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Intelligent homes, smart phones, talking cars... nobody envisaged this to be
the future when Graham Bell uttered those historic words: "Mr Watson, come
here. I want you."
What happened? Has technology driven the needs of people or have needs driven
the technology? An analytical perspective reveals a very tricky proposition: The
propensity of innovation does not just depend on the desire to create but also
on the reality of being within the realms of scientific boundaries. Also, while
in earlier times, the consumer was forced to choose from the limited options
that were available to him, that’s no more the case. Today, what the consumer
wants has transcended the borders of just availing good products and services.
The mobile phone, for example, was initially seen as a wireless extension of
the fixed telephone. But come the new age, the mobile phone seems to have opened
up vistas of utilities that were never thought of before. With 3G technologies
just round the corner, the possibilities in the way you can use the mobile phone
are ever increasing. What was perceived as something that could just carry voice
is seen today as a business machine. Even more importantly, it is evolving into
a tool to help make life easier in many ways.
Japan is the biggest testimony to the fact that mobile telephony has
revolutionized the communication industry. Mobile penetration in Japan is 60
percent, and has actually surpassed the number of fixed-line telephone
subscribers since mobile telephony was first introduced in 1994. The
ever-growing population of mobile phone subscribers, which stands at more than
394 million GSM subscribers worldwide, characterizes the acceptance of this
technology.
Perspectives have changed, and the mobile phone has evolved to become a
necessity rather than a fashion accessory. So the oft-repeated buzzword for
companies today is–add value to the services and products being offered to
consumers.
Why Location-based Services?
These days, much is being discussed in telecom circles about location-based
mobile services. Such services will help operators provide differentiated
services to subscribers. Subscribers in turn will find these services very
useful and resourceful. The difficulty lies in selecting the best technological
solutions that can facilitate lower operating costs for operators in different
markets. Nevertheless, two years of a technology-and-market research has
identified some highly potential location-based services that can be highly
profitable.
Location-based mobile services will extend a host of utilities to the
subscriber–of course they will come with a price tag. But the utilities that
one can avail using these services are most likely to be reckoned as a necessity
in the future. Once the technology is marketable, it will definitely translate
into consumers needs. An objective approach reveals the fact that individuals
tend to behave in a very predictable manner when in unfamiliar surroundings,
whether in their own country or in some foreign land.
There will be innumerable instances when an individual tries hard to locate,
say, a pharmacy, an eatery, a cash dispensing machine, or a taxi stand, when he
is alone in an unknown place. When abroad, the nature of requirements can be
local sight seeing trips, locating a hotel and maybe a foreign exchange counter.
While driving, there maybe requirements such as help with finding route through
an unknown city, and details of brake-down services.
In such situations, a mobile phone with a roaming facility will not be of
much help. Given a pragmatic view, this unveils a huge potential for services
that would facilitate the situation-based needs of mobile users. Hence the need
for location-based mobile services.
Service Categories
Many service providers are toying with the idea of providing location-based
services. But the type of service they will provide largely depends on the
consumers life-styles, and the type of technology chosen. One service category
is the business-to-consumer relationship wherein information on subscriber
location enables companies to direct local promotional and advertizing campaigns
for subscribers, if they opt for such information. This provides a trade-off for
lower monthly subscription rates, and suits those users well who want to keep
their monthly bill to a minimum. Provided the issue of subscribers’ rights to
privacy is duly addressed, this provides a good revenue opportunity for service
providers and operators.
The second service category identified is the consumer-to-business
relationship wherein subscribers themselves request their location to be
determined so as to gain precise information related to their immediate
environment. This will encompass users who want information about local services
such as restaurants, gas stations, pharmacies, etc. This type of request will
primarily come from two types of subscribers–the well-off tourist and the
person with business and personal requirements who deals with daily needs on a
real-time basis. The monthly phone bill for such type of a subscriber is
obviously not a major issue.
Yet another category pertains to the consumer-to-consumer relationship. This
addresses groups of people who belong to a particular social community and are
looking to be in touch with each other. People belonging to this category will
range in the age group of 12 to 20 years, who like to share experiences,
exchange information and get together. This type of location-based service will
pinpoint subscribers’ location to an accuracy of about 50m. As an example,
those who avail mobile chat options in their WAP-enabled phones will get a user
location brief after each message is sent.
There can be numerous other location-based service opportunities for service
providers, operators and developers. Examples include information about
emergency services, and fleet monitoring services. However, the success of such
services will depend on robust and scalable telecom infrastructure, and
transparent policies and business models. That again brings the question we
started with: is the advancing technology creating needs or are human needs
shaping new technologies? Actually... why enter the debate?
Subhash Bana, director Network Applications Division Alcatel India