Location Based Platforms and Infrastructure Licensing Revenues Will Reach $2.2 Billion by 2013
Written by ABI Research
Friday, 18 July 2008
LONDON- Strong growth in Location-Based Services represents an
important opportunity for LBS platforms and infrastructure vendors.
While until recently the LBS infrastructure market was mainly driven by
the E911 emergency call requirements in the US, the expected global
deployment of commercial LBS applications by carriers will grow LBS
infrastructure licensing revenue from $111 million in 2008 to $2.2
billion in 2013.
“Several trends are driving the growth of LBS services and platform revenues,” says ABI Research principal analyst Dominique Bonte. “Decreasing costs for the integration of GPS receivers in handsets, the increasing number of Secure User Plane Location (SUPL) server deployments by carriers investing in LBS infrastructure, the availability of A-GPS/SUPL-compatible handsets, and the commercialization of a growing number of LBS applications are all contributing to increasing sales of LBS-infrastructure systems such as Mobile Location Centers (MLCs), Position Determining Equipment (PDE) and Location Enabling Servers (LES).”
The LBS infrastructure market is currently dominated by Ericsson, Telecommunications Systems (TCS) and Nokia Siemens Networks with respective market shares of 31%, 24% and 18%. Smaller independent MLC vendors such as Redknee are also making inroads into the market.
Business models are reflected in a range of flexible payment options based on volume (per transaction or per LBS subscriber), flat fees, outright purchase, and even advertising-subsidized schemes with price levels dependent on the size of the carrier, the functionality, and the solution type (hosted or installed). Monthly per subscriber platform license fees typically amount to $0.71.
However, despite the expected growth in LBS services, a major threat is posed by the emergence of direct-to-consumer provisioning of remotely hosted third-party LBS applications which bypass the carrier network infrastructure, reducing carriers to the status of bandwidth providers and making LBS platforms obsolete. The challenge for platform vendors will be to focus on unique functionalities that can only be offered via carriers, such as spatial triggers, anonymous bulk location, control plane-based services, and LBS-enabled advertising as well as multi-access network solutions.
A new ABI Research study, “Location Based Platforms and Infrastructure," (http://www.abiresearch.com/products/market_research/Location_Based_ Platforms_and_Infrastructure) (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.) examines the technical and commercial aspect of location based platforms such as MLCs, PDEs and LES. It provides insight into the complex LBS infrastructure ecosystem, and contains detailed forecasts for each major region. It forms part of the Location Aware Services Research Service (http://www.abiresearch.com/products/service/Location_Aware_Services).
Communications News
Serves the decision makers responsible for networking, voice data, and
video communications technologies at enterprise and service provider
The European Navigation Event, October 7th and 8th 2008...
where retail meets industry - The fourth edition of the No. 1 European
Navigation Event will take place in the inspiring environment of the
High Tech Campus in Eindhoven, The Netherlands.
deCarta devCon 08 - Going Mobile: Location is the Big Deal
- deCarta’s devCON’08 is a unique opportunity to get first-hand
knowledge and insights from experts and leaders from the mobile
wireless, personal navigation, enterprise fleet-tracking and MRM
markets. October 22-24, 2008, Intercontinental, San Francisco, CA.
iPhone Live - November 18, San Jose, CA - iPhoneLive is the new O'Reilly conference for iPhone developers, entrepreneurs, and enthusiasts, focusing on both the business and development issues surrounding the iPhone platform.
Nokia World 2008, Barcelona Spain - With thought-provoking seminars, informed keynote speakers and a wide
range of interactive experiences, Nokia World 08 can inspire anyone and
everyone with an active interest in the business of mobility. December 2-3, 2008
