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Wireless Vending Machines : Allowing consumers to purchase snacks with their mobile phones

Vending Machine

Nokia, in cooperation with Aerial Communications, today began a demonstration of the "Dial-A-Snack" concept - an application, now being tested in Europe, that integrates wireless data and vending machines to allow consumers to purchase a snack simply by using any GSM 1900 mobile phone.

The Dial-A-Snack concept is designed to extend additional revenue opportunities for GSM 1900 wireless carriers. The concept also adds convenience for mobile phone users, eliminating their need to fumble for change.

Comercially, Dial-A-Snack allows a customer to use a GSM mobile phone to dial the appropriate phone number indicated on the vending machine. The machine then dispenses the corresponding snack selection, and the purchase is confirmed through a signal sent to the customer's mobile phone. The charge for the snack appears on the customer's regular wireless service statement.

"We don't know if wireless vending is just around the corner for the U.S., but we believe this may be the types of exciting things we can explore with innovative partners such as Sonera and Nokia," explained Don Warkentin, President and Chief Executive Officer of Aerial.

"Convenience and simplicity are key to this concept. . Using leading-edge technology to bring greater convenience to consumers is a central part of Nokia's philosophy," Steve Ballard, Director of Wireless Data.

Aerial is the Global Systems for Mobile communications (GSM) provider in the Orlando market and a leading U.S. PCS provider. Nokia, one of the world's leading telecommunications suppliers, is Aerial's infrastructure supplier as well as aleading handset vendor for the operator. Nokia has been involved with similar concept products elsewhere in the world. In fact, in a related application in Finland, service provider Sonera is conducting trials of soft drink machines, juke boxes, golf ball dispensers at driving ranges, and car washes that operate in a similar way to Dial-A-Snack. In the first 15 days of testing for the wireless-activated soft drink machine, the vending company reported that 31 percent of the beverage sales came from mobile phones. This demonstrates the interest and convenience for mobile phone users and the increased usage possibilities for carriers.

"What Sonera is finding in Finland appears to be strong consumer acceptance to wireless vending," Warkentin said. "The potential impact upon vending machine operators could be more sales. For GSM service providers, such as Aerial, the concept could prove to be another source of revenue as well as one more thread in the fabric that is quickly binding American consumers and PCS technology."

Sonera, one of the world's leading wireless communications company, recently completed a $200 million investment in Aerial, the Finnish company's first in the U.S.

Aerial Communications holds licenses to provide PCS service in areas covering 27.6 million of the U.S. population.

Nokia is a broad-scope communications company supplying mobile phones, mobile and fixed telecommunications networks, wireless data communications solutions, multimedia terminals and computer monitors.

September 23, 1998 Feedback | © Yenra ®