Location Based Services: You Know The Way!

Location based services (LBS) technology combines mobile technology with
spatial database and Geo Information System (GIS) technologies to provide
relevant information on time. They deliver geographic information between
stationary and mobile users using Internet or wireless network.

LBS is most commonly used for dating or sales campaigns, travel aids,
emergency services, location based gaming and entertainment in the B2C space.
These are also used in vehicle tracking services, workforce management etc in
the B2B space. Presence detection is another application, which is gaining
popularity, owing to fast paced life of ours and especially tracking of
children.

The Edge

LBS is being touted as the killer application of the future. It
benefits both, the service provider as well as the user. The user will
get information easily and operator will generate additional revenue on its
existing network. According to Allied Business Intelligence, the LBS industry
will account for more than $40 bn in revenue by 2006.

World over, service providers are gearing up to tap the immense potential,
these services hold for them. Many innovative services are being launched to
provide subscribers a convenient and personalized experience.

In June 2006, Disney launched its services with family finder capacity and
Verizon wireless also launched a service called “Chaperone” which uses
Global Positioning System (GPS) data to let parents track their children.

Recently, Sprint and InfoSpace launched LBS search engine, “InfoSpace
FindIt”. It enables the subscriber to find local businesses and services, and
click to call them without dialing the number.

Vehicle Tracking

Vehicle tracking solution enables a company to monitor the location of its
stock in transit. Each vehicle is mounted with an Airtel mobile phone or a GPS
box and a vehicle tracking enabled SIM card. The SIM card sends periodic updates
of the location of vehicles to the Bharti application server, as per the
frequency defined. The progress of the vehicle is displayed on a map of the
tracking website. The application allows tracking of multiple vehicles
simultaneously. In India, Tata Teleservices introduced LBS for enterprises. This
includes vehicle-tracking system, which was launched earlier this year for
commercial vehicles. Owing to its popularity, it was recently extended to school
vehicles as well.

The technology is also emerging as a potential marketing tool. Content
providers such as Mobile2win are in talks with service providers to introduce
such location-based services which will enable marketers to reach out to the
customers when they are in the vicinity of the outlet, by offering them schemes
and incentives. Airtel is introducing this type of service in India. The mobile
marketing revenue is expected to reach $3 bn globally and this has made Indian
service providers start tapping into this goldmine.

The Challenges

There are a number of companies trying to make their mark in the LBS
industry, but they have to overcome some challenges. The major blocks in mass
deployment of this technology are, the cost consideration and accuracy, because
LBS are most useful only when the location technology is accurate.

Other challenges such as, uncertainty of positioning and connectivity,
interoperability between diverse set of technologies that are involved, privacy
concerns also need to be addressed before LBS technology is fully deployed.

Sonia Sharma

sonias@cybermedia.co.in