LBS Opportunities
Armagh (Northern Ireland) ERNACT EEIG
Velázquez, 50 – Planta 1 28001 Madrid, España www.arthurdlittle.es
23 May 2005
CONTENT What & Why LBS Mobile phone location technology, the limits What is the usual business model and the role of the alliances Main applications
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What & Why LBS
“Stricto Sensu”: LBS is any kind of service associated to the location of a mobile phone In fact, we also use LBS to describe services which works with other inputs, like GPS devices or other sources of addresses (example: manual address)
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What & Why LBS
First Driver: Mobile network operations & billing requirements Second Driver: 911 / 112 requirements for emergency calls Third Driver: Mobile operators need new revenues
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What & Why LBS ď Ž Third Driver: Mobile operators need new revenues I The transition from Coverage to Value-Added Services
14% of Vodafone revenue generated by data (2005)
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What & Why LBS ď Ž Third Driver: Mobile operators need new revenues II And LBS and entertainment are the new drivers 4%
4% 2% 2%
Messaging
32%
Info Services
16%
36%
Location-based Services Entertainment Other
76%
10%
18%
2002
2010
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CONTENT What & Why LBS Mobile phone location technology, the limits What is the usual business model and the role of the alliances Main applications
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Mobile phone location technology, the limits ď Ž Technology 1: CELL ID Cell Identification (CellID) and Cell-ID with refinements (Cell-ID ++).
Cell ID and Cell-ID ++ offer basic level positioning accuracy, are in use in GSM environments and are expected to remain in use with UMTS (3G).
Accuracy depends on the number of base stations & coverage
A. Cell Site
C. Cell Site with sector and Timing Advance
B. Cell Site with sector
D. Cell Site with sector, Timing Advance and Supplementary information
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Mobile phone location technology, the limits ď Ž Technology 2: TDOA–TriangulatingPositioning a Mobile terminal with Time
Difference of Arrival
Neighbour Cell Site
Synchronized network
Assistance Data
Serving Cell Site Neighbour Cell Site
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Mobile phone location technology, the limits ď Ž Technology 3: GPS A-GPS Positioning a Mobile terminal with GPS/
GPS Satellites
Assisted GPS
Assistance Data
Position Estimate
Cell Site
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Mobile phone location technology, the limits ď Ž Accuracy How higher accuracy is required?:
Precision Local Positioning
3G: IP-DL, OTDOA
Accuracy / environment GPS
1.000 to 10.000 meters is often enough for many services
Cell-ID + TA + Rx
E-OTD
Cell-ID
A-GPS Rural Sub-Urban
Accuracy of less than 100 meters is good for most services
Urban City Indoor 10
1k 100 Accuracy / meters
10k
Relative Coverage and Accuracy of most Important Positioning Methods Source: Nokia Company documents
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Mobile phone location technology, the limits ď Ž Advantages and drawbacks Cell ID
TDOA
GPS
Accuracy
Terminal availability Inside Coverage Penetration Capability Cost
Response time
Investment cost Ease of maintenance
Best entry solution
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Complementary Technologies ď Ž Which are the related Technologies?
UMTS
GPRS Microsoft WAP 2
GSM
Network
J2ME
Analogic
LBS MMS
i-mode PDA EMS
Services
WAP
SMS
Voice
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Mobile phone location technology, the limits The limits: Example –Fleet Tracking-
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Mobile phone location technology, the limits ď Ž The limits
OK OK?
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Mobile phone location technology, the limits What is the real situation: – Cell-ID available in most of the countries
– TELCO bubble blast limited the investment in the network – Short deployment of LBS services, due the accuracy limitations and privacy risks – GPS devices used in enterprise applications
– Working on an active and passive way – Roaming: privacy limitations
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CONTENT What & Why LBS Mobile phone location technology, the limits What is the usual business model and the role of the alliances Main applications
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Complementary Technologies ď Ž Who is involved in the business?
Network Operator
Network Equipment
Portal Enabling Technology
Application Developer
Device
Content Provider
Virtual Operator
End-users: Consumers and businesses
Application Provider
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Complementary Technologies Who is involved in the business? Players in the mobile data market can be classified roughly into three categories:
Service providers such as mobile network operators, virtual operators and portals. Technology providers such as network equipment vendors, enabling technology providers and handset suppliers.
Applications players such as application providers, content providers and application developers.
Vodafone O2
Ericsson Nokia
Yellow pages Findamobile.com Mapinfo
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Complementary Technologies How do they work together Location Input
TELCOS Network operator
Soft MLC
Middleware
GPS
LBS
Cartogra Content phy LBS Applications
Output devices
Two kind of alliances: – Technological
Hardware Software
– Commercial
Software Hardware CRM-ERPothers
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Complementary Technologies
ď Ž Main options of revenue model
Premium Usage
Subscription service $$ subscription for premium content
Usage $$ (SMS, Voice or WAP)
Wireless Network Operator
$$ Transaction fees
Content & Applications
Consumer
Wireless Network Operator
$$ for billing and location
Content & Applications
Consumer
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Complementary Technologies One example, “near here” service
$
$ WAP/SMS PREMIUM
(.50) (.15)
(.40) HTTP
APPLICATION PROVIDER
WAP/SMS PLATFORM MOVISTAR
API
(.03) LOCATION PLATFORM
TRAFFIC LOCATION INF SERVICE (.50)
$
€ .15 € .03
€ -.03
€ .10
€ .40 Luis Cubria
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Complementary Technologies I want to build a service, what is the first step”
Identify a network (Vodafone?)
with
location
capabilities
Use de Alliance program of the mobile operator to find an application provide or an integrator
Adapt your content to the location service: – Allocation of the information – Adaptation to devices requirements
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CONTENT What & Why LBS Mobile phone location technology, the limits What is the usual business model and the role of the alliances Main applications
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Applications HORIZONTAL APPLICATIONS Contextual Marketing/Shopping Tools Local Information, Directory, City Guide Assisted CRM/Call Center Logístics/Fleet management Vendors/Employees management Geomarketing & Geopricing & Geobilling Community platform (friends, games, mymap) Geo maps
VERTICAL/Sector APPLICATIONS Real Estate Emergency services Security services Family Locator (Child, elderly, handicapped) Virtual tourist guide Public Agencies LBS Car World -in vehicle services-
More categories: Enterprise vs consumer Luis Cubria
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ď Ž Emergency Services
2 Luis Cubria
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ď Ž Local Information, Directory, City Guide
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ď Ž Assisted CRM/Call Center
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ď Ž Fleet Management
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End of the presentation cubria.luis@adlittle.com Luis Cubria
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