US report says consumers ready for LBS

Posted 26/12/2004

Consumers Ready for Wireless Location-Based Services; 2005 Will be a Strong Year for Carrier Deployments

SCOTTSDALE, Ariz., December 9, 2004 – Location-Based Services (LBS) in the US wireless consumer market may finally be poised to realize their long-hyped potential, according to In-Stat/MDR (http://www.instat.com). With Enhanced 911 capabilities deployed in many areas and a fast-growing base of subscribers owning location-capable handsets, wireless operators are beginning to turn their attention to addressing the significant market potential for commercial LBS, the high tech research firm says.2005 will be a banner year for carrier deployments of LBS, driven initially by the integration of location capabilities into existing services such as mobile web browsing, information applications, and directory assistance.

In 2006 and beyond, as the market grows, consumers will begin to see more advanced LBS applications such as user-configured tracking services and location-enabled games.In-Stat/MDR’s recent Consumer Mobility Study (CMS) of more than 1,000 respondents revealed that 85.6% of wireless subscribers, representing a full range of demographic and behavioral groups, are interested in one or more LBS applications. Of that group, 56.7% stated that they would be willing to pay a premium fee for LBS features. In-Stat/MDR’s research indicates that, as a category, LBS holds much broader mass-market appeal among wireless subscribers than other wireless data services such as short messaging service (SMS), ring tones, and mobile games.

The survey also found that consumers were most interested in location services related to navigation and local information:

Driving directions
Maps on the mobile phone display
Local traffic updates
Mobile city guides
Local weather information

Among consumers surveyed, privacy issues were a concern for 35.0% of respondents, but 81.8% of that group said they would be less uncomfortable if they could easily disable the location tracking technology on their phone. 82.3% of consumers also said that location-enabled Enhanced 911 services would make them feel safer.

The report, Consumer Demand for Location-Based Services (#IN0401660MCD), which features an assessment of consumer wireless subscriber demand for LBS, both on a general level and for each of 13 specific LBS application concepts, including: driving directions, maps, local traffic updates, mobile city guide, local weather information, pedestrian directions, child tracking, digital compass, friend finder, mobile blogging, location-based games, mobile matchmaking, and location-enabled 411 directory assistance. The report also includes detailed profiles of the users most interested in purchasing LBS, including analysis of demographics, professional profiles, and wireless purchasing patterns. The report outlines comparisons between subscribers interested in LBS, all mobile data users, and the overall wireless subscriber base. Finally, the research report contains an examination of consumer attitudes about key LBS issues, including E-911 safety perceptions, as well as personal privacy concerns.

See the full report at http://www.instat.com/press.asp?ID=1175&sku=IN0401660MCD

About Andrew

Based in London, The Actionable Futurist and former Global Managing Partner at IBM, Andrew Grill is a popular and sought-after presenter and comementator on issues around digital disruption, workplace of the future and new technologies such as blockchain. Andrew is a multiple TEDx and International Keynote Speaker.