World War 3 Watch 04: Indian Defense Equipment strategy

India needs to up its defense game. India is dealing with potential conflicts on two fronts. On both these fronts we have belligerent neighbors engaged in asymmetric multi-dimensional confrontation. Pakistan is more of warfare and China is more of competition. Yet, India must prepare for the potential conflict. And in this we need to improve our preparation substantially.

Airforce

Just cursory look at the Air force in the region will set us back. Pakistan Air Force generally known combat strength is about 500 aircraft. China is about 1600 aircraft. India is about 600. While the numbers are not exactly a way to differentiate - but considering the length of border and our defense requirement India should aim for 2000 combat plane air force.

This means HAL cannot produce 16 aircraft per year. It has to produce 16 aircraft per month. Using private participation we need to improve this number quickly. Second, it appears we need full Rafale deal AND a F16 manufacturing line at the same time.

IAF should also think of getting larger number of combat drones. These drones should be able to manage to fly with manned aircraft. This one manned aircraft (M) -coupled with around 10 drones (D) or more. Thus one mission unit with M-D combination. Then you can add mission units with xM-yD.

These mission units will need to collaborate and coordinate with share intel. That will require a robust ICT interface.

Airforce needs support from ground and space in the form of missiles and information. We should develop mechanism for coordinated launch of missiles controlled by the aircraft pilot herself. We can augment it with coordinator based ground support too.

Army

The future soldier will be an augmented information soldier. 

We need to up our game in terms of equipping the soldier with top-class equipment. AK-203 is a step in the right direction. But we need to lighten the soldier and get every soldier a robo-buddy. The buddies could be in multiple form - carrier mules, terrain mapping drones, communication bots and combat drones (sniper buddy). For this we need very intense development in robotics and again the ICT component will also play a role.

We should experiment with augmenting the soldiers with exoskeletons and other techniques to improve battleground performance.

Air-cover has been neglected part of the army. Apache helicopters in air support is essential. 

Navy

Future of navy is stealth platforms. As the US stealth ship Zumwalt goes for a maiden mission, China is developing aircraft carrier buster missiles. The Chinese missiles are hyper-sonic and thus almost impossible to intercept. In this context any above surface ship will find it difficult to beat the defenses. Hence reliance of submarine platforms should be increased.

Sub-marine drone tech is actually quite interesting. It can be used on sink-and-forget  wait mode. Thus we should be able to plant and move around many depth assets on wait and watch basis. Without humans on board this is (a) easier and (b) safer. It also improves the counter-strike and defense capability. These drones should be easy to manufacture in large numbers and low cost. These drones need not be large they can simply be attachments to ammunition that can help the ammunition to navigate and activate.

Deep sea surveillance and AGAIN ICT is also going to be critical.

So Navy must develop platforms but also develop choking -technologies for anti-ship systems.

Space wars

Space is important front for information wars. The satellites form critical part of the ICT infrastructure we need to deploy across the forces.

Satellites should be able to perform twin functions - jamming enemy satellites and keeping ICT infrastructure working for our forces.

The ability to quickly and rapidly restore downed satellites is very important. We should also explore possibility of smaller satellites that can last only for 5/6 months and then disintegrate. The smaller the satellite the costlier it is to destroy. Also because of size, you can build for redundancy. It is also possible to launch 100 satellites in one launch. These satellites are more relevant for theater coverage rather than country coverage.

Cyber war

Most of modern warfare is quite destructive and hence preventive techniques are more important than remedial measures.Cyber war allows for information and processing delays in enemy retaliation and gives us additional time and information to respond better.

Many times it is better for cyber initiatives to operate in bleeding mode than in crippling mode. Thus, it is better for cyber initiatives to delay the enemy communication rather than cripple it. Thus introducing delays and errors is better than crippling the infrastructure for short time. These cyber initiatives can also provide advanced information about enemy maneuvers. The aim is to destroy combat assets of the enemy.

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Buy my books "Subverting Capitalism & Democracy" and "Understanding Firms".

Farmer suicides and loan waivers - can we solve it?

Farmer suicides have brought the problems facing the farmers to the fore. Indebtedness has been highlighted as one of the dominant problems for suicides. As a corollary, governments have taken populist turn towards loan waivers. This is not the first time the farm loans have been waived. But can we do something to make it the last?

I reviewed the research on this topic and summarised them in my paper. I found there are a lot of problems facing agriculture. To put it succinctly, Indian agriculture suffers from: i) poor productivity, ii) falling water levels, iii) expensive credit, iv) a distorted market, v) many intermediaries who increase cost but do not add much value, vi) laws that stifle private investment, vii) controlled prices, viii) poor infrastructure, and ix) inappropriate research. 

These are basically symptoms of two fundamental issues with agriculture. First, farm risk management has gone wrong. Second, there is lack of coordination between various parts of agricultural value-chain. Thus, farmers do not respond to changing prices and market dynamics pro-actively. They also bear higher costs for post-harvest coordination in the value-chain like transportation, packaging, etc. 

Farmers needed to become better at risk management. They should use futures prices at the crop planning stage itself. At harvest stage a mix of contracted sales, and spot sales to can maximise realisations. They also needed more reliable availability of inputs, of credit etc. All this meant we need information – different types and large quantum of information like futures prices, weather forecasts, demand estimations, pesticide usage guidance, seed knowledge, planting knowledge, etc. AND, this information had to be available to farmer when he/she needs it.

But information is only ONE part of the problem. Farmer also needs physical inputs to reach at his remote farm. So, fertilizers should be delivered on time. Farm insurance should approved. Seeds, pesticides should reach the farmer on time. It means the value-chain partners must be available and acting reliably consistently. It meant the value-chain participants need the farming process to be visible.

There is universal agreement about risk associated with dealing with commodities. It means despite much effort many times farmers will fail. The question is then – can they fail safely? 

The corporate world has solved this issue through use of limited liability vehicles. So can we apply that to the farmers? I believe, a limited agricultural bankruptcy mechanism should act like a safety net for farmers. However, we don’t want farmers to hide personal failures within agricultural risks. Hence, we want farmers to separate personal and agricultural assets for this purpose of limiting liability.

I think we can fix these using an information system –an ERP-like solution for agriculture to help assist the farmers. Such system will reduce the coordination costs, improve information availability and increase the scale of operation allowing formal economy to step in and help farmers. With ring-fencing of risks, low cost collaboration, timely information, we can help farmers into a positive spiral of profits-investment-productivity. I sketch out the schematic of such a system called Smart Agriculture Management System (SAMS) in my paper.

This issue is important. Please read the paper, I tried to keep it as short as possible. Please make suggestions for improvement. If you think SAMS will work then do spread the word.

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Buy my books "Subverting Capitalism & Democracy" and "Understanding Firms".

Can MTNL and BSNL be salvaged?

I happened to look at the websites of MTNL and BSNL for seeking out their annual reports and financials. Long ago, I don't remember exactly when I concluded that it is a waste to invest in public sector telecom companies - MTNL (BSNL is not listed). It was so far back in antiquity that I thought may be it is time to revisit the decision. After all MTNL is a nav-ratna company - meaning it is prized Government PSU. Alas I was horribly wrong.

Where are the financials?

MTNL or Mahanagar Telephone Nigam Limited is listed for 20 years at least. But I could find only 2 annual reports. No quarterly information was available on the site. The website links to some other mtnl sites but the links on the site did not work.

The first rule of getting investor interest is to make all financial and operational data available. I was expecting to look at ARPUs of land lines, mobile, their satellite network subscribers etc. 

Shameful numbers! 

The two annual reports reveal pathetic situation. MTNL has employee cost 76% of revenues. Yes 76% [Seventy-Six] - no it is not a typo. The report talks of legacy issues with the government employees who cannot be sacked and do not work. These numbers make BSNL cost structure of employee costs at 52% of revenue look respectable. 

As a comparable IDEA Cellular has employee expenditure of ~4% of Total revenue.

How to fix MTNL / BSNL?

So can these companies even be salvaged? I think we need radical reform.

1. Disclose all information - no matter how ugly. Go back and disclose everything. Let us have ARPUs, Segment-wise, detailed costs as much drill-down as possible. From these numbers someone may be able to gather the strengths of the companies.
2. Ground Realities - corruption and compromised staff: The sad reality is that the staff of MTNL works for private companies. They take bribes and ensure poor service quality thereby herding the customers in droves in the arms of private telecom service providers. I have also seen MTNL linesmen working for private land line operators in Mumbai. They take home dual incomes. 
3. Staff Costs are too high: MTNL costs at 76% of revenues and BSNL are at 53% wheresa idea cellular is at 4%. There cannot be any rational justification for this mess. More than MTNL, the government of India should take a decision and remove this staff. It will be difficult for MTNL to bear the burden of this. Let the staff be transferred to some other productive work - which they are incapable of. Just pay them and let them go. At least they won't damage the government elsewhere.
4. Asset sweating and location leverage: Both BSNL and MTNL have superb location from where they operate. These locations can work for telecom base stations, interconnection zones and network switches for all firms. Such operational asset sweating can release vital cash for operations.
5. Good Telco - Bad Telcos solution:  Create a new listed Telecom entity - say National Telecom and sell MTNL and BSNL assets to that entity and order closure of MTNL and BSNL under Companies Act. There is no reason to have two telecom companies in the same business with different geographic coverage.
6. Keep transparent pricing plans and decent customer service and customers will flock to PSUs. Those with customer service of private telcos will agree whole-heartedly. With complicated subscription plans and bill discrepancies private telcos are sitting ducks.
7. Telecom-Internet-TV Fibre bundles: The current landscape allows for one state-owned voice-focussed player. After 5 years there wont be any such opportunity. However the PSU Telco will have to quickly shift to data and preferably internet and TV offerings together. It will be easier for this entity to operationalise this than other private operators.

If you let me run these two, I can make them profitable in 3 years. 

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Buy my books "Subverting Capitalism & Democracy" and "Understanding Firms".

Comments on Microsoft

John Hempton, who fabulously broke the banking solvency talked about Microsoft recently. In the third post in the series titled Microsoft – an accounting geek’s summarizes his purpose and lessons. I wanted to add some comments to this since the first post. So here it is:

1. Bundled software in India:
• India still sells laptops without the operating system. The proportion has gone down but it still exists where dominant volumes are.
• Ubuntu and Linux overall has not caught on because it is not user friendly. As it gets friendlier, expect Indians to move to Linux versions faster than Microsoft can cope with. All Microsoft needs to do is support XP. A lot of pirated Windows XP is still being used.
• Such a response is currently underway in mobile phones. I believe it makes sense it happens in mobiles first because, device capability is limited, hardware is cheap (from china) and Indians have unique needs (apparently more Indians need dual SIMs than elsewhere - in pagers we preferred the alpha-numeric ones etc.) I can't see why it cannot happen in laptops. (More about it below)
2. India Volume play suits Apple more: If you think about volumes as a driver, Apple makes much better sense. 
• We are paying $1000 for iPhones and if you see the penetration you will be amazed. If iPhone were to be available at $500 equivalent Apple would not be able to handle the sales volume. The user interface is mind-blowingly simple even my mom and dad got it right away. (They don't speak computer English). It is very intuitive. Through iPhones and iPads Apple can make a huge in-road into Indian market. They have to price it right though.
• Why I discussed about iPads is that most users do not need a laptop or a computer. They simply need a device that can connect them to the net. A phone is a little small for the purpose but a tablet is ideal. Indian government announced a tablet PC for $35 and it is pretty ok with camera and it works on Android. (It is for education institutes)
3. User friendliness is still paramount: While I worked on and loved Unix (was a programmer) but I think for regular computer usage, MacOS, Windows make lot more sense. Android is emerging as a significant alternative in tablets but it is nearly as good as windows CE. 
4. Distributed legal liabilities: Unix and its versions are popular for server side because of customizability. There is other side to the equation. Security is costly and Microsoft cannot release a lower end product without risking security issues. It is an easy legal target if it fails. So it has to put in lot of effort just to ensure base level security. Linux falls through the legal cracks as the legal liabilities are diffused. Just as small revenues amplify so do small legal claims.
5. About security: Security issues are dominant concern for Microsoft. It does not have control over where its operating system is being deployed. It does not know if clients are updating the OS or not. With emergence of Software as a service model (SAAS), Microsoft will breathe easy. I expect as SAAS starts getting prominence, MS will start unleashing its programming prowess to more beneficial use.
6. Still top institutional service provider: Microsoft juggernaut is large and has tremendous inertia backing it. The IT departments of top Microsoft clients are testing versions to be released in 2011 and 2012. Frankly, even Apple does not have that kind of sales and testing infrastructure on institution side.
7. MS as fast follower: For the consumer side, Microsoft is better characterized as a fast follower than a tech leader. It has always copied Apple and will continue to do so. (Panasonic to a Sony). There are two scenarios from here:
• Currently the environment is in flux so we cannot see Microsoft response but response will come and it will eat away a substantial share.
• The model has changed to a long-tail model. Microsoft noticed this with Zune. It came in very late once the product stabilized but that was too late for the market. So it is match step-by-step in phones. Here too it is a bit late but faster than with Zune. Eventually it will figure out.
8. It is the Microsoft game: The game Apple is playing was invented by Microsoft: 
• Microsoft dis-assembled the IT hardware and software value chain. It broke the integrated approach of IBM. Apple followed IBM model in hardware and OS and used Microsoft approach with additional software. But overall Apple is still more in IBM mode.
• Apple is breaking the mobile phone software value chain but it retain the hardware approach of IBM in phone space. In phone space it HAS to break the software value-chain. It is doing this through App architecture. That is straight into MS territory. Apple will face same issues as MS if it were as important to business community as MS. Thankfully Apple is sticking to consumer electronics side.
• Blackberry is more like thin-client server model we know. A Google-wave like protocol will break this model. My guess is Microsoft will break blackberry.
• The reason MS cannot fight easily because of legacy codes. Phones need light codes but MS codes is HUGE. But in phones and in computers MS has changed its stance to scrapping old format all together. MS will gain from it because there is so much knowledge that it has but cannot use - now all that will be possible.

Disclaimer: I am an Apple fan but I love Microsoft as well. MS Excel is probably the best product every produced. It also makes awesome mice. This is discussion about future of tech and not stock analysis of Microsoft.

Killer App definitely from Microsoft!!

People who know me also know of my admiration for the one Mr. William Henry Gates III or Bill Gates as we know him. This has had a rub-off on my expectations from Microsoft. Now, after having tested the X-box 360, Vista and read the specs of Zune, is the time to upwardly revise the probability of killer app from Microsoft.

Slipping through the door - The X-box

If the X-box is a game station then why call it “X” box? Duh! It plays DVDs, channels in the HD TV, plays Dolby Sound, shows and edits pictures, networks wirelessly, has family settings apart from playing games! It is a sort of expandable functionality box! Is it the original Microsoft idea? As expected, it is not! The Sony Playstation is essentially the very same things. However, the key difference is Vista! I would bet the X-box sits on a Vista version allowing it to do significantly more things than Sony can even dream of doing.

The visionary “X” in X-box
The day I saw the X-box, I shuddered! It spells “tough times” for makers of DVD players, Music Systems, Desktop home computers, hand held MP3 players! With the X-box, Microsoft has put into your home an entertainment enabled Hub! Each of the accessories, like Music System, MP3 players, home computer, is a node (or spoke)! Whoever successfully captures the Hub will have a say in what becomes of the node. Truly Microsoft! Capture the most essential part of the value chain and then dictate the terms!

The bigger plot!
It has already started putting the nodes in place with Zune! The credits from playing on-line games can be re-deemed for Zune songs. This is an equivalent of earning and spending online! This indicates development of an “entertainment ecosystem” comprising variety of nodes connected through the net. The variety of software (Operating systems for governing these nodes, content for these) can yield further revenues.

The business genius!
Apart from this technological ingenuity, Microsoft brings superior business sense to the table. (Microsoft must have lots of brilliant strategists amongst all those who cracked the round-man-hole kind of interviews effectively!) Let us imagine Microsoft did think about all these ideas and started work on business strategy. What would have made them put these Trojans into an entertainment machine? In my opinion, luck or otherwise, “entertainment” is the best bet for entering homes. It has the right mix of emotional attachment, passion and perception of need to make it a must buy.

In sum
While we are all busy fighting Microsoft on the security issues, they have quietly built up a platform that can bring them into our homes and much closer into our pockets. Soon Microsoft will touch every part of our life in ways that are more evident. IF someone knows how to buy Microsoft stock sitting in India please let me know!

The new "Car"ma

Daimler-Chrysler recently launched the new Mercedes C and S class. The wonderful thing about it is the presence of a hard-disk on board. This sort of partly fulfils my prediction dated as far back as 1992! It was the time I just introduced to the microprocessor. I was fascinated by what it could do. I had ventured that this programmable piece of electronics was what was needed in the automobile! And along with the micro-processor, there was needed a hard-disk! It brings to one of my most favourite topic of electronics in automobiles. It also gives me confidence to un-veil some of the electronics usage in automobiles.

Pieces of the puzzle!

We observe a lot of developments in different technologies that could make an impact in this field:

1. Micro-processors are ubiquitous!
2. Memory is easily available.
3. Cellular infrastructure is in place! Also GPS systems are already being installed on vehicles.
4. Sensor technologies are well developed. We already have rain sensors, backing sensors, cameras on board, light sensors etc.
5. Short range information exchange technologies are available for example, RFID.
6. Display technologies are well developed, a case in point is the new Honda Civic!

Connecting the dots…Car as a gizmo!

To connect the dots we can look at the development of military hardware. We can hazard a few guesses.

We will see more customizable displays in dashboard. For example, the new speedometer is Civic could be customised into a tachometer! We can also expect the LCD screens on the rear passengers to read out the dashboard so that passengers can keep a check on the chauffer! It will also mean that the dashboard space can actually replace speedometer and other read-outs with camera images while backing up or parking.

Your car will be much more integrated with the manufacturer. The manufacturer can put-in a SIM card to transmit the operation data from the car back to factory test centre! In fact soon you could get a call from your manufacturer informing you that your radiator temperature is suboptimal and you need to bring in the car for repair / maintenance.

The revolution will actually happen when automobiles are integrated with traffic system. This will give a whole new meaning to traffic management systems. In fact we may even get some public announcements being relayed into the car speakers! There a possibility for vehicle to vehicle interaction as well. This will give the driver alerts on obstacles beyond the vehicle in the front giving precious seconds for response in case of accidents. Evolved safety systems depending on faster response, automatic collision avoidance etc. will make life easier and safer for passengers and pedestrians. We can very well look forward to “no overtaking” warnings and “vehicle closing-in” alerts.

We can expect vehicles to have access card system to grant access to various systems. If your card has information that you are an authorized driver for relevant vehicle type then the vehicle will work else it will not turn the ignition on.

In Sum

These developments are all a matter of time. Yet these gizmos are virus-prone. We noticed in Mumbai floods that cars with lot of electronics actually ended up worse-off than plain simple mechanical ones. Devices like power windows turned cars into death traps. So we need effective failure-proofing of these technologies before they get into our garages! All said we are looking into a fantastic future for gizmo lovers!

The New iPhone

In one of the most happening month for tech-crazy we had CES, Detroit Auto Show and MacWorld clamouring for attention. Amidst this innovation frenzy, Apple launched its new device, the iPhone. There is a lot to learn from the “history” Steve Jobs created at the MacWorld.
One set of learning is more about the technological aspect itself. While other, a more generic, is related to how good companies function. In both Apple showed remarkable insight, attention to detail and perseverance to do right things right.

A device to make history

I am deliberately calling it a device and not a phone. It has almost all the qualities of the device for the next digital revolution. And that it’s a phone is ancillary. To put in a full scale OS was a real clincher. This truly makes this device a platform device rather than a collection of camera, multi-media player, phone and contact-manager taped together. A platform device enables Apple to put in user’s hands a service pipe. Through this pipe Apple can supply unparalleled range of services. Apple has augmented pipe-features for this device featuring a carrier dependant pipe (EDGE) and a carrier-independent pipe (WiFi).

Intuitive Product Features

A lot of phones / multi-media devices currently function in two distinct areas, work or entertainment. However a person who works is the same one who needs to be entertained! I have never understood the reason for separate devices for each need. Apple however packs both features into their iPhone and even packs in two separate batteries for these functions.

Superior product design

Apple launched the iPhone with two memory variants 4GB and 8GB! That’s a lot of memory for a first product. Despite of this the weight of the product is quite manageable. This incorporates the learning from wide-screen Nokia phone and N‑Series. The initial demo of creating a wall-paper from a picture is also an example of smaller innovations packed into the iPhone design.

Better Interface

Apple equipped the iPhone with touch screen, no keypad! A very sensible idea indeed as most of the time PDAs are used as phones and do not need the full scale keypad. In fact when using the PDA as a phone the QWERTY keypad is a pain to use. If you have tried to use the small keys of Treo you will know what I mean. Using software innovatively, Apple has eliminated these disadvantages, giving us a QWERYT keypad when required. Further, the company who give us pointers highlighted using the ultimate pointer i.e. finger! I have no doubt Steve Jobs has made the screen smudge-proof.

Exceeding expectations

After a lot of anticipation of iPhone, when it finally came there was a fair chance that Apple might not deliver the hype really surrounding the product. Yet, Apple not only met but exceeded the user’s expectations from this product. Nothing new that’s something CFOs have to do regularly with Wall-Street analysts. But the key difference is that Apple shows this behaviour with customers! The Wall-Street analysts are automatically addressed.

Web augmenting customer communication

Being located in India, I was asleep when Steve Jobs was making history. So the first thing I did next morning was log onto Apple’s website. And there it was the iPhone page! Neatly displayed with all the details! Here is a company which knows that a lot of users will log in to their site on or after the MacWorld. Moreover here is a company that makes it “talks” to these visitors about its new products it is desperately trying to showcase. Try finding latest versions of Mustang.

In Sum

This was a perfect example of how a company should go about creating value! Give value to customers and demand value from them! This is precisely what management jargon “customer is king”, “customer first” etc. really mean. Compare this with Ford, GM and kin, which is addressing analysts rather than customers. The rest is mere detail!

A Device for revolution

The search for next killer app is a product of two important components, the device and the service. However, real world economics drives each one independently though over a feedback loop. Consequently, we have mobile device manufacturers trying to add functionalities of popular services (like internet connectivity for email) and services are being designed taking into consideration the new devices (like m‑blogs).

I have mentioned about the components of device in my earlier post an year ago. Between that time and now we have significant developments along the lines of what I had written about. I am just going to summarize some of these developments.

Processors have gotten better

Mobile Processors are now a lot better with certain mobile devices now calling themselves computers, particularly Nokia N-Series Mobiles. These are not special processors but standard processors with stable OS with an ability to deal with text, different installable applications and their file types, streaming media etc. So now our mobile devices can identify different profiles of data like documents(Word, pdf, etc), html (xml) files, contact information files, text files, calendar entries, pictures, music files etc.

Devices have more memory
After a lot of development involving IPods and Mp3 players, we now have about 4GB of memory being stacked in a Sony Ericsson phone. The developments mini SD and micro SD cards, packing up to 2 GB in a micro SD, bring more good news.

Devices have better Human Interfaces
Human interaction with the devices has improved with touch screens, bigger screens, video conferencing cameras and full-function key boards being available on mobile phones. We also have mini USB to interface them with other devices.

Battery life is better
In spite of the famous Sony battery recall, we now have better and longer lasting batteries and devices that use power more efficiently. Put together we have more juice in our hand-held than few years back.

Network Interface
Devices are now ready to access the network in more efficient manner. Nokia phones now come with the capability of accessing 3G network and Wi-Fi networks.

Summary
All these developments have in fact set the stage for a string of developments. We should now see set of applications that can revolutionize the use of mobile devices in years to come. These applications will trigger a realization of importance of security identification that will influence further development of applications.

Next let us try and understand what killer applications can make our hand-held devices even more important to us.

The next Killer App from Microsoft!

Long after the post-dotcom era dust has settled, the search for the next killer app continues. People are looking everywhere for the application that will have as big an impact as the internet. Everything from “Web 2.0” to “ubiquitous computing” and everyone from Google to SUN is being scanned and groped for a hint of “killer app” potential. Well, not exactly everyone, no one is searching Microsoft!
Yet, Microsoft has under its hood assembled technologies that, if assembled intelligently, can deliver the next killer app! I have been loosing sleep over the next killer app till it all occurred to me. My confidence in Microsoft emanates from the fact that under all the inertia, Bill and his boys have assembled quite a bit of stuff.

Microsoft understands things others understand

Three key areas which are most definitely going to be part of the next revolution are also areas where Microsoft has established expertise. They are:

1. Devices: Microsoft understands variety of devices from servers, personal computers, Pocket computers, mobile phones, game stations, music players, clocks and what not! Microsoft knows how to make these things work, connect and share data.
   
2. Search: Window’s Live is Microsoft’s biggest bet in web search business. It might not be successful as a business but it is good enough to demonstrate Microsoft’s technical capabilities. Further the tight integration of search with Vista and Microsoft’s inherent strengths at desktop search are well known.
   
3. Security: I realize that I am treading soft ground but I trust Bill’s team to know and understand a lot about security. After all they created too numerous security holes than the entire programming world put together.

Beyond this, Microsoft also understands key skills operationally required for delivering the next revolution. Tons of cash, enviable marketing and sales engine, global reach are key enablers that can multiply Microsoft’s capability.

But the most important thing Microsoft understands…
That has to be “context”! Have you noticed a pop-up that irritates us when we start typing a letter in MS Word? Microsoft knows that you are typing a letter. Microsoft also knows who it is being addressed to and the location, email address of the person. This through a feature called “smart tags”.
Google on the other hand does not understand context. Nor can others.

Put together…
Microsoft can deliver the next revolution. This revolution will be created through a two level approach:

1. At one level will be a device connected to world through a spate of technologies including WLAN, 3G.
   
2. At Second level there will be services that will through software, social networking site technologies and other sharing enabled technologies will create unparalleled utility.

In my next posts I will detail more on each of these. Meanwhile, I just hope people at Microsoft, particularly one who is in India currently, take notice and start working on getting us into the next technology revolution!

A new ID

Recently, there was a regulation stating it was required of the telecom companies to verify the details of their subscribers. There will be a cost for verification of contact details of each subscriber. Ideally government should be the agency which should enable this activity as a part of this business infrastructure. US has the Social Security Number, in India we have the Voter ID, Passport Number, PAN, MAPIN and God knows what not. Each time the same details get verified.

Is there a need?

There is a similar requirement for identification from one set of companies like banks, credit card companies. Other set of companies would give their right arm for getting the "verified" details of individual customers so that they can engage them better. The individual on the other hand, would like to have a convenience of having updated voter records, ration-cards, automatically updated subscription addresses, a single point control on all his/her details. This single source identity is, in a latent form, one of the biggest business infrastructure need that will emerge in coming years. More so as globalization actually permeates to working population making it mobile. Thus a need for a single ubiquitous universally accessible identification.

Can we do it?

Today we have almost all the technologies needed to put together such an id. We have computing power that can manage database of 6 billion people. We have electronic cards that can be interact with various kinds of readers magnetic, optical in variety of ways (bar code reading, credit card like swipe, access control like etc).One simple idea would be to use the telephone number as the id. But it will still not sort the problem of having verified details of the person being universally acceptable. Ther reverse can be a valid suggestion though. Individual should be able to use his id as his address, telephone number, blog address, website address, credit card number, etc. This number (sort of public key) can be used by anyone who wishes to contact the person provided person's private key details will decide what he wants to receive.

What needs to be done?

A co-ordinated effort at a global level is what is necessary for tackling this issue. Why global? Because even in US there are people who do not have a social security number. These people are currently out of the purview of the governmental system though they form an important part of the economic ecosystem. There can be global level effort to ensure that each telphone number (once appended by country and city code) is unique in the world. So there can definitely be an effort to have a unique identifier globally for each person!

How will government benefit?

Taxation will be become more effective and efficient. Benefits of subsidies can be more targetted and hence effective. Such mechanisms will be great tool for countering terrorism. Population migration, data on consumption, earnings, economic activity etc on which government spends millions of dollars will be easily accessible.

In sum

A universal identification clearly is the need of the century. Just like in pre-globalisation era each country needed an identity, in the post globalisation era each individual will need an identity. Can we hasten the process is the question?

Web 2.0 and New Yahoo!

Internet has revolutionised everything! How many times have you heard that phrase? By now surely a million times and you will hear more of it as we enter Web 2.0 era. Because it is true!

What is Web 2.0?

Simply put Web 2.0 is the next generation Web applications. You can look at the links (del.icio.us and Yahoo! mail) and flip through the pages in detail to know more about Web 2.0. So now with the new version Yahoo! gives me an option to right click in browser window and search through Yahoo! Search engine. Google does one bit better through Google Desktop by searching within my computer, out in the web and maintaining a record through personal search. Yet one person is still not seen. Believe me, he has aces up his sleeve. And that would be Mr. Bill Gates!

Microsoft Advantage

One wonders what he is upto these days? Where are his best programmers? What products is he thinking of through his .Net platform? How do they compare with Web 2.0? Believe me if that person is worth the operating system I am using, he is making MS Office on Web 2.0! Also I believe he will surely come up with the new innovations for browser, search engine, OS that will tightly integrate web and computer!

Web 2.0 changes the way we communicate

With the advent of the internet the modes of communication has changed considerably. We now no longer believe in snail mail, we look at computer screens more than we look at A4 sized papers, we spend as much time looking at websites as we do looking at newspapers or TV, our first stop for information is almost always the web. Yet all this has not been incorporated in our habits. One needs to question why I have to read reams and reams of paper electronically published. The website interfaces need overhauling to suit the new lifestyle. Web 2.0 will make that easier. Yahoo Mail looks like Outlook, soon word processors and other programs will be available in similar formats and then we will be totally integrated.

To conclude

I remember looking at a stand-alone computer with wonder and amazement, with even more wonder and amazement I looked at LAN in my college lab, still amazing wonder was when I signed up for email and chat program and made friends across the globe. Today I am looking at Web 2.0 with even more wonder and amazement! Now I am going to buy Microsoft shares! I welcome myself to the next tech boom!

My new Samsung D600!

Finally I migrated from my year-and-half old Sony Ericsson K700 to Samsung D600!! Its been a well thought out decision after a lot of deliberations. I also found a website wherein you get amazing reviews of mobile phones(www.mobile-review.com)!

Yet, even after careful selection I found some drawbacks and its just the second day of using it! I guess every good thing also has a little scope for improvement!!

Migrating to D600
I found it extremely difficult to migrate my contacts from Sony Ericsson K700 to D600. I did not have the data cable for K700 did not help the matter. However, I used the Send all option from contact menu of K700 and selected via bluetooth. The D600 received the whole transmission yet only showed one contact in the address book. I eventually had to transfer all my contacts one-by-one! (I know using a computer things would have been simpler but the fact is sending entire address book did not work in D600)

Short service "SMS"
In D600, I cannot choose the default storage for SMS messages. It directly comes into SIM. There is also no option to backup the SMS into the memory card. Also try saving the number from whom you receive an SMS into one of the existing contacts. You cant do it!!! ( I usually get SMS from people saying "This is my new number" rather than getting a vcard!) Life is going to be hell!!

Where are the "Text Notes"
Thirdly, there should have been option for text notes (not those included in the calender but simple stand-alone text notes).

"Menu"s in context
The menus do not change according to context. For example, if I am typing an SMS, the left soft key shows "options" where I click to reach send. However, ideally send should have appeared as the soft key option and options should have come at the right soft key. The right soft key shows "back" which deletes the message if you are not careful.

Samsung does not believe in taking the "Short Cut"
You cannot assign all menu options to the shortcuts. The options are restricted and rest of the menu are out of bounds!!

Cannot fly without a "Flight mode"
Lastly, an executive phone that does not have a "airplane mode" or "flight mode" is hard to believe. They should have included it on D600. Of course Mobile-review team has mentioned this in their review but this is something what I call a must have!

MP3 Player, No radio!!

Where is the radio? With a phone equipped with good quality sound the lack of radio is a disappointment.

In sum...
So there it is the list of some of the drawbacks of what basically is a "potentially" great phone. There are loads of features like TV out and great camera and a lot more. I am hoping they have sorted these things out in the next edition D800 slim slider phone! For more on D600 / D800 and other mobile phones visit www.mobile-review.com!

Mobile Devices - The New Business Model

Currently almost all the "valuable" functionality of the mobile phone is derived from connecting with the network. Almost all business models are based around this central theme and already there is a lot of clutter in this space. However there is a lot of space for innovative business models to exploit inter-device interactions. The next stage of development of mobile devices will be in exploitation of the inter-device interaction.

The "Close-By" opportunity
One serious impediment for exploitation of mobile services is the lack of location tracking at close range. At the most a phone can be tracked to the nearest tower. Lets imagine if it were possible to track a phone right down to within 5-10 meters. We all know Bluetooth can enable this very effectively.

The stumbling block
First constraint is that people switch off their bluetooth communications. Can one overcome this constraint? Of course, if offers are flashed only on bluetooth then people will switch on their bluetooth.
Second is privacy. People will not welcome spam on their mobile devices. Frankly the messages one gets while roaming are extremely irritating.
Third is security. Why will I enable my bluetooth connections for others to send messages to me? Will it mean I will be exposed to Viruses or any other threats?

The Bright Idea
To avoid this advertisers need to place constraints on themselves. These could be enforced technologically too. Like for example imagine a program, a bluetooth message trasmitter server and a receiver client, that makes sure the messages are customised and welcome. How?
Imagine the "client program" has options that let me choose the products for which I want offers. The "server program" knows and only sends me those offers that I have asked for!! This "client program" can be freely distributable with mobile phones (just like our dear Adobe Acrobat). The "server program" will be bought by local advertisers (shops, malls, bus service providers etc) and telecom companies will run them. We all know that the "client Program" can be configured to be independant accepting only from "known" "server programs" thus eliminating security threats.

In sum...
I think this means my mobile experience will be much more valuable, there will be additional revenue for Telecom service providers, and local advertisers will have lower advertising cost enabling highly targetted advertising. Wont it make a better world? What Say?

A new way to advertise online!

Long time ago email was a big thing and to get it free I did not mind my information being shared. I also agreed to look at some ads in the bargain! Not so today! Today I have a keen sense of screen map of my favourite email programs Gmail and Yahoo! Today my eyes conveniently ignore what is flashed across the screen that is not relevant to my email!! So can you make ads better? I thought of one way!

Do you know Yahoo! gives you an option of Avtars where you design a web personality for yourself. Now can you put that in the ad? Along with flowers and Avtars of my buddies (from my contact database of course) and can you not create an on-the-fly ad that makes sense for me? Like can you not describe a flash presentation of my Avatar giving a watch (Omega, Esprit, Casio etc) to my friend's Avatar with an option of buy a gift click here!!

I think thats a good way of inducing me to click on the watch site and I might actually buy something relevant. The key will be to identify the relationship between me and my friend correctly!!! Can Yahoo! or Google do that? Sure they can scan the emails through a web-crawler-like program and figure out what ads suit best. In fact Google can call it Relationship Rank algorithm!! (Hey if you are from Google and reading this post and planning to implement this please name it Rahul Rank!!) The Ranking can be based on frequency of emails, content in emails, key word search in emails and many more parameters.

Now let me hope that they make better ads to help me enhance my relationships!!! Fine trade-off for viewing ads!!!

ICE: The Telecom / Technology story PART II

Introduction
In the last articles we had examined how some of the issues with Communication revolution are resolved. Now, will it be possible for the communication revolution to hit us as hard as had been predicted? Again I do not have the answers.

Yet, when I observe the ICE space evolving in the Indian context, I see a clear dichotomy of evolution. Service Providers are seeing great business models in the application segment. Hence they are pushing applications to the consumers. Some of the very basic applications have been a hit. “TV on the mobile” has not really taken off but downloading ring tones has been a money spinner. Consumers are accepting some and rejecting many applications. The service providers and instrument manufacturers are eager to understand what the next money spinner could be.

I believe the key to the success of new applications rests with the device. Let us look at the device in more detail.

Device
A device is a piece of equipment we use to access the bandwidth. These devices are tools for processing information, communicating tools or entertainment platforms.

Components of the device
Any component can be disaggregated into:

• Processor
• Memory / Storage
• Human Interface
• Identification
• Power unit
• Network Interface

Processor

A significant development is happening from each of the devices getting a piece of silicon in them. Things from alarm clocks to washing machines to cars to televisions everything has become “smart”.

If you look closely, you will realize that in devices where there was enough space and supply of power people have thought of putting a processor. Nanotechnology is making these chips smaller and faster and cooler (lower heat generation). This is assisting the development.

Applications can be developed for devices that have a general purpose processor with an operating system. The Application based business model will imply that environment will favour these devices. In fact, many of the applications that currently use special purpose processors (Fuel timing chips in cars) will start using this business model. But just wait before you start dreaming about the kind of possibilities.

Memory / Storage
As with the processor chips, memory chips are getting smaller. Sure, but there is a difference. Let me bring your attention to the different business models. They demonstrate the evolution discreetly.

Your Mobile Service voicemail, which is a form of storage of information, resides on the network, but your SMS messages need to be stored on your device. Have you thought why?

Well the simple answer is that Voicemail was bulkier than SMS and memory in the device was scarce so smaller size application moved to the device first. So does this mean that eventually when we have “a lot” of memory all the data will sit on our mobile phones? I guess not.

The key question one needs to ask is what happens when the bandwidth access speed becomes so fast that we can access most of the application on the fly. To answer this, look at the email. Email for most cases is stored on central servers.


What I am stating is that there are various models, the email model wherein data stays on the server, applications stay on the mobile. There is SMS model, where in the data stays with the person and the application goes to the server.

Where what is stored is decided by the bandwidth available at your disposal. Consequently, as the bandwidth increases, we might shift towards fetch as you need models.

Moving further…
The components that I am discussing below are a little far fetched. I am not sure if they will happen as there are some economic / strategic / competitive reasons for suggestions not happening. If you know any reason what are the reasons these would not happen please write to me.

I will however, continue with the series of components of the devices. The next being the human interface.

Human Interface
Human Interface is something wherein we are able to interact with the device. This is also an area where least development has taken place. The reason is just that collectively we take a lot of time to learn the new ways to interface with machines. In one sense “driving a car” is an interfacing function and so is interacting with a computer.

But beyond the weirdness, if you simply concentrate on computer – human interface, you will find discrepancies. For example, computer screen is now our primary media, yet we type documents in A4 format. Does that make the documents more readable?
Mobile phone manufacturers are telling us that we should watch television on the mobile phone screen. No one asked me am I comfortable watching it.

There are some developments worth noticing. People have put television screens in cars, behind aircraft seats and possibly wherever they could. Also the projection technology is improving substantially.

What can drastically alter the interface aspect is the internetworking of all these interface technologies. Like your laptop keyboard can be used for your mobile. And your television can show the photo you just received on your computer. We get the hint with the new software that comes with the cell phones these days that allow you to peek at the Cell phone contents thorough your computer.

So it means that we will use what ever screen we have in close proximity to us. The software that will allow for this versatility will have to hit the market. But there is a strong case for such internetworking to happen.

Sounds weird doesn’t it? But there is no reason it should not happen. And though it has already started sounding magical there is more.

Identifiers
Identifiers are those parts of devices that enable the network to know your identity. The SIM card in the mobile phone is one such identifier. On the computer there is a login-password mechanism that is used as an identifier.

As is well known the identifiers are key to security! (PUN intended) In fact a lack of developments in convenient scanners has limited the growth of the online transactions. It is primarily why Bill Gates is tracking security closely. That is why he is such a visionary.

There are two / three elements in the security environment. One is scanning the user input and second is transporting it across the bandwidth securely.

Public Key Infrastructure promises to deliver this very functionality. Coupled with a hand held reliable finger-print scanner, this will transform the way we conduct business. I think we need to watch for a day when hand held scanners can be connected with or embedded in a cell phone.

There will be a substantial discontinuity in terms of electronic transactions when that happens.

Yeas of course there is still more.

Power
Every device needs power. Mobile devices carry their power pack along with them, rest of them are plugged to the wall because of power.

Improvements in battery technology have allowed us to have longer battery life out of a smaller battery. It has allowed us to have lot of applications running on our mobile devices.

Battery has played a critical role in the number of applications the mobile device can take. The better the battery the more applications you can load on it.

Charging technology has also improved. Apple has made some progress in this area by making the iPod charge while we play the songs from it.

Yet, have you noticed that the device manufacturers do not have a standard battery packs. Each device comes with its own charger and its own socket. We cannot use a Nokia charger with Samsung Phone, or we cannot use a cell phone charger for a laptop. If these devices have interchangeable power plugs, it will mean a lot more convenience for the consumer.

When we will see a movement in that direction is God’s guess.

Summary
We have seen how the different components of the devices can change and unleash a new wave of applications. At the outset some of the thoughts may seen outrageous, but it is not that far fetched.

For example, the power units of computers are standardized across motherboards so it is not unrealistic to expect that we can have a standard for power plugs in mobile phones. These are changes that have happened and will happen sooner or later.


The way forward
In the next article I will examine what are the different kinds of functionalities that can be added into mobile phones as an example. I will propose a hypothesis that there is a convergence in devices as well in terms of components. I will also give you examples where components are added to the device to create better value and also examples where components are sold separately to create value.

Feedback
Please let me know what you think on this. Your feedback is critical and will enlighten me. And do check back again to read about the new devices and the future of ICE.

ICE: The Telecom / Technology story!

Introduction
Communication and Technology revolution has flummoxed many in the so-called "real" world. On one side, more people are comfortable in downloading ring-tones and watching movie trailers. On the other, there are others who are still wondering about what happened to the future when the refrigerator would talk to the online grocer and order groceries. In the business world the top management is scared that their ERP solution will become obsolete even as they roll it out. But will it actually happen is a question to which there is yet no answer.

I am as confused as everyone else. Yet, in the following these are a series of articles detailing some aspects of these issues that may provide an answer. I have read some literature on these issues from various sources and Telecosm by Gilder is something that I would like to recommend. Yet the views expressed in the following articles are my own and may be wrong. I invite you to please provide me valuable feedback and opinions on these.

The Issues with Communications Revolution
We all expected that communication revolution that started with the Internet to invade every aspect of our professional and personal life would hit us soon. We all waited but it hasn’t come yet. There are reasons that are apparent in the hindsight. Some of the prominent ones were:
1) Lack of Cheap bandwidth
2) Lack of last-mile access Infrastructure
3) Lack of Ideas.

Bandwidth Problem
The applications thought possible, during the peak of the 2001 tech bubble were conventional applications. Like “movies-on-demand”, a lot of these applications required bandwidth that is simply not available. Some applications like Internet based real-time ERP faltered because bandwidth across international borders was absent. This connectivity was essential as the businesses became more and more globalized.

But as of now, a lot of band has come up. There is a lot of fiber very close to where you are sitting and reading this article now. A significant gain has also been because of the price discovery of the fiber bandwidth by the service providers. Service providers now see fiber-optic cables as information pipes and are focusing on capacity utilization. This seems to be common sense wisdom and they were focusing on these earlier. But there is a key difference. I will highlight it as we come to it.

Last Mile Access Infrastructure
Last mile access was unavailable. By this I do not mean that we had no solution to last mile connectivity, but that it was expensive.
Often the accessing equipment could be used for little else. The desire was never urged on by a need. This is exactly what mobile-phone revolution has done. The coming of age of 3-G mobiles has given the mobile users different ways and means to be connected. The revolution has changed the lifestyle of people making them comfortable carrying a device with them 24X7.
Only two other devices in human history have created such a powerful change, first being wristwatches and second being the Walkman. Yet the key aspect of the mobile revolution is that now people carry with them in the form of a mobile phone, a processor, memory and a modem. And they carry it 24X7.
This has subsidized (mentally) the cost of getting the last-mile-access device with you.

Lack of Ideas
The foremost problem was the lack of ideas. Of course business has a way of weeding out the bad ideas sooner or later. But there are a lot of things that are starkly visible. Like for example, what Gilder says in Telecosm, we have voice networks (Telephones) carrying data (Fax) and we also have data networks (Internet) carrying voice (Internet Telephony).
Similarly we have different business models running on same “bandwidth”. Like we pay per minute for calls on mobile phones, but FM radio on the same device is free. Some of the data (voicemail) is stored on remote server, some on device (SMS, voicemail). Some data (PIM data) that ideally should be on a remote server is replicated on different devices; where as some data that should ideally be on the device we need to download (MP3, Songs).

Problems are solved…
But all these problems are getting sorted out. And a new reality we all were anticipating is emerging. But it is not something that we envisaged. The new reality is mix of partly things that we anticipated and partly of something totally different. So what is the new reality?
In the next article we will examine the future gadgets that can exploit these developments. We will also examine which gadgets can succeed and what infrastructure can profitably come up to serve the new information applications that will thrive in the new world.

Feedback

Please let me know what you think on this. Your feedback is critical and will enlighten me. And do check back again to read about the new devices and the future of ICE.

Smart Cards

SMART CARDS are something that have always intrigued me. In fact the trouble started when I was looking for a credit card so that I have less money to carry around in the wallet. As usual my bank refused to give me a credit card. Soon afterwards they again started perstering me with offers on cards as diverse as required. So here was a list of cards I am supposed to carry:

1. Debit card for Bank A
2. Debit card for Bank B
3. Pertol consumer card from co P.
4. Petrol user card from Co. Q.
5. Cellphone gift card.
6. My Book club card.

And yet I dont have a credit card. Regularly I receive a lot of offers from my cellco and other co.s which offer me great discounts if I show that card at a certain restaurant. When I decide to go to a restaurant I forget if I have a discount offer for that restaurant and if that was from my book club or it was from my petrol pump company or my supermart. Welcome to the card heaven!! This is the 21st century.

Introducing a high security Java card. This one will do a hell lot of things for you and it will be the only card you will carry. Look at this:

BENEFITS:

1. Works with ATMs of all banks.
2. Works with credit/debit card companies. (How does the customer select whether he wants to pay by debit card or credit card?)
3. Works with fill-up card / loyalty card machines etc.
4. Works as an Id. has your foto on it. Stores various important numbers like passport number driving licence number.
5. Has your thumb digital imprint on it for verification. May be Iris scan too!
6. Has a unique number that can be used by cellcos and other cos to enable their offers on your card.
7. Functions as a Voters ID.
8. Can enable access to your computer over the network which is the basic concept of the SUN JAVA card.
9. Can be used as the Cell-SIM for CDMA/GSM and other phones.
10. You have to plug into your Movie theater to open the seat which naturally disables the cell connection.
11. Is put into a special close-fit charged cover in hospitals which can be read by the magnetic/door access systems.

Is it utopia? Are we in heaven? Is it possible? What could be the problems with such a system? Well welcome to digital reality!!

MECHANISM BASICS: (These need to be revamped of course)

In this new system, unlike the old, the card is more powerful than the machine that accesses the card information. So our machine is dumb or semi-smart. Which means that it can access only a certain information form our card. This it does in presence of two thumb imprints. One of the operator designated and other of the holder of the card. Without the thumb scanner of the card holder the card will not divulge any details.

1. How to maintain the integrity of the machines? The machine may be tampered with to access different data from the card and thus compromising the security of the card holder.
2. How will the card be disabled when it is lost/stolen etc.? One solution: Use an access machine with card number and the users thumb imprint which will automatically disable the card. A wrong usage increases sequrity requirement by say asking for finger prints of two fingers and three wrong attempts wipes the data off the card making the card useless.
   

Physically, the card would be made up of four components:

1. the main card.
2. the SIM attachment
3. the semi-SIM (SMS only)
4. close fit cover battery

Main Card
Main card would consist of a memory device that can store a large quantum of data. Primary required data can be classified as:

• Identification data: Voter ID, Passport No. Driving Licence No., finger prints, iris scans, signature copy, digital photograph, distinctive characteristics etc.
• Service Information: like bank details for credit and debit card, club id card and premissions granted by these service providers to the card holder.
• Access information: Details like which computer the data of the person is stored etc.# Details: Driving Licence details, Passport details, Voter details, Address phone number email etc.
• Transitory data: This data may be added or deleted by the user by using a computer / card access machine. If the card is lost and new card is made then the transitory data would be lost.(why? Maybe unless the card is backed up)
  -

The edges would be magnetised as required by the credit card/debit card swipe mechanisms.

Most of the places this card without the SIM / Semi-SIM / Cover will be used.

The top of the card will carry the photo and some details of the card-holder as a requirement of ID card.

The top will also have printed the Voter ID number or one CArd identification number. Which will be public in nature.

Will consist of a processor

Will have "wired-in" / "burnt-in" instructions to check the validity of the machine accessing the information. The processor will use the power from the host machine. Will reject any transaction if the host machine fails the ID test. If the host machine passes the processor will monitor and log the data accessed while granting permissions to the host machine for every access.

Processor will compute the best deals for the card holder when used in transactions like credit card debit card / money spent.

Processor will maintain a clock thats in-sync with the central world clock.

SIM attachment

SIM attachment will be housed in the card but it can be removed manually creating a small notch in the shape of the SIM.

The SIM attached to the card, and the cover battery put on will make a homing device since the SIM signal can be tracked by the Cell Ground Stations.

In areas where cell phones are not allowed the card will function only when the SIM is attached to the card.

ex. The movie theater seats will open for seating only when the card is inserted into the chair access slot and kept there. The chair access slot will check for SIM presence without which the seat remains closed.

ex2. In petrol pumps, cars where cell phones are not allowed machines will check for the presence of the SIM on the cards.

Semi-SIM attachment

This allows the user to send and receive SMS on his cell phone. Also works as a pseudo-SIM for Blue-tooth / WAP / access. This however puts the cell-instrument on the silent mode. Looks attaches exactly like the standard SIM.

This may be used for incoming calls with a message to the caller indicating the status of the called party.

Close-Fit Cover Battery

This covers the card totally and plugs-in to the card at certain points. These points serve to fix the card tothe cover.

This attachment together becomes a play / game device. We have games on parallel with the get-a-date game famous in Japan. So it may have two/three LEDs for adding fun to the experience.

This cover has a data port connection for connecting to a computer / card access machine. With the connection in place the crd-holder can input transitory data to the card. Game data is transitory data.

The card cover is dumb and can be interchanged. Any cover can be used with any card. So on purchase the card may come with two or three covers depending upon the requirement of the user.

Card cover can be charged just like a cell phone using the same technology.

CONCLUSION: Will it become a reality?

Companies are working on a multi purpose cards. But one never knows if thats going to take off. But at least they are thinking and that is a good sign. The key hurdle I believe is to make this card take off, even if some one can make such a card. Technology is not a hurdle here, acceptability is. If someone can solve that problem the entire concept can work like a dream.

More than that our purses will not be jammed with cards from different companies. The money part however will still remain!! ;)