Reportlinker Adds LBS Research Series 2010
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Reportlinker Adds LBS Research Series 2010

NEW YORK, Nov. 22, 2010 — (PRNewswire) — announces that a new market research report is available in its catalogue:


LBS Research Series 2010

Executive summary

Mobile location-based services (LBS) are gradually achieving mainstream market acceptance. Popular service categories include mapping and navigation, search and information, social networking and entertainment, tracking and location-based voice tariffs. Mapping and navigation services is the leading segment in terms of revenues and number of active users. Free navigation services have been available for several years in Europe, which created relatively little impact on the market until recently. Nokia and Google launched at the beginning of 2010 free applications that instantly resulted in significant pressure on the pricing for premium navigation services. White-label navigation developers are now working with mobile operators to create unique localized offerings and service bundles to be able to compete with these new free offerings. Search and information services are growing fast as more subscribers adopt mobile Internet services and handsets with improved capabilities. The leading social networking services are also experiencing rapidly growing uptake on the mobile web. Increasingly, these services add various forms of location support. However, the significant growth in usage and number of active LBS users in Europe has not yet resulted in substantial growth in revenues. Total LBS revenues in the EU 27+2 reached euro 220 million in 2009 and Berg Insight forecasts LBS revenues to grow to about euro 420 million in 2015. Mobile network operators seek new ways of maintaining revenue growth as mobile penetration is reaching saturation, competition intensifies and regulations drive call prices down. Increased focus on delivering value added services such as LBS, is one means of achieving this. Mobile users in Europe are gradually adopting mobile Internet services and applications. Uptake of data plans for mobile phones is growing fast in Europe, approaching 15 percent of the mobile subscriber base. Other enablers include improved coverage of high-speed 3G networks, as well as increasing penetration of 3G handsets and smartphones. Apple's highly successful launch of its App Store has influenced other handset vendors and mobile operators to introduce similar services, contributing to significant uptake of mobile applications including location-enhanced applications also among mainstream mobile users.

EU E112 regulations that mandate caller location for emergency calls have driven operators to deploy positioning technology in their networks. Mobile operators launch commercial LBS and open their platforms to third party developers and location aggregators to leverage these investments. Some service providers, such as Google, compile their own databases of cell tower locations that can be used as free alternatives. Moreover, all leading handset vendors have now introduced GPS-enabled handsets in Europe and more than 100 models were available at the end of 2009. Shipments are growing rapidly as ever more low cost models feature GPS. The installed base of GPS handsets is approaching 15 percent of total handsets in Europe. An increasing number of services are partially or fully ad-funded and advertising is becoming the main source of revenues for a growing number of mobile developers and publishers. Ad funding is most likely to become the primary source of revenues also for many location-based services, especially in the consumer segment. However, the mobile advertising ecosystem is still fragmented and complex. Much of the activities carried out are still essentially on an experimental stage. Mobile ad revenues are still very small compared to premium mobile service revenues. Many actors in the mobile value chain show great interest in location targeted ads. Although location can be a very valuable targeting attribute for some brands and campaigns, many other attributes are available that can be more relevant. In addition, several issues – such as user privacy and pricing of location data – need to be resolved before location-based ad campaigns can leave the trial stage and contribute significantly to overall revenues. Local search and social networking services are likely to become predominantly ad-funded. Other consumer service categories can be expected to remain premium services. Many operator navigation services are for instance likely to remain predominantly funded by service fees and tracking services can be expected to rely solely on premium fees. More and more service providers are also introducing one-time fees or service bundles rather than monthly subscriptions.

Table of Contents

Table of Contents i

List of Figures....vii

Executive summary. .1

1 Introduction to location-based services ...3

1.1 Definition of mobile location-based services...3

1.2 Overview of the European mobile communications market ....4

1.2.1 Mobile voice and data subscribers .5

1.2.2 Handset shipments and installed base 5

1.2.3 Mobile service revenues...6

1.3 Smartphones and application stores ....7

1.3.1 Proliferation of mobile operating systems. 7

1.3.2 Application stores provide a new channel to the market...8

1.4 Mobile LBS categories 10

1.4.1 Mapping and navigation services .11

1.4.2 Search and information services...11

1.4.3 Social networking and entertainment services .12

1.4.4 Tracking services .13

1.4.5 Location-based billing services 13

1.4.6 Other services .14

1.5 LBS business and revenue models 15

1.5.1 LBS business models 15

1.5.2 Pricing models for location-based services .16

1.6 Regulatory environment ..17

1.6.1 European emergency call regulations and implementation .17

1.6.2 Legal aspects of privacy for electronic communications and LBS. 18

1.7 Mobile network location technologies and platforms ..19

1.7.1 Mobile network-based location technologies ...20

1.7.2 Assisted GPS and hybrid location technologies....21

1.7.3 Control Plane and User Plane location platforms ..23

1.7.4 Accuracy requirements for LBS ....24

2 Operator LBS services and strategies ....27

2.1 3 Group...27

2.2 KPN Group...28

2.3 Orange Group...30

2.4 Telecom Italia Mobile..34

2.5 Telefonica Group ...35

2.6 Telenor Group...37

2.7 TeliaSonera Group 39

2.8 T-Mobile Group .41

2.9 Vodafone Group ....44

3 Trends and forecasts 47

3.1 Summary of the European LBS market....47

3.2 Handset trends .49

3.2.1 Rapid growth of GPS-enabled handsets and smartphones .49

3.2.2 Web technologies and runtimes will challenge native applications ....50

3.2.3 Augmented reality applications brings a new dimension to handsets 50

3.3 Mobile advertising and location. 51

3.3.1 Challenges and opportunities for mobile advertising .51

3.3.2 Location can improve ROI for advertisers....51

3.4 Vertical market trends. 53

3.4.1 Mapping and navigation services become free for end-users...53

3.4.2 Growing usage of search and information services driven by smartphones 55

3.4.3 Social networking and entertainment services gradually add location ....56

3.4.4 Tracking service market growth driven by corporate services ..58

3.4.5 Location-based billing services face decline as mobile call rates fall..59

4 Mapping and navigation services. 61

4.1 Overview of mapping and navigation services...61

4.2 Mapping and routing services...62

4.2.1 Service provider offerings ...62

4.2.2 Mobile network operator offerings 62

4.3 Turn-by-turn navigation services ....64

4.3.1 Handset vendor offerings....65

4.3.2 Branded software vendor and service provider offerings 67

4.3.3 Mobile network operator offerings 68

4.4 Key market players 71

4.4.1 amAze GPS: Ad-sponsored navigation from LocatioNet Systems. 72

4.4.2 Appello Systems: White-label navigation application developer....73

4.4.3 Google: Deploying free turn-by-turn navigation ....74

4.4.4 Nokia: Free mapping and navigation bundling with GPS handsets....74

4.4.5 Telmap: Leading white-label navigation service provider in EMEA 76

4.4.6 TomTom: Vertically integrated navigation solution vendor ..77

5 Local search and information services ...79

5.1 Overview of mobile search and information services...79

5.2 Directory services ..81

5.2.1 An industry in transformation from print to online services ..81

5.2.2 Accelerating growth for mobile directory services. 82

5.3 Key directory publishers..84

5.3.1 DasOrtliche. 84

5.3.2 Eniro .84

5.3.3 European Directories 84

5.3.4 PagesJaunes...85

5.3.5 Seat Pagine Gialle 85

5.3.6 Truvo 86

5.3.7 Yell Group...86

5.4 Search, POI and information services .87

5.4.1 Local search and POI services .87

5.4.2 Weather information services...88

5.4.3 Traffic information services .88

5.4.4 Other information services ..89

5.5 Company profiles ..90

5.5.1 Amdocs .90

5.5.2 Google...91

5.5.3 Microsoft 92

5.5.4 Mobile Commerce 92

5.5.5 mxData ..94

5.5.6 Searchteq ...95

5.5.7 Yahoo! ...95

6 Social networking and entertainment services...97

6.1 Application categories 97

6.2 Chat and instant messaging services .99

6.2.1 Chat Orange....99

6.2.2 Chat Movistar 100

6.2.3 TIM KISS...100

6.2.4 eBuddy 100

6.2.5 Fring ....101

6.2.6 Ovi Contacts..101

6.2.7 Palringo ....101

6.3 Social networking and community services 102

6.3.1 Desktop-centric services add mobile support 103

6.3.2 Mobile-centric social networks continue to gain traction....103

6.4 Social networking services .104

6.4.1 Brightkite: Location-enabled micro-blogging and content sharing ...105

6.4.2 Foursquare: Rewarding users for discovering their surroundings ....105

6.4.3 Facebook: World's largest social network gaining mobile traction ...105

6.4.4 Gowalla: Social networking game ...106

6.4.5 GyPSii: Co-branded geo-location platform and social network ...106

6.4.6 MobiLuck: Mobile chat and friendfinder ....107

6.4.7 Rummble: Search and discover recommended places 108

6.4.8 Twitter: Popular micro-blogging service introduces location support....108

6.5 Friendfinder services 109

6.5.1 3 Friendfinder .110

6.5.2 CellVision mBuddy..110

6.5.3 Lociloci 110

6.5.4 Mecomo Friends 110

6.6 Location-based games and geocaching 111

6.6.1 Creative Workline ....111

6.6.2 MeanFreePath ....112

6.6.3 Orbster. 112

6.6.4 Trimble Geocache Navigator .112

6.7 Recreation and fitness applications ..113

6.7.1 Fitness applications. 113

6.7.2 Recreation applications 114

7 Tracking services....115

7.1 Business services 115

7.1.1 Fleet management services ...115

7.1.2 Tracking, workforce management and lone worker protection services 120

7.2 Consumer services...122

7.2.1 People tracking services ...122

7.2.2 Asset tracking services. 125

7.3 Company profiles 126

7.3.1 Connexion2: Identicom and the SoloProtect managed lone worker service ...126

7.3.2 Creativity Software: White-label LBS specialist....127

7.3.3 UbiEst: Expanding from fleet management into consumer tracking. 127

8 Advertising and marketing 129

8.1 Mobile advertising and marketing 129

8.1.1 Challenges and opportunities for mobile advertising ....130

8.1.2 Mobile advertising formats 131

8.1.3 Ad pricing models and revenues 132

8.2 Introduction to location-based mobile advertising 133

8.2.1 Push advertising with location targeting ....134

8.2.2 Location is only one of many targeting attributes 134

8.2.3 Improving ROI for advertisers 135

8.2.4 Location technologies and aggregation services 136

8.3 Case studies ...136

8.3.1 Apple iAd..137

8.3.2 NAVTEQ LocationPoint Advertising .138

8.3.3 SFR Regie.139

Glossary ....141

List of Figures

Figure 1.1: Mobile operators by number of subscribers (EU27+2 Q4-2009) ...4

Figure 1.2: Wireless service revenue forecast (EU27+2 2009–2015) 6

Figure 1.3: Overview of smartphone operating systems (2010)....7

Figure 1.4: Examples of mobile application stores....9

Figure 1.5: Mobile location-based service categories..10

Figure 1.6: LBS system overview....19

Figure 1.7: Assisted GPS technologies ....21

Figure 1.8: Accuracy requirements for LBS services ...25

Figure 3.1: LBS offered by mobile operators (Europe 2008-2010) ..47

Figure 3.2: LBS revenue forecast (EU27+2 2008–2015) ..48

Figure 3.3: Handset shipments forecast (EU27+2 2008–2014)..49

Figure 3.4: Ad spend distribution ...52

Figure 3.5: Mapping and navigation service revenues (EU27+2 2009–2015)54

Figure 3.6: Search and information service revenues (EU27+2 2009–2015) .55

Figure 3.7: Social networking and entertainment service revenues (EU27+2 2009–2015)57

Figure 3.8: Tracking service revenues (EU27+2 2009–2015)58

Figure 3.9: Annual revenues from location-based tariff plans (EU27+2 2009–2015)....60

Figure 4.1: Examples of mapping and routing services marketed by operators (2010)63

Figure 4.2: Turn-by-turn navigation system overview...64

Figure 4.3: Top handset vendors by shipments (EU27+2 2009)66

Figure 4.4: Examples of branded navigation services (2010) 67

Figure 4.5: Navigation offerings from European operators and MVNOs (2010) ..68

Figure 4.6: Handset navigation service users (EU27+2 2006-2010) ....71

Figure 5.1: Local search and information services marketed by operators (2010)...80

Figure 5.2: Leading European directory service providers (2010) ...81

Figure 5.3: Directory provider distribution channels and business models....83

Figure 6.1: Social networking and entertainment service segments ....98

Figure 6.2: Location-enhanced operator chat services (2010)....99

Figure 6.3: Top 10 social networks (2010) ..102

Figure 6.4: Location-enhanced social networking services (2010) 104

Figure 6.5: Examples of Friendfinder services (2010) 109

Figure 7.1: Fleet management infrastructure overview ...116

Figure 7.2: Top ten fleet management providers by installed base (EU27+2 Q4-2009)..118

Figure 7.3: Examples of fleet management services marketed by operators (2010)...119

Figure 7.4: Workforce management services marketed by operators (2010)....120

Figure 7.5: Third party tracking and lone worker protection services (2010)121

Figure 7.6: Operator marketed people tracking services (2010)....123

Figure 7.7: Third party people tracking services using Cell-ID (2010) 124

Figure 8.1: Typical CPM rates for mobile advertising (2009) ....132

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