These are the key results from the European

1. WORKSHOP
Positioning technology providers:
Evolving landscape & opportunities
Abstracts from our
European Location Study 2010
Navigation & Location Summit Europe - Berlin - 15th June 2010

2. Introduction
PTOLEMUS assists its clients, from strategy definition to
business development
Our areas of expertise Our services
Positioning / Location enablement
Strategy definition
Navigation
Location-based
Telematics Strategic due diligence
content & services
Intelligent transport systems
Innovation management
Mobile content and social networking
M2M
Business development
Connectivity
2

3. Introduction
We have acquired substantial experience in the field of
geo-connected mobility
Telecom operators Infrastructure providers Content & application providers
ITS providers
• Partners in Paris, London and Brussels
Car & telematics vendors • +30 years of experience in mobile
• +30 years of experience in telematics
Insurers & assistance providers Venture capitalists
Montezemolo
& Partners
3

4. Introduction
We will publish our European Location Study by end June
• 200 pages of analysis about positioning and their
impact on the location industry, built on
• Interviews with over 100 executives from all sides
of the industry, from Admob to Yahoo!,
• Over 6 months of desk research and primary
research, notably an online survey,
• A detailed market model so as to combine
strategic and technology analysis with hard
figures
• PTOLEMUS will offer a free version to all
executives interested by location
• A full version will also be proposed
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5. Landscape overview: devices 1
Location and connectivity are penetrating all sorts of devices
Connected
High Layering
Die-cutting
machine train
machine Airplane
Elevator Tractor
Connected car Connected
truck
Server
Parking
metre
Laptop
Fridge Air conditioning
system
Local device Smartphone
Fixed
intelligence phone
Connected
copier
WiFi
Cash router
register Connected PND
Oven
Traffic light Connected
photoframe Connected
vending
Washer machine
Lawn mower Connected
Connected watch
videocamera
Low Hairdryer
Connected plug
Toaster
Low Total solution intelligence High
Source: PTOLEMUS 4

6. Landscape overview: services 1
We counted 109 markets powered by positioning
Location-enhanced applications: Business to Business
Mobile device Commercial
Desktop centric Network centric
centric vehicle centric
Mature • Fraud prevention
• Fleet management
• Asset management
• Defence & emergency • Driver management • Location-sensitive billing
services planning • Stolen vehicle recovery • Fraud prevention
• Intelligent Transport Systems • Mobile network optimisation
(ITS)
• Cellular inter-network border
• Property sales & negotiation
management • Profiling
• Retail planning • Advertising
• Digital tachograph
• Fuel consumption monitoring
• Eco routing
• Remote diagnostic &
maintenance
• Lone worker protection
• Access control • Road charging • Mobile network optimisation
• Business intelligence
• People tracking trending • Driver profiling • Roaming traffic analysis
• Emergency services tracking
• Data visualisation • PAYD insurance • Location-based pricing
• Aerial imagery
• Geofencing • Government GIS • PAYD leasing • Home / work connection
analysis
• Indoor asset tracking • Infrastructure planning • PAYD rental
• Crowd management
• Hospital management • Media planning • PAYD tax
• Retail analysis • Call traffic geography
• analysis
Contextual service access • Financial services analysis • Active car safety
• ADAS
Nascent
Source: PTOLEMUS 5

7. Landscape overview: services 1
We counted 109 markets powered by positioning
Location-enhanced applications: Business to Consumer
Environment
Mobile centric Car centric Network centric Desktop centric
centric
Mature • Navigation • Traffic information
• Concierge • Weather
• Maps • Car / key finder
• Navigation and traffic • Traffic prediction & ETA
• Emergency call
• Social networking
• Yellow Pages
• Pedestrian navigation • Local search & discovery Outdoor
• Local search and
discovery • Stolen vehicle recovery
• Location-based social • Location-based marketing
• & advertising • Cycling
Dating • Roadside assistance networking
• Trekking
• Social networks • Speed camera tracking • People tracking • Hyper local news • Fishing
• Shopping / retail
• PAYD insurance • Fraud prevention • Fitness
• Events
• Road charging • Access control • Tourism
• Restaurant • Discovery
• Sport • Local search and • Business intelligence • City guides
discovery trending
• Gaming
• Government GIS
• Security and tracking
• Geotagging Indoor
• Geocaching
• Location-based • Parking search / booking • Museum guide
marketing
• Car sharing • Geo-tagging: MMS/SMS
• Location-based graffiti • Indoor navigation
advertising • Infrastructure-based safety • Zone alarm • Indoor search and
• NFC (V2X) • Geo-located SMS • Multimedia content discovery
geotagging • Accessibility
Nascent
Source: PTOLEMUS 6

8. 3 key technologies and their markets 1
Today, 3 technologies take the lion share of positioning
Circle size is proportional to the number of markets
where each technology is present
Future growth
PRIME PERVASIVE
GALILEO
Wi-Fi
Cell-ID
MEMS
GPS / A-GPS
UWB
EMERGING NICHE
Number of currently equipped devices
Source: PTOLEMUS 7

9. GPS is king 2
Positioning in consumer markets is a €1 billion market in
Europe… growing to €2 billion in 2014
Phenomenal growth of location Positioning technology consumer market
in Europe (Euros, in millions)
3.000
• The number of located Positioning sensors
WiFi location positioning data
mobile devices will double 2.500 Network location investment
Consumer electronics GPS sales
in next 4 years
2.000
• 70% of these devices will be
located using GPS 1.500
• GPS represents 75% of the 1.000
positioning equipment sales
in Europe in 2010 500
0
2007 2008 2009 2010 2011 2012 2013 2014
Source: PTOLEMUS 8

10. GPS is king 2
In the car, GPS will remain a key component of the
positioning solution for most growth areas
Future growth markets for in-car Penetration of GNSS systems in the car
positioning (in millions) (line-fitted only) (% of new cars sold)
20
80%
Embedded GPS / Galileo / Glonass chipsets
Embedded GPS / Glonass chipsets
17 Embedded GPS / Galileo chipsets
Embedded GPS-only chipsets
60%
13
Embedded Navigation
eCall
Road user charging
PNDs
10 40%
Aftermarket navigation systems
PAYD insurance
Stolen vehicle recovery
7
20%
3
0%
0 2009 2010 2011 2012 2013 2014
2009 2010 2011 2012 2013 2014
Source: PTOLEMUS 9

11. 3 key market drivers: expectations and needs 3
2
Today’s positioning technologies do not always respond to
users’ requirements well
Positioning technologies main challenges
30
25
20
15
10
5
0
-5
-10
-15
-20
-25
-30
Coverage Accuracy Speed Reliability Power consumption Privacy
Source: PTOLEMUS 11

12. 3 key market drivers: always & everywhere 3
GPS is in all smartphones – but not alone anymore
Positioning technologies in smartphones
• Numerous mobile services such in Europe (%)
as LBSN will require positioning
to work
- Always (passive & active)
- Everywhere: in the office, in the
subway, in the restaurant, etc.
• As a result, leading vendors such
as Nokia and Apple will integrate
A-GPS, WiFi location (WPS),
accelerometers and compasses
into new smartphones
• No single positioning technology
today can tackle all needs, which
pushes hybrid solutions
Source: PTOLEMUS 10

13. 3 key market drivers: indoor 3
2
Several technologies can address indoor positioning needs
Depending on the loction and the need, Micello, indoor map provider
indoor navigation and tracking may
require a combination of
• WiFi (provided by companies such as
Navizon and Skyhook),
• MEMS
• UWB (Ultra-Wide Band) and SWB
(Super-Wide Band),
• RFID (Radio Frequency IDentification),
• Pseudolites (or Pseudo-satellites),
ground-based radio transmitters that
transmit a navigation signal (Insiteo)
12

14. 3 key technologies and their markets: WPS 4
However, one technology answers today’s indoor location
needs better than the other
WiFi positioning turns GPS
location on its head:
• Like Cell-ID, uses an existing
network bearer to provide
positioning
• Software-based solution with
deals direct between data
provider and device vendors
• Users provide database updates
and drive coverage growth
solutions.
And
maybe • Developers obtain free access to
soon? location
13

15. 3 key technologies and their markets: WPS 4
WPS coverage is growing at an extremely rapid pace
Building on WiFi networks Skyhook's coverage in Europe
• WiFi networks offer a dense and
pervasive networks in urban
areas
• WPS can also work without
cellular data connection
• Devices equipped will triple in
next 4 years
• We expect
- new database providers to emerge
- accuracy to improve (to the metre
range?)
14

16. 3 key technologies and their markets: GNSS 4
A number of complementary satellite technologies will make
GPS-only outdated
Several satellite solutions improve GPS Galileo will bring the greatest benefits
To
• EGNOS augmentation satellites day
provide integrity and added Service Horizontal Vertical
Availability
accuracy in rural areas class Accuracy Accuracy
Toda
y
• A-GPS reduce the error margin Open
1-4 m 8m > 99.5%
Service
and the TTFF
2010 Commercial 20 cm
• GLONASS will operate at the Service (TBC)
> 99.5%
end of this year and will provide Safety of
greater availability Life Service
1-4 m 8m > 99.5%
• Galileo will bring greater 2014 Public
Regulated 1-4 m 8m > 99.5%
integrity, accuracy and Service
availability to GPS
Source: European Commission - Directorate General for Industry and Transport 15

17. 3 key technologies and their markets: Cell-ID 4
Cell-ID’s business model needs to be adapted to reflect its
true growth potential
The price of location requests
Cell-ID can compete with IP location
will continue to fall
• Truly global
• Universal
• Non intrusive 0,09 €
• Highly scalable IP Location Cell-ID
>5 million location 0,07 €
billions location
Current volumes requests / month
requests / day
(EU)
Price <€0.01 / request <€0.04 / request 0,05 €
All mobile phones
Availability with a data All mobile phones 0,04 €
connection
Fixed & mobile
Coverage Mobile networks 0,02 €
networks
Accuracy   0€
2006 2007 2008 2009 2010 2011 2012 2013 2014
3rd party access No opt-in No opt-in
Source: PTOLEMUS 16

18. Cell-ID - Case study - LociLoci 5
How to leverage Cell-ID for tracking: case study of LociLoci
Kajsa Lundfall, CEO
1. Generates value from key operator’s 9 operators, 3
asset usually vastly under-utilised countries, all handsets
2. Monetise network location without 3rd party service
need for operator’s input provider works better
3. Network-based location technology Smartphone does not
pulls location from device on request compete well here
4. Authorisation, privacy, billing & access Simple, straightforward,
all managed at network level successful service
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19. Cell-ID - Case study - LociLoci 5
How the LociLoci business model works
INCOME COST
Subscribers: 20,000 Cost of Cell-ID location: < €0.03
per ping (varies per network)
Subscription: 0.5 to 2.5 per week
(depends on geographical market) Operator's share (revenue and
billing) : 41%
Resell location: €0.03 (volume
discount after 100K/ month) SMS aggregator's share of
subscribers revenue: 6%
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20. Benefits of non-GPS solutions 6
Looking outside GPS for direct benefits
Current Emerging Future
High growth
Location-based social potential
Mobile local search networking
Driver management Indoor LBS
Location-based marketing
Asset management
& advertising PAYD insurance
Roadside assistance Pedestrian navigation
eCall
E112
Floating vehicle data Road charging
Geo-content Medium
growth
Speed camera tracking potential
Active safety
Traffic information & ETA Tourism / city guide
Fleet management People / pet tracking
MNO applications
In-car navigation
Hospital management Geo-caching, gaming
Stolen vehicle recovery Low growth
Cycling/ trekking/ fishing potential
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21. Controlling positioning and location data 7
Monetise positioning data today: who pays for location?
Networks Positioning Location-based
Devices
technologies services
Network Operator Satellite positioning Browser vendor LBS & GIS platform
operators vendor
Location aggregators Location platform OS vendor Location-based
vendor application provider
Network location Network-centric Application store
infra. & middleware positioning providers Device vendor
operator
Network infrastructure Device-centric Chipset vendor Map and POI suppliers
vendor positioning providers
22

22. Controlling positioning and location data 7
Positioning at the core of the device strategy • Indoor navigation
unlocked
• A sense of direction!
• Universal coverage
• High accuracy
outside cities
Gyro
• Almost universal
coverage
Compass Compass
• Fix in less than 1
second
• Indoor location
possible
GPS GPS GPS
Cellular tower Cellular tower Cellular tower Cellular tower
triangulation triangulation triangulation triangulation
(Google) (Google) (Google) (Google)
Skyhook's WiFi Skyhook's WiFi Skyhook's WiFi Skyhook's WiFi Skyhook's WiFi
positioning positioning positioning positioning positioning
system system system system system
20

23. Controlling positioning and location data 7
Controlling positioning is key to build and create a new
ecosystem
GNSS chipset Handset Mobile
manufacturers vendors operators
Reference
networks
Advertisers
GOOGLE
WiFi & Cell-ID
positioning
database End-users
Application
developers
21

24. Long live GPS!
Positioning is at the core of the service, network and device
strategies
• GPS monopoly is coming to an end
• Not all technologies are designed to do the
same, e.g.
- Mobile operators (or others) can leverage
Cell-ID to make it an alternative to IP
location
- WPS will prosper indoor and expand to
outdoor, including the car
• It is not about which technology is best but
which technology combination is best
• Innovative players who design original
positioning strategies will bring
differentiation and value in markets that are
becoming commoditized (e.g. navigation)
Long live GPS! • Controlling the positioning value chain will be
a key competitive advantage, notably for LBA
23

25. Strategies for Mobile Companies
Brussels - Paris - London
contact@ptolemus.com
www.ptolemus.com
Frederic Bruneteau
Managing Director
fbruneteau@ptolemus.com
Twitter: @PTOLEMUS