AFTER the proliferation of Short Message Service in the country, industry experts predict that the next wave of development in the Philippines would include the proliferation of mobile e-commerce (m-commerce) applications.

The signing of the e-commerce bill into law may encourage developers and operators to go into mobile e-commerce which is riddled with security issues. With the e-commerce law, some assurance is given both consumers and merchants to dive into wireless, mobile transactions.

And since Filipino mobile users are already used to mobile data communications, it wouldn't be hard for the new wave of consumer lifestyle--mobile e-commerce--to take place in the country. The wide usage of cellular data communications would even increase if content providers could make their applications more user-friendly than SMS.

"In order for a substitute product to make it in the market, you have to change the behavior of the consumers. Imagine if there's a simpler way for you to do mobile datacom applications. If you add some user-friendliness to the system, then it would also spur growth and it will even try to build up on this existing SMS usage," said Rene B. Morta, general manager of Wireless Internet Solutions.

Morta also added that a lot of Filipino companies are gearing up for m-commerce applications which are expected to come out by the fourth quarter of this year.

"In fact, if you look at it, mobile banking is m-commerce but the trick is to launch applications which are timely, simple and location-based. So if you look at those three criteria you might be able to prioritize applications," he said.

Morta said that it is better to build a service for m-commerce which can penetrate a mass base of mobile users. This would generate a lot of revenue compared to an application which is out there but doesn't really have a mass market take-up or does not provide revenues.

Morta said the following factors would determine if a mobile e-commerce application will become successful:

· If the application is of high value to the user;

· If there is low media output required;

· If there is low transaction complexity;

· If there is a minimum number of players involved in launching the service; and

· If there is low security measures required for a successful transaction.

Asked if affordability would have any weight on consumer's preference, Morta said that it would depend on the value that the end-users see from a particular service. He cited that many users are prepared to pay a little premium for a particular service. Aside from convenience that mobile commerce could offer, he added, one does not have to bring a lot of cash while traveling.

He cited mobile ticketing or reserving tickets online using a mobile phone which could eliminate the inconvenience consumers experience while standing in long queues on opening nights of movies.

In the meantime, Morta said that he welcomes the emergence of GPRS (General Packet Radio Service). He added that with the fierce market condition that the mobile companies have now, it is but natural that they will try to look for a "differentiator."

"The differentiator is actually WAP and GPRS. Imagine if one operator provides this service, provides 115 kbps and another company doesn't. Then it will be able to corner all of the applications for that particular need. If they want mobile file transfers then they can corner that market," he said.