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.
New analysis from global growth consulting company, Frost & Sullivan (www.mobileandwireless.frost.com), 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.
“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 & Sullivan industry manager Janice Chong.
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.
“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.
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.
“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.
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. Read more
















