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January-2007

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The one in the many

T Kalyan Chakravarthi
Assistant Editor, Geospatial Today
Location-based services are fast emerging as the differentiating factor in the highly competitive cell phone markets worldwide. Juniper Research estimates that the total available market for mobile location services will grow from under $ 1 billion at the end of 2007 to over $ 8.5 billion by the end of 2010. Given this huge market potential and the corresponding reduction in voice revenues, these services could be crucial for carriers. This article traces the evolution of these services from the initial days of hype and the subsequent disillusionment to the present renewed interest being shown in them.


With technology rapidly evolving new mobile phones with multiple features are flooding the markets. The intense competition has given rise to a number of value-added services, the hottest of which is LBS, short-form for location-based services.

Thanks to LBS, now one can know not only one’s location but also the whereabouts of one’s family members and friends and navigate through new places without being lost.

For the record, LBS are not new. They have gone through the initial and usual phases of excitement and hype so much so that billions of dollars were said to be on offer for the taking. Not surprisingly, many companies happily jumped onto the bandwagon in the new gold rush. This was way back in the late 90s when LBS first made forays into market consciousness. Two, three years into the new millennium, all the players, in particular, mobile operators, discovered to their dismay that there was a thorny side to the rosy picture. To be fair to them, the systems available then were not accurate enough (1000m and up), which naturally yielded less than desirable results for the end users. Applications and handsets were pokey. Add to that, there was and (still is), a perception that these services are somehow spooky. The result was dissatisfied subscribers, poor uptake and a weak return on investment. Innovative services like Friend Locator, Find My Nearest (pub, ATM etc) never really took off. “Uptake was a catastrophe,” declared Ralph Eric Kunz, vice-president of multimedia experiences for handset giant Nokia, in one of his interviews. Mobile resource management was the only silver lining in the cloud that was LBS.

Things have started changing since 2005 and now there is a renewed interest in LBS. Cellular carriers have finally stabilised their network platforms and position determination technologies with A-GPS and TDOA. Nearly all the major carriers have 2.5 G on a single network platform. 3.5G is well on its way too. Different types of handsets with expandable memory, graphic display capabilities and user interface mechanisms are flooding the market on a daily basis. Creation and stabilisation of standards, protocols and application developer programmes and tools for both platform/middleware and handsets, such as Java, MLP, OpenLS, J2ME (GSM) and BREW (CDMA) have dispelled the confusion that was prevalent earlier among location application developers on what and how to design. The penetration of mobiles into the mass market has created some sort of awareness among the customers about features beyond voice. More importantly, operators are now targeting individual LBS segments replacing the “one-application-fits-all” approach.

Joe Astroth, Director, Autodesk Location Services, once said about LBS: “It’s a killer application that got killed before it got into the mainstream.” He has always maintained that LBS is a killer enabler and the way things turned out, one cannot but agree with him. By location enabling existing applications and introducing innovative services, mobile operators stand to gain.

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