GPS World

Author: Kevin Dennehy

  • Google to Charge High-Volume Users for Map Use

    It couldn’t stay free forever. Google’s recent decision to charge high-volume users may force some of the larger companies to look elsewhere for alternatives. In the meantime, attendees at two San Francisco Bay Area conferences learned that push location marketing is not the cool thing to be into, privacy still is a big deal that thwarts consumer acceptance…and that the word “experience” is being used too much.

     

    SAN FRANCISCO — Google’s major partners, who have more than 25,000 Google Maps application uses per day, will be charged starting next year — a decision that was a hot topic at the Geo Loco conference here. Some say it won’t hurt small companies much — and may even help companies who compete with Google. Either way, some say the decision was inevitable for companies making a profit — and using Google’s resources for free.

    “It’s really not going to affect a lot of people — just those at the over 25,000 uses a day threshold,” said J. Kim Fennell, deCarta CEO, on a Geo Loco panel. Fennell said he sees a lot of commoditization of the LBS space, from maps to navigation. “The big thing, now that maps are commoditized, is better local search capabilities for the consumer,” he said.

    One panel member, Gary Gale, director of Places Registry for Nokia, disagreed, saying that while Google keeps on giving its location products and capability away for free, it may force companies to look elsewhere when it decides to charge them. “People don’t like change. Some people will look for alternatives,” he said.

    According to published reports, high-volume websites will be offered Google Maps Premium, a paid service that costs $10,000 per year. Planned fees will be $4 per 1,000 page loads over the 25,000 per day threshold.

    Google’s Bernardo Hernandez, head of global emerging platforms, told Geo Loco attendees that the company, which recently purchased restaurant guide publisher Zagat, says there are millions of Google Maps users worldwide each day. He said that heading use trends is the continued growth in mobile applications. “Phones are pocket guides,” he said in a reference to the Zagat purchase.

    Facebook Debunks Push Location Marketing

    If one looks beyond a young high-tech company speaker constantly saying the word “experience” (as in consumer experience or user experience), sometimes something important is said. Facebook’s Paul Adams, global brand experience manager, said that companies should not use push location marketing to consumers. Rather, they should have their friends and family tell them what products and services they should use.

    Adams said that Facebook is the platform to do that — basically saying that the average Facebook user has 130-170 friends that equate into about 8,000 friends of friends, exploding into even larger numbers for friends of friends of friends (whew!).

    In other Geo Loco news, location-based deals seem to be lackluster in revenue growth. Groupon Now’s location-based capability is only 1 percent of its revenue. “The motivation for merchants and consumers to participate [in Groupon Now’s program] is just not there. People just aren’t using it,” said David Hagreaves at the Geo Loco conference. Hargreaves, a consultant, said that the big ticket items that Groupon seems to be excelling at — restaurants, spa/beauty — are just not seeing the numbers for LBS.

    Indoor Positioning Big Topic at Two Conferences

    Indoor positioning capability, boosted by Wi-Fi and other technology, seemed to be the hot market topic at both CSR Locations and Beyond Summit 2011 and Geo Loco conferences. CSR rolled out its SiRFstar V and SiRFusion location platform at their conference.

    The products fit in the company’s strategy of offering and enabling mainstream consumer location indoors or outdoors, said Kanwar Chadha, CSR’s chief marketing officer.

    Years ago, it took a long time to get an outdoor position fix, much less a seamless handoff of a signal indoors. However, Wi-Fi technology, combined with satellite positioning, pedestrian dead reckoning (using MEMs sensors), and crowd-sourced location and aided data from a cloud-based server, has made accurate indoor positioning possible, CSR contends.

    Such companies as Micello attended both the CSR and Geo Loco conferences to hawk products that use indoor positioning. Micello is working to offer developers access to thousands of indoor maps to enable applications for airports, trade shows, shopping malls and other complex indoor venues.

    In other Locations and Beyond Summit news, privacy was a hot topic, though it is being labeled as a service provider problem, not a developer’s. “The industry has a lot more work to do in regards to privacy. The younger generation understands the implicit use of location — and privacy has been built into the infrastructure,” Chadha said. “We have no control of those elements. That responsibility belongs to the service provider.”

    A CSR moderator, Tim Bajarin, president of Creative Strategies, said that the younger generation “scares the heck out of me” in terms of their willingness to embrace location services without care of privacy issues. “But having said that, you can’t beat the value of LBS when you need it,” he said.

    In other conference news:

    • David Chiu, who spoke at Geo Loco and is running for San Francisco mayor, said there is big opportunity for companies who want to work with the city. He said buses don’t arrive on time — nor does the city know where they are most of the time.
    • James Urquhart, who spoke at the CSR conference and is cloud computing and virtualization marketing manager for Cisco, said that the industry has a rare and huge opportunity to reduce costs that directly affect profit and loss in the M2M space.
    • Duncan McCall, who spoke at CSR and is CEO of PlaceIQ, said that while location-based advertising has been promised for some time, there still are not enough location impressions. He says data is not yet aggregated together in a useful way.
    • While folks have been quick to point out that LBA is in its early stages, Alistair Goodman, Placecast CEO, at CSR, said that his company is seeing advertisers spend six- and seven-figures on campaigns in this space.
    • Kanwar Chadha, CSR CMO, said he does not like the term LBS, but prefers “location experience.”

  • FCC’s Future Location Requirements, Apple iPhone 4S

    Update:

    Many press reports recently said that the Federal Communications Commission plans to require GPS in all mobiles by 2018, including LBS Insider (October 12, 2011). However, the FCC said that isn’t quite so, saying that “not before 2019, on a date still to be determined, carriers will have to meet the more stringent location accuracy standards that now apply to those carriers using a handset solution for [enhanced 911], and they may choose which solution to use.”

    FCC spokeswoman Lauren Kravetz said that these technology solutions may be GPS chipsets, network-based, or a hybrid. The FCC said, after the conclusion of an eight-year period that ends in early 2019, it will sunset the existing network-based rule and require all wireless carriers to meet “the more stringent location accuracy standards in the handset-based rule. The FCC will then set a specific sunset date for a network-based standard — after further notice and comments.”

    An announcement completely overshadowed by the Apple iPhone 4S rollout may have a major impact on the location-based services industry. The FCC has said that all wireless carriers, including voice-over-IP service and landline providers, are required to integrate GPS into phones by 2018. In other news, Intel bought Telmap, which has made inroads into the LBS market with its partnerships with carriers.

    In a move designed to allow first responders to locate 911 emergency calls, the Federal Communications Commission will require all wireless operators, including voice-over-IP service and landline providers, to integrate GPS in phones by 2018.

    The FCC says the majority of mobile phone users will have GPS-installed devices by the 2018 deadline. The FCC did not set a deadline for phones that do not use GPS-based technology. In addition, VoIP is going toward more mobile applications, rather than its original substitute for landline service.

    Most industry experts agree that the rise of location-based services occurred when the FCC mandated that carriers have location capability during its enhanced 911 rulemaking. Wireless carriers chafed at the deadlines and accuracy requirements. However, the rulemaking did bring market awareness to the carriers to the benefits, and potential new markets, coming from this mandated location requirement.

    While it is too early to tell how much this will help drive LBS markets, the FCC said the decision, which was overshadowed as it was announced the same week as the rollout of the Apple iPhone 4S, was spurred by the desire to modernize 911. This means locating emergency callers quickly, particularly from smartphones and other mobile devices.

    But have the wireless carriers lost their grip on LBS? In 2009, the surge in the number of GPS-enabled smartphones, proliferation of handset and mobile OS application stores, and increased availability and consumer demand for free or low-priced LBS applications has had a huge impact on the traditionally carrier-controlled LBS market, said Dan Gilmartin, Where vice president of marketing.

    “The decreased costs and barriers to entry into the market place and ability to reach consumers through low- or no-cost viral social marketing channels is enabling small application developers to compete with the established LBS developers. The result is a highly competitive landscape that beforehand was dominated by only a few major players,” he said.

    Gilmartin said that Google’s decision to offer free turn-by-turn navigation and acquisition of ADMob for $750 million reinforced the expectation that the viable business models for LBS in 2010 and beyond will include offering free or “freemium” services to consumers through ad-supported and other non-traditional funding models. “That said, the carriers’ subscription model still appears viable, at least for the short term, and consumers are proving to be willing to pay for what they perceive to be high-quality applications both on- and off-deck, navigation being the most prominent category,” he said.

    Go Ask Apple? 

    The rollout of the Apple iPhone 4S may not be the biggest thing for the LBS market, but it does open it further to another tier-one carrier in Sprint. Like other iPhone models, the 4S has GPS embedded, but offers Siri voice-recognition that integrates with its navigation capability.

    When LBS Insider contacted Sprint for comments on the new iPhone 4S and the FCC decision that GPS be installed in all smartphones, we got the public relations brush off to “Go ask Apple.” Ask Apple about GPS and LBS? This is an interesting response, as Sprint was one of the first major LBS market players, particularly their Nextel folks who were very innovative with location technology in the early days.

    Intel Buys Telmap

    At least one company in the LBS market is doing something right when a big company like Intel buys it. As GPS World reported, Intel bought Telmap, the Israel-based LBS company. The deal was announced at the recent Intel AppUp Elements developer conference in Seattle.

    Motti Kushnir, Telmap chief marketing officer, said that since Telmap is a private company, financial details cannot be disclosed. He said the deal will take effect by the end of the year. “Telmap will be a wholly owned subsidiary and will maintain its independence as well as its brand,” Kushnir said in a prepared statement.

    Kushnir said no layoffs are expected, nor will facilities close or be moved by Intel. “On the contrary, we are expected to grow in order to support the growth of our business both in existing and new territories,” he said.

    One of the reasons Intel bought the company is that it is sees mobility as one of its growth engines — and location is a key component, Kushnir said.

    Telmap says it has 6 million users for its IP portfolio that includes mapping, local search, and navigation. This includes a new restaurant LBS initiative in Israel. The company is working with Rest, a large Israel restaurant guide to provide location-based coupons to customers.

    In other LBS industry news:

    • Fierce Wireless made an admittedly subjective list of the worst cell phones of all time. Garmin’s ill-fated Nuvifone G60 made the list. The phone, a partnership between Garmin and Asustek Computer, featured LBS — and had a $5.95 monthly charge for premium service. Fierce Wireless says that it was a failure in part because of Google’s free location services.
    • Nokia will be closing down its operations in Bonn, Germany, and Malvern, Pennsylvania, with an expected loss of more than 1,300 jobs in the Location and Commerce divisions. According to published reports, operations will consolidate in the Berlin, Boston, and Chicago offices. Another 2,200 layoffs will come from its European manufacturing operations.
    • This column has admittedly neglected traffic markets lately, but will be running more stories and interviews soon. With that, some big news has come out of that market, namely Google’s recent deal with INRIX to power its navigation and mapping applications. INRIX traffic information will be integrated in Google’s online products and services and on mobile phones.

    Meanwhile, INRIX competitor TomTom is launching a Traffic Foundation that brings together stakeholders from academia, industry, and policy-making to help reduce traffic congestions. The company also rolled out its Custom Probe Counts at the ITS World Congress, that allows government and business markets to assess traffic density. The company also expanded its coverage from 14 to 18 countries.

  • Is Google’s Acquisition of Motorola Mobility an Attempt to Control Location Biz?

    Google is at it again. This time Motorola Mobility is on the buying block. What does this mean to the location-based services market? Another potential location platform market closed off? Some industry experts believe this is the case. In addition, Iridium and TeleNav are making LBS news with recent product launches and acquisitions.

     

    The recent $12.5-billion Google acquisition of Motorola Mobility has some industry experts saying that the location market piece of pie is getting smaller every time the search giant makes a deal.

    “I think with Google controlling both the hardware and software stack of the Android ecosystem it will be hard for any technology company to work with Motorola. They want to own the whole shooting match for themselves,” said Ted Morgan, Skyhook Wireless CEO.

    Boston-based Skyhook is suing Google for allegedly using tactics to block Motorola Mobility and Samsung from contracts that use the company Wi-Fi-based tracking system in Android smartphones.

    Many industry experts have said that the main makers of Google Android smartphones should feel challenged as well as the company has seemingly gone into business against them.

    Google has made many moves into the location business in the last two years. It is trying to grab a large share of the European traffic market by offering real-time services in 13 European companies. Google shook up the navigation market with free navigation service for Android phones in 2009. Last month, LBS Insider detailed Google’s purchase of The Dealmap, which offers a location-based daily deal service.

    Google’s acquisition of Motorola is another step in a development strategy that appears to be aimed at increasing the company’s ability to compete across multiple markets that are served by mobile computing, said Mike Dobson, Telemapics president, author of Exploring Local. “[This is] supplemented by the company’s ability to supply its customers proprietary content that can provide a unique and informed world view whether those customers are at home or on the road exploring new geographies,” he said.

    Dobson says that Google clearly wants to compete on a level playing field with Apple and appears to feel that the only way they can do so is to acquire one of the premier manufacturers of mobile phones. “While Google had hoped to control the mobile market by developing Android, doing so has not allowed them the gather the strategic control of phone design, pricing, positioning, placement, or distribution,” he said. “Conversely, Apple has been able to bring mobile phones to the marketplace whose features, functionality, and looks have generated a design revolution that has enchanted consumers in a manner dissimilar to anything we have ever seen in the mobile marketplace.”

    Although Motorola’s brand has been tarnished in recent years, it is clearly the case that they are an extraordinarily talented developer of popular mobile devices that continue to stretch to boundaries of the capabilities of the cell phone world, said Dobson, who believes that this is evidenced by the fervor of anticipation surround the current release of the dual-core, 4G LTE compatible Motorola Droid Bionic.

    Motorola’s design team, however, does not appear to understand the consumer mobile phone market with the same ability to interleave design and hardware functionality that is the hallmark of all Apple products, including the iPhone. “Nor do I believe that Google has the capabilities, as of this time, at least, to remedy this situation,” he said.

    Dobson said that Google’s proposed acquisition of Motorola, coupled with those like its acquisition of Zagat’s and proposed acquisition of ITA Software, an airline ticketing company, seems to indicate that Google is interested not only in providing the platform and OS, but also the common content that might be of interest to users of their mobile devices. “When Google’s control of key content is wrapped within the control of the delivery platform and nested within the Internet’s most successful advertising delivery platform, AdSense/AdWord, it would appear that Google will have advantages in the mobile world far superior to any company that currently exists,” he said.

    Now that the U.S. government has blocked AT&T’s acquisition of T-Mobile, all eyes are on Google’s newest purchase. Dobson has said that while it is impossible to estimate the size and data usage total that can be attributed to location services, there is little reason to assume that it does not mirror the growing trend in data growth.

    At the time the AT&T/T-Mobile deal was announced, Dobson told LBS Insider that if AT&T can advantage itself by easing its spectrum crunch through the acquisition, it could result in the company being more interested in navigation and LBS than in the past.

    Iridium Making LBS Foray

    As GPS World reported, McLean, Va.-based Iridium Communications announced that its Iridium Force strategy will include LBS and M2M to grow its personal mobile satellite capabilities beyond satellite phones. The new capability enables communication with Wi-Fi-enabled devices such as smartphones, tablets, and laptops. The Iridium Extreme, which is the company’s smallest, will be connected to online portals with GPS and LBS capabilities.

    The company also says that Iridum Tracking Portals allow customers to access location monitoring that show real-time status and location, scheduling regular check-ins, geo-fencing, and other features.

    In a July interview with LBS Insider, Patrick Shay, Iridium vice president and general manager for data services, said that the machine-to-machine market constitutes the company’s fastest growing segment. The company said it reached 500,000 total billable subscribers for its satellite voice and data services worldwide. The breakdown of subscribers includes 90 percent commercial customers and 10 percent U.S. government customers.

    TeleNav Buys LBS Firm Goby

    In a smaller acquisition, of which financial details were not disclosed, TeleNav purchased Boston-based Goby, a local and travel search startup that focuses on mobile applications — and will look at advertising revenue models.

    TeleNav has been tight-lipped about the acquisition, only saying that they are impressed with the small company and its personnel and technology. Published reports indicate that the company, and 10 employees, are staying in Boston.

  • Google Buys The Dealmap, Is Social Shopping Market LBS Driver?

    Once again, it looks as if Google is taking a giant leap into location-based services with its recent acquisition of The Dealmap. Is this deal a signal that LBS market viability may be tied to the social shopping market? The market is potentially huge, with two big players and a third, Google, quickly developing. But is this the market that will propel LBS to the next level? One analyst says yes…and no.

     

    Technology giant Google is once more trying to corner more of the social shopping market by buying The Dealmap, a 15-month-old company that offers its own location-based daily deal service.

    Menlo Park, Calif.-based The Dealmap collects data from hundreds of sources and arranges deals by location, on its website and a smartphone application. The start-up, founded last year, has 15 employees and 2 million users, according to published reports.

    Google tried to buy Groupon for as much as $6 billion last year, and decided to launch its own service, Google Offers, in Portland. Google’s service has since expanded to New York and the San Francisco Bay Area.

    Google has made many moves into the location business in the last two years. It is trying to grab a large share of the European traffic market by offering real-time services in 13 European companies. Google shook up the navigation market with free navigation service for Android phones in 2009.

    At least one analyst said he was intrigued by the acquisition, of which financial details were not disclosed. Mike Dobson, TeleMapics president, said that The Dealmap acts as a deal aggregator and cross-channel distributor for national in-store deals from brand retailers, restaurant chains, and other businesses; local daily deals (from Groupon, Living Social, and more than 200 other sources); and what The Dealmap calls “store window” deals from individual local businesses.

    In a recent presentation that The Dealmap made at the Kelsey Deal3D Conference, the company claimed to have grown in its first year to 2 million-plus cross-channel users, including more than 1 million mobile users, said Dobson, who authors a location blog. The volume of monthly deal searches on its network was more than 75 million and the monthly network reach was estimated at 85 million, he said.

    The Dealmap and others (Borrell Associates, Needham and Company, and Groupon) have predicted that the projected size of the local daily deal market will be sized at $10 billion by 2015, while the online local ad revenue will be $32 billion by 2013, Dobson said. “The Dealmap claims that its deals provide more than $10 million in savings each day, although it is less clear what earnings it creates in the way of margin/profit for distributors, such as, well, Dealmap,” he said.

    Dobson said that the “deal supplier” market appears to be dominated by top sites. Eighty percent of the local deal inventory nationwide is dominated by 20 sources, 69 percent by 10 sources, and 40 percent by two sources, Groupon and Living Social, he said. “The Dealmap claims that its daily ad inventory is supplied at a modest 6.25 deals per source, while half the deal supply sources offer only one-to-two deals a day,” he said.

    “Perhaps more disconcerting is the fact that 69 percent of deal suppliers have a presence in from two to nine markets, while 19 percent cover only a single market. Only 4 percent of The Dealmap’s suppliers have a national footprint, which the company defines as 25 or more markets, Dobson said. “While this could suggest that the deal market is inherently local, I think it suggests that local suppliers add the ‘long tail’ that is appended in local markets to the offerings of Groupon and Living Social. In other words, the market appears to be close to a duopoly at a national scope, with numerous smaller players operating as regional and local suppliers. My conclusion is that the market for local deals from individual local suppliers is quite small, and that the major force of deals in all markets are national chains who wish to present deals to draw local users to their shops.”

    Dobson says the reason he makes this distinction is that it does not appear likely that “deal-based advertising” is going to be the replacement for local newspaper advertising, or a real-time Yellow pages, at least not as currently configured.

    “The Dealmap indicates that in a sample taken from Chicago for one day of deals, the inventory from the two leading providers was split one-quarter each for fitness spas and shopping, while attractions and dining evenly split the last quarter of the pie,” Dobson said. “When all deal suppliers were added, salons and services deals added 10 percent each to the mix, while dental deals (3 percent) and hotel deals (5 percent) rounded out the categories. Who knew that people looking for social shopping deals were looking for an athletic workout and liked to meet in spas, followed by a good meal and a visit to an attraction?”

    According to The Dealmap, more than 50 percent of deals searched for nationwide by consumers are related to dining, followed by shopping at 20 percent, while attractions, bars, spas, travel and “things to do” to ranked in the single digits. On mobile devices the search profile is somewhat different, with dining at 40 percent, shopping at 30 percent, spas and travel each at 12 percent, “things to do” at 4 percent (a 5-percent loss compared to deal-search in general), and bars at a measly 1 percent (a 3-percent drop compared to deal-search in general), Dobson said.

    “I am not sure how others perceive the message that can be found in the numbers above, but I think it might be hard to find a long-term growth business here. Google acquired The Dealmap because Google needs to buttress its local advertising empire, but clearly this is a small-potatoes business,” Dobson said. “Yes, I understand that Groupon walked away from a $6-billion-dollar offer from Google, but I suspect that they already regret their bristliness during the negotiations. I guess this shows that just because you can market deals, does not mean that you know how to negotiate one for yourself.”

    What’s the Big Deal for LBS?

    Dobson said that the big deal may be for the LBS industry. “It appears to me that the concept of ‘location’ is in the process of occupying its rightful place in a variety of industries that are clearly location-centric, and were location-centric before any of us thought of using the term location-based services to describe those business services that had a location component,” he said. “Perhaps the only thing that has changed for these industries is that the consumerization of GPS and the inclusion of its functionality in phones, laptops, PNDs, and other navigation devices have allowed these businesses to pinpoint the location of consumers and provide relevant services to mobile users.”

    While The Dealmap certainly fits within Dobson’s notion of LBS, he suspects that the company sees itself in the deal-distribution business and has forward integrated into location services to expand its deal-distribution capacity. “Google almost certainly did not acquire The Dealmap because the company had a new, unique, and proprietary location technology. Instead, they acquired The Dealmap for the company’s distribution strength (its distribution network and deal-distribution applications) and their knowledge of how Groupon and Living Social operate,” he said. “It seems to me that the one trend that continues in LBS is that service businesses require strong distribution channels and few companies in this space have capabilities in this respect. For this reason, the action in LBS will continue to be acquisitions by companies who already have the distribution, but need the know-how that will allow them to leverage location as a method of increasing their distribution capability. In short, ours is a market segment in which companies need to innovate, out-perform, and pray that they get noticed by the industry leaders in other market segments.”

    There are no potential Google or Facebook success stories in our midst, Dobson said “Our task is to build location engines, use them to solve common but ubiquitous problems involving location — and hope that our efforts get us to the finish line before anyone else,” he said.
     

  • Strategy Overhauls, Strong M2M, Privacy — and What More’s in Store

    It’s July, which means big news is slow to come by — and it is the opportunity to examine what will drive the location-based services market for the rest of 2011…and beyond. So far, consolidation is continuing, with Nokia combining digital mapping giant Navteq into a single LBS unit. In addition, strong entries into the machine-to-machine market include Iridium, while AT&T seeks to increase market share. Privacy issues were a big topic in the first part of the 2011, but will they hamper market growth the rest of the year?

     

    Nokia to Consolidate Navteq into Location-Based Services Unit

    In a move that looks like a strategy overhaul, Nokia plans to combine its Chicago-based Navteq digital mapping unit with its location-based services business. The new location and commerce division will be led by Michael Halbherr, who told LBS Insider in April that he was involved in Nokia’s $8.1 billion decision to acquire Navteq in 2007.

    Nokia had touted that it had a “hands-off” approach with Navteq, unlike competitor TomTom, which incorporated its Tele Atlas mapping unit so much that the TA brand is no longer visible.

    Halbherr told LBS Insider he predicted the demise of the portable navigation system early on, a market that competitor TomTom has been finding difficult recently. Navteq maps power Nokia’s Ovi Maps service for smartphones. Yahoo and Microsoft also incorporate Navteq digital mapping into their offerings.

     

    Privacy Legislation Looks For Consumer Consent

    New legislation aims to preclude such companies as Apple and Google from using customer’s location data without their consent. Senators Al Franken, D-Minn., and Richard Blumenthal, D-Conn., co-sponsored the bill, called the Location Privacy Protection Act of 2011.

    Franken honchoed a Senate Judiciary Subcommittee on Privacy, Technology, and the Law hearing that grilled Google and Apple executives in May. The uproar about consumer privacy arose in April at a California LBS application developers’ conference when companies indicated that customer’s privacy data was collected and shared.

    How this legislation, if passed, will affect the industry is not known. But it has raised eyebrows in several market sectors. Thilo Koslowski, Gartner vice president, told attendees at an automotive telematics conference last month that privacy is a big concern to auto makers who want to incorporate LBS-type of connectivity into their new vehicles. Koslowski went further when he said that not only do consumers not want social media in their vehicles, the privacy factor is not going away — and the industry needs to take notice of that.

    Iridium Forging Into M2M Markets

    Saying the machine-to-machine market constitutes its fastest growing segment, McLean, Va.-based Iridium Communications has partnered with several industry companies to grow beyond its government markets.

    “M2M in 2010 exploded for us in 2010, a real tipping point. In short, we reduced the size of the 9602 [short burst data] module to the size of matchbook, so the much lower price point allowed us to win a bunch of new programs,” said Patrick Shay, Iridium vice president and general manager for data services.

    Shay, an industry veteran who worked at Motorola, Rand McNally and Hughes Telematics, said that Iridium plans constellation enhancements in 2015. “It’s a one-for-one [satellite] replacement with backward compatibility and no service disruption,” he said.

    Such big M2M names as Kore Telematics, Digi International, and SkyBitz have become Iridium partners. Kore integrates satellite connectivity into its Prismpro unit.

    One Iridium partner, DeLorme, said it is rolling out a personal communicator this fall with two-way satellite messaging, SOS capabilities, remote tracking and Android smartphone interface so messages can be posted to Twitter or Facebook. The unit will go for $249.95 and have subscription fees starting at $9.95 a month.

    Editor’s Note: The August issue of GPS World will carry an article about Iridium certifying Cubic Global Tracking Solutions’ Global Sentinel System.

     

    AT&T Location Information Services Focusing on Enterprise Market

    AT&T Location Information Services is greatly expanding its location marketing, particularly in M2M, with its partners Loc-Aid Technologies and TechnoCom Corp. The company announced the partnerships at its developer summit in January.

    The company is focusing on the enterprise market because consumer location-based services have been a tough go for AT&T. The enterprise/M2M market has been a good one for AT&T and its network-based location systems, said John Booth, AT&T LIS senior product manager.

    The interoperability with the other carriers helps to grow the market, Booth said. “Historically, a customer had to work with one carrier and that limited them,” he said.

    Booth says there are benefits in using a network-based location solution because it prevents users from needing to download applications or use a specific platform in order to be located. The services are both device and network agnostic, he said.

    Loc-Aid is working with AT&T on its Location-as-a Service offering where businesses can access a customer’s location based on requirements or events. TechnoCom and AT&T are creating location and messaging products for the enterprise market.

    AT&T is working with Road America, a roadside assistance service provider, for a network-based application for location capability in the event of an accident or break down. The service, called LocateMe, is a cross-carrier offering that links to Road America’s 24-hour response centers.

    AT&T is working on integrating other location technology into its network service offerings, Booth said. “We are working on a number of applications besides assisted GPS [and cell ID] to include Wi-Fi and RFID. We want something that works in whatever the environment — airports or railroads,” he said.

    In addition to call center and transportation logistics, which is AT&T’s strong areas, emerging markets include fraud prevention and even truancy monitoring. “School districts get millions of dollars in funding based on student attendance. It’s a natural location market,” Booth said.

    In addition to the truancy monitoring market, regular parolees and bail bond holders constitute a huge potential market. AT&T estimates there are 5 million parolees nationwide and 7 million bail bond holders.

     

    Carriers Still Focal Point for LBS Implementation

    For years there have been arguments about who is driving the mobile information market for LBS: Is it the carriers? Auto manufacturers? New media companies such as Google? Despite all of the talk, companies still are trying to align themselves to offer the carriers’ capabilities to implement LBS.

    The recent Alcatel-Lucent partnership with Polaris Wireless and Thales Alenia Space is an example of companies tailoring E911 type of location capability and marketing for carriers. The three companies have partnered to pursue business with Tier 1 wireless operators in the United States and other regions, said Bhavin Shah, Polaris Wireless vice president of marketing and business development.

    “Alcatel-Lucent and Thales Alenia Space have a working relationship based on the former’s prior part-ownership of the latter. Alcatel-Lucent and Polaris Wireless have pursued a closer relationship based on shared interests in promoting their respective location solutions to wireless operators,” he said. “Recent developments and announcement of the partnership were triggered by impending Tier 1 LTE decisions,
    and the fact that the partnership enables a quicker time to market than ALU building a location solution on its own, and Polaris Wireless and Thales Alenia Space approaching Tier 1 operators directly without a larger infrastructure partner.”

    Alcatel-Lucent is the platform provider and direct interface with the customer (network operator). ALU provides all hardware, middleware, and conducts sales, support, operations, and billing. Polaris Wireless provides network-based location technology and network interfaces, including Polaris Wireless Location Signatures (Polaris WLSTM) and other location technology, such as Enhanced Cell-ID. Thales Alenia Space, with its expertise in satellite positioning, provides handset-based (GPS) location technology.

     

     

     

     

     

     

     

  • Does Automobile as Ultimate Mobile Device Include LBS?

    As touchscreens get larger in vehicles, so does the thought that location-based services should be included. At the Telematics Detroit 2011 conference, while most industry observers say that some sort of advertising will soon be in every vehicle, not everyone is sold on having advertising flashed to drivers as they go by a business.

     

    NOVI, Mich. — While the automobile may become the ultimate mobile communication device, it remains to be seen how big a role location-based services will play in this new development, said an analyst here at the Telematics Detroit 2011 conference.

    “We have been looking into LBS for 10 years. The idea of driving by a store and getting a coupon is one that [consumers are] cool to. There is a big privacy issue that may backfire on companies,” said Thilo Koslowski, Gartner vice president. “In our studies, social networking still scores low for the average car consumer. The people who are buying cars are not thinking about Twitter while driving their cars — though the numbers are higher among younger drivers. Navigation is still the top feature that consumers want.”

    Because of larger screens going into many vehicles, LBS seems like a natural advertising fit, but Koslowski says it will be more along traditional display-type marketing models.

    Koslowsi said the biggest competition the auto industry has is the smartphone or other consumer mobile device. “We will see growth in vehicle application on the Android platform, while Apple will be leveling off. [Research in Motion] will have a lower share.”

    The risk for auto manufacturers is getting too many gadgets and applications into a car. “There is a lot of risk, and hype, when manufacturers try to get too much into a vehicle. Consumers will expect certain connectivity features in the future,” Koslowski said. “Many of these innovations will occur, for the premium brands, in 2013 — that’s just around the corner in automotive years.”

    Overall, Koslowski says telematics vendors and automakers should balance their priorities and opportunities. “They should seek new partnership models and strive for controlled openness [of systems], which means not complete control. The automobile will emerge as the ultimate mobile device,” he said. “There are several challenges about the connected vehicle. It is too expensive — not a must-have for consumers. Manufacturers have an unrealistic expectation.”

    One of the companies wanting to get its services into a vehicle, Verizon Wireless, showcased its “Rule the Road” initiative at the conference. Rule the Road, which leverages the 4G and LTE networks, features a suite of services such as Wi-Fi hotspots, vehicle diagnostics, navigation, and traffic and safety/security.

    “What you can and can’t do [in a vehicle] are important. Most navigation systems have long wait times to reroute; in the LTE world, traffic date and rerouting are immediate,” said Janet Schijns, Verizon Wireless vice president, business solutions group, who previously worked at Intel and Motorola’s enterprise group. “The car is the most powerful mobile device.”

    Schijns says the car will be a great mobile communications device because owners are more loyal to it than another consumer product. “The average person used to own a computer for five years — that time continues to be reduced. They are less loyal to their mobile devices,” she said. “But people are loyal to their cars. They are the longest-life mobile device.”

    Manufacturers continue to innovate and roll out products tailored to the automotive telematics market. CSR made several announcements, and exhibited, at Telematics Detroit.

    One of its products, the SiRFstarIV GPS engine (GSD4e 9500), features active jammer removal technology that precludes in-band interference in cars.

    “It’s the same receiver adopted by Samsung on their Galaxy mobile phones,” said Lars Boeryd, CSR director of automotive marketing.

    CSR also said that Renesas Electronics Corp. adopted its location and connectivity hardware for its automotive infotainment platform. The company also is tailoring its CSR6000 Wi-Linx to automotive manufacturers to turn cars into rolling Wi-Fi hotspots, which seemed to be a big deal during sessions here.

    M2M Constitutes Large Location Market

    One bright spot in the whole location market is the burgeoning machine-to-machine segment. Some of the numbers are big: 4.4 million MRM units deployed by 250,000 companies, said Clem Driscoll, CJ Driscoll & Associates founder, in his annual presentation at Telematics Detroit.

    Driscoll still believes that the Contran 245 Brazil law that requires every new vehicle in that country to have a GPS-enabled system will be huge for the industry. However, he concedes that the South American country has been slow to implement this law.

    Trucking fleet markets, which have been in the doldrums since a 2008-2009 slump, may be heading back toward profitability because of new government regulations that require electronic onboard monitoring recorders, or EOBRs, Driscoll said. “These simple EOBRs will be in the $300-$500 range,” he said.

    Kore Wireless Group, which exhibited at Telematics Detroit, said they bought Melbourne-based Mach Communications Pty Ltd., a wireless M2M network provider. “The growth in the Asia-Pacific market is going to triple. We wanted to have a solid presence in that area,” said Pete West, Kore Telematics business development manager.

    Kore, which partners with Vodaphone and Iridium, is looking at such future M2M markets as insurance and health-care diagnostic monitoring, West said.

    Another M2M company, Telenor Connexion, announced that it had partnered with Italy-based Octo Telematics, which specializes in telematics services and systems for the insurance and automotive market. “The company has seen aggressive growth, particularly in emerging countries in Eastern Europe. In Europe, the market is pay-as-you-drive. It’s a progressive way for building new customer segments that did not want restrictions in Europe,” said Per Lindberg, Telenor Connexion global business development executive.

    Telenor Connexion, which has a long-established relationship with Volvo Trucks and many other companies, now builds its own M2M platforms.

    In other conference news:

    • Overused conference word alert! The word “experience,” as in “driving experience,” or “consumer experience,” is way overused. Just like the 1990s’ “value-added” and ”best-of-breed” or “solution” (instead of product). A prominent wireless exec used the word “experience” more than a dozen times in her 40-minute presentation.
    • Telematics Detroit 2011 had a big crowd, which was not bad in a so-so economy in a remote location.

  • Location Privacy: Will It Derail Mass Market LBS?

    This column rarely covers privacy as a critical issue to build location-based services markets. Why? It was our contention that most LBS are opt-in — or opt out — at the discretion of the consumer, making privacy an important issue, but not a market stopper. Frankly, many privacy panels at location conferences either bordered on hysteria, or were not relevant to market growth. However, since the recent Where 2.0 conference, which revealed that some entities were storing location information without users’ permission, the privacy issue has the potential of suppressing products and markets before they even start. Some are dubbing this new privacy concern Locationgate.

     

    SATNA CLARA, CALIFORNIA — In a potential breach of public trust — and perhaps thwarting LBS market growth — it was revealed at the Where 2.0 conference here (April 19-21) that location data was secretly stored in all iOS 4 devices. Since the conference, where attendees learned that Apple was storing a file with location data in every iPhone or iPad with iOS 4, Sen. Al Franken (D-Minn.) asked Apple CEO Steve Jobs to address privacy concerns about the operating system, particularly for children, who make up 15 percent of users.

    In a letter to Jobs, Franken asked why Apple consumers were not informed of the collection and retention of their location data, how frequently is a user’s location recorded, why is this information not encrypted, with whom has the information been shared, and what is the purpose of collecting the location data.

    Apple contends that iOS devices are not logging the location of the user, but caching a database of Wi-Fi hotspots and cell tower locations around a user’s position. Some of these cell towers may be many miles away from the user.

    At our deadline, Franken, chairman of the Judiciary Subcommittee on Privacy, Technology and the Law, will this week be heading the subcommittee’s first hearing, titled “Protecting Mobile Privacy: Your Smartphones, Tablets, Cell Phones, and Your Privacy.”

    According to published reports, scheduled to testify at Franken’s hearing are Alan Davidson, Google’s U.S. director of public policy, and Bud Tribble, Apple’s vice president for software technology. Other hearing attendees include privacy experts and representatives from the Federal Trade Commission and the Department of Justice.

    Privacy is becoming an issue for consumers who are using Facebook Places, Foursquare, Gowalla, Twitter, and other social media more frequently. In fact, one company, Neer, which is a subsidiary of Qualcomm Services Labs, has an entire business plan based on privacy. Neer’s social media system allows users to determine where, when, and to whom their location information is sent.

    Location privacy is starting to be a big issue overseas. According to published reports, South Korea sent police into Google’s Seoul office this month to examine how the company’s AdMob platform and Android devices can collect private data about user’s location. Google purchased AdMob last year for $700 million.

    In France, companies with with GPS-enabled devices are required to turn the systems off during an employee’s personal break, said lawyer Francoise Gilbert, in a privacy session at Where 2.0. “There is a significant difference in laws [overseas]. One size doesn’t fit all,” she said. “It is a bad idea to talk to your lawyer the day before you plan a product or website launch.”

    In addition, at Where 2.0, the American Civil Liberties Union had a speaker and booth on site to educate developers on privacy issues. The ACLU was promoting its 2011 Privacy Challenge for developers of smartphones and other applications.

    Where 2.0 LBS Developer’s Dream?

    This year’s Where 2.0 was the largest ever. The crowd was overflowing with developers — and the companies that were happy to license products to them. Where 2.0 started out as an offshoot of the geographic information systems industry — and still has that GIS feel.

    Navteq, which said it now has 50,000 developers in its network, showed off its Destination Maps product which features pedestrian-friendly guidance, including showing how they “cut across” open areas. The company rolled out advanced mapping collection technology, including rotating LIDAR, that captures 3D data points.

    A number of significant announcements came during Where 2.0, but were not made at the conference. Boston-based Where was purchased by eBay for $135 million in as big a deal as any this year in the LBS industry. According to published reports, Where was considering an acquisition bid from Research in Motion.

    Where, formerly called uLocate, was founded in 2003 to provide location tracking for GPS-based cell phones. The company changed its name and refocused on LBS markets to include a location-based advertising network, location search, and recommendation applications. The company rapidly grew — from 30 employees to more than 120.

    In another deal made within a day or so of eBay’s, Groupon bought Seattle-based Pelago for an undisclosed amount. Pegalo CEO Jeff Holden, a former Amazon executive, will head Groupon’s product development. Pelago operated a check-in service called Whrrl.

    In other industry news:

    • ALK Technologies recently announced that industry veteran Barry Glick is joining the company as chief executive officer. Glick, who led GeoSystems and launched MapQuest, has been involved in high-profile company sales. GeoSystems, and MapQuest, was acquired by AOL/Time Warner. Glick later was at the helm of France-based Webraska Mobile Technologies, which was sold to Sanef. Glick moved on to Navteq, where he was vice president of mobile and media products. Glick’s hire and track record make those in the industry wonder if he plans to spearhead the future sale of ALK.
    • I have written about location technology markets for nearly 19 years. Call me a grumpy old man, but every time I pull out my reporter’s notebook to write something down that a young Google, eBay, or Facebook executive has to say at a location conference, they say zero about the market, or frankly, anything relevant. Sad thing is that people show up to see these big-name companies — only to be disappointed. Seems as if these younger execs say a lot, but say nothing. One seasoned industry executive in the crowd lamented, “This person runs (insert company)’s location efforts — and said zero about the location market and how they fit into it.”

     

  • How Does the Potential AT&T Acquisition of T-Mobile Affect the Location Industry?

    Now that CTIA is over, and without a lot of location-based services news at the Orlando show, the time is ripe to examine the potential blockbuster AT&T acquisition of T-Mobile and how it affects the location industry. In the meantime, is Apple trying to get its mapping initiatives stronger to compete with other heavyweights? Does this include trying to be its own map database provider?

     

    The potential blockbuster acquisition of T-Mobile by AT&T raises some eyebrows in the location industry, not because of the consolidation of two major wireless carriers with navigation programs, but for spectrum availability issues. At least one analyst believes so.

    “I think AT&T has been very open in indicating that one of the major reasons for the acquisition of T-Mobile was a response to the spectrum crunch,” said Michael Dobson, TeleMapics president. “According to Ralph de la Vega, president and CEO of AT&T Mobility, their customers’ data usage has grown 8,000 percent over the last four years and is predicted to grow 8 to 10 times larger over the next five years. During the CEO Roundtable at CTIA, de la Vega indicated that the proposed deal will help to alleviate the spectrum crunch that both AT&T and T-Mobile are experiencing in key markets by allowing them to more efficiently use the allocated spectrum. I should note that details on how the spectrum would be used more efficiently as a result of the potential acquisition were not addressed at CTIA.”

    Dobson said Robert Roche of CTIA’s comment were illuminating. Roche indicated that data usage in 2010 grew by 110 percent compared to 2009 and totaled 388 billion megabytes of data. Note that this “data” total does not include the more than two trillion minutes of air-time generated by wireless users or the 2 trillion text messages sent by them during the same period, Dobson said.

    “In 2010 data accounted for approximately $50 billion of the total $160 billion, or services revenues realized by the wireless carriers. In 2000, data revenues for carriers were $211 million out of $55 billion in wireless service revenues,” he said. “In essence, data revenues have increased from less than one-percent of the revenue pie to almost one-third of present revenues over the last 10 years.”

    While it is impossible to ferret out the size of the data usage total that could be attributed to location services, Dobson says there is little reason to assume that it does not mirror the trend in data growth in general. “If AT&T can advantage itself by easing its spectrum crunch through the acquisition of T-Mobile, it could result in the company being more interested in navigation and LBS than in the past, especially if the action takes the heat off of them in the cellular call performance horse race with Verizon — for instance, fewer dropped calls,” he said.

    As an interesting side note, CTIA’s Roche indicated that texting has grown from an average of 14 million messages a month in 2000 to 187.7 billion messages during the 31 days of December 2010, Dobson said. “How many of these were related, in some manner, to location services or casual navigation — not a formal navigation service — remains unclear, but it is likely that many of these messages are about the user, where the user is, and where you can meet them,” he said. “Location and navigation are at the core of many social interactions, but finding the business strategy to unearth the value remains the problem for both the industry and the carriers.”

    Is Apple Trying to Improve Mapping?

    According to a number of recently published reports, Apple is starting to recognize that Google may have its stuff together on mapping technology and use. Recently, Apple had a job opening for an iOS Maps application developer — with rumors that it plans to redesign the iOS application — and even create its own maps database.

    “It is always difficult to know what Apple’s corporate strategy is in any area, much less one, like mapping, that is not in the limelight. While it is quite apparent that Apple will make some strategic move in mapping/location services, the nature of the strategy will likely be determined by Apple’s goals for its nascent advertising business aimed at mobile handsets,” Dobson said. “Those who use an iPhone have probably used the resident map app that is linked with a contact list. While the map data is provided by Google, the rest of the application was designed and developed by Apple. Clearly, they have experience in working with location data, as well as having augmented these skills through two modest acquisitions of companies who knew how to ‘munge’ data.”

    Dobson suspects that Apple will come out with some enhanced location software, featuring its usual slick interface and well-thought-out application. “However, the interesting question for the industry is whether or not Apple needs to be a map database provider in order to differentiate itself and its phones from the competition,” he said. “Android (Google) phones are powered by Google Maps, Nokia phones by Ovi Maps, and Windows phones by Bing Maps and soon by OVI Maps (Nokia) — although each of these is merely an instance of Navteq, which is, of course, owned by Nokia.”

    Dobson isn’t sure whether Apple needs to be a map supplier to be successful in the mobile advertising business. He said that the question, however, is whether or not Apple would be comfortable having a potentially substantial revenue streams dependent on the good will of a “foreign,” and possibly antagonistic, map supplier who is also a mobile competitor, or owned by one.

    “On the other hand, Apple is always upsetting the applecart. For example, I understand that one of the major traffic providers in the U.S. is developing a street-level database for the country’s top 20 urban areas,” he said. “When I first heard about this, it did not make much sense to me, since it is difficult to get into the navigation business with a piece of data here and a piece of data there. However, when I thought of this development as a strategy supporting an advertising play, it became a little more sensible. Unfortunately, there is no way of knowing what Apple intends until someone spills the beans, but it sure is fun speculating.”

    Is CTIA Becoming a Throw-away Show?

    Some industry observers have noticed the lack of real news at the CTIA conferences…and Dobson is one of those folks. “I have become disenchanted with CTIA and consider the show a throw-away. Anything interesting at CTIA must occur behind closed doors, because it certainly does not appear on the stage or on the exhibit floor,” he said. “On the other hand, perhaps I am too harsh; after all, these folks want to sell services and hardware and are not particularly interested in the details, as long as whatever it is, is hot,” he said. “My disdain for the lack of inquisitiveness at CTIA was sparked by a former Verizon President Denny Strigl, who has written a book about how to be a good manager.”

    At the conference Strigl said a manager needs to focus on four things — and only four things — to be successful as a manager. His recommendations: 1) grow your revenues, 2) add new customers, 3) retain old customers, and 4) cut costs. I realize that Mr. Strigl was generalizing, but it often seems that the CTIA audience sees data as a product to sell, but does not have a clear idea about the companies that provide quality data and the markets they serve, especially the location and navigation markets.

    “Please note that this is not sour grapes. Apparently unlike Mr. Strigl, I think that innovation in product development needs to be near the top of a manager’s to-do list. However,
    the innovation at CTIA seems to have come from Apple, Google, and others who decided how to take advantage of this weakness in the carriers’ philosophy,” Dobson said.

    In other LBS news:

    • I will be reporting at the O’Reilly Where 2.0 conference in Santa Clara, California, this month. If there are location topics you think I should know about and cover, please send me an e-mail.

  • With Record Crowd, Mobile World Congress Market Emphasis Shifts

    The recent Mobile World Congress in Barcelona had a record 60,000 attendees. Many industry companies were either exhibiting or attending to kick tires to see how the international location-based services market is faring. Industry observers are saying the focus of the trade show has gone from European-centric markets to a broader view, particularly as new technology and standards evolve and mature.

     

    The recent Mobile World Congress in Barcelona proved that the market for location-based services is on a worldwide stage — and not sequestered to certain regions. Clay Babcock, Rand McNally director of advanced navigation technology, says the Mountain World Congress traditionally focused on European markets.

    “The MWC, and the 3GSM show that preceded it, were primarily European affairs that highlighted the latest hardware in the GSM world. While the shining stars came from places like Espoo, Finland, and Stockholm Sweden, even the second-tier players were European, with Bosch, Siemens, Alcetel, Sendo, and Phillips all making phones for the growing market,” he said. “For the most part, the North American and Asian players sat on the sidelines. A possible exception was Motorola, who had two brief moments in the sun with their Startac and then Razr phones. Asian companies seemed content to make phones for the proprietary Japanese and Korean markets.”

    Several technology events have changed the market—and the key part of the shift has been the dominant role that software, ecosystems, and the well-used line of ‘user experience’ now plays a major part in the world of mobile telephony, Babcock said.

    “And with it, the center of the mobile world has moved to the west coast of the United States. The rise of the Apple iOS, Google Android–and now a lesser degree Microsoft WM7–has created new opportunities for many, but has also caught some big players off guard,” he said. “Nokia, for all its brilliance in making hardware, has been forced to drop its long-in-the-tooth Symbian OS in favor of WM7. This has angered many in the installed user base, but they miss the point. Nokia had to make a move, and a move to Android would have been a fatal step.”

    Babcock contends that with Microsoft, Nokia at least gets an OS partner that they can look upon as equals. “That was never going to happen with Google. The state of affairs is so dire at Nokia that for the second year in a row, they failed to display at the show,” he said.

    Missing at MWC is Apple, which Babcock says never comes anyway–and says that absence opened the door wide for Android. “The Android booth was a buzz of activity and excitement. Following a theme with other large booths at the show, a large section of the floor space was dedicated to partners’ applications and solutions,” he said. “The show is really all about software.”

    As GPS World reported, the Nielsen Company said that Android appears to be pulling ahead of RIM Blackberry and Apple iOS in the market share battle for smartphone operating systems. But an analysis by manufacturer shows Research in Motion and Apple to be the winners compared to other device makers since they are the only ones creating and selling smartphones with their respective operating systems.

    Location Just a Feature?

    As for location-based services, they are maturing, becoming ubiquitous in the hardware, Babcock said. “Companies are starting to understand that location is a feature, not a business. This will affect business models that were once designed as end-user plays,” he said. “Everybody still can get paid, but maybe not by entities you first thought would pay.”

    Babcock said that while the focus was on software at MWC, there was brilliant hardware on display. “The new Samsung Galaxy S II features a dual core 1-GigHz CPU and 4.3 inch super AMOLED display. Motorola, who like Sony-Ericsson is thriving after switching to Android, announced a new phone with an array of amazing accessories, one that turns the phone into a mini-laptop,” he said.

    Babcock said that, even on his cab ride to the airport to return home, there was a poster for a mobile taxi application that would locate customers and dispatch a car to their location — and let them know the estimated time of arrival. “Neat, maybe not earth-shattering, but the platforms it supported were Android, iOS and Research in Motion. The new world of phone operating systems, were found in the back of a Barcelona taxi,” he said.

    A number of such LBS industry companies as Navteq, ALK Technologies, deCarta and other entities had large presences or meeting rooms at MWC. Show organizers say the crowd topped out at 60,000, which was significantly higher than in 2010 or 2009. Like the Consumer Electronics Show in January, it appears that trade show attendance is up for the first time since 2008. It will be interesting to see if this trend continues for this month’s CTIA in Orlando.

    Foursquare Expands Language Capability

    In other MWC news, Dennis Crowley, CEO and co-founder of Foursquare, delivered a mini-keynote at the trade show about “Making Apps Smarter Through Location/Localization.” The company has made rapid expansion throughout the past year—and now has check-ins from nearly 200 countries.

    Foursquare recently announced that its service is available in French, Italian, German, Spanish, and Japanese. Users can update Foursquare on their Blackberry, iPhone, or Android, to switch to the default language of the device.

    In other LBS news:

    • TCS said that U.S. Cellular has extended its agreement to offer the company’s Your Navigator service on BREW phones. Your Navigator is an LBS application for GPS-enabled mobile phone, offering personal navigation and real-time, turn-by-turn visual and audio directions. TCS, which has worked with U.S. Cellular since 2007, signed a two-year software licensing agreement extension.

  • Companies Finding TRB Enterprise and Government Market Haven

    Sometimes a market niche appears to be heading toward better things — even if the economy is not. This year’s Transportation Research Board’s Annual Meeting had its highest attendance ever. While intelligent transportation systems meetings have been shunned in the last few years as being too government-focused, some forward-thinking companies are using the Washington, D.C.-based meeting as a springboard for their enterprise location-based services offerings.

     

    WASHINGTON — While enterprise and government markets are not as sexy as traditional friend-finding location-based services, a lot can be said about companies trying to make inroads in this developing marketplace. At the recent Transportation Research Board Annual Meeting here, such companies as TomTom are leveraging its community input options from its consumer navigation devices and map-building to government and enterprise markets.

    While saying the portable navigation device will endure for a long time — and will never disappear — Maarten van Gool, TomTom’s Licensing Business Unit managing director, said that the company is looking at providing navigation and location products on multiple platforms. “For decades, we have delivered location and map content to the government and enterprise markets and we work with such companies as ESRI and Pitney Bowes Business Insight and federal, state, and local government agencies,” he said.

    Van Gool said that government experts and policy-makers need detailed and reliable decision-making support tools to make timely and cost-effective decisions on changes to their local traffic management programs. “The intelligent transportation systems market can benefit from accurate and comprehensive information about travel times, traffic speeds, local accessibility, and travel patterns, which are the basic building blocks for forming cohesive traffic management plans,” he said.

    Also at TRB last month, TomTom announced a partnership with PTV where PTV will be able to deliver TomTom traffic content, via TomTom Traffic Stats, to its customers in the transportation sector. “We are really only at the beginning of what we can offer and we look forward to delivering additional products for the government and enterprise markets based upon our vast historical traffic database and real-time traffic capabilities; these will become available over the course of 2011,” van Gool said. “The total [government] market size is yet to be quantified, and as the technology innovation in this space expands, we are on track to support it. We believe we can revolutionize traffic information by utilizing our assets and capabilities and we are working to educate the market before its full potential is reached.”

    In other TomTom news, if you haven’t seen it already, it looks as if the company is phasing out the Tele Atlas name at trade shows. Most company personnel are now wearing TomTom badges during this transition.

    In one of the big TRB announcements, the U.S. Department of Transportation’s Research and Innovative Technology Administration announced the Connected Vehicle Technology Challenge. The new competition seeks industry ideas for using wireless connectivity between vehicles.

    RITA, through the competition, is soliciting ideas for products or applications that use dedicated short-range communications, which will be the basis for a future system of connected vehicles that will communicate with each other as well as the surrounding infrastructure, such as traffic signals, work zones and toll booths.

    According to a National Highway Traffic Safety Administration report, wireless vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communications can potentially address 81 percent of all unimpaired vehicle crashes. Selected prize recipients will be fully funded to present their ideas for connected vehicle technology.

    The competition, which runs through May 1, is open to all companies, not just those involved in transportation. More information can be found at www.challenge.gov.

    
Qualcomm Makes LBS News with Neer

    Concentrating on privacy as a market driver, Neer, which is a subsidiary of Qualcomm Services Labs, allows a users to determine where, when, and who their location information is sent to. The company says applications include not only allowing family members to know where a loved one is, but business users to schedule information to co-workers.

    Privacy is what Neer, which had a strong presence in the Qualcomm booth at last month’s Consumer Electronics Show, hopes separates it from the Foursquare, Gowalla, Twitter, and Facebook Places of the world.

    “First and foremost, Neer was not designed to broadcast your location to vast numbers of people. Instead, Neer allows you to selectively choose the people, places, and times you are comfortable sharing your location,” said Ian Heidt, Neer director of services strategy. “And because we enable private sharing only with those you are most close to, we have seen growing acceptance of sharing places such as one’s home or work, places that have typically been taboo in other apps. We also wanted Neer to fit in more naturally with how people behave, so Neer works simply, securely, and automatically — there is no need to ‘check in’ like other apps. And because we believe that people want to keep this information securely within their control, there are no means to share location outside Neer.”

    Right now, Heidt said that Neer is free, with no charges or advertising. “In the future, we may explore ways of including relevant ads, but for now, it is totally free on both Android and iPhone,” he said. “We are looking into numerous ways that we can monetize Neer by connecting people to the places they go. But in all cases, our primary goal is to preserve the trust that Neer is both helpful to your day and under your control.”

  • CES Continues to Highlight Navigation’s Market Supremacy

    It appears that the Consumer Electronics Show is back to its pre-2009 doldrums as hotels, restaurants, cab lines, and registration numbers were up. Despite large wireless carrier presence, CES seemed to continue to be a place where aftermarket navigation providers are hawking their new units. Either way, it still is possible for LBS players, after fighting their way through miles of 3D-capable TV screens, car speakers, and dozens of entities hawking electronic tablets, to find companies still adding location to their consumer electronics offerings.

    LAS VEGAS — The Consumer Electronics Show here has historically been a place where companies rolled out new navigation systems–or enhanced existing ones. Despite wireless carriers touting how their next generation services can benefit consumers, the idea that CES is a location-based services show is misleading.

    Whether folks with a fancy location-finding social network want to believe it or not, navigation still is king when it comes to consumer awareness and sales.  In fact, most of the bigger news came from automobile manufacturers talking about their new electronics and vehicles with navigation as a prominent part of the unit.

    Ford’s honcho, Alan Mulally, said that its Sync unit is now in 3 million vehicles. He touted INRIX’ traffic services for road information.  Ford also rolled out a fully electric Focus that will have Sync and a full complement of regular systems.

    OnStar announced it was offering an aftermarket product for vehicles other than GM products. Best Buy will begin to offer the unit, the company said. However, the price, $299, plus installation, and the $18.95 a month price point, may be steep, said Thilo Koslowski, Gartner vice president. “It is cool [OnStar] is doing this. Something they should have done a while ago,” he said. “However, they are going to have to come down in price.”

    While navigation seems to be a big component in new automobiles, there still is this “oh yeah, we offer Google maps” mantra rather than explain how location-enhancement helps sell the vehicle. Rupert Stadler, chairman of the board of management of Audi AG, mentioned his company offers navigation with Google maps, while rolling out an electric car.

    Brian Inouye, Toyota’s national manager of advanced technologies, said the embedded navigation device did not die, despite the glut of portable navigation and other aftermarket devices. “When we were selling in-dash units for $3,000, and PNDs were coming out at $300 a few years ago, we were concerned,” he said. “However, people are interested in the connectivity [embedded] units have, the few wires going into the unit they have [compared to PNDs] and new personalization.”

    INRIX, fresh off a recent 60 Minutes interview with its company president, had a number of announcements at CES.  Toyota and INRIX announced the automaker will use INRIX’s real-time traffic information for the new Entune multimedia system on select audio headunits.

    INRIX also showed off its XD Traffic in a Volkswagon Passat at CES. The unit was built on Continental’s AutoLinq platform to show routes, recommended departure times and ETAs. “User personalization is one thing we have been working on.  This information includes aggregation of community routes that integrate routes and weather,” said Ken Kranseler, INRIX vice president of product management.

    Navteq, in addition to being listed as partners in a number of CES products, had location-enable device offerings such as map data for geotagging and GPS positioning for cameras and camcorders. “We are integrated into the Panasonic Lumix and Fujifilm cameras,” said Toru Yoshimura, NAVTEQ senior manager, customer marketing

    Navteq is high on its Discover Cities products for mobile device and pedestrian navigation.  “The market is larger in Europe for [pedestrian navigation]. People are walking large distances in urban areas,” said Nicki Harada, Navteq product marketing manager.    

    Aftermarket Navigation Systems Still in Spotlight at CES

    Most of the bigger aftermarket electronics manufacturers still are offering navigation in their in-dash systems. Kenwood is in top three highest selling in-dash navigation systems for 2011, said Keith Lehmann, Kenwood senior vice president. Lehman touted its partnership with Garmin and iBiquity as reasons for the company’s navigation success.

    The systems are still for the high-end buyer, with the Kenwood Excelon DNX9980HD going for $2,000.  The unit features 3D Garmin navigation and Navteq traffic data service.

    Lehmann also said Kenwood is working with Garmin, for the fourth year, to offer a rebate program.

    Pioneer announced that it was rolling out a location-based Smart Cradle that has an external GPS receiver, gyroscope/accelerometer for smartphones. Ted Cardenas, Pioneer Car Electronics Division director of marketing, said that Smart Cradle will make smartphone better at getting quality GPS signals.  Pioneer is big on putting connectivity in vehicles. “There are some limitations of smartphones — they have small screens and require a user’s complete attention,” Cardenas said, driving home the notion that Pioneer can come up with products and applications that allow users to get all of their mobile information safely without the smartphone being the end all to be all device.

    For the PND market, Magellan, Garmin and TomTom all rolled out new units with different features. Magellan’s RoadMate 9055 features lifetime traffic and Bluetooth connectivity to mobile devices. Magellan’s Stig Pederson said that the PND market will concentrate on future consumer personalization to remain competitive. “Sharing data and relevant information is something the consumer wants,” he said.

    The connected GO 2505 M LIVE comes fully-loaded with powerful LIVE services, including the award-winning TomTom HD Traffic.  The TomTom GO 2505 M LIVE will be available at retail stores and from online retailers in mid-2011 for $349 MSRP. A trial subscription of LIVE services will be available for free with each purchase.

    “The traffic is very personalized.  It looks at all considerations of the road—actual speed of traffic, rather than posted traffic speed,” said Tom Murray, TomTom’s senior vice president of market development.

    TomTom also rolled out the VIA Series PNDs into the United States and Canada markets. The PNDs are slim with a new mounting system that limits exposed wires.

    Also at CES, Nike and TomTom unveiled a new sports watch. The new running watch, which has CSR’s SirfSTAR IV GPS installed, is tied to Nike’s online running community that has four million members.

    Other CES Observations:

    • Actor Seth Rogen stopped by a Sony reception to plug the new movie, The Green Hornet, and ran down a list of things his crime-fighting car has:  Machine guns, flame thrower…and “Sony GPS navigation system, of course.”
    • CES management had an LBS zone in North Hall with 25 exhibiting companies, many international.  The goodness is, while there was not a single CES-sponsored LBS panel (though there were two in-vehicle panels), the LBS zone had great booth traffic near anchor companies OnStar and Audi.
    • AT&T Location Information Services was rolled out at their developer’s conference a day before CES.  AT&T’s partners include LOC-AID Technologies and TechnoCom.

  • Death of a Smartphone, Birth of an Ad Trend

    Kevin Dennehy
    Kevin Dennehy

    From a distance, the Garmin-Asus partnership to produce GPS-enabled smartphones looked pretty good — particularly during the market erosion for portable navigation devices. However, published reports indicate that the companies will not renew their partnership in January 2011.

    Switzerland-based Garmin and its Dutch competitor TomTom have seen steeply declining sales for personal navigation devices (PNDs) since the high point of the market two years ago, industry observers say.

    “[The Garmin-Asus divorce] was predictable. The product didn’t sell very well and no partnership can survive forever if there’s no revenue coming,” said Marc Prioleau, Technology Growth Advisors principal. “The smartphone market is incredibly competitive and navigation is a pretty standard feature. So you’ve got small revenues, limited differentiation…not much to build a long-term partnership around.”

    Since the Garmin-Asus strategic alliance in February 2009, the companies said they have developed and marketed six devices. These products are available through carrier and retail channels in several countries. One of the phones, the Garmin-Asus A10, a touchscreen smartphone running on the Android platform, is optimized for pedestrian navigation.

    Location-Based Advertising. TeleNav, which now has 17 million subscribers, recently launched a navigation-based mobile advertising platform that allows businesses to place a sponsored listing at the top of the search results located in its mobile navigation applications. The company says users can click on a sponsored listing to receive additional information such as coupons or menu information.

    The user can call, map, or receive turn-by-turn directions to the business — all of which are actions TeleNav measures and reports as metrics to advertisers. Sounds like an interesting concept — but are carriers committing to it?

    “We see location-based advertising (LBA) as a natural and important extension of our business. As an industry, I feel that we are only at the tip of the iceberg on advertising within the intersection of location and mobile,” said Ky Tang, TeleNav director of marketing. “This is new for us and for the industry as a whole. While it’s difficult to speak on behalf of a carrier, in general, I’d say that they too see a significant opportunity here.”

    TeleNav released data saying which brands are winning the battle for the attention of the mobile consumer. Through analyzing keyword searches of millions of its mobile users, the company is able to identify where consumers are looking to go while on the road.

    “We do not in any way, shape, or form provide user-specific information to our advertisers,” Tang said. “We only provide aggregate information of how our users are engaging with their ads within our application. So in addition to the traditional impressions and clicks, we let advertisers know how many people conducted a ‘drive to’ to a specific business.”

    Tang said that, in regard to the company’s data analysis, it does provide aggregate data on what users are searching for when using the application. “We believe that this type of information is insightful for brands to really understand how users who are on the go remember and prefer certain brands over others,” he said. “For those whose brand equity isn’t as strong — as measured by how often our users search for their specific name — we give them the ability to promote their brand to the top of the list. One of the implications behind this is that in the mobile, location-based arena, perhaps there’s an opportunity for more brand equality.”

    While it remains to be seen whether the LBA space is close to seeing rapid growth, some advertising agencies are taking notice. “Some leading, innovative ad agencies see it and get it right away. But by and large, there’s still a lot of education that is required in this space,” Tang said. “Location-based advertising is very powerful and we see it to represent the next major wave of digital advertising. But in the same way that it took online advertising some time to blossom and become more mainstream, we see the same thing here for location-based advertising.”