Mobile News

GPRS forms part of the 2.5G development towards higher data rate communication and involves the progression from circuit-switched base data to packet data delivery. This will alter billing systems, which will evolve to charge by data amount rather than duration of access time since the GPRS connection to the internet will be `always on’. Moreover, this instant connectivity will further differentiate the mobile internet from fixed internet–GPRS will enable a more enhanced dialogue between bank and customer, resulting in better usability. Since it is an interim technology there will be mixed benefits for mobile banking services. Although GPRS can theoretically support a data rate of up to 115kbps, shared bandwidth among users will reduce the speed of packet data delivery and compromise billing systems based on subscription to a higher data rate. Aside from overt difficulties such as a lack of handset support, GPRS lacks an inbuilt store and forward messaging service: a link to SMS must thus be procured, given how fundamental SMS functionality is within mobile banking/payment systems. With this in place, GPRS will allow more robust banking notifications such as real-time overdraft notification with immediate funds transfer availability to avoid penalty.

However, GPRS packet-switched networks will be able to handle the traffic (multiple interactions with PKI certificates and third-party services) required to establish a secure WTLS connection with greater efficiency. In addition, current mobile banking customers are prepared to pay a premium for stock transactions due to their time critical nature but less inclined to pay for core banking services. Since GPRS will provide improved network utilisation for `bursty’ information it will thus enable service provision at a lower cost.