applications. GIS can be seen as professional
systems intended for experienced users, which
require extensive computing resources. In contrast,
LBS are developed as limited services for large non-
professional user groups (LBSZone, 2006). In
addition, LBS applications operate with the
restrictions of mobile computational power, small
displays or battery run time of the mobile device.
2.1 Mobile Commerce
M-commerce is the buying and selling of goods and
services through wireless handheld devices such as
cellular telephone and personal digital assistants
(PDAs). Known as next-generation e-commerce, m-
commerce enables transactions by accessing the
Internet without needing to find a place to plug in,
via mobile phone networks.
Corporations are now using m-commerce to
expand everything from services to marketing and
advertisement. The benefits of M-Commerce among
others include cost savings, and new business
opportunities. As content delivery over wireless
devices becomes faster, more secure, and scalable,
there is wide speculation that m-commerce will
surpass wireline e-commerce as the method of
choice for digital commerce transactions.
2.2 Location Based Services in
M-Commerce Applications
2.2.1 Advantages
The geographic intelligence delivers a new
dimension to wireless businesses through LBS. The
level of detail, accuracy and currency opens up a
broad scope of potential applications, enabling you
to tailor your technology and services to the exact
location of your customers. The insurgence of high-
bandwidth networks has significantly enhanced the
potential of LBS, generating a potentially significant
return on infrastructure investment with the delivery
of personalized data (Georgiadis et al., 2005).
Possible use case scenarios for LBS in m-
commerce applications have a very wide target
group (Elliot et al., 2004). The following, are among
the most promising: entertainment (searching and
advertising of entertainment centers, such as bars,
clubs, etc. in close proximity of the user),
information (the user can get information about
historical buildings/sites, museums or the weather
for his current position), services (information about
hospitals, hotels, etc.) and shopping (inform the user
about special offers in nearby shops or guide the
user to a specific store in a big mall).
2.2.2 Disadvantages
Location based applications can bring many benefits
to business processes. But poorly used or
mismanaged, they can become a major area of
concern (Spinney, 2004). One major concern is the
monitoring of users (without their consent) and the
invasion of their privacy. Other problems that could
appear from the misuse of LBS and the illegal
knowledge of the user’s whereabouts are the
following: embarrassment (one customer's
knowledge of another's location may lead to
embarrassing situations), harassment (location
information can be used to harass or attack a user),
service denial (a health insurance firm might deny a
claim if it learned that a user visited a high-risk area)
and legal restrictions (some countries regulate the
use of personal data).
M-Commerce and, generally, the use of mobile
devices for more sensitive operations is fairly new
and in a “primitive” stage, especially the LBS. But
even with these drawbacks if the application and the
carrier in question are trustworthy the user doesn’t
have to worry about privacy issues. For these and
other reasons, users must know when their location
is given to an application (Giaglis, 2004).
2.2.3 Requirements
Mobile computing environment has certain features
that impose restrictions. The properties of mobile
networks are: (relatively) low bandwidth, strong
bandwidth variability, long latency, unpredictable
disconnections and communication autonomy. The
properties of mobile terminals are: small and low-
resolution displays, limited input capabilities,
limited computing power, limited power and small
memory size (Ververidis et al., 2006). The practical
conditions, when and where the mobile devices are
used, brings also additional restrictions.
LBS are intended mainly for traveling people as
a tool providing support in making decisions about
where to go. Therefore, wrong information may
mean wrong decisions, lost time and, as a result,
anger of the client in the best case and a court
examination in a worse case. A location based
service consists of roughly two phases, determining
the position of the customer and providing service or
contents based on the position. For the location
method at least the following requirements can be
listed (Nokia, 2002):
• The method should provide good accuracy
subject to the requirements of the application and the
respective cost.
LOCATION BASED SERVICES FOR MOBILE COMMERCE APPLICATIONS
163