Thanks to Martina at the excellent Adverblog for sending this through.
Launched as one of the killer applications for WAP and as the ideal marketing tool for mobile operatorsÌ customers, location based services (LBS) have fallen far short of expectations. To maximise potential, LBS technology (offering location-sensitive information and tracking services) should be leveraged as an enabler for value-added services rather than as a stand-alone service revenue generator, reveals new analysis from Frost & Sullivan.
Location based servicesÌ lacklustre performance since its European debut in 1999 has been attributed to poor technology and the lack of network infrastructure. Inaccurate location positioning information, substandard performance, the limitations of handsets as an interface, and overall dissatisfaction exhibited by initial WAP users has dampened revenue generation.
When we started ZagMe in June 2000, we were promised the first tracking trials by January 2001. But operators have consistently put tracking on the back burner and announced pricing that has proved to be entirely unrealistic.
While I agree with this reports assessment of the potential for LBS, I’m not convinced operators will make them a priority anytime soon.
However, if they don’t, they are in danger of losing this whole market to a rival technology that will cut them out of the equation and the resultant revenue stream. Bluetooth, perhaps?
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