Location-based services taking off?
According to ABI Research ot IMS Research, the future looks bright for location-based services running on Global Positioning System technology. ABI estimates that there would be 315m GPS-enabled LBS subscribers by 2011, up from currently 12m. That means that penetration of the cellular subscribers would grow from 0.5% to 9% within 5 years. IMS Research, however, forecasts a more modest growth with a CAGR of 40% during the next four years, leading to about 50m in 2010. Besides the number, ABI reports that GPS-LBS services have ben limited up to now because very few GSM/W-CDMA handsets have GPS, a situation that could change in 2007-2008 with more 3G phones having GPS capability. Good, but what is more surprising is the evidence that GPS-enabled LBS is expected to lead subscribers to use more 3G data services and drive the adoption of UMTS 3G handsets. Pragmatically, IMS conceded that LBS services have been around for years, failing taking off because of poor marketing towards the end-users. Will it change; not sure if a new customer approach is not taken into account. IMS said that consumers still make a direct correlation between cellular GPS and satellite –navigation, and are unaware of the full potential of cellular location services.