EXECUTIVE SUMMARY

This is an age of modern science. Modern science is inventing new, new things day by day which were unimaginable to us a few years ago. E-Commerce is new invention of modern science. M-Commerce is an essential part of E-Commerce. This is a report which is written about M-commerce. In our report we have included the participation of Mobile phone in our regular life as well as in business. Here we have also included Technologies behind M-commerce, Mobile Commerce Services, M-commerce benefits, and M-commerce industry groups. This report has been written to brief the idea and to analyze the development and potential of MCommerce in the context of Bangladesh. It discusses the network infrastructure that exists in Bangladesh for m-commerce, the organizations benefits using M-Commerce, end-user technologies and cost to afford m-commerce, and human resources for M-Commerce application development. Finally, the article advises the ways to achieve successful environment for mcommerce in Bangladesh.

ORIGIN OF THE REPORT

We were assigned to prepare this report by our Honorable Course Instructor Md.

Samsuzzaman; Lecturer; Department of Computer and Communication Engineering; Faculty of Computer Science and Engineering; Patuakhali Science and
Technology University So we have selected Mobile Commerce (M-Commerce) to prepare this assigned report. It is one of the report is a Pre-requisite for Introduction to Computer course.

SCOPE OF THE REPORT

This is a report that aims to:  Give guidance about the possibilities of using mobile devices to connect people with information about products.  Provoke thinking about how mobile devices can enhance the relationship between trading partners in the supply chain and between businesses and consumers. Whilst there are many possible applications using mobile devices, this document focuses on exploring the possibility of driving business by using mobile. It does not seek to replicate work of standards bodies active in the mobile sector. This is not a technical or implementation document. It does not seek to define new standards or to give detailed advice about the financial benefits of using mobile commerce. It also does not address how a future mobile commerce infrastructure might be funded.

SOURCES OF DATA
To prepare this report we have used Secondary data only and the data was collected from the published documents, relevant records, and internet.

INTRODUCTION
Mobile is an inconceivable invention of Modern Science. Through the grace of mobile phone the world is becoming smaller and smaller day by day. Now business is also taking place through phone. The business which is taking place through mobile phone is known as Mobile Commerce (M- Commerce). Actually M-commerce is a form of e-commerce that takes place over wireless mobile devices such as handheld computers and cell phones. The technology of M-Commerce is growing day by day. Beside the first and second country the technology of M-Commerce is also growing in our country. So we can hope that through the grace of M- Commerce in near future we will be able to keep pace with the modern technology based business.

OBJECTIVES OF THE STUDY

To meet the new challenges of the competitive world we should have to gather more and more knowledge about our courses. Firstly the purpose of the report is to meet up the course requirement of Introduction to computer. To keep pace with the advance of new millennium as a student of BBA program, we have to gather knowledge about which factors are most important for the development of the countrys entire economy. Our report is fully based on the Mobile Commerce (M-Commerce). So, we have identified some objectives to prepare this report. Our objectives of preparing this report are: Understand different business needs relevant to mobile commerce. Help businesses to define what benefits they could derive from mobile commerce. Show where there are gaps and issues in technology that would create a barrier to adopting standards Drive interoperable mobile commerce implementations based on a basic set of standards

METHODOLOGY OF THE STUDY

From the very beginning of preparing this report we have tried our level best to make this report as a standard report. To prepare this report we have used Secondary data only and the data was collected from the published documents, relevant records, and internet. In preparing this report we have maintained the following chronological stepladder:
Fixation of the Term Paper

Selection of the Sample

Collect Data and Information

Processing Data and Information

Analyze and Explanation of collected Data and Information

Final work ground of Term Paper

We were assigned to prepare this report by our honorable course teacher Md. Samsuzzaman; Lecturer; Department of CSE; Faculty of Computer Science and Engineering; Patuakhali Science and Technology University. Topics were selected by him. After that we have collect data & information. Collected data and information were interpreted to accomplish the reports objective. At the final level the findings we formatted and prepared for submission.

LIMITATION OF THE STUDY

Before Preparation period and during Preparation Period of the report we have faces some Limitations. The limitation are given below Our Main Limitation is that, Our Report is fully based on secondary which is not sufficient to prepare a standard report. We have not found all the required information from internet and published document. There is no earlier report to maintain the standard for preparing this report.

Mobile Phone
How mobile phones have changed our lives
Over the past 10 years mobile phones have changed the way that we live and work. What is the nature of this change? On the one hand, its a change in personal freedom. The mobile phone seems to give us more power as individuals to do what we want and be who we want to be. Many people consider mobile phones as extensions of themselves. This is shown by the wide variety of mobile phones available and the myriad ways of transforming each phone into a truly personal device. As technology advances, mobile phones are able to be used to extend the reach of the person and delegate many functions that would previously have been more time consuming or would have to be carried out in person. As individuals, we expect to be able to do things whenever we want to and mobile phones are core devices enabling this expectation to be fulfilled. Mobile phones are connecting people more than ever before and becoming new glue holding together social interactions and relationships. A mobile phone makes us available to others, be they businesses or individuals, 24 hours a day, 7 days a week.

The mobile industry in figures

There are currently over 3 billion mobile phones worldwide (Information, Nov 2009). It means that approximately 40% of the worlds population currently carries a mobile phone. The chart below puts this figure in the context of other major technologies. Mobile phone adoption continues to grow. By 2013, it is expected that there will be 4 billion mobile phones worldwide. In many developed countries mobile phone penetration is well above 90%, so saying everyone has a mobile phone is very close to reality.

Mobile Phones in Context

3.5 3 3 2.5 2 1.5 1 0.5 0 Billion 1.6 Mobile Phone TV Credit Card Fixed Phone 1.4 Internet 1.3 1.2 0.8 0.7 0.3 PC Car Stand Alone digital Camara

On average, mobile phones are replaced every 18 months. In some markets, such as Japan and Korea, mobile phones are replaced as often as every 6 months amongst certain consumers. This means that new technology becomes adopted extremely quickly. As of May 2007, already 1 billion camera phones had been sold, an incredible number given camera phones were only introduced in 2001. SMS has been another success story for the mobile industry. Text messaging is the most widely used data application worldwide. All over the world around 80% of all mobile subscribers are active users of SMS. Adoption has been rapid, with mobile subscribers in some countries sending up to 10 text messages per day. The International Telecommunications Union (ITU) estimate that annual SMS revenue is close to $100 billion.

Mobile phone functionality

3.5 3 2.5 2 1.5 1 0.5 0 mobile phone 3 sms users 2 camera phones 1 0.7 access to internet via mobile device

Billion of users

Mobile phones: revolutionary devices

Mobile phones are central to the lives of most people in developed countries and are growing in importance in less developed countries. We use mobile phones to talk to other people and we carry mobile phones with us so that other people can talk to us. However, the situation is changing. Mobile phone manufacturers have developed mobile devices that can serve many functions beyond voice communication such as taking photos and listening to music. Mobile network operators are offering services that give greater value to subscribers, such as portable email for business users. Mobile phones are now equipped with cameras with the potential to turn them into portable bar code scanners. The combination of more powerful mobile devices, more innovative mobile operators and change in the mobile network infrastructure (such as 3G networks able to carry large amounts of data at high speed as broadband connections do for computers) is setting the stage for an enormous change in a already fast-moving sector. Mobile devices are fast becoming the place where numerous technologies meet and create applications that are useful for both consumers and businesses across the globe.

The mobile phone of the future is a device that enables users to communicate, connect, transact and innovate. In most markets, phones with the characteristics below are already becoming available: A communicative device The mobile phone will continue to be a device that is used to communicate with others. Although this may be extended beyond voice to instant messaging and email, it is important not to forget communication is a central strength of mobile devices. As it becomes easier and cheaper to transfer larger amounts of data, sharing photos and videos with others will further extend this role. A connective device Mobile phones enable people to connect to other sources of data anytime, anywhere. This is what is happening with mobile email. As data on the web becomes more structured, mobile devices will become more and more powerful as entry points to tasks that have moved from offline to online but are currently still only available through fixed computers. A transactional device Mobile phones are ideal devices to be used for payments and transactions. There are a wide range of applications that aim to transform the mobile phone into an electronic wallet that can be used as a payment device. An intelligent device Mobile phones are a place where multiple applications can meet and fuse. Mobile devices that integrate a phone, a camera, a location finder (GPS) and a connection to the internet make it possible for a user to request context-dependent information such as finding out where a store selling a product they want to buy is located. As usage increases, mobile phones can become agents of change, tools that facilitate connecting things in the physical world to information about them in the digital world.

Mobile commerce (M-Commerce)

Mobile Commerce, also known as M-Commerce or mCommerce, is the ability to conduct commerce using a mobile device, such as a mobile phone, a Personal digital assistant PDA, a smart phone, or other emerging mobile equipment such as desktop mobile devices. Mobile Commerce has been defined as follows: "Mobile Commerce is any transaction, involving the transfer of ownership or rights to use goods and services, which is initiated and/or completed by using mobile access to computer-mediated networks with the help of an electronic device.

History
Mobile commerce was born in 1997 when the first two mobile-phones enabled Coca Cola vending machines were installed in the Helsinki area in Finland. The machines accepted payment via SMS text messages. The first mobile phone-based banking service was launched in 1997 by Merita Bank of Finland, also using SMS. In 1998, the first sales of digital content as downloads to mobile phones were made possible when the first commercial downloadable ringtones were launched in Finland by Radiolinja. Two major national commercial platforms for mobile commerce were launched in 1999: Smart Money in the Philippines, and NTT DoCoMo's i-Mode Internet service in Japan. Mobile-commerce-related services spread rapidly in early 2000. Norway launched mobile parking payments. Austria offered train ticketing via mobile device. Japan offered mobile purchases of airline tickets. The first conference dedicated to mobile commerce was held in London in July 2001. The first book to cover mobile commerce was Tomi Ahonen's M-profits in 2002. The first university short course to discuss mobile commerce was held at the University of Oxford in 2003. In order to exploit the potential mobile commerce market, mobile phone manufacturers such as Nokia, Ericsson, Motorola, and Qualcomm are working with carriers such as AT&T Wireless and Sprint to develop WAP-enabled Smartphone. Smartphone offer fax, e-mail, and phone capabilities. Since the launch of the iPhone, mobile commerce has moved away from SMS systems and into actual applications. SMS has significant security vulnerabilities and congestion problems, even though it is widely available and accessible. In addition, improvements in the capabilities of modern mobile devices make it prudent to place more of the resource burden on the mobile device
10

Technologies behind M-commerce

There are combinations of hardware and software technologies that are used to provide a working environment for the m-commerce. Hardware Beside the existing hardware that are used to provide information services to the end-user level, ongoing development of mobile devices has significantly influences the organizations to concentrate on m-commerce. There are various kinds of mobile devices that are used to provide m-commerce to the end user level. Laptop The latest updated laptops from different companies such as Toshiba, Acer, Dell, Compaq etc. are compatible with different wireless networks such as Wi-Fi, Bluetooth. Now a day it is much easier for the end-user to log into Internet services while they are on the move. Personal Digital Assistant (PDA) With a lot of functionalities and applications, the latest PDAs from various vendors such as HP, Sony, Asus etc. are creating impact on daily business life. A number of operating systems and browsers have been developed for these PDAs. Mobile Phone In modern time, the technological improvement has pushed the mankind being familiar with a large number of mobile phones that can be almost used as laptops. Motorola, Nokia, Sony Ericsson are playing a major role to provide various remote devices to the end users. Software Technology In next few years mobile Internet will be passing its revolutionary time. New technologies are coming to the market very often and are making mobile Internet a common platform for the users to do various types of applications. Mark-up Language At the beginning stages of mobile Internet, Handheld Device Markup Language (HDML) was used and WML had been evolved based on Extensible Markup Language (XML). Then i-Mode started using cHTML and now for WAP, xHTML is being used. HDML is almost out of market, and WML is the key markup language for development. Mobile phones and other handheld devices are being equipped with latest versions of operating system and micro browsers. Now it is possible to display text, graph and even animation on WAP sites.

11

Server-side Servers play an important role in mobile Internet. In general three types of servers are used in WAP system framework: WAP server, WAP gateway, and Mobile data application server. Java Servlets, Java Server Page (JSP) are used for server side application development.

WAP Sarver

WAP Gateway Wireless Network Infrastructure

WAP Client

Mobile Data Application Server Internet

Domain of wireless Network Operator

Figure: Generic overview of the WAP system framework (source: Siemens)

12

Wireless Network In the 1980s, wireless networks for mobile communications systems were deployed in various countries. These wireless networks were based on proprietary protocols developed by various equipment manufacturers. These systems were known as first generation (1G) network systems. To overcome the problem associated with the 1G systems, digital systems were developed. These systems, which are presently operational, are known as Second Generation (2G) wireless networks. The 2G networks can be broadly categorized as Time Division Multiple Access (TDMA) systems and Code Division Multiple Access (CDMA) systems. The 2.5G wireless networks, which evolve from the 2G systems, supports data rates in the range 64 to 144 Kbps, and these networks will evolve into third generation (3G) network systems. Third generation (3G) wireless network has opened a new doorway for mobile communication. All these 2.5G systems are only a stepping-stone to the 3G system. The data supported by 2.5G systems can be used for graphics and audio applications, but for high-resolution video streaming applications, such as video mail and video conferencing a faster network system is needed; hence here is 3G networks to solve this problem. A very popular wireless network now a day is Bluetooth. Bluetooth technology is a low-cost, low power, short range, radio technology for development of personal area networks (PANs). The InfraRed Data Association (IRDA) was founded in 1993 to develop standards for low-cost solutions for point-to-point InfraRed (IR) communication. The IR communication can be implemented in PDAs, cameras, printers, fax machines and so on.

13

Mobile Commerce Services

Location-based m-commerce services
The mobile phone network operates through a network of local transmitter masts scattered across the country. Every time a mobile phone or other similar device sends or receives a message, it does so via the nearest local transmitter, the geographical location of which is known to the network operator. It is possible to determine the location of any switched-on mobile phone with reasonable accuracy. This location facility presents a commercial opportunity. The service provider can obtain the location of the phone from the network operator and then look up the nearest geographical match in their database, sending the information back to the caller in the form of a message, or even, using a third generation digital phone (3G phone), a map. Mobile devices increasingly include network-based global positioning system (GPS) capabilities, allowing service providers to locate owners of such devices even more accurately and reliably. This means that service providers - working with the network operators - are increasingly able to provide improved location-based services. Businesses are also increasingly utilizing Bluetooth technology to send out messages to Bluetooth-enabled devices. Bluetooth server can detect devices and send out messages in a 10 to 100 meter range. There are many different contractual arrangements supporting such services. You would typically need to discuss your ideas with the network operator's business development teams prior to jointly developing our concept. However, no arrangement with network operators is needed for Bluetooth marketing.

14

Ringtones and other downloadable media

Ringtones may seem trivial, but the market in some countries for downloadable ringtones for mobile phones is very large and is expected to continue growing worldwide. Ringtones are just one example of downloadable media. Early mobile devices were limited in their ability to handle such media, but now the opportunities go well beyond the latest ringtone. For example, it's possible for mobile devices to download:
y y y y y

games music tracks pictures videos other third-party software applications

Services such as these are paid for, but the price is generally so low that conventional payment methods would be clumsy and overly complicated. Instead they rely on micro-payments.

Information based m-commerce services

Increasingly, mobile devices such as personal digital assistants (PDAs) and other hand-held devices can be used to connect to central systems to query and update data remotely. This is helped by the latest mobile devices having better ways of inputting data than the alpha-numeric keyboard traditionally found on mobile phones, e.g. via touch screens, scroll wheels or small fold-out keyboards. Examples of data exchange include:
y y y

a salesperson on the road needing to know the current stock and availability of a product that a customer needs a job sheet for maintenance engineers to use on the road, displayed on their PDA or mobile phone and updated regularly so they know where to go for the next call a message from an internet service provider (ISP) to an IT manager saying that the ISP systems have detected a failure in the link from the business to its systems

All of these scenarios depend on some key features of mobile commerce (m-commerce) messaging such as:
y y

the ability to receive and transmit text-based messages using methods such as short message service (SMS) security features that ensure that such messages cannot be intercepted and that the origin can be verified

15

Micro-payments
The worldwide mobile commerce (m-commerce) marketplace is growing rapidly, enabled by an increasing use of micro-payments. Micro-payments are payments for purchases costing from about 5 pence to 5, made using a mobile device such as a mobile phone. Phone users register in advance for this service and from that point on they can pay these small bills directly from their phones. The network operators manage point-of-sale accounting for their client businesses. Customers' purchases are added to their monthly phone bills, or deducted directly from their 'pay as you go' accounts. The network operator handles all the direct sale formalities including:
y y y

customer authentication payment processing response processing

In addition, the point-of-sale client handles:

y y

payment authorization refund management

While network operators are still the main payment processor, third-party systems are still being made available that can also process mobile payment. Third-party systems usually charge lower fees than network operators - shop around for the best deal available. The combination of these services makes it feasible for businesses to handle an extremely large volume of low value sales without needing an extensive chain of retail locations. In addition to purchases like ringtones, music tracks and games, the growth in micro-payments has come from the purchase of items like car parking and cinema tickets. Micro-payments can replace cash to some extent and because of this there are possibilities for fraudulent and criminal use. As a result, micro-payments are subject to European regulations. For more information, see the page in this guide on m-commerce regulations.

16

Mobile payment
Mobile payment is a new and rapidly-adopting alternative payment method especially in Asia and Europe. Instead of paying with cash, cheque or credit cards, a consumer can use a mobile phone to pay for a wide range of services and digital or hard goods such as:
y y y

Music, videos, ringtones, online game subscription or items, wallpapers and other digital goods. Transportation fare (bus, subway or train), parking meters and other services Books, magazines, tickets and other hard goods.

There are four primary models for mobile payments:

y y y y

Premium SMS based transactional payments Direct Mobile Billing Mobile web payments (WAP) Contactless NFC (Near Field Communication)

Premium SMS/USSD based transactional payments The consumer sends a payment request via an SMS text message or an USSD to a short code and a premium charge is applied to their phone bill or their online wallet. The merchant involved is informed of the payment success and can then release the paid for goods. Since a trusted delivery address has typically not been given these goods are most frequently digital with the merchant replying using a Multimedia Messaging Service to deliver the purchased music, ringtones, wallpapers etc. Transactional payments have been popular in Asia and Europe but are now being overtaken by other mobile payment methods such as mobile web payments (WAP), mobile payment client and Direct Mobile Billing for a number of reasons: 1. Poor reliability - transactional payments can easily fail as messages get lost. 2. Slow speed - sending messages can be slow and it can take hours for a merchant to get receipt of payment. Consumers do not want to be kept waiting more than a few seconds. 3. Security - The SMS encryption ends in the radio interface, and then the message is a plaintext. 4. High cost - There are many high costs associated with this method of payment. The cost of setting up short codes and paying for the delivery of media via a Multimedia Messaging Service and the resulting customer support costs to account for the number of messages that get lost or are delayed. 5. Low payout rates - operators also see high costs in running and supporting transactional payments which results in payout rates to the merchant being as low as 30%. Usually around 50% 6. Low follow-on sales - once the payment message has been sent and the goods received there is little else the consumer can do. It is difficult for them to remember where something was purchased or how to buy it again. This also makes it difficult to tell a friend and friend.
17

Direct Mobile Billing The consumer uses the mobile billing option during checkout at an e-commerce sitesuch as an online gaming siteto make a payment. After two-factor authentication involving a PIN and One-Time-Password, the consumer's mobile account is charged for the purchase. It is a true alternative payment method that does not require the use of credit/debit cards or pre-registration at an online payment solution such as PayPal, thus bypassing banks and credit card companies altogether. This type of mobile payment method, which is extremely prevalent and popular in Asia, provides the following benefits: 1. 2. 3. 4. 5. Security - Two-factor authentication and a risk management engine prevents fraud. Convenience - No pre-registration and no new mobile software is required. Easy - It's just another option during the checkout process. Fast - Most transactions are completed in less than 10 seconds. Proven - 70% of all digital content purchased online in some parts of Asia uses the Direct Mobile Billing method.

Mobile web payments (WAP)

The consumer uses web pages displayed or additional applications downloaded and installed on the mobile phone to make a payment. It uses WAP (Wireless Application Protocol) as underlying technology and thus inherits all the advantages and disadvantages of WAP. However, using a familiar web payment model gives a number of proven benefits: 1. Follow-on sales where the mobile web payment can lead back to a store or to other goods the consumer may like. These pages have a URL and can be bookmarked making it easy to re-visit or share with friends. 2. High customer satisfaction from quick and predictable payments 3. Ease of use from a familiar set of online payment pages. Mobile web payment methods are now being mandated by a number of mobile network operators. Direct operator billing A direct connection to the operator billing platform requires integration with the operator, but provides a number of benefits: 1. Simplicity - the operators already have a billing relationship with the consumers; the payment will be added to their bill. 2. Instantaneous payments giving the highest customer satisfaction 3. Accurate responses showing success and reasons for failure (no money for example) 4. Security to protect payment details and consumer identity 5. Best conversion rates from a single click-to-buy and no need to enter any further payment details. 6. Reduced customer support costs for merchants since customers will complain to the operator.
18

Credit Card A simple mobile web payment system can also include a credit card payment flow allowing a consumer to enter their card details to make purchases. This process is familiar but any entry of details on a mobile phone is known to reduce the success rate of payments. In addition, if the payment vendor can automatically and securely identify customers then card details can be recalled for future purchases turning credit card payments into simple single clickto-buy giving higher conversion rates for additional purchases. Online Wallets Online companies like PayPal, Amazon Payments and Google Checkout also have mobile options. Here is the process: First Payment
y y y

User registers, inputs his phone number, the provider sends him a SMS with a PIN User enters the received PIN, authenticating the number. User inputs his credit card info (or another payment method) if necessary. (Not necessary if account already existing) and validates payments The user re enters his PIN to authentify.

Subsequent payments: y

Requesting a PIN is known to lower the success rate (conversion) for payments. These systems can be integrated with directly or can be combined with operator and credit card payments through a unified mobile web payment platform.

Contactless Near Field Communication

Near Field Communication (NFC) is used mostly in paying for purchases made in physical stores or transportation services. A consumer using a special mobile phone equipped with a smartcard waves his/her phone near a reader module. Most transactions do not require authentication, but some require authentication using PIN, before transaction is completed. The payment could be deducted from pre-paid account or charged to mobile or bank account directly. Mobile payment method via NFC faces significant challenges for wide and fast adoption, while some phone manufacturers and banks are enthusiastic, due to lack of supporting infrastructure, complex ecosystem of stakeholders, and standards.

19

Credit card
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services. The issuer of the card creates a revolving account and grants a line of credit to the consumer or the user from which the user can borrow money for payment to a merchant or as a cash advance to the user. A credit card is different from a charge card: a charge card requires the balance to be paid in full each month. In contrast, credit cards allow the consumers a continuing balance of debt, subject to interest being charged. A credit card also differs from a cash card, which can be used like currency by the owner of the card. Most credit cards are issued by banks or credit unions, and are the shape and size specified by the ISO/IEC 7810 standard as ID-1. This is defined as 85.60 53.98 mm (3.370 2.125 in) (33/8 21/8 in) in size.

How credit cards work

Credit cards are issued by a credit card issuer, such as a bank or credit union, after an account has been approved by the credit provider, after which cardholders can use it to make purchases at merchants accepting that card. Merchants often advertise which cards they accept by displaying acceptance marks generally derived from logos or may communicate this orally, as in "Credit cards are fine" (implicitly meaning "major brands"), "We take (brands X, Y, and Z)", or "We don't take credit cards". When a purchase is made, the credit card user agrees to pay the card issuer. The cardholder indicates consent to pay by signing a receipt with a record of the card details and indicating the amount to be paid or by entering a personal identification number (PIN). Also, many merchants now accept verbal authorizations via telephone and electronic authorization using the Internet, known as a card not present transaction (CNP). For card not present transactions where the card is not shown (e.g., e-commerce, mail order, and telephone sales), merchants additionally verify that the customer is in physical possession of the card and is the authorized user by asking for additional information such as the security code printed on the back of the card, date of expiry, and billing address.

20

Advertising, solicitation, application and approval

Credit card advertising regulations include the Schumer box disclosure requirements. A large fraction of junk mail consists of credit card offers created from lists provided by the major credit reporting agencies. y Interest charges

Credit card issuers usually waive interest charges if the balance is paid in full each month, but typically will charge full interest on the entire outstanding balance from the date of each purchase if the total balance is not paid. For example, if a user had a $1,000 transaction and repaid it in full within this grace period, there would be no interest charged. If, however, even $1.00 of the total amount remained unpaid, interest would be charged on the $1,000 from the date of purchase until the payment is received. The precise manner in which interest is charged is usually detailed in a cardholder agreement which may be summarized on the back of the monthly statement. The general calculation formula most financial institutions use to determine the amount of interest to be charged is APR/100 x ADB/365 x number of days revolved. Take the Annual percentage rate (APR) and divide by 100 then multiply to the amount of the average daily balance (ADB) divided by 365 and then take this total and multiply by the total number of days the amount revolved before payment was made on the account. y Benefits to customers

The main benefit to each customer is convenience. Compared to debit cards and checks, a credit card allows small short-term loans to be quickly made to a customer who need not calculate a balance remaining before every transaction, provided the total charges do not exceed the maximum credit line for the card. Credit cards also provide more fraud protection than debit cards. In the UK for example, the bank is jointly liable with the merchant for purchases of defective products over 100. Many credit cards offer rewards and benefits packages, such as offering enhanced product warranties at no cost, free loss/damage coverage on new purchases, and points which may be redeemed for cash, products, or airline tickets. Additionally, carrying a credit card may be a convenience to some customers as it eliminates the need to carry any cash for most purposes. y Detriments to customers

 High interest and bankruptcy

Low introductory credit card rates are limited to a fixed term, usually between 6 and 12 months, after which a higher rate is charged. As all credit cards charge fees and interest, some customers become so indebted to their credit card provider that they are driven to bankruptcy. Some credit cards often levy a rate of 20 to 30 percent after a payment is missed; in other cases a fixed charge is levied without change to the interest rate. In some cases universal default may apply: the high default rate is applied to a card in good standing by missing a payment on an unrelated account from the same provider.

21

This can lead to a snowball effect in which the consumer is drowned by unexpectedly high interest rates. Further, most card holder agreements enable the issuer to arbitrarily raise the interest rate for any reason they see fit.
 Inflated pricing for all consumers

Merchants that accept credit cards must pay interchange fees and discount fees on all credit-card transactions. In some cases merchants are barred by their credit agreements from passing these fees directly to credit card customers, or from setting a minimum transaction amount. The result is that merchants may charge all customers (including those who do not use credit cards) higher prices to cover the fees on credit card transactions. y Grace period

A credit card's grace period is the time the customer has to pay the balance before interest is assessed on the outstanding balance. Grace periods may vary, but usually range from 20 to 50 days depending on the type of credit card and the issuing bank. Some policies allow for reinstatement after certain conditions are met. y Benefits to merchants

For merchants, a credit card transaction is often more secure than other forms of payment, such as cheques, because the issuing bank commits to pay the merchant the moment the transaction is authorized, regardless of whether the consumer defaults on the credit card payment. In most cases, cards are even more secure than cash, because they discourage theft by the merchant's employees and reduce the amount of cash on the premises. Credit cards can also aid in securing a sale, especially if the customer does not have enough cash on his or her person or checking account. Extra turnover is generated by the fact that the customer can purchase goods and/or services immediately and is less inhibited by the amount of cash in his or her pocket and the immediate state of his or her bank balance. Much of merchants' marketing is based on this immediacy. For each purchase, the bank charges the merchant a commission (discount fee) for this service and there may be a certain delay before the agreed payment is received by the merchant. The commission is often a percentage of the transaction amount, plus a fixed fee (interchange rate). y Costs to merchants

Merchants are charged several fees for the privilege of accepting credit cards. The merchant is usually charged a commission of around 1 to 3 per-cent of the value of each transaction paid for by credit card. The merchant may also pay a variable charge, called an interchange rate, for each transaction. In some instances of very low-value transactions, use of credit cards will significantly reduce the profit margin or cause the merchant to lose money on the transaction.

22

Merchants must accept these transactions as part of their costs to retain the right to accept credit card transactions. Merchants with very low average transaction prices or very high average transaction prices are more averse to accepting credit cards. y Parties involved  Cardholder: The holder of the card used to make a purchase; the consumer.  Card-issuing bank: The financial institution or other organization that issued the credit card to the cardholder. This bank bills the consumer for repayment and bears the risk that the card is used fraudulently. Cards issued by banks to cardholders in a different country are known as offshore credit cards.  Merchant: The individual or business accepting credit card payments for products or services sold to the cardholder.  Acquiring bank: The financial institution accepting payment for the products or services on behalf of the merchant.  Independent sales organization: Resellers (to merchants) of the services of the acquiring bank.  Merchant account: This could refer to the acquiring bank or the independent sales organization, but in general is the organization that the merchant deals with.  Credit Card association: An association of card-issuing banks such as Visa, MasterCard, Discover, American Express, etc. that set transaction terms for merchants, card-issuing banks, and acquiring banks.  Transaction network: The system that implements the mechanics of the electronic transactions. May be operated by an independent company, and one company may operate multiple networks.  Affinity partner: Some institutions lend their names to an issuer to attract customers that have a strong relationship with that institution, and get paid a fee or a percentage of the balance for each card issued using their name. Examples of typical affinity partners are sports teams, universities, charities, professional organizations, and major retailers. The flow of information and money between these parties always through the card associations is known as the interchange, and it consists of a few steps.
 Transaction steps

Authorization: The cardholder pays for the purchase and the merchant submits the transaction to the acquirer (acquiring bank). The acquirer verifies the credit card number, the transaction type and the amount with the issuer (Card-issuing bank) and reserves that amount of the cardholder's credit limit for the merchant. An authorization will generate an approval code, which the merchant stores with the transaction. atching: Authorized transactions are stored in "batches", which are sent to the acquirer. Batches are typically submitted once per day at the end of the business day.

23

If a transaction is not submitted in the batch, the authorization will stay valid for a period determined by the issuer, after which the held amount will be returned back to the cardholder's available. Some transactions may be submitted in the batch without prior authorizations; these are either transactions falling under the merchant's floor limit or ones where the authorization was unsuccessful but the merchant still attempts to force the transaction through Clearing and Settlement: The acquirer sends the batch transactions through the credit card association, which debits the issuers for payment and credits the acquirer. Essentially, the issuer pays the acquirer for the transaction. Funding: Once the acquirer has been paid, the acquirer pays the merchant. The merchant receives the amount totaling the funds in the batch minus either the "discount rate," "mid-qualified rate", or "non-qualified rate" which are tiers of fees the merchant pays the acquirer for processing the transactions. Chargeback: A chargeback is an event in which money in a merchant account is held due to a dispute relating to the transaction. Chargeback is typically initiated by the cardholders. In the event of a chargeback, the issuer returns the transaction to the acquirer for resolution. The acquirer then forwards the chargeback to the merchant, who must either accept the chargeback or contest it. A merchant is responsible for the chargeback only if she has violated the card acceptance procedures as per the merchant agreement with card acquirers. y Secured credit cards

A secured credit card is a type of credit card secured by a deposit account owned by the cardholder. Typically, the cardholder must deposit between 100% and 200% of the total amount of credit desired. Thus if the cardholder puts down $1000, they will be given credit in the range of $500$1000. In some cases, credit card issuers will offer incentives even on their secured card portfolios. In these cases, the deposit required may be significantly less than the required credit limit, and can be as low as 10% of the desired credit limit. This deposit is held in a special savings account. Credit card issuers offer this because they have noticed that delinquencies were notably reduced when the customer perceives something to lose if the balance is not repaid. Sometimes a credit card will be secured by the equity in the borrower's home.
y Prepaid "credit" cards

A prepaid credit card is not a true credit card, since no credit is offered by the card issuer: the card-holder spends money which has been "stored" via a prior deposit by the card-holder or someone else, such as a parent or employer. However, it carries a credit-card brand (such as Visa, MasterCard, American Express, Discover, or JCB) and can be used in similar ways just as though it were a regular credit card. Unlike debit cards, prepaid credit cards do not require a PIN. After purchasing the card, the cardholder loads the account with any amount of money, up to the predetermined card limit and then uses the card to make purchases the same way as a typical credit card.

24

Prepaid cards can be issued to minors (above 13) since there is no credit line involved. Prepaid credit cards are sometimes marketed to teenagers for shopping online without having their parents complete the transaction.

Mobile ticketing
Mobile ticketing is the process whereby customers can order, pay for, obtain and validate tickets from any location and at any time using mobile phones or other mobile handsets. Mobile tickets reduce the production and distribution costs connected with traditional paper-based ticketing channels and increase customer convenience by providing new and simple ways to purchase tickets. Mobile ticketing is a prime example of horizontal telecommunication convergence. Mobile ticketing is a method by which law enforcement agencies use in-car computers to create traffic citations in the field, and then print a hard copy for the offender. The advantages of mobile ticketing include reduced paperwork time, reduced chance of tickets being made void by human error and immediate accessibility of citation information by other departments.

Applications for Mobile Tickets

y y y y y y

Mass transit. Airline check-in. Cinema ticketing. Concert/Event ticketing. Trade shows Consumer voucher distribution

Advantage of Mobile Tickets

y y y y

Reduced costs of ticket printing/mailing. Improved consumer convenience. Reduced infrastructure costs. (Scanners retail at 30 x that of 1d scanners) Increased revenue by increasing accessibility to tickets.

Using Mobile Tickets

      Mobile Purchase SMS Purchase Online Purchase Mobile Ticket Delivery Mobile Ticket Scanning Mobile Ticket Redemption

25

Mobile vouchers, coupons and loyalty cards

Mobile ticketing technology can also be used for the distribution of vouchers, coupons, and loyalty cards. These items are represented by a virtual token that is sent to the mobile phone. A customer presenting a mobile phone with one of these tokens at the point of sale receives the same benefits as if they had the traditional token. Stores may send coupons to customers using location-based services to determine when the customer is nearby.

Content purchase and delivery

Currently, mobile content purchase and delivery mainly consists of the sale of ring-tones, wallpapers, and games for mobile phones. The convergence of mobile phones, portable audio players, and video players into a single device is increasing the purchase and delivery of fulllength music tracks and video. The download speeds available with 4G networks make it possible to buy a movie on a mobile device in a couple of seconds.

Mobile banking
Mobile banking (also known as M-Banking, mbanking, SMS Banking etc.) is a term used for performing balance checks, account transactions, payments, credit applications etc. via a mobile device such as a mobile phone or Personal Digital Assistant (PDA). The earliest mobile banking services were offered via SMS. With the introduction of the first primitive smart phones with WAP support enabling the use of the mobile web in 1999, the first European banks started to offer mobile banking on this platform to their customers. Mobile banking has until recently (2010) most often been performed via SMS or the Mobile Web. Apple's initial success with iPhone and the rapid growth of phones based on Google's Android (operating system) has led to increasing use of special client programs, called apps, downloaded to the mobile device.

Mobile Browsing
A mobile browser, also called a micro browser, minibrowser or wireless internet browser (WIB), is a web browser designed for use on a mobile device such as a mobile phone or PDA. Mobile browsers are optimized so as to display Web content most effectively for small screens on portable devices. Mobile browser software must be small and efficient to accommodate the low memory capacity and low-bandwidth of wireless handheld devices.

26

Mobile marketing
Mobile marketing can refer to one of two categories of internet. First, and relatively new, is meant to describe marketing on or with a mobile device, such as a landline phone. Second, and a more traditional definition, is meant to describe marketing in a moving fashion - for example technology road shows or moving billboards. Although there are various definitions for the concept of mobile marketing, no commonly accepted definition exists. Mobile marketing is broadly defined as the use of the mobile medium as a means of marketing communication or distribution of any kind of promotional or advertising messages to customer through wireless networks. More specific definition is the following: using interactive wireless media to provide customers with time and location sensitive, personalized information that promotes goods, services and ideas, thereby generating value for all stakeholders". Mobile Marketing is a set of practices that enables organizations to communicate and engage with their audience in an interactive and relevant manner through any mobile device or network. y Mobile marketing via SMS

Marketing on a mobile phone has become increasingly popular ever since the rise of SMS (Short Message Service) in the early 2000s in Europe and some parts of Asia when businesses started to collect mobile phone numbers and send off wanted (or unwanted) content. Over the past few years SMS has become a legitimate advertising channel in some parts of the world. This is because unlike email over the public internet, the carriers who police their own networks have set guidelines and best practices for the mobile media industry. y Mobile marketing via MMS

MMS mobile marketing can contain a timed slideshow of images, text, audio and video. This mobile content is delivered via MMS (Multimedia Message Service). Nearly all new phones produced with a color screen are capable of sending and receiving standard MMS message. Brands are able to both send (mobile terminated) and receive (mobile originated) rich content through MMS A2P (application-to-person) mobile networks to mobile subscribers. In some networks, brands are also able to sponsor messages that are sent P2P (person-to-person). y In-game mobile marketing

There are essentially four major trends in mobile gaming right now: interactive real-time 3D games, massive multi-player games and social networking games. This means a trend towards more complex and more sophisticated, richer game play. On the other side, there are the socalled casual games, i.e. games that are very simple and very easy to play. Most mobile games today are such casual games and this will probably stay so for quite a while to come.

27

Mobile web marketing

Advertising on web pages specifically meant for access by mobile devices is also an option. The Mobile Marketing Association provides a set of guidelines and standards that give the recommended format of ads, presentation, and metrics used in reporting. Google, Yahoo, and other major mobile content providers have been selling advertising placement on their properties for years already as of the time of this writing. Advertising networks focused on mobile properties and advertisers are also available.

Google and Yahoo! as displayed on mobile phones y Mobile marketing via Bluetooth

The rise of Bluetooth started around 2003 and a few companies in Europe have started establishing successful businesses. Most of these businesses offer "hotspot" systems which consist of some kind of content-management system with a Bluetooth distribution function. This technology has the advantages that it is permission-based, has higher transfer speeds and is also a radio-based technology and can therefore not be billed (i.e. is free of charge). y Mobile marketing via Infrared

Infrared is the oldest and most limited form of mobile Marketing. Some European companies have experimented with "shopping window marketing" via free Infrared waves in the late 90s. However, Infrared has a very limited range (~ approx. 10 cm - 1meter) and could never really establish itself as a leading Mobile Marketing technology. y Mobile marketing via Proximity Systems

Mobile marketing via Proximity Systems, also referred to as Proximity Marketing, relies on GSM 03.41 which defines the Short Message Service - Cell Broadcast. SMS-CB allows messages (advertising, public information, etc.) to be broadcast to all mobile users in a specified geographical area.

28

M-commerce benefits
There are two main ways in which a small business could benefit from mobile commerce (mcommerce). These are detailed below. Selling a product or service
y

If your products or services are information-based and relatively low cost - less than 5 then you could consider delivery directly to mobile devices, with payment via the micropayment route. See the page in this guide on micro-payments. If your products or services depend strongly on the physical presence of the customer and a significant amount of that volume could come from 'passing trade', then you might consider the opportunities offered by location-based m-commerce.

Improving productivity There are a much wider range of possibilities for improving productivity, for example:
y

if you have workers who operate away from your offices much of the time, but who need up-to-date information in order to deliver an effective service, then an SMS-based system might be extremely useful if you have mobile workers who are gathering information that is time-critical, eg reports, photographs, etc, then the ability to capture that information and transmit it without needing any bulky equipment could be very significant

In considering the potential benefits of m-commerce you should also consider some of the disadvantages:
y

mobile solutions will probably never be as fast as internet-based systems, so you should consider whether this will be a problem for your business the main advantage of a mobile device - its small size - is also a major disadvantage if you need to view large complex diagrams with lots of details laptops have much greater storage capacity than mobile phones and personal digital assistants (PDAs), and - with a good wireless connection - are just as portable Security should also be taken into consideration. Mobile devices can be easily lost or stolen. If you are storing sensitive corporate data, it should be encrypted. Passwords should be changed immediately if the device is lost or stolen.

29

M-commerce industry groups

Given the explosive growth of mobile commerce (m-commerce) in some countries, such as Japan, it is not surprising that several industry groups have been formed. They aim to guide the development of m-commerce and roll it out further in areas such as Europe where it has not yet had such a big impact. If you are interested in the potential of m-commerce for your business, you should be aware of these industry groups and in particular the standards and packages that they will make available. Below is a brief summary of some of these groups:
Mobey

The Mobey (pronounced Mo-Bay) Forum is a group of the world's leading online financial institutions and companies in mobile internet technologies such as Wireless Application Protocol (WAP). It includes ABN AMRO Bank, HSBC Holdings, Visa International, Royal Bank of Scotland, Ericsson, HP, Hitachi, Motorola and Nokia. You can find out about the Mobey Forum on the Mobey Forum website - Opens in a new window.
3-D Secure

3-D Secure is Visa International's global specification that ensures the security of internet payments made over mobile phones. A compliance program is in place for vendors wishing to develop products and supporting services for 3-D Secure. Find out about the Visa authenticated payment program on the Visa Partner Network website - Opens in a new window.

30

M-commerce in Bangladesh
The prospect of m-commerce is vast, but the reality of implementing m-commerce would not be easy because of lacking of coordination between different network service providers in Bangladesh. But as the technological improvement is rapid, Bangladesh need to cope with it to achieve the view of Digital Bangladesh. To provide m-commerce service to the consumers, mobile phones can be the prime hardware device for the end users. Laptops are still out of reach for major portion of IT users in Bangladesh. But a large number of people are connected to mobile phone network, which is the key to bring success in m-commerce. Mobile Phone Operator There are a number of mobile phone operators who provides voice-calls, SMS and Internet services to the consumers. Presently, there are about 30 million telephone users in the country, of which, a little over a million are fixed-phone users and the rest are mobile phone subscribers. The recent growth of subscription has been rapid which is encourages in the sense of mcommerce. Grameen Phone (GP) GP is now the leading telecommunications service provider in the country with more than 20 million subscribers as of June 2008. Since its inception in March 1997, GP has built the largest cellular network in the country with over 10,000 base stations in more than 5700 locations. Presently, nearly 98 percent of the country's population is within the coverage area of the GP network. In addition, the Village Phone Program, also started in 1997, provides a good incomeearning opportunity to more than 210,000 mostly women Village Phone operators living in rural areas. The entire GP network is also EDGE/GPRS enabled, allowing access to high-speed Internet and data services from anywhere within the coverage area. There are currently nearly 3 million EDGE/GPRS users in the GP network. AKTEL AKTEL has launched its operation at the same year as GP. They have around 4 millions subscribers across the country. AKTEL provides voice-call, SMS and Internet services to its consumers. AKTEL supports 2G voice, CAMEL phase 2 and GPRS/EDGE service with high speed internet connectivity. Recently, Japans leading telecom company NTT DoCoMo, who is the creator of i-mode (wireless network protocol), has joined AKTEL. Now it will be interesting to see what they bring to AKTEL network.

31

Organizations Potential At present, in Bangladesh Banking sector is on rise, providing a platform to economy for a smooth trend. Considering the mobile subscribers in different corners, banking sector can provide their services to the end user level, which in return will help the economy of the country. Banking sector is already giving services via SMS but it is still not the same as full service via Internet. Other businesses should take the opportunity of using m-commerce as financial sectors has improved dramatically providing debit/credit cards to a large number of consumers. It is much easier now a day to do shopping online as payment method has developed. Academic institutions can take the advantage of m-commerce to provide results, library booking facilities, and even payment facilities to their students. Government can provide its services such as tax collection, health services and local government activities to the citizen via m-commerce. Organisation can create their WAP sites besides Web site to provide online services as more users can communicate via WAP site rather than Web site. M-commerce can generate a vast potential to the organisation to generate good revenue.

End User Technology The major setback for m-commerce in Bangladesh is the ability of consumers to afford the service. For efficient m-commerce services the client phone has to be well equipped with WAP browser and display screen. The phones that are well equipped for m-commerce are not still reachable for a major portion of consumers. But as technology improves rapidly, it would not take long to afford a better equipped mobile phone as price gets cheaper day by day. Cost For End User Internet on mobile phone does not come free. The cost is still high in general. GP and AKTEL have different tariffs for Internet. Consumer can use Internet on a daily or monthly basis. Recently, GP started to provide Internet services on mobile phones based on uses with relatively cheaper price. Because of increasing competition between major mobile phone operators, the price sets to fall down near future. Wireless Application Development Environment This is a poor area in the context of m-commerce in Bangladesh. Apart from few universities, most of the syllabuses for graduation do not cover mobile application development subject. We can take advantages of WAP technology to launch the initiative for m-commerce. Along with WML, J2ME and Java Sevlets can be coordinate to create appropriate WAP sites for different organizations. Our universities need to take a major step to create the necessary human resource for the development of mobile application. Quality developers can create WAP sites in easy-touse manner so that consumers will be encouraged to involve with m-commerce.

32

Current Providing M-Commerce services in Bangladesh

Bangladesh Bank (BB) introduced e-tendering system
Bangladesh Bank (BB) has entered into the e-tendering system, bringing an end to the decades' old traditional tendering process on (May 12, 2010). This e-tendering system will make tender procedure more transparent, faster and hassle-free. BB Governor Dr Atiur Rahman launched the electronic tendering system at the BB's headquarters here with the hope that other public organizations would follow this example. He told that, the e-tendering system a step forward in achieving the Digital Bangladesh vision. The e-tendering system offers the bidders to choose their jobs, view tender schedule, submit their bidding and documents and get the feedback online. The bidders, however, require registering online for getting the electronic services. The registered bidders will also get information in their inbox about the tenders in their areas of interest. At present, the bidders need to pay manually, but with the introduction of electronic fund transfer, they deposit the necessary payment for tender online, BB officials said.

33

Digital Purjee Background and History:

17th November, 2009 is a momentous day for the implementation of the vision of digital Bangladesh concerning the dream of our honorable Prime Minister. For the first time in the history of Peoples Republic Bangladesh, farmers are notified no later than the purjee is issued on their name, through SMS based mobile service. The misery the farmers had to endure regarding purjee is a long, known-to-all history. To diminish the sufferings of the farmers Access to Information (A2I) Programme at the Prime Minister's Office along with and funded by Bangladesh Sugar and Food Industries Corporation (BSFIC) under the Ministry of Industries and UNDP, started the pilot project of e-purjee at the Faridpur and Moarakganj Sugar Mills. Long before the time of independence, the purjee system was introduced and since then the authority in charge of the sugar mills have been issuing a hand-written purjee to facilitate buying the sugarcanes from the farmers. The purjee contains the basic information of the sugarcane growers e.g. name, address, passbook no, name of the unit and center, date of the delivery and the amount of the sugarcanes. This sullied system caused many troubles to the sugarcane growers. For instance, the purjee does not reach to the farmers in time, none of the important information can be sent to the farmers and so forth. Thus as the farmers are affected, the sugar mill corporation also faces problems as the expected sugarcanes do not reach to them in time as well. The relationship of the sugar mill corporation with the farmers is complementary, as sugarcane is such a worthy crop that the sugar mill corporation is bound to purchase them in the decided price of the Govt. Moreover, if the farmer is a listed one, he is assured to have the loan without any interest and also he is given fertilizers, irrigating elements, pesticides, productive seedlings etc. therefore, any problem of the sugarcane growers is eventually a problem of the nation's sugar industries. With the vision of a developed and prosperous nation, the Govt. has been taking various initiatives in the field of agriculture, education, healthcare, administration and so on. In continuation to this, the Prime Minister's Office assigned different Secretaries to mark a 'quick win' e-service/ project each which could be implicated within a year. The Chief Minister of the Ministry of Industries selected the SMS based digital purjee service as a quick win. Since then, after various meeting and assessment gazing at the possibilities of success, the pilot project of epurjee service was implicated in the Faridpur and Mobarkganj sugar mills. After the enormous success of the pilot project, according to the instruction of the honorable Prime Minister, in the crushing season i.e. October of this year, the e-purjee service has been implicated in the rest of the thirteen sugar mills (Panchagar, Thakurgan, Shetabganj, Shampur, Rangpur, Jaypurhat, Jillbangla, Rajshahi, Nator, North Bengal, Kushtia, Keru & Co. and Pabna sugar mill).

34

Important Milestones of the e-purjee project:

August, 2008 - Idea sharing and Project Data Sheet (PDS) preparation October, 2008 - MOU signing for Piloting at two sugar mills July, 2009 - Field level workshops and exchange views with stakeholder June to August, 2009 - Growers data collection July to Sep, 2009 - Software requirement study, analysis, design, development, testing and installation Sep, 2009 - Field level trainers team formation for growers training (Service recipient) Sep to Oct, 2009 - Training for the Trainers Teams (TOT) Oct, 2009 - Conducting growers meeting at each center by the Teams Sep to Oct, 2009 - Training to the system user and data entry operators at Sugar Mill end. Sep to Oct, 2009 - Growers Data entry November to January, 2010 - Starting project operation and running till end of the crashing season March, 2010 - Impact analysis June, 2010 - Govt. (BSFIC) ownership and up scaling decision July to Present Date - Implementation of the same system at all Sugar Mills in Bangladesh by BSFIC

35

E-ticketing Service for Bangladesh Railway Unveiled

Bangladesh Railway is going to launch electronic ticketing service to ease the sufferings of passengers. Prime Minister Sheikh Hasina on April 2, 2010 unveiled the service at the Railway stall in the Digital Innovation Fair at Bangabandhu Sheikh Mujibur Rahman Novo Theatre in the capital. Using Grameenphone's "Mobitaka" service, rail passengers will be able to book or purchase electronic railway tickets 10 days prior to their travel using mobile phones. To buy an e-ticket a customer will have to press *133# in his mobile phone and enter a menu. The menu will generate windows where the customer has to furnish necessary travel information following instruction. After the input, the customer will have the option to either book tickets or purchase them instantly, subject to availability of tickets. An SMS notification with ticket numbers will be sent to the customer which will be required to collect paper tickets from the train station at least an hour prior to departure. The mobile phone service provider will charge Tk. 20 for availing each seat. Initially the e-ticketing service will be offered for the intercity trains leaving from Dhaka Kamalapur, Dhaka Cantonment and Chittagong train stations, and gradually all the intercity trains will be incorporated under this service. Bangladesh Railway (BR) would keep 10 percent of its tickets reserved for e-ticketing while the mobile company would pay for the seats in advance, said BR officials, adding that BR is currently negotiating with other mobile phone companies to expand the service. On average, about 53.8 million passengers avail railway service in a year. Over 40,000 people travel to and from Dhaka through Kamalapur Railway Station each day. The service will also help curb the malpractice of touting train tickets," he added.

36

Mobile money transfer service extended to 606 post offices

Bangladesh Post Office (BPO) Sunday (June 27, 2010) extended its Mobile Money Transfer Service to 606 post offices throughout the country to ensure easy and fast money transfer, official sources said. With a view to providing money order service to mid-income and poor people, BPO have introduced this service with half the traditional money order service cost. The customers will get this service through mobile and web. BPO started Mobile Money Order Service in 104 post offices including those in district towns, some important upazilas and sub-post offices on May 5 last, he said. BPO have planned to cover 1,400 post offices within December this year and 8,500 post offices across the country by June 2011." For the mobile-based system, the post offices will charge Tk. 20 for the first Tk. 1,000 and Tk. 10 for each of the next Tk. 1,000. Besides, Tk. 7.0 will be charged as electronic cost. Anyone can send money order worth Tk. 10,000 in the maximum at a time. To avail this service, an interested sender will have to fill up a form mentioning his or her name, address and mobile phone number and also the name and address of the recipient. The money order issuer post office will send the data to the central server, which will in turn send an automatically-generated personal identification number (PIN) through a short message service (SMS) to the mobile phone of the sender. The sender then will tell or send the PIN number to the recipient through SMS. However, a secret code for the recipient is a must for withdrawing money from the post office nearby. The BPO has signed an agreement with Banglalink for the total connectivity of the service.

37

Findings of the Study

After analyzing the whole report we have identified the followings:     The Prospects of M- Commerce is growing day by day all over the world. Modern E- Commerce is accelerating day by day by the grace of the M- Commerce. M- Commerce technology is well established in the first and second world countries. M- Commerce technology is introducing in Bangladesh.

38

Recommendation
After the discussion in the above area we can recommend the following thingsAs mobile commerce is taking place through mobile phone, so the technology regarding the M- Commerce should have to be developed. The cost of M- Commerce should be minimized. In Bangladesh the Govt. should take more initiatives to accelerate M-Commerce services. Federation of Bangladesh Chamber of Commerce Institute (FBCCI) should encourage the Govt. to take positive initiative regarding M- Commerce as well as it also.

39

Conclusion
Mobile Commerce is a growing technology. Now a days a significant portion of Modern business is taking place through mobile phone. Actually it is accelerating the modern business. Like other country in the world M- Commerce is also growing in our country. In Bangladesh, we have an organized network structure for m-commerce services. M-commerce is already existed through SMS services. To get full services of m-commerce, we need major organizations to have their own WAP sites. We cannot achieve the greater goal to establish M- Commerce if we do not have enough professional to develop mobile applications. Our universities can play an important role to overcome this issue. And finally, we will have to provide Internet services with cheaper prices to the consumers. The telecommunications companies also need to work on to bring well equipped mobile phones to the market and with low prices. Even though we have drawbacks to overcome to establish m-commerce in Bangladesh, there is an enormous potential for it in very near future. It will help our nations to involve with modern technology in root level and in return it will help organizations to generate better revenue, which will be a great cause for our economic development. We have an aim and vision for future digital Bangladesh and mcommerce can be a key part of that dream and our next generation will have a base to carry on further to cope with modern world.

40

References
Literature: Foo, S.M. & Hoover, C. & Lee, W.M. (2001), Dynamic WAP Application Development, Manning Publication Co. Website: http://www.wapforum.org http://www.grameenphone.com http://www.aktel.com http://www.digitalbangladesh.gov.bd

41