion dollars are forecasted to grow at a greater pace and almost double in 2009. Meanwhile, the total market in the world has increased more than twenty times and the income which was 1.91 billion dollars in 2006 is expected to reach 23.19 billion dollars in 2011 (see Table 7).

Mobile Health


Mobile health is a very broad subject and several books on mobile health can be written from different perspectives in general. Mobile health is another important subject for marketers. Mobile health should be considered from two aspects. The first one is the innovations brought by mobile on health practices (practitioner/user), and the second one is the effect of mobile devices on human health. Both are subjects that should be considered and discussed in detail. M-health (mobile health, mhealth) can be described as the performance of the facilitation of public health services through mobile phones, hospital tracking devices, PDA, etc. wireless devices, and other health efforts convenient for remote-activated tendencies.

Table 6. Mobile gambling related pushes and limitations
PushesLimitations
(Source: Juniper Research)
Gambling desireRules
Spendable income increaseAge verification
Technological developmentPayment process
Availability/ConformityConservatism of suppliers
Mobile penetration increaseIncreasing speed of network cycle
Mobile user profileAbilities and conformity of telephone
Personal confidentialityPracticability


Table 7. Total revenues from mobile gambling regional forecast (casino, lotteries & betting) 2006 and 2011
Region2006 (USDmillion)2011(USDmillion)
(Source: Juniper Research)
North America03340
South America341328
Europe9507940
Asia Pasific9668818
Other Regions401765
Total199123190

M-health also covers applications related with the utilization of mobile instruments for gathering social and/or clinical health data. In this context, the transfer of information related with health and care to practitioners, researchers, patients and to the entire society when required, and the full time monitoring of critical indicators, and even the performance of care (via mobile telemedicine) can be considered (Germanakos, Mourlas & Samaras, 2005.

On the other hand, there are several people like huge immigrant populations some of whom have a very scant command of English (or spoken language in countries). These are living in foreign language speaking countries, and they often need to see doctors, currently governments of these countries provide real-live translators to help these people out during hospital visits; however, with some mobile solutions it is possible for them to get a connection and explain themselves much better.

Besides the researches and efforts about explaining the impacts of radio frequency (RF) areas are continuing. These studies have certain gaps based on lack of information and they should be scientifically filled in. Actually, the exposure of people to RF areas is not a new issue. The developments in information and communication technologies cause everybody to be exposed to such artificial frequency fields in their daily lives, at home, at work and at other places. The human body absorbs a small percentage of RF areas arising from some electrical devices such as mobile phones and base stations, and this absorbed energy is turned into heat. Because of certain biological processes in the body, this heat increase is recovered without being moved to perceivable sizes. Certain scientists claim that the energy emitted from mobile phones and base stations could affect human health. It has been discussed in the media several times and many articles have been published on the safety of mobile phones.

Certain international guidelines have been prepared regarding the exposure levels of RF areas caused by mobile phones and base stations. Manufactured mobile phones and base stations are in accordance with these guidelines. With the International EMF Project, which was started by the World Health Organization in 1996, research related with mobile phones, base stations and their effects on health have been registered and requirements related with these researches have been prioritized. In 2006, new areas were included in the research scope. These areas are as follows:

  • Long-term (over 10 years) exposure to low-level RF areas

  • Potential effects of mobile phones on child health

  • Dosimetry (measuring the dose of radioactive substances) or calculation of RF wave absorption amounts

In a joint study with the International Agency for Research on Cancer (INTERPHONE), the mobile phone utilization of people with tumors at the head and neck sections and those without such tumors is inspected. Although the findings of the research have not been completely published yet, the results that have been reported so far do not indicate a certain relationship between mobile phone use and tumor formation.

The World Health Organization, issued certain advisory decisions about the use of the mobile phone. Accordingly, any scientific data which indicate low level radio frequency (RF) fields arising from mobile phones harmful for human health could not be obtained. Nevertheless, there are still certain gaps that should be filled in. More research is required in order to fill in thes scientific information gap.

The International Commission on Non-Ionizing Radiation Protection has published guidelines regarding the exposure levels to RF fields caused by mobile phones and base stations. A certain exposure safety limit is stated in these guidelines. The exposed level is measured with Special Absorption Ratio (SAR). Special Absorption Ratio is the amount of RF energy absorbed by the human body.

Most of the mobile phones sold are in accordance with these guidelines. Also, there are many factors that affect the exposure level to RF waves which stem from mobile phones. Some of them are as follows:

  • The distance between the user and mobile phone

  • Distance to the base station

  • Characteristics of the field between the mobile phone and base station

  • The service employed

  • Apparatuses which convey sound from the phone to the ear

Mobile phones require a minimum radio frequency field to connect to the base station. Therefore, signals from the base station are automatically set to a low frequency. The higher quality the signals from the base station are, the lower the RF field strength from the mobile phone will be.

According to Istepanian & Lacal (2003), the new generation “wireless e-health technologies” should be considered as a headline to upraise telemedical and telecare systems. These technologies accelerate the activity of using mobile telecommunication and multimedia technologies for health. They are also referred to as telemedical and telecare systems.

The health sector is an important sector which continuously maintains its importance about the production of information both in terms of use and in terms of producing scientific information related with devices and the utilization of devices.

Payment Systems


Mobile payment (also known as mobile web payment or WAP invoicing) is another important subject that recently started to affect our lives. Mobile payment means the collection of the credit amount from the debtor by the creditor via any mobile instrument such as mobile phone, smartphone, and PDA. This method of payment is shortly known as m-payment. Mobile payment can be used for any tangible product such as books, tickets, computers or mobile phones while it can also be used for digital products such as music, games, and video films. Also voluntary payments of people for their selections of social participation or donations, and the costs required by mobile phone system are also among such payments.

Mobile payment consists of two basic models:

  • Premium SMS based transactional payments

  • Mobile Internet payments (WAP)

Both of these payment systems are used effectively in developed countries while they also have great potential in developing countries. Especially the micropayment system in developing countries is the leading as one of the most effective payment methods.

M-payment (mobile payment) is regarded as a sales point payment form. A mobile instrument such as mobile phone, smartphone, PDA can be used as the payment instrument at a sales point. Because M-payment is a type of payment conducted through wireless devices, it is a method of payment which can be freely performed at any shop or point of service; for example, at a restaurant without requiring any staff. For example, when a customer of a restaurant desires to make his or her payment quickly in order to catch an appointment, he or she can pay the check at the table without waiting for any waiter to come. By this method, the mobile device of the customer is exposed to the cash register through the mobile payment provider. He or she types the number of the table, enters his or her bank or identity number and approves the payment, and then, he or she can immediately leave the restaurant. According to the Danish company Orange Mobile Payment, the entire time spent for the mentioned transaction is not more than 10 seconds.

The initial m-payment trials through mobile phones were seen on wide area networks (WAN). It was for the payment of bills from their mobile phone invoices, which required entering long sequential numbers at every payment time. Other technologies under trial include more effortless procedures. Palm and Verifone IR try to conduct data exchange through infrared (IR). Apart from them, short range transfer systems such as Bluetooth, WiFi and RFID can also be used for payment. Although public key infrastructure (PKI) encryption is considered overall m-commerce, the isolation of m-payment is essential for customer's security.

M-payment is currently used in various parts of the world, mainly in Europe and Asia. The first trials in North America were made towards the end of 2001, and they were realized at two restaurant chains in the US. One of the important points related with m-payment is the similarity of features of this payment to credit card payment features. In general, it is physically used at the moment and at places where monetary exchange is to be made at the credit card sales point. However, credit card is not used everywhere or at every part of the world. At places where these payments cannot be made, mobile instruments and systems can be used instead of credit card. However, the infrastructure and systems to use mobile phones as credit cards are currently in the developmental stage. Here, the highest consideration for both parties should be security because both the payer and creditor wish to obtain security.

According to the data of GSM Association, 800 million mobile phones were sold in developing countries between 2003 and 2006 (GSM Association, 2006). According to Ivatury & Pickens (2006), it actually represents a significant potential for mobile banking (m-banking). It should also be considered as a financial service through which millions of poor people in the world can be provided with basic financial services. M-banking is defined as the provision of banking services through mobile instruments. Meanwhile, mobile-payment is used rather as an instrument for retail shopping or person to person transaction. Its role in the payment system will be completed when it becomes suitable for banking transactions.

According to Karnouskos & Fokus (2004), the entire payment activated, performed and/or approved via any mobile device should be considered as mobile payment.

There are many different units and organizations in the digital payment scenario (Table 8). For example, financial organizations can be individual or corporate banking-based, and they should adapt their mobile payment infrastructure and card operations to the mobile. On the other hand, independent payment providers do not currently provide a complete infrastructure, but they are able to react fast. Here, mobile operators also hold the status of a kind of intermediary organization or a guarantor. Apart from them, companies that develop the software and devices used for mobile payment operation, and other service provider companies can also come into question. Here, one of the critical points is that users do not fully accept this system. However, it is not possible to say that the customer is completely ready for this subject, which requires creating a new habit.

According to Karnouskos & Fokus (2004), two types of mobile payment models are in question. They are gaining and acquisition centered, or counter server centered. Bank-centered payments are the payment types where the mobile instrument is used, but they are types of payments which can allow the payment of personal account statements, and if they are Mobile Network operator centered, then the systems in this network can be developed and the payments can be received.

The methods to register the payments into accounts in this context are as follows:

  • Those which are invoiced in order to be paid later (the payments added to the telephone invoice, and which are made via credit card),

  • Prepayments: these are realized through prepayments held in a certain account or invoice,

  • Immediate payment -real time or pseudo real time: payments only at the moment of shopping or for those which were realized a very short time ago

  • Other payments: Online micropayment, Offine micropayment, Single chip, Double chip, Double Slot, e-coin based, account-based, wireless wallet, IrFM (Infrared Financial Messaging (IrFM) is a wireless payment standard developed by Infrared Data Association based, RFID based, fillable, mobile cash card, barcode paperless invoice and PhotoPay are other forms of payments.

For example, Photopay is regarded as a shopping administrator based on shooting the barcodes of products with cameras on mobile phone and sending them. Here, there are certain requirements such as: the product must have a barcode and mobile phone must have a camera. This payment system is ready for use after a short and simple installation procedure. The product is bought in two simple phases. The customer takes the photo of the barcode, the installation program rapidly deciphers the barcode and turns it into product and price information; then, the customer states the payment options and concludes the transaction. Here, any time requiring invoicing or personal details is not included. Even, if the service amount is suitable, then the delivery can be made even to the customer's house.

According to Karnouskos & Fokus (2004), mobile payment is not a sort of payment method where a single procedure is suitable for everyone. Evaluations should be made according to the risk levels of different accounts. For example, micropayments require a different approach than other payments while guarantees can be requested against risks for high payment amounts. Therefore, a general mobile payment structure may not be suitable for all transactions. Besides, most people consider mobile payment as an additional access channel to existing payment systems.

Mobile finance and commercial services have taken their places among issues that should be deeply considered in recent years. For example, in the UK, o2 and Visa have demands in this regard while the security and mobile phone ranges still constitute a barrier. Central Eastern Europe based ventures' credit services have seen a keen interest with regard to P2P banking services and global cross-border remittances continue to grow via mobile money transfer scheme. This transfer is organized through the connection of millions of registered users to the money transfer network with the wallet agnostic approach.


Table 8. Digital payment scenario
PlayersBasic Characteristics
(Source: Developed from S., Karnouskos & F. Fokus (2004). “Mobile Payment: A Journey through Existing Procedures and Standardization Initiatives”. IEEE Communications Surveys & Tutorials Fourth Quarter 2004, p.46.)
Financial Organizations

  • Individual based

  • Corporate based

  • Mini/macro payment infrastructure

  • Card operators

Mobile network operators

  • Customer based

  • Commercial based

  • Mini/macro payment infrastructure

  • Control of end user device

  • Invoicing infrastructure

Autonomous mobile payment providers

  • Ability to react fast

  • No infrastructure requirement

  • No customer base requirement

Other service providers

  • Basic mobile payment instrument providers

  • Developers

  • Additional services providers

Users

  • Not ready about security

  • Not ready for mobile payment logic

  • Possess mobile instruments

Other

  • Legal infrastructure developers

  • Technological infrastructure developers

  • Threateners

  • etc.


For retail sectors, mobile payment has introduced brand new approaches and applications. Therefore, it is an influential method on the retailers' side. Payment devices, which are the products of complex engineering where various digital means are integrated, conclude the transaction for the customer in a very simple manner. These practical methods offered to the customer facilitate customer acquisition and operations at the sales point, and greatly contribute to maximizing profits and create an expectation for brisk sales. Retailers, who are aiming to grow, should spare funds from main investment for the equipment and training of employees on how to use the device. Companies, which are more eager for activities such as issuing coupons, tickets or location-based services, are more prudent about investing in payment systems.

The following points are required for mobile payments:

  • Development of business strategies suitable for each sector

  • Organization of technical platforms

  • Security and Consent

  • Identification of reasonable prices for the service and level of freedom,

  • Identification of restrictions

  • Regional analyses

  • Cross-border money transfer applications

  • Credit or prepaid systems developed for retailers

  • Applications related with mobile marketing, promotion and coupons

  • Training of citizens on public collections through electronic environment such as m-collection, m-sequestration, m-invoice applications.

Mobile Wallet


Mobile wallet is one of the applications about mobile payment. Its first practice in Turkey is one of the joint-projects carried out by bank(s) and service providers, who have realized many pioneering applications in their sectors. Credit cards transactions can be performed via mobile phones with the Mobile Wallet. The performance of all transactions performed through a certain credit card via mobile phones with different features and technologies is an approach that facilitates mobile payments. Such practices decrease the payment time to less than half a second. During shopping, the low limit accounts per transaction can be carried out fast through mobile phone as the cost is added to the mobile phone invoice. After the limit is exceeded, shopping is performed through entering a personal password. Mobile payment and contactless banking are the beginning of a new period in terms of the use and evaluation of money. In order to perform such projects which are expected to provide non-staffed bank services, support was provided by the Global GSM Association (GSMA) and one operator was selected from each country including the US, Australia, the Philippines, France, Ireland, Korea, Malaysia, Norway, Singapore, Taiwan and Turkey. Turkcell represents Turkey as it has the highest number of customers. It is expressed that the results of such pilot applications also contributes to the mobile payment effort to be carried out by an association on a global scale, and create a database to identify the standards in this regard. The project which has been started by banks and service providers in Turkey will be included in the widest member workplace network of the world, and it can be among the first users of the programs which allow uploading credit card data to the SIM card via GSM network