Dial-A-Cola - An Introduction To m-commerce
Created | Updated Oct 20, 2005
Increased human reliance on mobile (cellular) telephones combined with a propensity to shuffle towards a cashless society has resulted in a novel way of purchasing soft-drink.
Putting another arrow in the quiver of m-commerce1, certain users of vending-machines to purvey their wares, notably soft-drink companies, have struck deals with certain telecommunications companies (notably at the time of writing2 in Norway, Finland and Dubai) which enable consumers to fulfill their fizzy comestible requirement without having to scramble around for the necessary coinage or worry that the machine won't give any change.
The method is profoundly simple:
- Approach a soft-drink vending machine
- Dial the prescribed number
- Await the ring-tone
- Obey the instructions
- Triggered remotely, the machine will dispense the requisite product
We Have The Technology ...
The machine itself should be equipped both to send and to receive signals perhaps over the telephone network/internet or perhaps using bluetooth technology to receive radio transmissions. Someone wanting a soda reads the instructions on the machine and either phones or uses SMS to contact a 'service'. In this interaction the code of the soda machine and the identity of the buyer is transmitted to the service. Security can be through different means, a PIN-code, certificates embedded on the cell phone's SIM-card, etc. The service checks the credentials and sends a message to the machine to inform it that it's time to dispense the drink of choice.
... But How Do We Pay?
The customer can be billed for both drink and call via the telephone account or separately, charging the call conventionally and the drink to a discrete m-commerce account. Clearly there is some scope then to link (by direct debit) the m-commerce account to the customers normal bank account.
m-commerce - Winners And Losers
Payment via the telephone bill makes the phone company vulnerable to someone who racks up a huge bill and splits. This is not really a big risk when only soda machines have m-commerce capabilities. However, with some parking-meters already "controlled" by m-commerce, the industry is showing signs of expanding further its product-base in order to properly capitalise on its investment in technology development, which will open up the doors to the m-fraudsters.
Nevertheless, m-commerce will, no doubt, be marketed as the 'next big thing'. For many it is most certainly a convenient way to shop for those small items without carrying around a pocketful of shrapnel. However, closer inspection may suggest that it is the consumers who have most to lose. Firstly, those equipped with m-commerce capability will, instead of just paying for a 'soda-pop', need to pay for the 'soda-pop' and the telephone-call on top. It may seem like a token tax to pay, but the greater number of services available, the higher the number of calls necessary. Secondly, a not insignificant population may become disenfranchised. Just as making a single call-box telephone call is already difficult without possession of a pre-paid card, so those without m-commerce capability may one day find that they can't park their cars or buy a soft-drink.