Wireless Location-based ServicesTechnologies, Applications and ManagementBy Graham Chen© Dr. Graham Chen 20022Contents? Overview? Drivers and markets? Wireless positioning technology? Applications and services? LBS Platform? Market outlook© Dr. Graham Chen 20023Let’s Begin...? Overview? Drivers and markets? Wireless positioning technology? Applications and services? LBS Platform? Market outlook© Dr. Graham Chen 20024A Fundamental Paradigm Shift? By 2005 most wireless devices will be location-aware? This means that over 500 million people (consumers, employees and employers) will be able to access where they are, and use location based services? This is possibly the most fundamental paradigm shift in spatial information usage since the invention of the map……© Dr. Graham Chen 20025Wireless Market Overview? McKinsey’s definition of 3 waves:? Wireless Internet Access? Location-based personalized services? 3G© Dr. Graham Chen 20026Wireless Market Overview ? AllNetDevices classification of applications:? Messaging (personal) services? Financial services? Navigation (telematics) and location services? There will be continued strong growth in personal SMS market and its combination with LBS© Dr. Graham Chen 20027Wireless Market Overview? Market still searching for the right revenue model? Revenue sharing an established model in SMS services:? Revenue from SMS messages? Service subscription? Transactions© Dr. Graham Chen 20028Wireless Market Overview? The reality:? Wireless Internet access is only a novelty? Wireless applications still live in a virtual world (hard to compete against internet)? LBS shows no sign of reaching maturity, revenue prediction a wide range (3.7b to 20b by 2006)? 3G is a question mark. What do you want bandwidth on your phone for if there are no contents? (Strategic Analytics predicts 2.5G will dominate for the next decade)© Dr. Graham Chen 20029Wireless Market Overview? Transaction model not well defined:? Customers don’t want to pay transaction cost for some apps? Operators need increase the usage volume to reduce per-transaction cost? Data service providers don’t have the billing systems to generate and collect transaction revenue? Network operators accounting and billing OSS can’t support value-added data services for billing purposes? Packet-based charging model (led by DoCoMo) need more test© Dr. Graham Chen 200210LBS Market Overview...? Ovum predicts the LBS market will reach 20 billion p.a. by 2006? Ovum findings:? Personalize contents by location information the key? No clear dominance of location technology yet? No clear-cut business model emerged? Accuracy not very important? Analysys says $18.5 billion pa by 2006? BWCS says, pessimistically $3.7 billion pa by 2006© Dr. Graham Chen 200211LBS Market Overview? Which one do you believe?© Dr. Graham Chen 200212Progress Check...? Overview? Drivers and markets? Wireless positioning technology? Applications and services? LBS Platform? Market outlook© Dr. Graham Chen 200213Business Drivers for Mobile LBS? The mandate from the FCC: Government regulations? The desire for service providers to recoup the cost? Upsurge in interest in wireless data services? A perceived future demand for such services© Dr. Graham Chen 200214North America: FCC E911? FCC Timetable (Phase II)? Position enabled handsets• 1 October 2001: selling and activating• 31 Dec 2001: 25% new handsets• 30 June 2002: 50%new handsets• 31 Dec 2002: 100% new handsets? Accuracy (handset based)• 67% handsets at 50 meters• 95% handsets at 150 meters? Accuracy (network based)• 67% handsets at 100 meters• 95% handsets at 300 meters© Dr. Graham Chen 200215Source: FinPro North America Dec 2001North America: FCC E911? Most recent commitments by Operators? AT&T (E-OTD): Ship only E911 compliant phones by end 2002? Nextel (A-GPS): Begin shipping E911 compliant phones by end 2002? Sprint (A-GPS): Will ship only E911 compliant phones by end 2002? Verizon (A-GPS): Will ship only E911 compliant phones by end 2003? Cingular Wireless (E-OTD): Will ship only E911 compliant phones by Sept 2002© Dr. Graham Chen 200216Europe? Gradually moving to a unified emergence service number 112.? Europe Commission decided against issuing a minimum accuracy requirements? EC’s 1999 Communications Review sets 1 January 2003 as the start data? Most European countries have Cell-ID based positioning in operation and in process of positioning trials/rollouts.© Dr. Graham Chen 200217Asia Pacific? Most countries have no formal move towards regulation.? Asia Pacific countries have Cell-ID based positioning in operation? Singapore leading with high accuracy E-OTD network rollout.? Japan and Korea made most progress:? Japan already has advanced network positioning on its mobile systems? KDDI selling 288,000 GPS and video enabled phones? SK completes GPS-based positioning system trial© Dr. Graham Chen 200218Handset Drivers? Semi-conductor manufacturers diversifying into “internet appliances”? Handsets will be the largest population of any electronic device by 2003 (more than TVs or PCs)? Handset manufacturers driving for competitive edge in innovative use of new data networks? The speed of innovation is astounding with handsets superseded in months!© Dr. Graham Chen 200219Business Driver Stakeholders? Carriers: Return on wireless data network investments? Semi-conductor manufacturers: Diversification into huge handset and wireless appliance mass market? Network Equipment Vendors: Significant sales in network upgrades – 2.5G, 3G and positioning© Dr. Graham Chen 200220Business Driver Stakeholders? Electronics Vendors: Handset differentiation & faster handset renewal rates? Positioning Technology Vendors: Significant return on positioning technology sales? Portals— Chargeable applications? Governments: Emergency tracking (E911), government “oversight”, military & overall economy improvements© Dr. Graham Chen 200221Technology Drivers? 2.5G networks are now extensively deployed? North America mobile handset penetration will equal Europe by 2006? Positioning systems are rolling out, with blanket US coverage by 2005? Some handsets are GPS enabled now? Handsets are rapidly evolving to color screen, data capable, positioning capable units? Extensive spatial & navigation datasets are now available© Dr. Graham Chen 200222Business Needs? Services and products to :-? Reduce Costs? Reduce asset losses? Increase employee and asset safety?