TELECOMMUNICATIONS AND MOBILE COMMERCE Wireline and Wireless Technologies Mobile Marketing and Commerce (Sections 7.3 and 7.4) Learning Objectives • Describe the purpose and components of a • • • • • • • telecommunications system Recognize the differences between analog and digital signals Describe the processes used by modems to send and receive information Describe the major types of networks Describe the major types of wireline and wireless transmission technologies Describe the size and growth of mobile marketing Identify the key elements of a mobile marketing campaign Understand the capabilities of location-based marketing Telecommunications Systems • A telecommunication system consists of hardware and software that transmit information from one location to another • These systems can transmit text, data, graphics, voice, documents, or full-motion video information • They transmit this information with two basic types of signals: • Analog • Digital • They link the system components using a combination of wireline and/or wireless transmission media Analog vs. Digital Signals • Analog signals • Analog signals are continuous waves that transmit information by altering the characteristics of the waves • The characteristics include the wave’s amplitude and frequency • The human voice is an example of an analog signal • Digital signals • Digital signals are discrete pulses that are either on or off, representing a series of bits (0s and 1s) • This quality allows them to convey information in a binary form that can be clearly interpreted by computers Communications Processors • Communications processors are hardware devices that support data transmission and reception across a telecommunications system • One of these devices is a modem whose function is to convert digital signals to analog signals (modulation) and convert analog signals to digital signals (demodulation) • Examples are dial-up, DSL, and cable modems Modem Types • The U.S. public telephone system was originally designed as • • • • an analog network to carry voice signals or sounds In order for this type of circuit to carry digital information, that information must be converted into an analog wave pattern by a relatively slow dial-up modem Cable modems operate over coaxial cable (for example, cable TV) and they offer higher speeds than dial-up A disadvantage is that they use a shared line which may slow transmission speed when large numbers of users access the same modem DSL modems operate on the same lines as voice telephones and dial-up modems, but DSL signals do not interfere with voice service and they always maintain a connection Computer Network Capabilities • Computer networks are essential to modern organizations for many reasons • Enable organizations to be more flexible to adapt to changing business conditions • Enable companies to share hardware, software, and data across the organization and among different organizations • Make it possible for geographically dispersed employees and work groups to share documents and ideas • And they are a critical link between businesses and customers Types of Networks • There are various types of computer networks, ranging from small to worldwide • Types of networks include: • Local area networks (LANs) – connect two or more devices in a limited geographic region, usually within the same building • Wide area networks (WANs) – networks that cover large geographic areas and are often provided by common carriers such as telephone companies and the international networks of global communications service providers • The Internet Communications Media and Channels • For data to be communicated from one location to another, some form of pathway or medium must be used • These pathways are called communications channels • Examples of wireline media include: • Twisted-pair wire • Coaxial cable • Fiber-optic cable • Each type of wireline media has relative advantages and disadvantages Twisted-Pair Wire Coaxial Cable Fiber-Optic Cable Transmission Speed • Bandwidth is a measure of channel capacity (and • • • • • potential speed of transmission) Why is this an important issue? Analog signal speed is measured in hertz (Hz) Digital signal speed is measured in bits per second (bps) The speed of particular communication channels is determined to a great extent by the underlying transmission medium (copper wire vs. glass fibers) For example, fiber-optic cable is potentially about 40,000 times faster than copper wire systems Advantages and Disadvantages of Wireline Communications Channels Channel Advantages Disadvantages Twisted-pair wire Inexpensive Widely available Easy to work with Slow (low bandwidth) Subject to interference Easily tapped (low security) Coaxial cable Higher bandwidth than twisted-pair Less susceptible to electromagnetic interference Relatively expensive and inflexible Easily tapped (low-tomedium security) Somewhat difficult to work with Fiber-optic cable Very high bandwidth Relatively inexpensive Difficult to tap (good security) Difficult to work with (difficult to splice) Wireless Transmission Media • Wireless media, or broadcast media, transmit signals without wires over the air or in space • The major types of wireless media are: • Microwave • Satellite • Radio • Infrared • Each of these media has relative advantages and disadvantages Advantages and Disadvantages of Wireless Media Channel Advantages Disadvantages Microwave High bandwidth Relatively inexpensive Must have unobstructed line of sight Susceptible to environmental interference Satellite High bandwidth Large coverage area Expensive Must have unobstructed line of sight Signals experience propagation delay Must use encryption for security Radio High bandwidth Signals pass through walls Inexpensive and easy to install Creates electrical interference problems Susceptible to snooping unless encrypted Infrared Low to medium bandwidth Must have unobstructed line of sight Used only for short distances Satellite • Satellite transmission systems make use of communication satellites • Three types of satellites around the earth include: • Geostationary (GEO) • Medium earth orbit (MEO) • Low earth orbit (LEO) • A major limitation of GEO satellites is that their transmissions take a quarter of a second to send and return • This is referred to as propagation delay • The characteristics of each satellite type determine the systems they are able to support • Which satellite types would be used for voice communication, GPS, or television transmission? Global Positioning System (GPS) • The GPS is a wireless system that uses satellites to enable users to determine their position anywhere on earth • GPS is supported by 24 MEO shared satellites Internet over Satellite • In many regions of the world, Internet over Satellite (IoS), is the only option available for Internet connections • Installing cables is either too expensive or physically impossible • IoS enables users to access the Internet via GEO satellites from a dish mounted on the side of their homes • Drawbacks are that there is propagation delay and signals can be disrupted by environmental influences such as thunderstorms Mobile Marketing • Mobile marketing involves the use of mobile devices such as smartphones and tablet computers to display: • Banner ads • Rich media • Video • Games • E-mail • Text messaging • In-store messaging • QuickResponse (QR) codes • Couponing • More than 246 million Americans are now using mobile devices, while 140 million of these use smartphones In-App Experiences and In-App Ads • Mobile users spend 80% of their mobile minutes using apps, and only 20% using browsers • On average, users have downloaded about 40 apps, and regularly use about 15 • The implications for marketers are quite clear: • Need to place ads in apps • Need to concentrate their marketing in the most popular apps • Niche marketers can concentrate their ads in apps that support their niche Location-Based Marketing • Location-based mobile marketing is the newest and fastest growing segment of the digital marketing universe • Location-based marketing targets marketing messages to users based on their location • Location-based services involve providing services to users based on their location • Examples of location-based services include: • Personal navigation • Point-of-interest • Reviews • Friend-finder • Family-tracker services