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BOX C, MARKET HARMONIZATIONOn Tuesday, April 11, 2000, Ericsson, Motorolaand Nokia announced that they have teamedup to create a <strong>com</strong>mon framework for mobilee-<strong>com</strong>merce. The main objective of this jointindustry effort is to ensure <strong>com</strong>plete marketharmonization in terms of how certificates,keys, processes and services are implementedin mobile phones and offered to end-users.The framework for how mobile transactions areto be handled and implemented will be draftedand distributed for <strong>com</strong>ment from relatedplayers in the industry (operators, serviceproviders, bankers, credit card <strong>com</strong>panies,retailers, and so on). The framework will bebased on the wireless application protocol(WAP), WIM/WTLS, WPKI and Bluetooth.the phone as a payment device. Support isoffered for several major credit cards, includingVISA, MasterCard, American Expressand Diners Club.Mobile e-Pay prepaidaccountA dedicated e-<strong>com</strong>merce prepaid accountcan be connected to the mobile e-<strong>com</strong>merceservice. The prepaid account, which is administeredand issued by the Mobile e-Payoperator, can be used to pay contentproviders for goods and services. Mobileusers can check account balances from theirphones. The accounts can be filled manuallyby the Mobile e-Pay operator, or users canfill them using credit cards in <strong>com</strong>binationwith the credit card payment or the bankaccount /debit card payment features.Bank account/debit card paymentThe payment server can implement marketdependentinterfaces to partnering banks ornational banking networks. The implementationof market-specific banking interfacesis a <strong>com</strong>mon practice with payment serverdeliveries. Bank or debit card payment is notpart of the standard Mobile e-Pay offering.To the end-user, the procedure is the sameas for credit card payments.Content provider API (software library) forpaymentsAn application program interface and an IPconnection are all that content providersneed to connect to Mobile e-Pay paymentfunctions which are connected to financialinstitutions. To use Jalda payments, a separateJalda API is also needed.ConclusionAlthough the global digital economy is stillin its infancy, it will grow to support a hugeand <strong>com</strong>plex market. Service providers whohave the tools that help consumers experiencethis new market as easy-to-understand,user-friendly and convenient will be handsdownwinners. In fact, we might define thetrue value of mobile e-<strong>com</strong>merce as the abilityto make specially tailored services directlyavailable to the consumer via a familiar,portable device.For mobile operators and content and serviceproviders, mobile e-<strong>com</strong>merce representsa new way of adding value and of differentiatingthe services they offer, as wellas of expanding their markets and buildingcustomer loyalty. It is quite simply an entirelynew sales and promotion channel. Unlikebrick-and-mortar retail outlets, mobilee-<strong>com</strong>merce can be thoroughly tailored to aconsumer's individual needs and tastes. Andit is available to that consumer anywhere,anytime. In short, mobile e-<strong>com</strong>merce is allabout consumer empowerment.The right <strong>com</strong>bination of mobile systems,Internet, payment, and security technologiesnow exists to make mobile e-<strong>com</strong>mercea <strong>com</strong>mercial reality. Ericsson's Mobile e-Pay solutions enable operators and serviceproviders to generate new classes of servicebased on each user's geographical locationand personal profile. As the world wakes upto the huge potential of mobile e-<strong>com</strong>merce,mobile operators and service providers willhave the unique opportunity to establish alead in the market.92 Ericsson Review No. 2, 2000

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