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Over 40% of Operators' Mobile Data Services Revenues in 2007 Will Be Location Based
URL(s): www.arcgroup.com
LONDON, Aug 19, 2002 - Location-based services (LBS) will account
for over 40% of operators' mobile data services revenues in 2007,
according to a new report from ARC Group. Growing from just over $1
billion worldwide in 2002, LBS will contribute increasing amounts to
mobile operators' revenues over the next five years.
The leading location-based consumer service will be infotainment,
which includes 'where's my nearest' and 'friend finder' services, along
with news, sports results, weather, traffic, proximity and community
services. These are currently the most widely deployed and this trend
is likely to continue. Navigation, tracking and entertainment LBS follow
as the next most popular consumer services. The new report states
that the consumer market will generate far more revenue for operators
than business and enterprise, although location-based business
services such as field force and logistics will still contribute an
estimated $15 billion worldwide in 2007.
However, tough economic conditions have contributed to a cautious
approach by operators in deploying LBS. The report's author, Karen
Walsh, says that the other factors at work adding to operators'
caution in deploying new location- based services include uncertainty
surrounding issues relating to user privacy, interoperability, services
roaming and m-Commerce security. In the US, specific issues relating
to the FCC's mandate to provide E911 wireless emergency services has
caused network operators to focus on deploying high- accuracy
location technologies rather than commercial LBS.
Walsh says, "The cost of deploying LBS is relatively high so operators
want to understand their market before introducing a wide variety of
services. However, consumer services are being deployed. This is
especially true in Europe and Asia where operators are rolling out
services as business cases merit rather than waiting for high-precision
location technology to be rolled out." This allows operators to target
existing customers with current- generation handsets and test their
marketing strategies and segmentation models. This approach should
help to ensure there is a reasonable return from each stage.
Some operators, such as KDDI and NTT DoCoMo in Japan and E-Plus in
Germany, are even making location a core part of their strategy and
are focusing on deploying accurate location technology and services
that will differentiate them from their competitors.
ARC Group, part of the Informa Telecoms Group, provides a range of
analysis, research, and consultancy services to leading clients around
the world, with a team of full time consultants based in the UK
supported by a global network of associates and analysts.
As an independent consultancy, ARC's core value lies in its ability to
provide objective and original analysis in the form of a range of
products spanning from strategic reports to bespoke consultancy
projects. Covering the entire mobile value chain from networks through
handsets to content and applications, ARC has built its reputation upon
a commitment to analysing strategic issues, trends, and technologies
from a realistic perspective that cuts through the hype.
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