DRIVER AND CHALLENGERS FOR LOCATION BASED SERVICES

Strengths:Low Cost Mobile Ecosystem

Government’s Impetus on Telecom Infrastructure

Highly Competitive LandscapeInherent strength in Services Development

High Probability of Innovative Service Deployment

Weaknesses:Unclear and Inhibitory Government Policies

on TelecomHostile Regulatory stance (currently)

Investor aversion due to current scenarioUnfavorable for new entrants

Opportunities:Huge Mobile Subscriber Base Present

Low Smartphone PenetrationLow Tele-density and Mobile PenetrationNot many LBS Service providers in India

Consumer preference shifting from e-commerce to m-commerce

Growing Technological Appetite in the Indian Consumer

Threats:Lack of Awareness on the Consumers partGrowing Technological Appetite only in the

Younger GenerationCustomer preference for very low cost

services (Price v/s Quality Tradeoff)Market domination by standalone

applications (Such as Google Maps)No clear market trends arising

LBS Industry in

India

MARKET TRENDS AND POSSIBILITIES

• Population is one of the biggest opportunities that is there to exploit for any service provider

• Increased smartphone penetration in India• A conducive eco-system for such services is being

developed• Shift of focus from the Urban to the Rural Customer

Unexplored Opportuniti

es

• Increasing ARPU amongst current subscribers• There is a definite shift to content based applications

and services• There is an Increased Mobile Operator awareness for

New VAS• Improvement in Handset Profiles• User awareness for Data based services increasing

Tapping Existing

Opportunities

• Service Development at the lowest cost possible is India’s competitive advantage

• Increased Developmental tools and platforms available in the country

• GIS Content readily available for Location Based Services

Service as a Competitive Advantage

MARKET POTENTIAL

With the ecosystem components finally aligning together – Mobile Positioning, GIS content for LBS, Improvement in Handset Profiles, Increased Mobile Operators Interest for new VAS, Increased User Awareness, Development Tools & Platforms, the LBS Stage in India is all set for a Drastic change

Current Market for LBS is estimated to be at around 120-140 Million US$

The Stage is all set for Location based service to find profitable entry into the Indian Scenario

With LBS market in India poised to become $500 Million by 2014 according to a research by IAMAI, and with the impediments finally giving way to a more available ecosystem, future holds great potential for the companies who want to jump on the LBS bandwagon.

Why are People using Location Based Services?

.

LBS UNIVERSE

THESE BIG BOYS GET IT!

Companies using location based marketing.

WHO ARE SOME OF THE LOCATION BASED PLAYERS?

WHO ARE SOME OF THE LOCATION BASED PLAYERS?

Yelp was founded in 2004 to help people find great local businesses like dentists, hair stylists and mechanics. As of January 2011, more than 45 million people visited Yelp in the past 30 days. Yelpers have written over 15 million local reviews.

WHO ARE SOME OF THE LOCATION BASED PLAYERS?

Launched in August of 2010, Facebook Places allows you to share where you are, connect with friends and find local deals. Any of Facebook’s 600 million users can use Facebook Places.

WHO ARE SOME OF THE LOCATION BASED PLAYERS?

Foursquare is the granddaddy of location based services having launched as Dodgeball back in 2001. After being purchased by Google in 2005 and then divested in 2009, they reemerged in their current form. With over 8 million members, they are easily the most popular of all the LBS platforms.

WHO ARE SOME OF THE LOCATION BASED PLAYERS?

Austin-based Gowalla launched in 2009 and have quickly picked up steam. While they have about 1/5 they users of foursquare, their stunning venue icons and virtual goods have kept them top of mind for many businesses like Disney.

WHO ARE SOME OF THE LOCATION BASED PLAYERS?

While Where is a late comer to the LBS game, they are easily one of the most innovative. And most importantly, they will be one of the first LBS to unlock the power of local advertising.

WHO ARE SOME OF THE LOCATION BASED PLAYERS?

SCVNGR is probably the most different from any of the other LBS in the sense that 1) they are making money and 2) as their name hints, are laser focused on providing a platform on which businesses and universities can set up elaborate scavenger hunts.

WHY LOCATION SERVICES NOW?

Federal Communications Commission requirements for E-911 For handset-based location

50 meters for 67% of calls, 150 meters for 95% For network-based location

100 meters for 67% of calls, 300 meters for 95% Europe’s E112 initiatives + law

enforcement initiatives European location platforms (servers,

middleware) will grow from €18 million in 2009 to €35 million in 2015 – Berg Insight

Proliferation of DevicesThe consumer appetite for smartphones is skyrocketing and will push

annual sales worldwide from 131 million units in 2008 to over 300 million by 2013

Smartphone users worldwide will top 1.1 billion in 2013

Source: Gartner, April 2011.

Source: JiWire, Q2 2011

Average devices owned by the

mobile audience 2.4Source: Gartner,

Source: JiWire,

WHY LOCATION SERVICES NOW? Free or inexpensive location services

Google Bing Nokia Voice navigation

Critical mass of applications Cellular operator navigation, free navigation, “check-in” apps,

cellphone locator apps (MobileMe), social networking location, location games

Multiple location technologies and decreasing technology costs

Decreasing costs of smartphones combined with decreasing costs of GPS chips

What location-based services are consumers most interested in?

Source: JiWire, Q1 2011.

LOCATION BASED MARKETING IS A HIT WITH CONSUMERS!

A recent survey from the Mobile Marketing Association (MMA) showed:

• 10% of all cellphone owners use location-based mobile services at least once per week

• Adults ages 25-34 are frequent users of location services, with 22 percent using them at least once a week.

• 63% percent of iPhone owners use location-based mobile services at least once per week

• Respondents said they use these services most frequently to “locate nearby points of interest, shops or services.”

• Consumers are interested in allowing their phone to automatically share their location in exchange for perks, such as free use of mobile applications and mobile coupons.

• One in four U.S. adults use mobile location-based services. And nearly half of those users responded in some fashion to location-based ads.

LBS FORECAST

According to IEMR's Global GPS Navigation and Location Based Services Forecast-• Global market for GPS navigation and location based mobile services to

rise to $15.2 billion by 2016- a CAGR of 22.7%• Eastern Europe GPS Navigation and Location Based Services Forecast-

Total spend in the regional LBS market to reach $298 million by 2016• Middle East and Africa GPS Navigation and Location Based Services

Forecast- Total spend in the regional LBS market to reach $188.3 million in 2016

• North America GPS Navigation and Location Based Services Forecast-Total spend in the regional LBS market to rise to $4.85 billion in 2016

• South and Central America GPS Navigation and Location Based Services Forecast- Total spend in the regional LBS market to reach $281.8 million by 2016

• Asia Pacific GPS Navigation and Location Based Services Forecast-Total spend in the regional LBS market to rise to $3.53 billion in 2016

• Western Europe Location Based Services (LBS) Market Forecast, 2013: Western Europe consumer-centric LBS market to rise to $2.97 billion in 2013, a CAGR of 96.4%.

• Total LBS service revenue in the European Union was € 214 million in 2008 and Berg Insight forecasts LBS revenues to grow to about € 580 million in 2014.

APPLICATIONS FOR LOCATION BASED SERVICES IN INDIA

Location based advertising will allow better branding and consumer targeting by consumer firms, who are already attracted to the large rural markets

Small businesses can use LBS to keep a check on their mobile field force to ensure productivity is enhanced.

Fishermen can get weather alerts on the high seas, depending on their location

A villager can use LBS navigation within the city to reach his destination with ease

Farmers can get alerts about unseasonal rain, which can help them reduce crop damage for harvested grain

Fleet management takes on an added dimension in India where drivers often take shorter routes to avoid national highways

In the case of public transport, cell phones of passengers onboard can be automatically linked to specific emergency call numbers

GPS systems can help commuters know when the next bus is due at the bus stop

LBS IN INDIA Telenity’s Tieup with BSNL

Telenity provides complete portfolio of LBS services to BSNL in three zones (East, North and South) including its Canvas® Location enabling Server for value-added LBS service creation and delivery. India now has approached 150 million wireless users out of 1.1+ billion users. SMS, voice and content services are still the key VAS contributors.

GPS tracking and telematics market in India The Indian GPS and Telematics market is now at $22 million, but there is

potential for growth to $448 million in the next three to four years. The GPS and telematics market in India is still in its infancy, but is developing rapidly owing to an increased use of technology in fleet management, transport navigational systems and other areas.

Cell phone-based consumer LBS

is also rapidly growing in India. The size of this market will depend on the cost of the GPS-enabled devices (cost $40 today) and its affordability. However, when cell phone costs go down, the commercial LBS has huge potential. India’s mobile subscriber base is rapidly growing and is expected to touch 300 million from 100 million in the next two years.

LBS IN INDIA Tech-Mahindra partnership with Polaris Wireless Tech Mahindra expects to benefit hugely from this partnership as Polaris Wireless has

been embedded into most of networks and have huge knowledge about the networks. Tech Mahindra also has a worldwide relationship with Alcatel-Lucent, which is another major OEM vendor and Alcatel-Lucent has been here in India for many years.

Ericsson India working on the future of location based applications in India

LBS is one of the flagship products within Ericsson portfolio and accordingly, Ericsson is pursuing the path of constant technological advancement. Vinish Kathuria, head of consumer & business applications, says – “On one hand, we are working on deploying it for the advanced technologies such as LTE, devising some new positioning methods for LTE and we are looking at integrating the same with other offerings from Ericsson portfolio so as to provide an integrated solution to operators. Roll out of 3G will surely lead to a growth in LBS sector, however we cannot comment on the percentage of growth.”

 

LBS India 2012, 2nd International Conference, organised by Bharat Exhibitions

“LBS is the next killer app in 3G & mobile broadband ready India. Monetary hurdles are hindering the effective deployment of LBS, as consumers want everything but without any expenditure. In India we follow a mantra ‘High value low price’.

LBS PLAYERS IN INDIA

BSNL MSN Airtel

BSNL

BSNL has launched it’s Location Based service in East Zone and is currently offering enterprise services as well as consumer services:

1. Enterprises can locate, monitor and manage their mobile assets and employees in a secure way using a simple Web browser named ‘Real time fleet and asset management’.2. ‘Friend finder’ which alerts subscribers when one of their friends in their buddy list is in close proximity to their location or vice versa.3. ‘Location-based advertisement’, broadcasts advertisement/promotion information to subscribers.4. ‘Location-based chatting service’ that enables users to communicate and/or meet someone with same interests within the same vicinity.

MSN

MSN is in talks with Indian telcos to penetrate in Indian mobile market.

The company wants to partner with carrier networks to develop an intuitive search system in which users need not provide the location data. For example, a mobile user can search for the nearest hospital in case of emergency, without specifying where he or she is. Based on a method called triangulation, which determines the phone’s location based on signal strength to the nearest cell tower, and using an existing database, the system can throw up search results listing nearby hospitals.

Airtel

In 2007, Airtel launched its Enterprise LBS solution with an Indian firm, Mobiance. The services offered include· tracking fleet· mobile workforce management· directing consumers to retail stores· enabling brand managers track in real time their field representatives across rural India· providing search and navigation abilities to consumers· aiding governance for example by knowledge dissemination in case of natural disasters or public unrest

PROMISING LBS APPS DEVELOPED IN INDIA

Hoppr

Hoppr is a mobile device-agnostic location based service that allows users to avail of deals and offers from merchants where they check into. Trying to be the useful for both merchants and users, Hoppr banks heavily on it’s sleek design and the device agnostic property to gain both volumes and penetration.

Zomato

Definitely one of the more popular startups, especially being in the space it is, Zomato has also gone international and is a tough competition for Yelp which has recently entered India. Zomato has apps for every platform (latest release being on Windows) and allows the user to check out restaurant recommendations according to his location.Led by a great team and backed by InfoEdge, Zomato is a must have for all the foodies.

NowFloats

NowFloats attempts to give the user the best information depending on his or her location and the time they’re are there. It also keeps the content fresh by auto-expiring content past its prime or popularity. Winners of BizSpark 2012 and now into the Windows Accelerator program, a lot is expected of the team soon.

LocalEver

LocalEver provides ‘Radius Search’ to search items within particular radius from particular location. Users can search items Street and Area wise via Google Maps. Connects buyers and sellers in real time and also has an expansive B2B offering for corporates. A talented techie team behind the app, LocalEver is currently available in Chennai only.

DelightCircle

A location based shopping app, DelightCircle has offers and new arrivals across 200+ brands and retailers. With incentives like earning free mobile recharge, movie tickets and gift cards for simply visiting the stores, DelightCircle is trying to play on with the human weaknesses.Currently in 8 cities in India, DelightCircle is a must have if you’re a shopaholic.

LocalBeat

This GPS enabled app allows users to know what’s going on around them in terms of news, deals and discounts, events and yellow pages. Founded in 2009, LocalBeat was initially known as TaazzaGO but rebranded recently.The intelligent Kaapi crawler (their algorithm), LocalBeat is a powerful app and a strong contender in the space.

CHALLENGES AHEAD

Developing more accurate location technology, especially in major cities (GPS problems) and indoors (ditto)

Creating sustainable business models Balancing need for users’ information to

generate revenues (e.g., for advertisers) with privacy/security concerns

MORE CHALLENGES

Ensuring government agencies can access location data when absolutely necessary, but not going on unwarranted “fishing expeditions”

Ensuring consumersand businesses understand the value – and dangers – of location services

Living in a world with almost ubiquitous tracking and less privacy

31

GLOBAL CASE STUDIES

32

MCDONALD’S FOURSQUARE DAY CAMPAIGN

McDonald’s randomly offered $5 and $10 gift cards to users who checked on foursquare day

Results: Generated 2,865 total check-ins Increased check-ins by 33%

33

AT&T AND TOMS SHOES GOWALLA CAMPAIGN

Created a unique reward (going to the 1 millionth shoe drop) for users who checked in at various technology and apparel stores.

Offered rewards such as smart phones and netbooks from AT&T.

Results 5,500+ people entered 25% chose to share the news via Facebook and Twitter 2,000+ checked into AT&T stores 950+ likes related to the Gowalla, Toms Shoes and AT&T program on

Facebook 522,000+ users reached via more than 700 tweets following their

check-ins

34

MURPHY USA WHRRL CAMPAIGN Designed a location-based loyalty program. Made a Murphy USA Whrrl society to

Reward most loyal customers Build a customer community Activate customers in the real world Promote its brand through social media Virtual scratch tickets offer members a chance to win prizes.

Results: 44% of society members had never been to Murphy USA before Society members visit Murphy USA on average 4x per month while 50% of

society members visit 6x per month (the industry average is 2x per month) The average purchase by society members is $30 (the industry average is

$15)