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Wireless
May 26, 2003
Location-based services set to storm market
UNITED STATES -- Struggling to remain profitable amid
price competition and falling ARPU, mobile operators
are gearing up for rolling out next-generation commercial
location-based services (LBS) to create new revenue
streams, build subscriber bases and reduce customer
churn. According to a recent analysis from Frost &
Sullivan, the North American location-based services
markets generated $13mn in revenues in 2002, and are
likely to climb to over $850mn in 2006.
Industry
analyst, Brent Iadarola, said: "Information, transaction,
and entertainment-based applications will frame the
foundation for LBS, and mobile operators will be challenged
to provide a personalised combination of these services
that is unique and compelling to the mobile user."
Market
participants are establishing best-of-breed partnerships
with key players in the LBS value chain as complete
LBS requires the integration of wireless network infrastructure,
location-enabled devices, flexible platforms, and a
range of location-specific applications and content.
The emergency 911 mandate of the FCC and subsequent
advancements in location-measurement technologies, as
well as wireless infrastructure and standards will fuel
the market growth.
Consumer-oriented
applications, such as voice-enabled navigational aids,
friend finders, and mobile concierge services will provide
the initial impetus for LBS' adoption. In addition,
businesses are already investing in company-specific
solutions such as tracking services, workforce management,
and security applications. Iadarola added, "Consumer
awareness along with increased availability and capacity
of location-enabled handsets will be the key to increase
penetration rates."
Market
participants are striving to establish new pricing models
that incorporate revenue-sharing arrangements into the
standard licensing agreements. This, combined with incremental
deployment, will enable carriers to reduce large up
front investments and minimise risk.
The
LBS market is characterised by rapidly changing technologies
and evolving industry standards Therefore, market growth
depend on the ability of mobile operators to adopt flexible
structures and introduce high quality, secure, just-in-time
location services to suit user preferences.
Contact:
Frost & Sullivan
Tel: +91-44-2431-4263
Fax: +91-44-2431-4264
Email: bbanerjee@frost.com
Web: www.frost.com
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