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March 2003 - A recent survey of In-Stat/MDR's (http://www.instat.com)
Wireless Panel illustrates that there is moderate
interest in Location-Based Services (LBS). LBS utilizes
location-sensitive technology, such as Global Positioning
Satellite (GPS) or network-based solutions, to deliver
services or applications to a wireless device, such
as a mobile phone. These applications can include
emergency response services, and finder applications
that let mobile phone users locate friends or family,
businesses or landmarks. They can also deliver maps,
directions, or traffic reports. |
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The
revenue derived from these services will help carriers
offset the cost of location-enabling their networks,
and will also succeed in driving data usage in a time
of falling revenues for wireless voice services. But
with infrastructure costs that will run in the hundreds
of millions, if not $1 billion, per carrier, based on
their network size and complexity, it will take many
years for service providers to recoup their investments
from LBS technology deployment. Respondents to In-Stat/MDR's
survey were not very keen on spending money for these
services on top of their monthly cellular bills. Of
those respondents who were willing to pay for these
services, most were not willing to pay more than $10,
per service, monthly. Wireless service providers must
clearly demonstrate the value of these services to generate
demand and derive revenue from them. Another inhibitor
to market growth is the lack of installed base of mobile
phones that are location-enabled. These phones must
begin to populate the market in a more rapid manner
to see any real demand materialize.
In-Stat/MDR
also found that:
- Users
are most interested in emergency response services
(or E911). The second tier of services that respondents
were interested in relate to directions services and
maps. Mobile advertising services were viewed as far
less appealing, compared to these other services.
- While
LBS are perceived as useful, the "Big Brother" phenomenon
might inhibit people from using them in the future.
"Opt-in" requirements must be strictly adhered to
for users to trust these services enough to regularly
use them.
In-Stat/MDR
report, "Location-based
Services: Finding Their Place in the Market", which
discloses cellular subscriber and wireless Internet
user sentiment to certain LBS services, as well as their
willingness to pay for these services, and their opinions
toward some of the key issues related to LBS.
SOURCE
Instat MDR Press Release Back
to News Reports
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