Location-based services to show tremendous growth

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25 April 2001 News

The nascent location-based services (LBS) industry stands on the brink of tremendous growth, according to the findings in a new study from Allied Business Intelligence.

According to ABI, world LBS revenues will grow from approximately $1 bn in 2000 to over $40 bn in 2006, a compound annual average growth rate of 81%.

"Many factors will contribute to LBS revenue growth from virtually nothing today," said ABI Analyst, Frank Viquez, the author of the report. "Despite the obvious US Enhanced 911 mandate, which calls for US wireless carriers to begin selling automatic location identification (ALI) capable handsets by the end of 2001, carriers are also looking for new revenue streams and newer ways to deliver compelling services, in order to promote customer loyalty and to reduce churn."

Most carriers have already stated their plans to pursue their network or handset-based location fixing technologies in their networks. Sprint recently announced its plan to incorporate GPS chips into its handsets.

Several companies are wrapping up initial LBS and location-relevant wireless advertising test markets and have been reporting very positive results. However, possible threats toward the development of the LBS industry lie in concerns over privacy issues and unsolicited wireless advertising. ABI says this should not be a major concern for subscribers, because the carriers, application and content developers, and infrastructure providers alike have invested millions of dollars in the research and development of LBS; the last thing they want to do is put the LBS consumer in a vulnerable position, so their focus is to empower consumers and to protect them from such dangers by offering them 100% opt-in solutions.

www.alliedworld.com

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Location-based services to show tremendous growth

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