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Location-based services: homing in on viable revenue streams
Analysys Mason Group, July 2009, Pages: 25
Location-based services are a hot topic in the telecoms industry, as GPS functionality is incorporated into an increasing proportion of handsets, and the rise of smartphones and OS standardisation continues to catalyse the supply (that is, applications) side of the market. Regulations, such as the US E911 requirements and potential equivalents in Europe, are also having an impact on the market.
However, the state of the market with regard to the commercialisation of location-based services – that is, actually generating revenue and margins from them – is embryonic, at best. Advertising, for example, seems to be ideally placed to incorporate a location-based aspect: location information could make mobile advertising a viable option for 'bricks-and-mortar' establishments in cases where previously it may not have been, but there is very little activity in this space, and we believe that it will be 3–5 years before the location-based mobile advertising market takes off. A corollary of the market's nascency is that it is often difficult to gauge the significance of many of the developments that are occurring in it, because there is no widely accepted view of market dynamics and market development against which potential impact can be assessed.
Location-based services: homing in on viable revenue streams summarises the status and potential development of the market for location-based services. It includes a review of location-based application types and an analysis of location-fixing technologies, as well as a discussion of the potential impact that alternative technologies might have on commercial dynamics. The report also reviews the potential impact that location aggregators might have on the market's development and dynamics.
Location-based services: homing in on viable revenue streams answers your key questions:
- How should operators position themselves to be able to generate long-term value from location-based services?
- How will the alternative technologies impact the market – that is, what role will GPS and other location-fixing technologies play?
- What does the application landscape look like, and which applications are likely to generate value in the long term?
- When will location-based advertising take off, and which players will extract most value from advertising?
- What will the role of location aggregators be, and what will be their influence on market development and market dynamics?
- In which niches will operators be able to differentiate themselves, or generate long-term value?
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