ANNEX A

Background Information on Location Based Services

Introduction

The use of mobile phones has increased many folds in several countries during last few years and in some countries the mobile phone penetration is well poised to overtake conventional fixed lines. “Being mobile” is the single most important reason for this exponential growth of mobile phones.

“Location” is invariably a very strong component of “mobility”. A rapid evolution in Location Determination Technologies (LDT’s) coupled with the advances made in the field of wireless in recent years has given rise to the possibility of precisely locating a mobile phone. This has opened up a plethora of a new set of wireless applications, known as “Location Based Services” (LBS).

Several location specific questions can be answered if the precise location of the mobile object is known at a given time: “Where am I?” “How do I reach the nearest shopping mall?” “Has the kid reached home safely?” The list goes on.

These positioning techniques provide the means to locate a subscriber when he or she initiates a request. For example, the subscriber initiates a request - where is my bank located? The subscriber need not enter an address, because with location determination technology, the network will automatically locate him/her and a send map to the mobile device showing the location of the bank.

LOCATION-BASED APPLICATIONS & SERVICES

The simplest way to categorise LBS is based on whether information is requested by the mobile device (“pull” based services) or information is sent to the mobile device without a request (“push” based services).

The “pull” based services enable users to "pull" information to them wherever and whenever it is needed. These services use the geographic position of the wireless device to derive information related to that location. Few examples of “pull” based services are as follows.

  • Taxi Hailing - I need a taxi now. A holder of a mobile device signals that a taxi is needed. Taxi services operating in that territory can automatically pass on the caller's location and phone number either to a dispatcher or directly to the nearest taxi.
  • Travel Directions - I am here, how do I get there.
  • Mobile Yellow Pages - Where is the nearest. This includes services, which locate points of interest (POI’s), such as shopping malls, tourist spots, medical facilities, entertainment venues, or any other type of facility or event.
  • Consumer Services - Alert me when I am near a particular restaurant. This type of service, referred to as mobile commerce (m-commerce), connects buyers to sellers. Users entering a shopping area with an electronic list including the brands, features, or model numbers of the products they wish to purchase can receive information from nearby stores that carry the products corresponding to these shopping lists. Naturally, buyers could also obtain directions to the store.
  • Instant Information - These services enable users to point their wireless device at a landmark or facility and obtain information about it, either from a central database or from the facility itself via infrared or other types of wireless data transfer. This is useful not just for sightseeing tourists but also for mobile workers who need details about the facilities they encounter.

"Push" refers to location services that utilise the position of the wireless device to qualify the holder as a potential customer or recipient of a service. Applications and services include target marketing with advertisements to wireless devices, buddy finders and traffic alerts.

  • Mobile Advertisements - Studies done by electronic yellow page service providers indicate that users may be receptive to advertisements on their wireless devices in exchange for electronic coupons or other types of discounts or awards. .
  • Buddy Finders - Where are my buddies right now. Services are now available that allow users to find the locations of their friends or family. Such a service could be designed to notify a parent when a child has arrived at home, school, or another specified location.
  • Traffic Alerts - Real-time traffic services can notify users of the status of predefined travel routes.

TECHNOLOGIES BEHIND LBS

Key to LBS is location determination technologies (LDT’s). These are used to derive or estimate subscribers' location based upon terrestrial or satellite-based (the most famous being the Global Positioning System, or GPS) technologies.

Using the information obtained from location determination systems, a Location Platforms then compares the location of the mobile device against the map content database to search addresses, point of interests etc. It also has software tools to perform travel direction determination), predictive traffic analysis and position/address matching, etc.

CONTENT REQUIREMENT FOR LBS

Location-based services and applications typically depend heavily on the existence of comprehensive, reliable and up-to-date map content. These sets of supporting digital map data, such as that currently provided for Singapore by the SLA, are critical for the success of LBS. Digital map data can in turn be categorised into various layers, including road networks, building outlines, and points of interest.

MARKET PROJECTIONS

Based on various estimates by international marketing survey groups, the current market size (year 2002) for LBS ranges from US$2 and US$2.5 billion. Allied Business Intelligence has projected that worldwide revenues in location based services will exceed US$40 billion by 2006.

Analysts have independently projected these figures to rise from US$2 billion in 2001 to US$18.5 billion in 2006. According to the forecast by ARC, the LBS market to reach US$33 billion by 2005. Cahners In-Stat, on the other hand, has predicted a growth in revenues from US$3.7 million in 2001 to more than US$13 billion in 2005.

Ovum sees a US$4.7 billion market for LBS by 2004, growing to US$19.5 billion by 2006. Finally, the Strategis Group has estimated that, worldwide, there will be more than 60 million users and over US$16 billion in annual revenues by 2005.

SUMMARY

LBS is seen as one of the promising growth areas for the mobile wireless industry. It will have a great impact on the way we live and conduct our businesses. Location based services and applications offer several elements of convenience, cost savings, speed, security, customer care and so on, benefiting subscribers and companies alike.