Nokia: More Than a Phone, But a Futuristic Vision

No one even recalls what GSM phones are anymore. Now everyone's trying to get a hold of 3G phones, which are third-generation wireless services being developed by Nokia as well. But Nokia's success found its roots from the GSM project, which at first seemed impossible for the Finnish telecommunication pioneers to turn into reality. The GSM made a quantum leap in the history of mobile phones. GSM phones, along with other capabilities, allowed users to send SMS, which was a cheaper way to communicate wirelessly. The cheaper the phones got, the more people bought them, and the more units were manufactured.

If the people of Nokia were less visionary (Jorma Ollila was the CEO during that time), they would have given up on the GSM project. But they didn't, despite the disillusionment they have gone through. They were a startup company from nowhere that had to compete with the biggest analog telecom company (Telecom Finland) in the country. Now they are the biggest mobile phone manufacturer and seller in the world. I wouldn't even call it persistence. I would call it faith.

Being visionary also allowed Nokia to see and shape great technology that other telecommunication companies haven't foreseen such as CDMA. This is the basis of today's 3G phones.

Look out, SMS! High Risk Merchants' Guide to New Trends in Mobile E-Commerce

What does mobility mean to you?

To be honest, I'm not a big fan of Short Message Service (SMS). I hate punching on the small RAZR alphanumeric keyboard and I hate doing it a fifty-five times a day. But I have friends that do it effortlessly, and my hats are off to them. I don't mind sending text messages to my folks and colleagues as long as I'm in the mood for a little bit of sacrifice. I don't think it's atypical of me at all. It's just that I'd rather make a quick call than take forever to send a TM to the president of the socks-shoes company.

SMS: The New E-Commerce Cult?

But how convenient can a single text message be! It's cheap, it's fast, and it certainly is hip. In most underdeveloped countries, text messaging is simply an excellent way to communicate without having to spend sevenfold for a local call. And there are so many ways to pull off a TM these days. You can use Yahoo SMS, register at Chikka (hey if you haven't heard of it, come out of the cave, will ya?), or use Verizon's onsite TM service. What I like about it is that 90% of the time the TM reaches your recipient pronto. Two billion subscribers sending out their voices to people they know without having to spend for more than a dime per TM.

Now, veering off a little from the track, we can spot the E-COMMERCE sign on the turnpike. Or better yet, the M-COMMERCE. What exactly does the road sign mean? Most mobile operators have done their share of advertising to consumers with the help of mobile phones. I wouldn't say it's as hardcore as traditional media like TV, radio, newspaper, and the Internet, but I'd say that because it's a powerful and snowballing communication medium these days, it has a huge potential for marketing. Online merchants can take advantage of creating a bridge between mobile phones and the Internet to increase their sales. And a great percentage of the market remains untapped.

How Mobile Phones Can Help High Risk Merchants

Although I sympathize with mobile operators undergoing through hurdles in order to profit from mobile advertising, I would like to focus on the emerging trends that affect e-commerce in general. For one, high risk merchants can easily jump into the possibilities that one day, any kind of service or product can be advertised on the mobile phone. Whether it's through the service provider self-generated ads or WAP, that will be the question.

Another thing is that online consumers who may or may not be able to log in to the Internet using their mobile phones can easily pay their bills and purchases if this mobile phone billing phenomenon takes off. Now that's some real mojo high risk merchants should look forward to happening. Why? Because once that happens, it will be as prevalent as credit card processing online (with or without the help of merchant accounts). As long as the payment process is secure for customers, they will be able to shop on virtual stores through their mobile phones, pay through the online shopping cart through their mobile phones, and manage their credit and other banking activities through their mobile phones. They can do that wherever they are in the world. Nothing could be easier.

First Things First!

If these trends develop, the future of mobile buying, selling, and banking looks rosy. In fact, that might even convince me that SMS is not so bad (in other words, way, way excellent). I have been communicating with people I know through SMS anyways. In the future, you and I will find it so essential that we may not be able to take a morning shower without first checking if Wells Fargo had really transferred some five thousand dollars onto our checking account. Or not.