2001 prentice hall, inc. all rights reserved. 1 chapter 8, international wireless communications...

2001 Prentice Hall, Inc. All rights reserved.

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Chapter 8, International Wireless Communications

Outline8.1 Introduction8.2 International Regulation of Wireless Communications

8.2.1 3G Licensing Auctions8.2.2 3G Licensing Effects

8.3 Worldwide Wireless Evolution8.3.1 Technological and Cultural Factors Effecting

Wireless Adoption8.3.2 Applications

8.4 International Wireless Technologies and Markets 8.4.1 Asia and the Pacific8.4.2 Europe8.4.3 North, Central and South America8.4.4 Australia and New Zealand8.4.5 Africa


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Chapter 8, International Wireless Communications

Outline8.5 Creating an m-Business with Global Capabilities

8.5.1 Choosing an International Market8.5.2 Internationalization and Localization8.5.3 Partnering and Hiring8.5.4 Payment Systems8.5.5 Distribution8.5.6 Legal and Taxation Systems8.5.7 Promotions

8.6 Future of Global m-Business8.7 Internet and World Wide Web Resources


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8.1 Introduction

• International wireless communication technologies drive the global economy– US’ wireless penetration (% using service) lags behind other

countries

– Companies investing in wireless infrastructure, creating wireless-accessible content and developing wireless applications

• Business need to address global wireless market (globalization)

• Licensing– Governments partition communications spectrum and offer

segments to telecommunications companies


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8.2 International Regulation of Wireless Communications

• Fractured networks/standards without international cooperation poor international wireless services

• International Telecommunications Union– Encourages government and company cooperation

– International Mobile Telecommunications group devoted to wireless issues

• Global System for Mobile Communications– GSM communications standard: most widely used


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8.2.1 3G Licensing Auctions

• Governments sell licenses of 3G spectrum: high speed radio frequencies– Auction: to highest bidder

– Beauty contest: to best proposal

• Companies often purchase licenses outside home country


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8.2.2 3G Licensing Effects

• Spend large amounts on licenses but still need to develop network infrastructure

• Delays from deadlines, expenditures and limited licenses

• Partnering– Increases involvement and cash flow

• Concerns– 3G technologies untested

– High prices to recoup for high costs

– Some existing networks already achieve 3G speeds

– National commerce boundaries worldwide


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8.3 Worldwide Wireless Evolution

• Technological and cultural differences between US and other countries affect wireless use and market penetration


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8.3.1 Technological and Cultural Factors Effecting Wireless Adoption

• Underdeveloped regions use wireless infrastructure solutions (cheaper than wired)

• Standards

– US has multiple standards, phone disabled outside service area

– Many other countries are more standardized, have broader phone use

• Cultural importance of family

• State-owned monopolies disappearing giving private companies opportunity


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8.3.2 Applications

• Messaging– Short Message Service (SMS)

• Internet Access and Web services– i-mode

– KDDI

– Sprint PCS

– BT Genie

– Vizzavi

• Wireless Application Protocol– Enables wireless devices to access web servers

– Wireless Internet Portal: site with services specifically designed for wireless devices


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8.4 International Wireless Technologies and Markets

• The international wireless market is developing rapidly– For example, over 300 million people outside the United

States had cell phones by the end of 2000


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8.4.1 Asia and the Pacific

• Asia has a highly advanced wireless market– Japan, South Korea, and Taiwan all have high market

penetrations

– China has low market penetration despite 46.5 million subscribers

– India has large potential market

Country Subscribers (millions) Penetration

Japan 57.95 43.4

China 46.5 3.7

South Korea 27.5 53.3

Taiwan 11.45 51.6

Fig. 8.1 Top Asian/Pacific cell phone markets. Courtesy of Refreq.com.


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8.4.2 Europe

• The European wireless market– Sweden, Italy, and Portugal have highest penetration

– Italy, UK, and Germany have most subscribers

• Ericsson (Sweden)– 30% world’s wireless market

– 50% 3G contracts


Italy 31.1 52.2

UK 25.5 42.9

Germany 25.0 30.2

France 21.1 35.5

Spain 16.4 41

Turkey 9.2 14

Netherlands 7.1 44.9

Sweden 5.4 60

Portugal 4.8 47.8

Fig. 8.2 Top European cell phone markets. Courtesy of Refreq.com.


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8.4.3 North, Central and South America

• Brazil, Mexico, Canada, and Argentina have relatively high cell phone markets

• South America is attractive market for foreign investment

• Central America still slow to embrace technology


Brazil 14.4 8.3

Mexico 8.7 8.6

Canada 7.0 22.4

Argentina 4.7 12.7

Fig. 8.3 Top North and South American cell phone markets. Courtesy of Refreq.com.


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8.4.4 Australia and New Zealand

• Australian government to auction 3G licenses in city-by-city auction

• 4 companies won 3G licenses after 6 month auction in New Zealand


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8.4.5 Africa

• African developments in wireless infrastructures attracts foreign investors– South Africa and Morocco are the leaders and have offered

3G licenses

– South Africa is one of the most mature wireless markets and one of the top 20 in the world with approximately 5.3 million cell-phone subscribers at the end of 2000


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8.5 Creating an m-Business with Global Capabilities

• Globalization is often critical for business looking to expand growth and opportunities

• Issues to consider:– Will revenues cover costs?

– Will other cultures react positively to product?


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8.5.1 Choosing an International Market

• Market Factors– Potential competitors and product saturation

– Per capita income

– Internet/technology rates

• Research Web Sites– U.S. International Trade Administration’s Office of Trade an

d Economic Statistics

– U.S. Office of Telecommunications Technologies

– Idiom Inc.

– Global Reach

– www.refreq.com


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8.5.1 Choosing an International Market

• Registering new domain names for foreign countries– Internet Assigned Numbers Authority

– NetNames


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8.5.2 Internationalization and Localization

• Internationalization: – restructuring software to process foreign variations

– Unicode: encoding system assigns numbers to characters

• Localization– translation and cultural adaptation of site

• Logos’ Multi-lingual e-translation portal:– translates words or phrases into different languages

• Human Translators for grammar, humor, culture– Aquarius: connects businesses with translators


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• Localization Considerations– Language translation may affect space and positioning

– Cultural associations of color

– Localizing content

– Adapting icons and logos

– International pricing and exchange rates

– Web sites should retain overall company feel for global branding

• Levels of Information– Global Content: universal information

– Regional Content: product and marketing information

– Local Content: web site specific material on regional page


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• Companies offering translation and localization solutions– eTranslate

– Bowne Global Solutions

– GlobalSight

– Idiom

– Lionbridge Technologies

– WorldPoint Interactive


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Logos dictionary query page with the English word “why” translated into several other languages. (Courtesy of Logos Group)


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Aquarius.net translator search. (Courtesy of Language Networks BV)


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Various America Online icons. (Courtesy of America Online)


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8.5.3 Partnering and Hiring

• International partnering advantages– Presence in target country

– Knowledge of target market

– Localized content and customer service


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8.5.4 Payment Systems

• Accommodate foreign payment systems – Only 30% Europeans have credit cards

• Giros– Wire transfers between bank accounts

– Sometimes require mail authorization (slow)

• M-business should consider accepting payments via mobile devices– Sonera’s Mobile Pay


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8.5.5 Distribution

• Foreign distribution and infrastructure – Considerations

• What kind of infrastructure is in place?

• What kinds of distribution channels are available?

• What are shipping costs in various countries?

– Best solution may be country’s national postal service

– If regional distribution center impractical, international shipping and handling company may be best solution


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8.5.6 Legal and Taxation Systems

• Companies using international shipping must obey export laws of own country and import laws of target country

• International commerce on web is without export/import regulations

• Governments have restrictions on and require permits for specific items

• US has list of commerce-restricted parties• Countries have internet regulations


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8.5.6 Legal and Taxation Systems

• International Taxation creates difficulties for m-Businesses

• Company solutions for calculating and complying with international taxes and regulations– MyCustoms

– World Tariff

– Vastera

– ClearCross


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8.5.7 Promotions

• Do company and product names translate appropriately?

• What will be most effective and least expensive marketing media?

• How reliable is site performance data in foreign markets?


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8.6 Future of Global m-Business

• Cell phone use will continue– But in what form?

– What applications and enhancement will the future hold?

• Main Questions– Can companies respond to financial factors?

– Will customers adapt to new products?

– Can companies globalize effectively?

– How will 3G affect investments and business?

2001 prentice hall, inc. all rights reserved. 1 chapter 8, international wireless communications...

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