Significant Advancements in Technology, Applications, and Marketing To Boost Uptake of Revenue-Generating Location-Based Services
CTIA Wireless 2008

BERWYN, Pa.-- TruePosition, Inc., one of the world’s leading providers of complete, wireless location solutions and a subsidiary of Liberty Media Corporation, today announced the Seven Key Drivers for Success of Location-Based Services (LBS).

Development of commercial LBS lagged in the late 1990s through early 2003, but acceptance of LBS applications is growing again due to factors including performance improvements in mobile devices and supporting technologies, as well as more user-friendly applications.

“As with many hot topics in the wireless industry, the hype surrounding LBS came a little too early,” noted Chris Polito, Senior Vice President of Sales and Marketing, TruePosition. “Today a number of advancements are helping to ensure that LBS will successfully generate appreciable revenue in the near term.”

1. Superior phones

Only a few years ago, mobile phones had postage stamp-sized screens with black-and-white, text-only displays. Now most handsets have large, full-color screens capable of displaying graphically intense information. Although the continued advancement of phone technology affects a large number of mobile services, it is particularly important to LBS since operators can now provide colorful maps that indicate points of interest and offer turn-by-turn directions.

2. Better user interfaces on the applications

In the nascent era of LBS, application developers were just beginning to understand the concept of location and how subscribers would incorporate location information into their daily lives. As a result, the initial services were rather clunky in design, often requiring the user to make multiple, costly clicks to get to the desired information. Now application developers have a better understanding of how these services are used in day-to-day life. As a result, user interfaces actually anticipate the way information is gathered and presented and are easier to use.

3. Improved databases of useful information

A few years ago, if a person used a mobile phone to find a taxicab, results may have returned information on taxi repair companies and cab-top advertising firms. Today, applications such as local search tailor results to meet the needs of the mobile device user. Extraneous search results are filtered out for mobile users, since the person is most likely looking for the best cab company in the area.

4. Greater understanding of social networking

A large number of “buddy finder” or “friend finder” applications were available in the late 1990s. They were easy to develop, and many people thought there was an inherent need to find out where their friends were. These applications worked well but never really experienced growth since users needed more than just a point on a map—the location needed context. Social networking is extremely popular with Internet-based Web sites such as MySpace, LinkedIn, and Facebook as cases in point. These proven Internet brands are migrating to mobile devices, and location infrastructure is already in place to support them. Location information enhances the social networking experience, but it is not completely dependent on it. Rather than just seeing points on a map, subscribers can use location data to start text message sessions and coordinate social planning.

5. Increased awareness of LBS among enterprises and consumers

In the early years of LBS, the general public did not really understand the concept of being located and learning about one’s environment through a mobile device. With the rise of in-car navigation systems, as well as portable navigation devices, consumers are becoming quite savvy at using geospatial information, whether it is simple turn-by-turn navigation or locating nearby businesses such as restaurants and gas stations. It is quite easy to make the leap from getting this localized information on a portable navigation device to receiving it on a phone. As a result, consumers are starting to purchase more GPS-enabled phones and use LBS. In fact, the typical consumer may not even use the term LBS, but refer to such applications as GPS services, even though GPS or A-GPS technology may not be powering the application. There as also been a strong uptake of LBS in the workplace as small-to-medium enterprises begin to deploy applications like fleet and workforce management. ABI Research estimates that the total market for enterprise LBS applications will grow to 27.9 million users in 2011. As workers gain familiarity with using geospatial information in the workplace, they will begin to transfer these skills to their personal lives, further increasing the usage of services such as navigation, local search, and social networking.

6. More cost-effective subscription plans

While cheaper data plans and subscription rates for mobile services help increase acceptance of multiple types of applications, pricing has an even greater effect on LBS. When these services were initially deployed in all parts of the world, many mobile operators wanted to recoup the costs of deploying the wireless location system or positioning platform. As a result, many operators charged a rather substantial fee every time the subscriber requested a location. If the customer was using turn-by-turn navigation to the nearest ATM, which requires the user to be located several times throughout a journey, the task rapidly became relatively expensive. Currently, mobile operators offer more “all you can eat” location plans, enabling customers to use location services an unlimited number of times for a flat monthly fee. This flat fee, coupled with emerging flat-fee data plans, provides price points that can attract huge numbers of new LBS users.

7. Increased performance of the location technologies powering LBS

Performance of location technologies is often defined in terms of accuracy, latency, and yield. Many of the initial location-based services had poor position determining systems driving the applications. In the European Union, most of the applications were launched using one location technology, primarily Cell ID, which has an accuracy of several hundred meters to a few kilometers. If a customer was trying to locate an ATM, the end-user experience was poor. Latency was rather good for network-based location technologies, but for systems using A-GPS, customers could wait for about a minute only to discover that A-GPS could not get a fix indoors or standing next to a tall building. Again, the end-user experience was poor. In terms of yield, the location technology’s ability to obtain a location fix, network-based location technologies could provide adequate yield in most instances. However, systems using A-GPS typically worked only in ideal situations, but not indoors or in urban canyons. Since it relies on a clear “view” of multiple satellites, A-GPS may not work inside an automobile unless the device is pushed up against a window or windshield.

Today, companies such as TruePosition can provide hybrid location solutions leveraging the best characteristics of multiple location technologies. As a result, TruePosition can ensure that the right location technology is working for the right application at the right place and time. Once hybrid location technology is deployed, it can provide the necessary accuracy, latency, and yield that LBS demands. As a result, the user experience seldom suffers, and wireless operators can deliver the quality of location service that their subscribers demand. TruePosition understands that this is a critical factor for consumer and enterprise LBS. It is absolutely vital, however, for location-based safety and security applications like emergency number services and criminal tracking, where it could mean the difference between life and death. TruePosition is uniquely positioned to develop wireless location solutions that operate at this optimum level to address the needs of location-based safety and security applications, and to provide services that work quickly, accurately, and consistently.

About TruePosition

TruePosition (www.trueposition.com) is one of the world’s leading providers of complete, wireless location solutions for the personal and public safety and government security markets. The company’s high-performance, turnkey and managed solutions include positioning technologies, applications, integration services, and technical support. These solutions meet demanding location requirements, including U.S. E911 and other emergency calling directives worldwide. TruePosition has two subsidiaries: Useful Networks, a location aggregator, and Zoombak, a consumer applications developer. Founded in 1993 and headquartered in the Philadelphia, PA (USA) area, TruePosition is owned by Liberty Media Corporation.