Real World Solutions

Real World Solutions: Wireless

The Market for Wireless LBS
In the United States, the development of location-based services has been spurred by the FCC mandate (E-911) that requires wireless operators to provide the location, within 50 to 300 meters, of calls made from mobile phones to emergency dispatchers. The Cellular Telecommunications & Internet Association reported that 51 million wireless emergency calls were made last year in the United States, numbers that emphasize the value of E-911.

Leveraging the E-911 rollout, U.S. mobile directory assistance services (M-411) have become the second largest source of revenue beyond wireless subscriptions. Analysts project $600 million in access fees will be collected this year. Research firms Ovum and the Strategis Group estimate U.S. wireless location-based services revenues will be $4 billion by 2004 and $30 billion worldwide. Carriers rapidly deploying location-based services will be poised to gain the lion's share of this market.

While U.S. carriers ramp up for LBS, carriers in Europe and Asia are already deploying services. It is estimated that LBS will generate $6.37 billion in incremental annual revenue for mobile phone providers across Western Europe by 2005. Japanese company DoCoMo has 27 million paying subscribers for its I-Mode service, which allows customers to use their mobile phones for tasks as varied as instant messaging, weather reports, locating restaurants, and news updates.

Consumers want wireless location-relevant content provided anywhere, anytime. Carriers want to retain and grow their customer base while increasing revenues.

Value of LBS for Wireless Services
By providing dynamic, location-relevant, and entertaining content upon which users can come to depend, carriers will reduce customer churn, boost average revenues per subscriber and attract new subscribers with new, compelling mobile applications.

Wireless applications driven by location-based services include mobile directory assistance, events and attractions information, route planning, gaming, voice-activated directions, safety and security, roadside assistance, and vehicle tracking.