Saturday, January 28, 2006

Location-Based Services Offer High Revenue Potential in Competitive Mobile Communications Market

Location-based services (LBS) have been increasingly on the radar screen for a wide variety of carriers according to Frost & Sullivan. Additionally, revenue in this industry totaled just $91.2 million in 2004 and can reach over $600 million by 2008

PALO ALTO, Calif., Jan. 16 -- There has been intense scrutiny on how LBS initiatives can enhance average revenue per user (ARPU) and reduce churn. Frost & Sullivan (http://www.wireless.frost.com ) reveals that revenue in this industry totaled just $91.2 million in 2004 and can reach over $600 million by 2008.

If you are interested in a virtual brochure, which provides manufacturers, end users and other industry participants an overview of the latest analysis of the U.S. Consumer Location-based Service Markets - Enhancing Carrier ARPU Through LBS, then send an email to Mireya Castilla, Corporate Communications at mireya.castilla@frost.com with the following information: your full name, company name, title, telephone number, e-mail address, city, state, and country. We will send you the information via email upon receipt of the above information.

"The variety and breadth of possible applications and services in LBS, from pure content and advertising, to emergency 911 (E911), navigational aids, social networking, and tracking services highlight its adaptability," explains Frost & Sullivan Industry Research Manager Brent Iadarola. "Research on trends in LBS adoption indicates that companies regard location as a 'killer- enabler' to existing services, rather than chase the elusive next 'killer application'."

Middleware platforms leveraging advancements in location determination technologies and the proliferation of assisted global positioning system (A-GPS) handsets comprise the essential ingredients for a compelling, commercial LBS suite moving into place.

With high overall performance and widespread location coverage even in areas of low-cell density, A-GPS is likely to emerge as the long-term technology of choice for operators in North America. Carriers' decision whether to spread capital expenditures over a greater period of time and provide incremental services to customers will affect their future. By delaying services, the carriers may be able to save costs on intermediate infrastructure; however, they risk losing customers to competitors with first mover advantages.

"In contrast to fixed Internet, users in the mobile environment are demanding personalized, localized, and timely access to content and services," explains Iadarola. "LBS with user-friendly application categories such as mobile resource management (MRM), entertainment, information services, and security services are likely to be successful commercially."

The aggressive marketing of commercial LBS, growing traction of LBS offerings, as well as sophisticated and integrated LBS are some of the main factors that are likely to heighten the growth and revenue potential of these services in the future.

U.S. Consumer Location-based Service Markets - Enhancing Carrier ARPU Through LBS is part of the Next Generation Mobile Communications Subscription that evaluates the competitive landscape of LBS in the United States. It also assesses technologies such as A-GPS, EOTD, U-TDOA, AFLT, Cell ID and discusses dueling architectures such as control and user plane. This research service also includes market forecasts, application trends and data on usage trends. Executive summaries and analyst interviews are available to the press.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit http://www.frost.com


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