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Interview

‘‘Targeting the right market
segment is crucial’’

Nitin Patel
Vice-President,
Strategic Marketing, Telenity

At the outset, could you give us a bird’s eye view of location-based services?
Location-based services (LBS) are value added services that are built around the geographic position of the mobile phone or other location-enabled devices. The LBS are mainly categorised as follows:

Enterprise Services
• Field force resource tracking
• Fleet management

Emergency and Public Safety Services
• E911 (US)
• Public safety – alert service
• Child locator
• Pet/Asset locator

Infotainment and Community Services
• Information – Directory service (L411) or city guide (location-based information finder: nearest hospital, ATM machines, schools, AAA, etc.)
• People finder or friend finder – community service
• Proximity services e.g. location-based dating/chat service or social networking and advertisement
• Driving directions

Navigation
• On-board navigation for automobile turn by turn
• Off-board - pedestrian navigation using mobile phone

Charging
• Location-based charging based on the geographic location, service providers may offer discounted calls based on specific location.
What do you think are the essential drivers of location-based services?
Key drivers for LBS are the following:
• End-users productivity
• Entertainment (including LBS based games)
• User experience (two click and content – digital map data sets for mobile industry are critical drivers)
Operators view LBS as the key asset provided by the network.
There have been innumerable surveys and studies predicting exponential growth in LBS markets around the world. Do you think all these expectations have been realised?
Location-based services are about to start delivering some of the promised benefits to the operators and end users. In terms of mass market revenue generation, LBS is still lagging behind its expected growth. In terms of technology, we are seeing a lot of progress in standardisation as well as availability of location-technology with improved levels of accuracy. Mass market A-GPS phones have already made it to the consumers now. We will see rapid changes in consumer adaptation of LBS in the next two years. Many operators in North America, APAC (Korea & Japan) have seen significant success in LBS.

Juniper research estimates that the total available market for mobile location services will grow from under $1billion at the end of 2007 to over $8.5billon by the end of 2010. The largest geographic market will be Asia-Pacific followed by North America and Europe respectively. Tracking applications currently make the most revenues for the business sector.
 
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