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News
Issue #2002 - 11 (March 2002)
(Updated Mar.
20, 2002)
MARKET OUTLOOK
& TRENDS
Location-based Services Revenues
Will Disappoint Carriers, study says
Location-based services will
not generate the revenues wireless carriers are expecting, according
to U.K.-based research firm BWCS.
In its report, ‘Mobile Location Based Services: Where’s The
Revenue?’ the firm says revenues generated worldwide will be a
disappointing $3.7-billion and, therefore, warns operators not to
depend on location-based services to generate new revenue streams.
"Many operators are clinging to the hope that adding a
location element to mobile Internet services will revive flagging
ARPUs," said Peter Kingsland, co-author of the report.
"But once again they are focused on the technology rather
than the design of the popular applications. The current crop of LBS
will generate only a minimal increase in airtime revenues," he
added.
Findings
- Consumers will only use the applications if they are accurate,
fast and easy to use; not the clunky and cumbersome user
experience offered by existing WAP and SMS-based location
services.
- Slower-than expected deployment of third generation networks
will only hinder the mass-market adoption of location based
services.
- Lack of standardization and roaming among location services
offered by disparate mobile operators will also retard their
acceptance.
For more information: http://www.bwcs.com
(Additional source allNetDevices)
Mobileinfo Comments & Advisory: We
agree with the general conclusions of the report. Except for wireless
games and entertainment, location-based applications will bring revenue
to the piggy banks of the carriers only gradually. Telematics will help
location-based application and revenue but it will be slow.
Note: This news release may contain
forward-looking statements. Readers should take appropriate caution in
developing plans utilizing these products, services and technology
architectures. All trademarks used in this summary are
the property of their respective owners.
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