mobile location services: market strategies ovum report 2000 part d: business models pasi pekkinen...

Mobile Location Services: Mobile Location Services: Market StrategiesMarket Strategies

Ovum Report 2000Ovum Report 2000

Part D:Part D:Business ModelsBusiness Models

Pasi PekkinenPasi Pekkinen

[email protected]@navinova.com

Navinova OyNavinova Oy

04/20/2304/20/23 / PP / PP 22Ovum Report 2000: Mobile Location ServicesOvum Report 2000: Mobile Location Services

Key messagesKey messages

• Revenue models: no generic solutionRevenue models: no generic solution

• Business model: no single modelBusiness model: no single model– different roles, responsibilities and reward structuresdifferent roles, responsibilities and reward structures

• Control over location infoControl over location info– disputes whether operator should providedisputes whether operator should provide

– terminal-based solution may diminish operators’ rolesterminal-based solution may diminish operators’ roles


Revenue modelsRevenue models

• Variety of applications for variety of customersVariety of applications for variety of customers

• No overall agreements for business relationshipsNo overall agreements for business relationships– nor how, why and which way money flowsnor how, why and which way money flows

• Three main revenue modelsThree main revenue models– end user payment (airtime, premium usage, subscription)end user payment (airtime, premium usage, subscription)

– content provider payment (advertising, sponsorship, coupon)content provider payment (advertising, sponsorship, coupon)

– network operator payment (”no payment”)network operator payment (”no payment”)


Apps & Revenue ModelsApps & Revenue Models

ModelModel ChallengesChallenges Fitting AppsFitting Apps

End-userEnd-user Users expect Users expect - Tracking- Trackingcontent to be freecontent to be free - Call routing- Call routing

3rd party3rd party User toleranceUser tolerance - Information- Information- News- News- Advertising- Advertising

No paymentNo payment Undervalued?Undervalued? - Information- Information


Business modelsBusiness models

• Business models differ according to who is Business models differ according to who is responsible forresponsible for

1.1. Measurement of positionMeasurement of position

2.2. Carriage of position infoCarriage of position info

3.3. Storage and carriage of position infoStorage and carriage of position info

4.4. Creation and roaming of applicationsCreation and roaming of applications

5.5. Sourcing of contentSourcing of content

• Two broad categoriesTwo broad categories1.1. Operator centricOperator centric

2.2. By-pass modelsBy-pass models


1) Operator centric1) Operator centric

• Operator central in the flow of location infoOperator central in the flow of location info

• Three variants:Three variants:1.1. Operator Operator Third party: Purchaser Third party: Purchaser supplier supplier

2.2. Operator allows applications to be developed and Operator allows applications to be developed and managed by third partiesmanaged by third parties

• Operator may share revenues with application Operator may share revenues with application developer or infrastructure supplierdeveloper or infrastructure supplier

3.3. Advertising and third party payments replace end Advertising and third party payments replace end user paymentsuser payments


2) Bypassing operator2) Bypassing operator• Non-network solutions for location measurementNon-network solutions for location measurement

1.1. Terminal supplier-centred modelTerminal supplier-centred model– location measured by mobile terminal or attached devicelocation measured by mobile terminal or attached device

– position sent over network to application platformposition sent over network to application platform

– user pays for the application provideruser pays for the application provider

2.2. Proximity systems for location e.g. BluetoothProximity systems for location e.g. Bluetooth– may support third party paymentsmay support third party payments

– mean to deploy local advertisingmean to deploy local advertising

3.3. Self-input modelsSelf-input models– user determines and sends location infouser determines and sends location info

mobile location services: market strategies ovum report 2000 part d: business models pasi pekkinen...

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