Cellular Phones To Tap Wireless Money. Pacific Bell,
Ray Van Eng (02/10/97)
If some of the most innovative wireless communication companies have their ways, you will soon be able to use a cellular phone or a similar hand held device instead of a desktop computer to carry out financial transactions over the Internet. Pacific Bell Mobile Services Inc. (PBMS) is reported to be working with various partners in putting together a wireless e-commerce infrastructure to allow digital money to be downloaded securely to smart cards via cellular phones from anywhere the consumers choose to be. Field trials will begin later this year in San Diego, California where users of the PCS (personal communications services) system can receive and send messages via the Short Messaging Service (SMS) channel. Insert a smart card into the slot on the handset, the whole unit will then act as a point-of-sale card reader that can send finacial data over the cellular network. Visa, MasterCard, American Express, as well as cellular phone makers such as Nokia, Siemens, Motorola, and smart card maker Schlumberger are expected to take part in the PacBell initiative.
Pacific Bell plans to join hands with other GSM (Global System for Mobile communication) providers to make the wireless e-commerce service available in other parts of the country. Commercial roll out is scheduled to begin in 1998. To assuage security concerns, PacBell has built in five levels of data encryption into its wireless system that will make its network not only safe for e-commerce, but also prevent possible eavesdropping activities. Along similar lines, wireless divisions at AT&T, Navitel and Mitsubishi will also be introducing cellular units to enable mobile users to send and receive e-mail, access the Internet and carry out many personal digital assistant messaging functions. Specially formatted web pages with pop-up menus could also be displayed. AT&T's device is known as PocketNet phone. For $40 a month, the user can carry out 500 kilobytes of data transaction (e.g. e-mail, Internet stock quotes etc.) and be able to send 20 fax pages every month. The Internet is a large revenue source for satellite operators, especially in providing International backbone and local access services for less developed regions in the globe with poor or inadequate telecommunication infrastructures. Low orbit satellite stations hovering at 100,000 feet above major metropolitan centers may be part of the wireless picture. The U.S. based Sky Station International wants to shoot 250 dishes up in the air to cover the whole world and has applied to the Federal Communications Commission (FCC) for a radio license. Banks and medical institutions around the globe have expressed interest in using the technology for wireless e-commerce and communication services. Per minute charge could be as low as tens cents to the consumers, Sky Station indicated. |
© Copyright Ray Van Eng 1997 - 1999. All Rights Reserved.
The
level of sophistication will increase as the trial unfolds. For example,
a miniature keyboard with a customized web browser will be built into the
handset to access the world wide web. Digitized voice and data services
will also be part of the deal. In later stages of the development, financial
institutions and banks will be asked to join in to provide electronic transaction
services.