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NEWS
Issue #2001 - 08 (Feb. 2001)

(Updated on Feb. 21, 2001)

MARKET OUTLOOK

Wireless Location Services Not to be The Killer App, says Study

Amidst all the hype generated by many industry analysts and media commentators over location-based services as the next killer application, researchers at the U.K.-based consultancy research group, Analysys Ltd., are saying that it is unlikely. "While location services will be an essential part of future mobile package, they are not killer applications," explains Julie Robson, lead author of the report. "However, for the mobile operator, faced with falling air time revenues and the cost of rolling out 3G networks, they will add value to existing service packages, generate new revenue and foster customer loyalty."

Highlights of the Report: "Mobile Location Services and Technologies"

  • Location-specific information and applications include leisure and entertainment information, traffic reports, maps and directions, targeted advertising and promotions, interactive games, asset and vehicle tracking, telematics and network management systems.
  • Global subscriber base is forecast to exceed 680 million users by 2006, representing 50 percent of all mobile subscribers and more than 70 percent of mobile Internet users.
  • Revenues will grow from $2-billion at the end of 2002 to more than $18.5-billion by the end of 2006.
  • Revenue growth will be generated from traffic stimulation, including charges for the delivery of content, charges for positioning the user, and m-commerce charges.
  • The youth market will be the biggest users of the services, as they are less concerned with the inconvenience of small devices or security and privacy issues.
  • Critical factors for success
  • Interoperability: As applications become more complex, users will need an integrated interface to navigate between applications.
  • Service aggregation: A package that includes content and location sensitive applications that are easy to access.
  • Position Technology: Location-based services are currently made available via Cell-ID technology, which is cheap but offers a low level of accuracy. To meet the demand for accuracy, operators may move on to EOTD (enhanced observed time difference) and CDMA for the consumer market and A-GPS for the business market.
  • Regulation: Regional regulatory bodies will affect how the services will be introduced.

"Mobile Location Services and Technologies" explores the opportunities of the mobile location services; how to develop the full potential of the technologies, and detailed profiles of leading industry players.

For more information: www.analysys.com

Mobileinfo Comments and Advisory: We generally support the conclusions arrived at by the report. Location-based services will happen but will take longer than forecast by many. Economic downturn may put a damper on discretionary spending advertising.

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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