Location-Based Services

Development Issues & Challenges

Mobile device position determination is costly to implement on a massive consumer scale ($10Billion is expected to spent in the U.S. alone on replacement handsets and network infrastructure) and fraught with public policy issues especially for emergency quality of service and privacy. The many variables in position determination and mobile application usability make this a complex, challenging subject fraught with misperceptions about capabilities. 

Problems and Issues (as of early 2001)

• Technology is still being delivered in piece meal fashion.  No total focus, so far. Carriers can not do it by themselves because they need strong IT partner for application content.

• Lack of standards - major players have not got into it, except IBM who has partnered with Webraska.  If the market is large, big players would pull their muscle against their own implementations.  We expect HP, Oracle and others to jump in soon.

• Lack of universal API for developing local applications - You should look at prominent application servers to provide this capability.  Avoid unique and proprietary APIs from startups except to get your foot into the door and a competitive advantage.

• Investor and VC expectations are not realistic - LBS vendors should be in it for the long haul.

MobileInfo Advisory & Comments: This list represents only a sample of sites and services for location-sensitive advertising. This market is potentially quite big. We feel that content providers should offer unique application service and content that mobile customers want in a hurry or for which they make decisions on the spur of the moment. Location-sensitive advertising is not completely analogous to bill-board advertising. We should also remember that the big players will take lion's share of the general-purpose market (like 10 search engines do 80-85 % of traffic and other 1600 do the remaining 15%). While consumers in 15-25 age group will take to these services very quickly, adoption by other consumers will be slow and gradual. Business models should allow for the breakeven period to be longer.