Mobile Wallet

Mobile phones are getting more powerful and sophisticated. They are like little computers now and they can do a lot more than even today's smartphones. I have been using my phone to snap pictures of my driver's license, auto insurance certificate, AAA membership card, etc. I use it to store non-financial related records because of security concerns. It would be great if I can use my mobile phone as a true mobile wallet. In order to make that happen, two things need to be added to the phone. First is Near Field Communication (NFC) which is a short range wireless technology to exchange information. With NFC, financial transactions is make easy and quick. NFC has been used for a long time in public transport travel cards and payment systems. Second, a biometric verification like a finger print scanner to protect the access of the stored information in case the mobile phone is lost or stolen. Both technologies exist today. Phone manufacturers will need to add them so developers can start making innovative applications for the mobile wallet. Also, a standard must be adopted by the financial institutions and infrastructure put in place to process the financial transactions, much like what Visa and Mastercard are doing to day with credit/debit cards.

Some form of mobile wallet is already in use today. I expect mobile wallet taking off very soon. Then, gone are the days that we need to take a stack of IDs, credit cards, bills and coins with us.

Nokia pick Windows Phone 7

Nokia have announced they had picked Windows 7. Stephen Elop, the CEO of Nokia, has placed a big bet  which will make or break the Nokia mobile phone business. If successful, a big if, Nokia have a decent and modern mobile phone operating system to pair with their hardware. How well WP7 Nokia phones are received by the consumers is yet to be determined and real products seem to be a long way away. Picking WP7 OS which is essentially fourth place in the smartphone market is questionable. Making the announcement without any details on when a WP7 phone is released does not give the market much confidence in Nokia's plan of execution.

It will take some magic to convince consumers to switch given many of them have voted for Apple iOS and Android based on their smartphone buying habits. It could well be a case that 1+1 = 0 for this smartphone partnership. Time will tell.

Nokia's next move

These days are filled with rumors that Nokia is going to adopt Windows Phone 7 or Android operating system for their phones. Here is what I think Nokia Mobile phone business unit should do. Focus on a few important products and send a strong message to the market that Nokia intends to take the challenges head on with some fundamental changes in directions and philosophies.

Operating System
Adopt both Windows Phone 7 and Android if you can get deals with both Microsoft and Google. Why choose now? You have the resource to make phones for both OS if you phase out Symbian and Meego. Samsung, LG and HTC have made phones for both OS and sure Nokia can do the same. You don't have to pick a OS winner now. Leave the market and consumers to decide what they want. Apple has beaten Nokia in its own game (controlling both phone hardware and OS). Now it's time to rethink and partner with a decent OS. Symbian is old and clunky and Meego is late in the game. Anyway, if you do have to choose one, pick Android.

Streamline Product Line
At the high end of the mobile phone market, phones are really customized via user experience, by the way of applications users choose to download to their phones to make them unique to their needs. There is no need to have many smartphone models each having slightly different hardware and cannibalizing sales among your own product line. I would suggest to keep 3 main models, one touch screen with full QWERTY keyboard (similar to E7), a large touchscreen only version (similar to N9) and one business focus with QWERTY (E-series).
Make some feature phones, i.e., basic phones for making phone calls and short messages. These phones are for the developing markets and for people who don't want or need a smartphone. With these feature phones, Nokia continues to operate in markets that it is still pretty good at. It also helps build brand loyalty and hope one day these feature phone users graduate to a Nokia smartphone.

Aggressively Market Free Ovi Maps Navigation
Nokia has made Ovi maps and navigation free for some phones. Now it's time to make them free for all smartphones and aggressively market this feature. The iPhone does not have free navigation built-in and to do so Apple will need to buy a company like Garmin or TomTom. To have free turn-by-turn voice navigation on the iPhone, users need to spend roughly $30-50 per region. Nokia has already spent the money to acquired Navteq and can offer free navigation for the world. To do the same on the iPhone today will cost the end users hundreds of dollars. Not that everyone needs navigation for the whole world but this is a feature you market. Free navigation comes with the phone, no need to spend extra on 3rd party apps.

The above are my views. Let's see what Nokia is going to announce tomorrow.

Straddling Bus

China is going to build Straddling Bus in Beijing at the end of the year. The concept is typical for big and crowded cities in Asia. When there is little or no space on the ground level, let's build vertically. In busy cities like Hong Kong, buses effectively take up one traffic lane closest to the sidewalk during busy hours because of frequent bus stops and large number of people getting on and off buses. With the straddling bus, other traffic can still go under the bus. People may argue the feasibility of the concept because of the chaotic traffic and crazy drivers in that part of the world. If you think about it, the straddling bus is just like a moving tunnel. It may work and force people to start obeying traffic rules. Also, the inventor has put thoughts behind safety features such as warning lights when the car under the straddling bus is getting too close to the side of the bus.

It is good that China is giving this new public transport concept a test run in Beijing. It is not without potential issues. For example, where do you put the tracks for the straddling bus? If you put them next to the sidewalk, then double decker buses cannot use the lane(s) under the straddling bus. Also, new traffic signals and signs are needed because the straddling bus will block some of the existing traffic lights and warning signs. None of these problems are unsolvable. It is the beginning of an idea and much research and analysis are required. I applaud people coming up with ideas to solve real problem and hope they will get the support they need to bring the concept to commercial realization.

iPhone antenna saga continues

The most recent Consumer Reports review of the iPhone 4 antenna issue has fueled the war of words in many online sites, with one camp calling Apple to recall the iPhone 4 and another camp saying the iPhone 4 has better reception than the previous iPhones and there is no antenna problems. Based on what reports have shown, I believe there is a design issue with the iPhone 4 antenna system. However, I do not think this justifies a recall because there is no health or safety concerns associated with the issue. Also, fixing the problem with hardware changes is not as simple as what some online experts think. Any change in the antenna design requires the iPhone 4 to go through new FCC regulatory approval on top of the logistics and costs associated with retrofitting the iPhone. Apple has offered iPhone 4 owners to return the iPhone for full refund - the only correct thing Apple had done in this saga.

Apple has handled this issue very badly by deflecting the issue by first claiming there is no issue and then said it is a software problem where the signal strength is displayed incorrectly. If Apple had offered a free bumper with the iPhone 4 (Yes, it is a band-aid type solution but it shows goodwill from Apple), the problem may not turn out to be such a PR nightmare. I think we can expect the next generation iPhone will have a new antenna design.

What will Steve do to diffuse this issue?

Apple iPhone software fixes hardware or network problem?

Today Apple issued a letter on their web site explaining the iPhone 4 reception issue. I am afraid Apple's explanation is not convincing at all. Apple said "Upon investigation, we were stunned to find that the formula we use to calculate how many bars of signal strength to display is totally wrong." I am a wireless engineer by training. That explanation from Apple is just bizzare. Not to bore everyone with the technical details I will explain in a note at the end of this blog for those who are interested.


Apple said "To fix this, we are adopting AT&T’s recently recommended formula for calculating how many bars to display for a given signal strength. The real signal strength remains the same, but the iPhone’s bars will report it far more accurately, providing users a much better indication of the reception they will get in a given area." Translation - Now we 'fix' the software to 'accurately' show you how bad the signal really is. It means the phone will show fewer bars with the new software. So, we now blame the AT&T network coverage instead of the iPhone 4 reception or antenna problem?



Now it begs the question whether Apple's iPhone design team knew this antenna problem all along. Apple had never sold any decorative accessories for the iPhone. It leaves the accessories to after-market vendors. Why is Apple selling a plastic bumper for the iPhone 4 and it costs $30! Turning a crisis into an opportunity?


Note: 
The phone software can fudge the number of bars displayed to anything. Let's consider a hypothetical example. Let's assume in Phone#1 a signal level of -100dBm shows 1 bar and every 2dBm shows another bar. The signal indicator on Phone#1 will show the following, -100dBm = 1 bar, -98dBm = 2 bars, -96dBm = 3 bars, -94dBm = 4 bars and anything higher than -92dBm = 5 bars. Now, let's change two variables so that on Phone#2 the bar starts showing at -95dBm and every 5dBm shows another bar. The signal indicator on Phone#2 will show -95dBm = 1 bar, -90dBm = 2 bars, -85dBm = 3 bars, -80dBm = 4 bars and anything higher than -75dBm = 5 bars. Now a user starts at a location receiving -90dBm and move to a area where the signal drops to -100dBm. Phone#1 shows 5 bars at the first location and then drops to 1 bar at the second location. Phone#2 displays 2 bars and then drops to no bars. Same phone, same signal, different software show different number of bars. That doesn't solve any coverage or reception problem but just faking the number of signal bars. The real proof is to look at the RxLev in absolute numeric value in dBm in a field test mode, not some artifically fudged signal bars displayed on the phone.

Microsoft Discontinued Kin - That's Quick!

I just saw the news that Microsoft has halted selling Kin. The Kin has got to be one of the shortest life product in Microsoft's company history and it reminds of of the Microsoft Bob. I thought only bad television shows have such short life.

 

I have not paid much attention to the Kin because they look like toys, especially the square shape Kin 1. It looks like something you would give to a 5-year old. Microsoft wanted to market the Kin as a social networking device to 15 to 30 years olds. Kin is the wrong product for that market segment. The 15 to 30 years olds are the 'multi-tasking generation'. Yes, they want to connect to friends via facebook, tweet to tell the world what they are doing, surf the web, listen to music, have 10 instant messenger windows going, texting, talking on the phone, checking emails and chew gums, all at the same time if they can. They don't want a 'dump-down' device specialized in social networking though.

 

Well, Microsoft has the courage to stop the Kin rather than to pour more R&D and marketing money into a dead-end product. Let's see if the Microsoft Windows Phone 7 can put up a good fight against the iPhone, Android phone and Blackberry in the smartphone market.