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Location based service (LBS) is one of the new breed of personalized information utility services that have found massive uptake among the Indian subscriber base. A combination of geospatial and mobile computing technologies, LBS is appealing to industry giants and operators. It is one of the innovative applications that is adding another big dimension to application services.

There is a new flavor of applications to suit all kinds of users, including-enterprises, entertainment, community, etc. Mobile vendors are realizing the potential behind expanding their LBS scope to reach the mass market. Operators are now focusing on creating a more advanced mobile location experience for the mass market, while still making efforts in rolling out innovative services for the high-end device market.

Location as a dimension is adding as an advantage for the companies that are exploring ways to provide information specific to the user that might help the subscriber in expanding his area of reach.

The current market indicates an exponential rise in LBS. According to ABI Research, global location based platforms revenues are set to hit $560 mn this year, and can triple to $1.8 bn in 2015.

The business viability of LBS is also being taken seriously by both mobile vendors and operators. Industry has realized the need to implement LBS that are not intrusive to the end user. It will see a revolution in the way users receive information, so that it is targeted and relevant to them but at the same time doesn't threaten their privacy and safety.

Daphna Steinmetz, vice president for innovation & research, and chief innovation officer, Comverse says, "Enhancing the user experience with context information allows for a new level of interaction between people, in a deeper level of sharing."

Storm in the Offing
There is a storm brewing. There are a plethora of reasons why the indsutry is eying innovations on this front. Says Jagdish Mitra, CEO, CanvasM, "Location based services are being envisaged as one of the best consumer centric applications. Navigation is considered to be the 'killer' application along with location based advertisement."

Adds Steinmetz , "The main motive of exploiting LBS is to advertise products and services of a particular company." Let us have a look at the possible reasons for the same. Portable navigation devices (PND) are already a hit for LBS and now the future will be surely shaped by smartphones.

Factors that are driving LBS popularity are as follows:

Mature PND market: The PND market is mature. In 2008, 50 mn units were shipped PND makers need new revenue streams: Since the PND market is mature, consolidations are happening, and margins are now razor thin. PND makers are proactively trying to apply their technologies to increase their revenue stream from other sources. The Garmin nuviFone is a prime example

Users understand LBS: LBS is gaining customer acceptance in the market, with services like the VZNavigator and a slew of location based apps on the iPhone

Location technology development: Whereas traditional GPS chips require a long first time-to-lock on the position, assisted GPS (A-GPS) uses cell towers for triangulation to shorten lock times. This translates to a much better user experience

GPS chips are cheap: The mature PND market has driven GPS chips down. Today, a GPS chip can be added to a smartphone for less than $1. Most of the smartphones shipped in 2009 had built-in GPS or A-GPS.

Astounding smartphone growth: Mobile phones are getting more sophisticated and one can now access the web on them. While the overall mobile phone market grew only by 11% in 2007, the smartphone segment grew by over 50%. It's the new frontier for every major company to compete for advertising dollars as there will be more smartphones in use than PCs and laptops combined

Global Footprints
Globally, LBS has been able to get good response. In the US and Western Europe, countries having a high penetration of smartphones, there is a greater adoption of LBS. This leverages the GPS capability of these devices for the location capability and are enabled by downloading applications on the device.

Explains Steinmetz, "Intent is very important in the global market today. If there is no targeted goal to achieve, then LBS will not grow and the potential of the technology would be jeopardized. Advertisers may gain too, but for now the growth of the location based web depends on users' appetite for new ways to filter their online experience."

Looking closer to the Asia Pacific region and in countries like Malaysia, Indonesia, Singapore, and Thailand, the wider adoption is of services that are provided by leveraging location based technology adopted by operators and the applications that are enabled on bearers like SMS and USSD that can be accessed by all subscribers. Globally, the highest penetration amongst the various LBS is of community services like Friend Finder, Buddy Finder, followed by mobile marketing that enables subscribers to get information on deals and discounts of their chosen interest based on their location.

The GPS system that is controlled and managed by the US, coupled with the E911 legislation, has been major drivers for the growth of the American LBS industry. Further, the wireless operators who were forced to install location determination equipments in their network due to the E911 legislation are are now promoting LBS aggressively.

Navigation and family safety solutions are the major applications that are driving the American LBS market. Besides this, the growing number of application stores and availability of GPS enabled mobile phones are few factors that are contributing towards the growth of this industry.

The LBS market in Europe is in its early phase of development. With a market share of 33% of the total world car market in 2008, the demand for navigation is driving the growth of LBS in Europe. With the European global navigation satellite system-GALILEO-expected to be fully functional by 2013, a gamut of sophisticated LBS applications have been introduced in the European region.

Further, the aggressive marketing strategies adopted by wireless network operators are driving the growth of LBS in Europe. Despite the rapid growth, certain factors like privacy issue, evolving business model and fragmented value chain need to be resolved to keep the European LBS market in the high growth trajectory.

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