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Frost & Sullivan: Value-added offerings to spur growth of Location-based Services

  • 07 July, 2007 13:11

<p>Location-based services (LBS) which have largely remained untapped in Asia-Pacific are expected to show promising growth in tandem with the introduction of mash-up services and increase in mobile advertising.</p>
<p>New analysis from global growth consulting company, Frost &amp; Sullivan (, Asia Pacific Location-based Services Market, reveals that the market - covering 13 major Asia-Pacific economies - was worth US$291.7 million in 2006, and is expected to grow at a CAGR (compound annual growth rate) of 15.3 percent (2006-2009) to reach an estimated US$447 million by end-2009.</p>
<p>“LBS is emerging as the benchmark for service differentiation among mobile operators. Despite being a fairly small segment, this niche market is gradually shifting from a mere complementary service into a significant source of revenues,” says Frost &amp; Sullivan industry manager Janice Chong.</p>
<p>LBS, which encompass a complex eco-system of application developers, content providers, merchants and advertisers, demonstrate the progressive demand of mobile users for more control over content and services that operators provide.</p>
<p>“The implementation of a full-spectrum LBS which includes mash-up services can significantly expedite the creation of a robust mobile content eco-system in the various Asia-Pacific countries,” she adds.</p>
<p>Japan and South Korea are by far the most developed LBS markets accounting for nearly 92 percent of the total revenues in Asia-Pacific. Much of this is attributed to the advanced data market in both these countries, the existence of a complete mobile eco-system which is conducive for both application developers and content providers, and the availability of reasonable LBS plans with flat rates.</p>
<p>“These markets also exhibit a much higher consumer-to-enterprise LBS ratio. The consumer segment provides a more durable payoff since there is a tight nexus to mobile advertising, allowing more potential for growth,” notes Chong.</p>
<p>The demand for LBS in the rest of Asia-Pacific however has been primarily inhibited by various issues including privacy infringement concerns, inter-operability issues, lack of advanced GPS (global positioning system)-enabled handsets, and to a large extent, a general lack of a conducive eco-system and user interest.</p>
<p>In most of these markets, mobile operators’ foremost priority is limited to expanding subscriber base and driving greater data traffic amongst mobile users - offering basic mobile data services which are simpler, provide quicker return-on-investment (ROI), and appeal to a larger target audience.</p>
<p>“However, with wider availability of GPS-enabled handsets, value-added mash-up services and intense advertising, the adoption of LBS throughout the rest of Asia-Pacific is expected to increase,” says Chong.</p>
<p>The Asia Pacific Location-based Services Market study is part of the Mobile and Wireless subscription, which includes research services in the following markets: mobile communications, mobile enterprise, premium content and applications, and mobile video services. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. Analyst interviews are available to the press.</p>
<p>If you are interested in a virtual brochure, which provides service providers, vendors/manufacturers, end users, and other industry participants with an overview of the Asia Pacific Location-based Services Market, then send an e-mail to Sharmin Jassal, Corporate Communications, at with your full name, company name, title, telephone number, fax number and e-mail address. Upon receipt of the above information, an overview will be sent to you by e-mail.</p>
<p>Frost &amp; Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost &amp; Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective, and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit</p>

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