Asia must manage risks from mobile commerce boom: Experts<\/p>\n
SINGAPORE (AFP): The Asia-Pacific region has greater potential
\nfor business via mobile phones than any other market but there
\nmust be safeguards against non-payment and other risks, experts
\nsaid here on Tuesday.<\/p>\n
Telecom operators and wireless technology developers attending
\nthe CommunicAsia trade fair said cellular phones would boost
\nmobile commerce (m-commerce) and encourage consumers to do
\nbusiness the wireless way.<\/p>\n
Dirk Leopold, head of mobile commerce for the Asia-Pacific
\nregion of Brokat Asia Pte. Ltd., a German company, said m-
\ncommerce has more potential than electronic commerce using
\ncomputers.<\/p>\n
This is because hand phones are more widely available and more
\nsecure, as well as portable.<\/p>\n
By 2004 there will be more mobile phones than television
\nhouseholds in the region, he said.<\/p>\n
\"We believe in general that mobile commerce is going to be
\nsuccessful because it overcomes all the obstacles that are
\ninherent in Internet transactions,\" he told a forum.<\/p>\n
Craig Will, director for Asia-Pacific and Japan of Palm Inc.,
\nwhich popularized personal digital assistants (PDAs), said \"one
\nthing we find quite unique is that the Asia-Pacific has a unique
\nwireless infrastructure emerging.\"<\/p>\n
But Hoong Ngee Khoon, regional director for the global
\nconsultancy firm Cap Gemini Ernst and Young, cautioned against
\ninherent business risks.<\/p>\n
With the volume of business done through the mobile phone seen
\nto boom, it is important to determine whether consumers, telecom
\noperators, merchants or financial institutions will bear the
\nrisks, he said.<\/p>\n
\"Quite a few years ago in the Philippines when mobile phones
\nhad just taken off, mobile phone companies were busy going out
\nthere to acquire subscribers so they did not look into the credit
\nrisks. A couple of mobile companies went bankrupt because
\nsubscribers cannot pay,\" he said.<\/p>\n
\"In those scenarios the mobile operators actually bear the
\nrisks. So in a mobile economy, this issue has to be addressed
\nespecially if we are using the mobile phone to make purchases,\"
\nhe told AFP.<\/p>\n
In buying a can of Coke using a mobile phone for example, the
\namount can be charged to the buyer's telephone bill, putting the
\nrisk on the carrier.<\/p>\n
But in purchases involving bigger amounts, there is a question
\nof who will bear the risk, he said, noting that telecom operators
\nare not equipped to manage financial risks.<\/p>\n
\"This leaves room for who will bear the credit risk. And
\nthere's a lot of discussions around this area,\" Hoong said.<\/p>\n
\"We have been working with operators and financial
\ninstitutions to see how we can come out with a hybrid model for
\nfinancial services.\"<\/p>\n
One model is issuing pre-paid mobile phone cards, but this
\nwould limit the amount of transactions. A post-paid scheme would
\nlay the risk solely on the consumers and the merchants, he said.<\/p>\n
\"We believe that there will be a shift from the merchants to
\noperators and to financial services and consumers. Right now,
\nmerchants manage the risks but over time, there will be a spread
\nbecause of competition,\" he said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asia-must-manage-risks-from-mobile-commerce-boom-experts-1447893297",
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