What Developers Need To Know About LBS

What Developers Need to Know About
Launching Location-Based Services

July 2, 2007

Blair Swedeen

About Partenza Consulting
• Founded in August 2006 to focus on providing clients Location-Based
Services (LBS) product strategy and business development expertise.

• Eight total years of experience in product strategy, management,
marketing for software and content products.

• Four years experience in LBS working with:
– Application Developers
– Middleware Providers
– Content providers
– Device Makers
– Wireless Carriers
– Local Search Portals

Unique value proposition: LBS experience cutting across all
LBS channels, geographies and value chain positions

2 Copyright © 2007 Partenza Consulting. All Rights Reserved

Questions for Discussion Today
• What is LBS?

• What makes LBS different for developers?

• Why should I consider developing an LBS app?

• What’s the LBS market look like?

• How do I get started developing my own LBS app?

• What are some of the challenges in LBS?

• What about Europe?

Most importantly ask questions!


What is Mobile LBS?
• Mobile Location-based services
(LBS) allow end-users to answer
questions such as:
– Where am I?
– What’s near me?
– Where is ______?
– How do I get there? 3
1
– When did Bobby leave school?

• This is accomplished through the 2
combination of some or all of the
following technologies:
– GeoSpatial software
– Spatial databases
– (Assisted) GPS
– Wireless data networks
– Mobile applications


Why LBS? Consumers Want It


Why LBS? Largest Revenue Generator in Downloadable App Category
Application Category Share of Downloadable Revenue
10% All National Carriers, US

4%
Location Based Services
31%
Weather
7%
Sports
Wallpaper/Pics
Music
Maps/Directions
9% PIM/Tools
Chat/Community
Other

8%

13%
9% Source: Telephia Mobile Applications Report Q1 2007
9%


Why LBS? Significant Price Premium in the Downloadable Apps Space

All National Carriers
30.0% $10
Q107, US
$8.25
Share of Downloads $8
Avg Price Paid
20.0%
$5.31 $6
$4.74
$4.29
$4.12 $3.93
$3.39 $4
10.0%

$2

0.0% $0
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*Total revenue received in Q107, covering downloads and subscription fees Source: Telephia Mobile Applications Report Q1 2007


What’s Next? Location is Moving from a Vertical Stand-
alone Application to a Horizontal Supporting Multiple Apps

Turn-by-turn Navigation Service

Workforce Management
Comparison Shopping
Social Networking

Active Lifestyle
ENABLER of
ENABLER of
Location Awareness
Location Awareness


As a Result, There are Now Many Different Types of LBS Apps

Consumer Enterprise
Navigation Vertical-specific
–Insurance
Family Tracker
Social Networking –Construction

–Transportation
Shopping/Coupons
–Real Estate
Active Lifestyle
Mobile Local Search Workforce management
Real Estate Search Fleet dispatch & tracking
Imaging Stolen vehicle tracking
Gaming


Enterprise Has Very Different Functional Requirements than Consumer
Mobile asset and people tracking
1

Route optimization and generation
2

Schedule management
3

Workflow management (paperless order processing)
4

Integration with back-office ERP/inventory systems
5

Business models also differ greatly. Enterprise requires
direct sales force and large marketing budget.


What Makes LBS Different? Assisted-GPS.

GPS satellites

Time To First Fix

Normal GPS
- Outdoor 45 - 120sec.
- Indoor N/A

Assisted GPS
Assisted GPS
-- Outdoor 1 -- 5 s.
Outdoor 1 5 s.
-- Indoor 10 -- 30 s.
Reference Indoor 10 30 s.
Reference
Network
AGPS Server
AGPS Server
Assistance data:
-GPS Time
-Visible satellites
-Ephemeris data (position)
-Almanac data

A-GPS Makes LBS a True Client-Server Network Service
Source: BlueSky Positioning


What’s the NA LBS Market Look Like?
Developers
GPS Chipsets Handset OS/
Dev Platform
Branded Carriers Customers
Tier 1
Enterprises

Handset Makers

Tier 2
White Label

LBS Platform
Spatial Content
Consumers

Internet Brands Location Server
Internet Brands
Off-deck On-deck

Non-GPS
Windows GeoSpatial Platform
Live Search


What Does the LBS Platform Do?
GeoSpatial Platform
• Provides the database management technology for location based services:
– Searching
– Geocoding
– Map Rendering
– Navigation/Route Calculation

Middleware
• Communicates with the Carrier’s internal systems and manages those functions not related to the core
geo-spatial actions
– Location determination interfaces
– Authentication and Privacy
– Hooks into carrier billing systems
– Messaging interfaces (SMS, MMS)
– Content management

Spatial Databases
• Provides all the necessary Map and POI data for a location-based service
– Verizon mandates NAVTEQ
– Sprint allows developer to choose between TA and NT

Location Server
• Provides API to access the subscriber’s A-GPS Lat/Long
• Defined by carrier


Developer Programs Essential to Shortening
Time to Market and Assisting in Marketing
Several players have developer programs with LBS support:
• Geospatial Platforms
– Autodesk: http://usa.autodesk.com/adsk/servlet/index?siteID=123112&id=7764394
– deCarta: http://www.decarta.com/products/dz/index.html
– ESRI: http://www.esri.com/industries/locationservices/business/enterprise.html

• Carriers
– Sprint: https://developer.sprint.com/site/global/develop/technologies/location_based_serv/p_lbs.jsp
– Verizon/US Cellular (BREW): http://brew.qualcomm.com
– Alltel: http://developer.alltel.com

• Handset Makers
– Motorola: http://developer.motorola.com
– Samsung: http://developer.samsungmobile.com
– Nokia/S60: http://www.forum.nokia.com

• Map Providers
– NAVTEQ: http://developer.navteq.com/site/global/home/p_home.jsp
– TeleAtlas: https://developerlink.teleatlas.com/index.cfm?ses=1

• OS/Dev Environments
– BREW: http://brew.qualcomm.com/brew/en/developer/resources/dev_resources.html
– Microsoft: http://msdn.microsoft.com/mobility/default.aspx
– Symbian: http://developer.symbian.com


To Be Successful, You Must Build Your Business Case
Market Analysis
• Is there a large defined market opportunity?
• Who are you targeting to buy the service?
• Is your solution unique and differentiated vis-à-vis the competition?
• How will you market and sell the application?

Product
• What pain point are you solving?
• Will it meet the privacy requirements from the carriers?
• Could your grandmother use it?
• Are you a mass market or a niche application?
• Consider your scope carefully and be specific about what you do that is better.

Launching with Carriers1
• Align sufficient financial backing to support the service once it’s launched.
• Don’t oversell what you have to carriers.
• Admit what you’ve accomplished versus trying to sell what is really a work in progress.
• Align yourself with good partners to introduce you to carriers.

1. Paul Reddick, “10 Tips for Startups Who Want to Work With Sprint”


A Quick Word About Europe
EU expected to be second largest LBS market after US, but is at earliest stages
• Virtually no A-GPS infrastructure
• Very few GPS handsets

Navigation, Local Search and Enterprise expected to be largest app opportunities

Handset makers will likely dominate
• Swappable SIM cards
• ~50% pre-paid data and voice
• High cross-country data roaming charges means ‘on-board’ more attractive
• Fragmented carrier base
• Consumers used to autonomous GPS and ‘on-board’ distribution

Nokia has early lead
• Purchased Gate5 navigation software vendor
• Adding GPS to entire N-Series within 1 – 2 years
• Nokia’s Series 60 client UI contains all the handset interfaces for A-GPS and LBS

EU LBS market could now ramp up quickly
• Europe poised to adopt E-112 regulation which will mandate positioning a la E-911 within 18 months
• New technologies such as SIM A-GPS and software-only GPS mean vastly improved economics for
adding GPS.


Challenges in Getting to Market
Expect to test, test, and test some more1
• Handset differences
• Infrastructure differences for location data
• Spatial data issues
• Different players own and operate different components

Limited distribution options
• Verizon pursuing carrier-branded strategy, and have filled much of their current LBS
needs2
• Sprint more open with open ecosystem approach
• Tier 2 BREW carriers such as US Cellular and Alltel can be a good place to start

Cost per device goes up as you add location
• Porting becoming a larger issue as more handsets support GPS
• Certification covers signal strength, power, compliance for privacy standards, etc.
• It’s very difficult to track down all of the issues you run into, and it ultimately falls on
the developer.

It’s a long process. Be prepared and be persistent!
1. Kevin Tsurutome, TCS, BREW Conference 2007
2. Barry Ross, Verizon, BREW Conference 2007


Contact Info
Blair Swedeen
Partenza Consulting
e: blair@partenzaconsulting.com
o: +1.415.513.5650
m: +1.773.727.1375
w: http://www.partenzaconsulting.com

Presentation will be made available at http://www.partenzaconsulting.com.

Thanks and good luck!


What Developers Need To Know About LBS

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