KPMG International [press]:

location based services


"KPMG International: time to rethink the business model for mobile converged services
Report suggests time is right to switch revenue focus from consumers to third party advertisers.
Converged services now expected but customers unlikely to pay a premium.
The rapid strides which cell phone service providers are making in offering converged multi-media services to their customers is likely to necessitate an urgent rethink of their basic business models, states a survey out today.
The report from KPMG International claims that the time has come for service providers to switch from a customer-based business model to a model which focuses more on presenting a stable customer base to third party advertisers and sponsors. The survey of 3576 cellular phone owners worldwide revealed that consumers see absolutely no limits in terms of what services can be offered via their mobile handsets. However, almost 40 percent claimed that they would not be prepared to pay a premium over and above their current bill to receive these services.
Therefore, KPMG International claims that attempting to exploit converged services purely to squeeze more cash out of consumers on a traditional subscription model will not work. Cell phone companies would find themselves offering upgraded content but without necessarily being able to secure the premium subscription rates which they would hope for.
Sean Collins, Global Chair of KPMG�s Communications practice and partner in the U.K. firm, explained: �Mobile service providers will need to stop thinking of converged services purely as a revenue booster. Instead, they should consider them as a churn reduction tool, allowing them to present a much more stable, loyal subscriber base which should be attractive to advertisers and digital commerce partners. In its most basic terms, it�s a case of moving from a "