business models and social legal aspects of lbs
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ISHTAR Project
Business Models & Socio-Legal Aspects of LBSJoint ISHTAR/LIAISON Workshop28-29 September, 2006 - Athens
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Presentation Contents
Socio-legal Aspects of LBSLBS Business ModelsLBS Forum
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LBS Penetration Drivers
IncomeFirst approximation for average citizenscapacity to buy location-based servicesIndicator: Gross National Income (GNI)Categories (source: World Bank, 2004 WorldDevelopment Indicators):
High Income Economies: GNI $56,000Upper Middle Income Economies: $56,000 GNI $37,000Lower Middle Income Economies: $3000 GNI $750Lower Income Economies: GNI $750
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LBS Penetration DriversHuman Development
GNI does not indicate goods, services or distributionof equitable incomeHuman Development Index (HMI)3 Basic Dimensions of Human Development (sources:
United Nations development report, 2004)Life ExpectancyAdult Literacy RateStandard of Living (measure by GDP)
Categories:High Human DevelopmentMedium Human DevelopmentLow Human Development
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LBS Penetration DriversTechnological Affinity
Technological Achievement Index (TAI) definedby UN Human Development Office4 Dimensions of Technological Capacity:
Creation of Technology
Diffusion of Recent InnovationsDiffusion of Old InnovationsHuman Skills
Categories
LeadersPotential LeadersDynamic AdoptersMarginalised Countries
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LBS Penetration Drivers
UrbanisationConcentration of people in urban areasHigh density of population lowers cost of providing servicesWorld Population Prospect actual andforecast urbanisation level of eachcountry (Dept of Economic and SocialAffairs, Population Division - UNSecretariat)
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Ethical IssuesControl - Issues arise mainly in workplace
Personal data collected and/or stored should:Not be processed to control behaviour or monitor workprogress of individual workersBe subject to workers consentBe used exclusively for the purpose of the serviceNot be kept longer than is required of the serviceNot be made available to third partiesBe protected from misuse
Continuous monitoring should be permitted if necessary for health, safety, security or protection of the worker
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Ethical IssuesTrust
Perceived reliability of the technology and service providerReliance on the service in planned usage situationsUser confidence that he/she can keep the service under controland that personal data will not be misused
PrivacyPrivacy attributes should be defined by user
Codeword/passwordPrivacy Exception List determines which services may haveaccess to position information of subscribers terminalService Type PrivacyPrivacy Override Indicator (emergency services, lawfulinterception, etc.)
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EU Legislations
Data Protection Directive 95/46/ECData Protection in the TelecommunicationsSector Directive 97/66/ECProcessing of Personal Data and Protectionof Privacy in Electronic CommunicationsDirective 2002/55/ECProcessing of personal data has to complywith legal rules resulting from the nationaltranspositions of the EU-Directives
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Presentation Contents
Socio-legal Aspects of LBSLBS Business ModelsLBS Forum
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LBS Added-Value Chain
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Terminals
FeaturesCommunication CapabilitiesLocation Technologies (Handset-based includes GPS receiver)
ApplicationsHardware (screen size, battery life, etc.)
ActorsHandset Vendors/ManufacturersTechnology Vendors
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Network Element
FeaturesCommunicationLocation Technologies (Networks-based Cell ID, triangulation, etc.)
ActorsMobile Network Operators
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LBS Infrastructure
FeaturesLocation ServerGeospatial Platform
ActorsLocation Platform VendorsGeospatial Platform Vendors
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Content/Services
FeaturesGIS Content
MapsPoints of InterestDirectory/Information servicesShopping
ActorsContent/Service Providers, Distributors,Aggregators
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LBS Business Models
Network Operator-Centric ModelSubscriber is in agreement with networkoperator to provide:
Telecommunication services
Value-added services (offered by any of theactors in the value-chain)Network Operator responsible for:
Service & Content AggregationCollecting Charging InformationProviding a Single Bill
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LBS Business Models
Service/Content Provider-CentricModel
Service/Content Provider comes intoagreement with network provider for
delivery of contentSubscriber charged directly byservice/content providerRevenue sharing between networkoperator and services provider based oncommercial aggreements
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LBS Business Models
Service/Content Aggregator-Centric ModelService/Content Aggregator is responsible forproviding subscribers with services and accessto content/servicesSubscriber contracts with service/content
aggregator and network providerService/Content Aggregator defines prices,collects charging information and chargessubscriber for transport part as well
Revenue sharing between network operator andservice/content aggregator based on commercialagreements
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LBS Revenue-SharingStreams
User FeesCharging of subscribers for thecontent they access
Per UsageSubscription
Shopping products within vicinityof subscriber sold over the mobileInternet (e.g. restaurants, cinematickets, etc.)
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LBS Revenue-SharingStreams
Advertising sending of adds to subscribers which
are sensitive to their location, current weathercondition, time of day, etc.Advertisers send fee to services providers for addingadvertising info to content sent to subscribers in theform of:
Traffic-based feesFlat fees
Marketing sending of notification to subscribers foritems of interest when in vicinity of suchRevenue Sharing distribution of revenues betweenthe various actors
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Lack of LBS take-off in Europe
Fear of being tracked
High price of servicesNot much interest in existing services (except fornavigation)Lack of cooperation between companies in LBStechnologiesLarge LBS value chain making cooperation amongstplayers complicatedLack of handover between out-door and in-doorpositioning technologies
(source: Positioning Location Based Services for Take-Off article)
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Integration/Successof LBS
Existing IN Services are profitable forOperatorsNeed to integrate LBS with these for
successful adoption of LBSExample: IST Project Mobile-INHarmonised Services over
Heterogeneous Mobile, IN and WLANInfrastructures
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Example Application- My favourite Pizza
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Presentation Contents
Socio-legal Aspects of LBSLBS Business ModelsLBS Forum
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LBS Forum
Users Group to enable people fromall aspects of LBS to come togetherand discuss (among other things)LBS!Currently, there is a need for LBSawareness actions
Forum: place where these actions canbe performed
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Roles
Board: consisting of representatives from
each player in the value chainMembers of the LBS Forum nurture from:
Regularly updated information on new
developments in the LBS ArenaSpecial Access to DemonstrationsClose networking between LBS Key Players
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QUESTIONS?