GPS World

Tag: location-based services

  • Mapping Upheavals, Indoor Location Headway, FCC on LBS Privacy

    Big changes. Apple finally ended its long time dependence on Google Maps. As part of its latest operating system upgrade to iOS 6, Apple is launching its own, home-grown mapping service. It is an impressive offering. In a very different move, Microsoft is replacing its own Bing maps in all Windows Phone devices. Nokia maps, previously Navteq, will replace Microsoft’s home-grown Bing Maps. Micello has a new indoor location trial that isn’t just indoor mapping. This month the FCC has something to say on the topic of privacy in LBS apps. ABI Research has high expectations for indoor location.

    Google maps will be demoted to just another app on iPhones and iPads, a blow to Google’s bottom line. iOS device owners account for 28 percent of Google Map users in the U.S., U.K., France, Germany, and Spain, reports Analysis Mason. This parting will create additional friction in the contentious relationship between Google and Apple. Many partners are helping Apple produce the offering, but TomTom is the only one acknowledged in the announcement. Apple reports TomTom is “powering Apple maps.” No explanation has been given.

    The new Apple in-house maps built for iOS 6 include 100 million business listings and Yelp recommendations, integrated with real-time, crowd-sourced traffic, navigation, and suggested travel routes. It all works with Siri, Apple’s voice-activated search software. Siri has its critics, including Apple co-founder Steve Wozniak who has been quoted with derisive, even crude, comments on Siri’s usability.

    Will Location Move Stock Price? Facebook says it’s working on a location-based mobile-advertising product that will allow advertisers to target users based on their real-time whereabouts. Facebook’s shares have dropped by almost 20 percent since the company’s initial public offering, fueled partly by concern that ad-revenue growth isn’t keeping up with a shift by users to mobile phones.

    LBS Is Being Monitored. Ever concerned with privacy, the FCC released a report on location-based services. The agency declined to adopt privacy regulations or best practices, but indicated it would monitor the industry for the following: ensuring privacy considerations are integral to product development, security of data from unauthorized access, timing and frequency of location privacy notices to consumers, and minimization of data collected and time period for which it is retained. The FCC warns it will take additional steps if not satisfied with privacy implementation for LBS.

    Indoor Fortunes. Indoor location is positioned to save retail brick and mortar, says ABI Research. I wouldn’t go that far, but it will certainly have a positive impact. Major U.S. retail brands will launch indoor location technologies in 2012 and 2013, says ABI. “Revenue will come from multiple sources, including advertising, infrastructure deployment/service fees, and application management,” says Patrick Connolly. The technology will enable advances in customer analytics, proximity advertising, store optimization, couponing, and CRM. Retailers will likely want to control store data, which will be an important consideration in picking partners.

    I Am Here. Micello, indoor mapping creator, has a trial for its new FindMe location application. Users can share their whereabouts in Singapore with anyone in their address book. The app allows users to send a text that includes a detailed map that shows the user’s indoor location. The company is expanding the app to Las Vegas and some college campuses.

    Grapevine. Rumors persist that Amazon is in talks to acquire Jumptap, one of the mobile advertising network leaders. Amazon plans to enlarge its Special Offers advertising platform to the Kindle Fire Tablet, a competitor to Apple’s pricier iPad, reports Ad Age. A Jumptap purchase would make sense. Amazon has a treasure trove of purchase information on individual users on hand that can be used to develop personalized and contextual mobile advertising.

    Timing Is Everything. In Apple’s forthcoming operating system update, all applications will require explicit user permission before accessing personal information, such as location information. Apple made the announcement just after developer Arun Thampi reported iOS social application Path was uploading users’ address books to its servers. A backlash from consumers and legislators followed. Path later acknowledged storing user data and updated its app to enable users to opt out of its contacts database.

    Sad News. Sorry to hear Nokia plans to cut 10,000 jobs by the end of 2013. Remember when Navteq had the mapping world in the palm of its hand? What a fall. Last year Nokia cut 14,000 jobs.

  • Telmap Launches Parking Space Locator on the Telmap Mobile Location Companion

    Telmap announced a partnership with Decell, a leading provider of traffic information including real-time road status and related transportation services. By collaborating with Decell, Telmap is now able to provide a unique navigation service to its users in Israel by providing them with real-time information on available parking spaces with regards to the users’ location.

    According to the announcement, this innovative service is currently available to subscribers using the Telmap Mobile Location Platform on all four leading Israeli cellular operators (Orange, Pelephone, Cellcom and Hot Mobile). Users can at any time get recommendations on parking lots with available vacancies relative to their current proximity. Currently this service is available in a selection of car parks in Tel Aviv and in the coming weeks it will be expanded to include cooperation in dozens of car parks across the country.

    “We are always seeking to provide added-value services to our users who are on-the-go and we classify finding a parking space as one of the recurring tasks that we all encounter while on-the-go. Our collaboration with Decell in Israel aims to provide a functional, innovative and substantially useful solution that empowers the Telmap user to find a parking spot on demand.” – Motti Kushnir, Chief Marketing Officer

    Telmap reports that Decell is Telmap’s premium traffic information and services provider in Israel for the past four years. Decell’s traffic services are designed to shorten drivers’ arrival time to their final destination as much as possible. Real-time data regarding the availability of parking lots holds a great value to drivers by saving time not only on the roads, but throughout their entire journey.

    “We are very proud to present another unique service in cooperation with Telmap. Relevant information regarding parking spaces at any given time is a natural completion to Decell’s rich real-time traffic data. As a premium traffic information provider, Decell constantly expands its offering and promotes the best experience for drivers.”- Jonathan Silverberg, CEO of Decell

  • Location-Sharing App Glympse to Be Put in Mercedes A-Class

    Today from the Detroit Telematics Conference, location-sharing app maker Glympse announced it is teaming up with Mercedes-Benz to give users real-time location sharing in their cars by integrating Glympse into the new Mercedes-Benz A-Class.

    Drivers will be able to use the in-dash Mercedes DriveStyle to select a recipient, set a timer, and “send a Glympse” to anyone they choose. The recipient of the Glympse will receive a text or email link, which will show the driver’s real-time location on an interactive map.

    Consistent with Glympse’s approach to location sharing, when the timer expires, the location sharing will automatically stop. Because Glympse is a universal sharing solution, the recipient doesn’t require any special software or device, just a web browser.

    With its smart phone apps, Glympse shares location with others in real time. Users on iPhone, Android, Blackberry, and Windows phones can send a Glympse to others via email, SMS, Facebook, or Twitter. Now, that functionality is being integrated right into the A-Class.

  • GSA Releases 2012 SatNav Market Report

    The European GNSS Agency (GSA) has published its second Global Satellite Navigation System (GNSS) Market Report, providing key information to entrepreneurs in the satellite navigation sector.

    GNSS market forecasting is of great interest to private and public GNSS stakeholders, for business and strategic planning and policymaking, according to the GSA. According to the 2012 GSA Market Monitoring Report, the worldwide GNSS market is growing fast and the total market size is expected to increase at an average of 13 percent per year until 2016.

    The total enabled GNSS market size is expected to stabilise in the latter half of the decade due to market saturation, price erosion and platform convergence. Global shipments of GNSS devices are lower than previously forecasted up until 2015 yet are forecasted to continue growing to over 1.1 billion units per year.

    Expanding coverage. Following up on the first GNSS Market Report published in 2010, the GSA’s 2012 Report includes an analysis of two new sectors: maritime and surveying. Relevant examples from EU research projects have also been included for each sector.

    2012 Report Highlights

    Road and location-based services (LBS) still in the lead. Road and LBS dominate GNSS device sales (54% and 44% respectively). LBS constitutes 87% of the total GNSS market in terms of units sold and GNSS penetration in smartphones is set to increase from 30% today to almost 100% in 2020. For road navigation, traditional Personal Navigation Devices (PNDs) will gradually disappear from the European market yet remain present in other regions in the form of low cost OEM products. Smartphones and in-vehicle devices will be the preferred means of navigation.

    Commercial aviation use will grow. In the Aviation sector, the segment that will see the greatest growth in terms of GNSS equipment revenues will be Commercial Aviation, surpassing general and business aviation by 2018.

    GNSS use in agriculture continues to rise. In agriculture the current positive growth trend will continue; low cost precision agriculture solutions based on EGNOS are driving GNSS adoption by farmers in Europe.

    Surveying: a growing opportunity. In surveying, the construction segment is dominating the market in terms of units and value. North America is leading in terms of market penetration but the other regions will catch up by 2020 as GNSS is rapidly replacing the traditional surveying and mapping methods in Europe and around the world.

    Safer seas with GNSS. In the open sea segment, shipments of search-and-rescue (SAR) beacons will exceed those of other categories making the SAR segment the largest in terms of shipments and second largest in terms of market size.

    The 2012 GSA Market Monitoring Report can be downloaded for free.

  • TeleCommunication Systems Selects Locaid as Location-as-a-Service Partner

    Locaid, a location-as-a-service company, and TeleCommunication Systems, Inc., (TCS) mobile communication technology company, have announced that TCS’ portfolio of mobile location-based products and services (LBS) will now incorporate Locaid’s location-as-a-service capabilities. This partnership provides wireless operators with access to rapidly deployable location technology for additional financial yield from their location infrastructure, the companies said.

    The TCS-Locaid partnership provides a turn-key LBS solution that includes location network capabilities via TCS’ Xypoint Mobile Positioning Center (MPC) or Xypoint Gateway Mobile Location Center (GMLC) platforms and cross-carrier, multi-source, location aggregation enablement. Through this partnership, Locaid’s aggregation solution integrates with TCS’ network location platforms and enables wireless operators to rapidly enhance their monetization of a location technology investment. Further, TCS facilities enable hybrids of in-network, hosted or managed services location platforms and cloud-based location aggregation enablement, the companies said.

    Locaid President and CEO Rip Gerber said, “TCS is known for providing carriers with new revenue opportunities and delivering them in a rapidly deployable, hosted and turn-key way. This agreement is testimony to the importance of Location-as-a-Service among the biggest players in mobile, and it is an historic first step between our two companies.”

    “With the appropriate privacy protections, the location of an individual has proven to be a valuable asset that can enhance the value of a carrier or enterprise’s service,” said Lynne Seitz, vice president of location products, TCS. “One of our key goals is to help our carrier customers to monetize this asset by making it available on demand to third parties across a wide-variety of verticals. After an extensive study of the mobile location market and providers, we selected Locaid for their commitment to privacy and impressive portfolio of content providers, enterprises, application developers and merchants who will compensate operators for access to location.”

  • Indoor Positioning: Overhyped or Just What LBS Needs?

    Because LBS Insider’s deadline is this week, CTIA coverage from New Orleans is not included in this month’s column.  Janice Partyka, editor of GPS World’s Wireless Pulse, is covering CTIA in the Crescent City for the latest location-based services, M2M, and connected vehicle news.  So instead of talking about CTIA (and why there aren’t many pure LBS players or sessions there anymore), this column examines the hype surrounding indoor positioning — is it LBS’ savior, or just another technology that may, or may not, pan out?

     

    The location industry will know very soon whether indoor positioning is just another overhyped technology niche — or the needed capability that will drive the largest advertisers and retailers to finally embrace location-based services. Some industry analysts say indoor location may take off in as few as 12 months — particularly if smartphones include the feature in new product offerings.

    At several location industry conferences, the obligatory indoor positioning panel is cropping up, leading some to believe that while intentions are good, perhaps the technology hasn’t developed fast enough. The jury is still out on indoor positioning. “It is badly needed, but also needs to be down to the meter-level,” said Ralph Eschenbach of Sand Hill Angels, a venture capital firm, at the recent GPS-Wireless 2012 conference. “The technology is not here yet.”

    Another contrarian said that industry segments like automakers need not just show users how to navigate to destination, but give folks information when they near the area. “It would be nice if a BMW told me where’s the cheapest gas,” said Gary Gale, Nokia director of places, location and commerce.

    Some analysts, like those at IMS Research, believe that an indoor positioning technology will be from multiple sources — though Wi-Fi has been the primary tech solution. IMS cites reports that say Bluetooth in Nokia’s HAIP can meet the one-meter threshold of accuracy for indoor markets.

    IMS said the major indoor positioning players, so far, are Google, Qualcomm, Broadcomm, CSR, Qubulus, Nokia, NextNav, and Path Intelligence.

    While intangible benefits such as measuring consumer behavior and shopping experience will be important for retailers and advertisers who are hoping to fund indoor positioning systems, the goal is to drive customers to the stores. This will also be tied into the “what do I do when I get there” answer to the navigation question.

    Still, the benefits will be transparent to advertisers once consumers are able to save time, and perhaps money, with indoor positioning capability on their smartphones, said Ankit Agarwal, CEO of indoor positioning company, Micello. “There is definitely a business model for indoor positioning. It enables product search and walking paths throughout a store,” he said. “Stores will be able to track multiple routes folks are interested in taking [through a store].”

    Once again, Google seems to be the major player in indoor positioning. LBS Insider reported late last year that Google went indoors with the launch of Google Maps 6.0. The company has attracted some of the big-box retail stores such as IKEA, Macy’s, Home Depot, and Bloomingdales to have their stores mapped. However, a lot of the bigger malls, and Target and Wal-Mart, have not been mapped. The Google product tells customers what floor they are on in a building, but so far is only available for Android.

    Google’s indoor mapping partners include 18 U.S. airports, which will open up more partners and LBS relationships in the future.

    In other news, but related to indoor positioning and other LBS markets, Greg Tarr, partner at Rogers Venture Partners, said at GPS-Wireless: “There is no privacy…get over it.”

    TomTom Launches Global Geocoding Web Service

    As GPS World reported, TomTom launched a new volume batch geocoding web service late last month at the Geospatial World Forum in Amsterdam. Geocoding, the process of converting addresses into geographic coordinates to allow location analysis for businesses, is taking on a new twist with the new product.

    “This not your father’s geocoding. The turn-around time to download the product will be attractive to companies,” said Dan Adams, TomTom vice president, location and live services. “When I was with GDT and we were acquired by Tele Atlas, it gave us more exposure to global geocoding. Since the TomTom acquisition, there has been a recasting of those products, with the same sort of dynamics, but bringing them to the Cloud.”

    What Investors Look for in a Location Company

    In a venture capital panel at GPS-Wireless, industry experts basically say that location markets mean more than just navigation now. They also have some strong opinions on the composition and strategies of companies they plan to invest in.

    “We notice that some startups don’t have enough engineers,” said Sanjay Subhedar, Storm Ventures managing director.

    Other VCs say they look first at the market size of the location niche, but still believe the personality of the company’s management team is important. However, there was no location market segment any VC agreed on; some were sold on the promise of enterprise markets; others believe a strictly consumer play is where the future is.

    LBS Insider Covering ITS America Conference

    Not a sexy show like CTIA or Telematics Detroit (which is being boosted by the connected car craze, despite its jaw-dropping price to attend), ITS America’s annual meeting this month in the Washington, D.C., area will feature connected vehicle sessions and government programs. Before market-centric conferences as Telematics Detroit and Where 2.0, ITS America, even with its government focus, was the only game in town for companies looking to get into the navigation and location business.

    One of these “government programs” traditionally featured at ITS America is distracted driving sessions, which at least one analyst says younger drivers don’t want to be bothered with. “Only 20 percent of young consumers are worried about distracted driving [we found in our studies],” said Thilo Koslowski, Garnter vice president, who also said, unlike what some automakers and analysts believe, that a car is not a “laptop with four wheels.”

    LBS Insider will be covering the ITS America annual meeting. If attending, contact us with your story ideas.

     

  • Telogis Acquires Maptuit Assets

    Telogis, Inc. announces the acquisition of the assets of Maptuit, a leading provider of connected navigation for commercial fleets. This acquisition — the company’s fifth in three years — expands Telogis’ services as the market increases adoption of location-based Software-as-a-Service (SaaS) solutions. Maptuit’s commercial navigation technologies further enhance the Telogis enterprise platform of SaaS solutions, which includes fleet management, navigation, multi-vehicle route optimization and planning, work order management and mobile integration.

     

    “This acquisition adds a new dimension to our platform,” said Newth Morris, president, Telogis Route and Telogis Mobile. “With these advances, Telogis further differentiates itself in the market by providing the most comprehensive suite of location intelligence solutions on a single platform.”   

    According to the announcement, the enhancements to the Telogis platform resulting from this acquisition include an advanced location-based service (LBS) engine that receives feedback from the field on road conditions and physical restrictions that may not be captured by commercial and open source map data. These capabilities are critical not only to the commercial navigation markets where Maptuit has been successful, but also to industries such as mining, and oil and gas, which operate in remote regions where map data coverage is limited.

    Maptuit’s technologies also allow companies to specify “known-good” routes and yard-approaches. These capabilities help companies improve the safety of route operations and are increasingly important in international markets where bonded routes exist.

    Telogis reports it will integrate Maptuit’s technologies directly into its enterprise platform, thereby expanding the Telogis customer base by more than 100,000 subscribers.

    “The commercial navigation technologies that Maptuit has revolutionized will enhance all of the applications on our platform — route planning, navigation, execution analytics — and position our company to best handle the growing location intelligence needs of companies worldwide,” said Morris. “This acquisition complements the Telogis platform with a unique set of high-value capabilities that allow companies to dramatically transform their operations, improve safety and lower operating costs.”

  • Freemium Model for in-Vehicle LBS

    Cloud-based infotainment, more tightly integrated apps, and more personalized offerings will change the in-vehicle mobile experience. Interfaces will morph towards combinations of heads-up displays and voice. These were some of the conclusions from my December 1 webinar “Car as a Mobile LBS Device,” with panelists from Ford, OnStar, Pioneer and TomTom.  How in-vehicle apps will be monetized is an open question. When polled, almost half of the webinar audience believed a “freemium” model will prevail. Freemium models work by offering a product or service free of charge while charging a premium for advanced features.

    Close to a third of the webinar participants believed that LBS apps will come as “standard equipment” on new vehicles. Many see mobile advertising as adding a significant revenue stream if the advertising is truly contextual and continues to serve up offerings that are useful to a consumer. Obtaining contextual marketing data about consumers must be done with prudence, but more about that later. The carriers and service providers such as Facebook and Google stand to make the most money from in-vehicle apps.

    Carrier Low IQ. Mobile contextual advertising needs consumer behavior data to work. The behavior data are highly sought because of their value to advertisers. If you haven’t been paying attention, Carrier IQ allegedly has been illegally and secretly recording individual cell-phone user behavior, including location data, across more than 140 million handsets. Carrier IQ maintains that its services count and measure operational information and do not record keystrokes or provide tracking tools.

    Who raised their hands? AT&T, Sprint and T-Mobile admitted to using Carrier IQ. Apple said it stopped using Carrier IQ in the latest version of its operating system, iOS 5. Across the board, the companies insist that they only used information to track operational and network performance issues. Security researcher Trevor Eckhart has released a report detailing how Carrier IQ’s software could be used by carriers and device makers to track user activity, actual keystrokes and location data. Now comes renewed scrutiny of the industry by Congress, federal agencies and consumers.

    Checked-out? Facebook consumed Gowalla in an acquisition of the location-enabled mobile social network. Gowalla’s users check in at specific places to share their location with friends. Unable to compete with Foursquare, the Gowalla service will be shuttered by Facebook; however, employees will be kept on, presumably to work on the new Facebook Timeline chronological interface. JWire, a media company, reported results of a survey that sheds light on the category. Consumers are split on their feelings towards location-enabled mobile social networks. A little over a third of respondents indicated positive feelings toward it. Just as many had a poor opinion of it, with the rest ambivalent. Males are more likely to use the service and the most popular check-in categories are restaurants, hotels, bars and health clubs.

    Let There Be Light? Resolution of the LightSquared GPS interference issue eludes. The LTE provider has moved quickly to make added concessions following new reports of GPS interference based on LightSquared’s already previously revised deployment plans. LightSquared’s newest concessions include limiting or delaying transmission power increase. This comes on the heels of reports from a key government committee that LightSquared’s network affects a “majority” of general-purpose GPS receivers and technology used to land planes, but doesn’t appear to have a significant impact on cell phones. “LightSquared signals caused harmful interference to the majority of other tested general-purpose GPS receivers,” said Anthony Russo, director of the National Coordination Office for Space-Based Positioning, Navigation and Timing (PNT) in a statement last week. The federal advisory committee examined tests of LightSquared’s revised deployment plan, which moved transmissions into airwaves located farther away from GPS bands. LightSquared had asserted this would solve the majority of issues with GPS interference, but that isn’t supported by early tests. The final analysis of the tests by the PNT committee is still underway.

  • 2011 Showed Better LBS Market Gains, But Was It All About Google?

    2011 was a decent year for the location-based services industry. It was an even better year if your company was lucky enough to get bought out by an ebay, Google or Intel. While acquisitions stood out as the key LBS news in 2011, privacy stood out as an ugly issue that threatened consumer acceptance. In addition, automobile manufacturers are viewing social media as a new profitable technology for vehicles and were trying to convince consumers that the connected vehicle is the way of the future.

     

    This year featured a slew of location-based company acquisitions and consolidation — far more than in 2010. The acquisitions of such established location companies as Where and Telmap by eBay and Intel, respectively, at least show that bigger companies want that capability in their online offerings.

    Google made many moves into the location business in the last two years — and really went crazy in 2011 with acquisitions. Google 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.

    To top off a big year for Google, the company is taking its mapping technology indoors with the launch of Google Maps 6.0. Indoor mapping and positioning received big headway in 2011, and it was reasonable to assume that the 800-pound LBS gorilla, Google, would be a big player to entice big retail companies to come on board for location technology to allow customers to find products.

    According to published reports, some of the big-box retail stores such as IKEA, Macy’s, Home Depot and Bloomingdales have been mapped. However, a lot of the bigger malls, and Target and Wal-Mart, have not been mapped.

    The cool thing about the product is that it also tells customers what floor they are on in a building. The uncool thing about the product is that Google Maps 6.0 is only available for Android.

    Google’s indoor mapping partners include 18 U.S. airports, which will open up more partners and LBS relationships in the future.

    A look at all of Google’s location market moves, and analysis, in 2011:

    • Google’s major partners, who have more than 25,000 Google Maps application uses per day, will be charged starting next year. 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.
    • 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. Many industry experts have said that the main makers of Google Android smart phones should feel challenged as well as the company has seemingly gone into business against them. 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.
    • Google purchased Menlo Park, Calif.-based The Dealmap, a company that 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.

    More transition is happening in the LBS market this year — even at our deadline. As GPS World reported, LBS company Gowalla looks like it is shutting down by the end of January 2012, according to the company’s blog. Company president Josh Williams said he and his staff are now going to work for Facebook.

    While some LBS analysts said this year that GPS technology, and its offshoot niche navigation capability, are just embedded widgets in the overall location market, others say they still are the driver to consumer awareness and acceptance.

    “In my opinion, one of the biggest trends in 2011 included market acceptance — and demand — of GPS technologies. We are now seeing end-users demand GPS technologies in the workplace,” said Jonathan Hubbard, SpeedGuage CEO and co-founder. “In fact, truck drivers now say if you don’t have GPS-enabled automated logging of my work hours, or what we in the transportation sector call hours of service monitoring, then I won’t work for you. That’s a significant change in how GPS-enabled technologies were formerly viewed — more or less — for solely tracking purposes, and we see this trend only continuing and gaining momentum in the coming year.”

    Other Markets and Issues Made Big Splash In 2011                                                                 

    In vehicle technology also made headlines in 2011 when automakers said they would be increasing social media and other capabilities for new car models. Because of larger screens going into many vehicles, LBS seems like a natural advertising fit, but Thilo Koslowski, Gartner vice president, said that car companies will developing market strategies 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,” he said.

    The other big “issue” confronting the LBS industry is privacy, which became big news in May when it was revealed that location data was secretly stored in all iOS 4 devices. It was learned that Apple was storing a file with location data in every iPhone or iPad with iOS 4.    These discoveries prompted Sen. Al Franken (D-Minn.), who was concerned that as many as 15 percent of users are children, to ask now-deceased Apple boss Steve Jobs about the operating system. In a letter to Jobs, Franken, who presided over hearings on location technology and privacy, 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 contended 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.

    In other LBS Insider news:

    • Veteran telematics vendor Cross Country Automotive Services and its subsidiary, ATX Group, which is a provider to BMW, Hyundai, Infiniti, Lexus, Rolls-Royce Motor Cars and Toyota, announced their new corporate brand name, Agero. Cross Country, which purchased ATX in 2008, says Agero will create products for auto manufacturers, insurance carriers and aftermarket providers.
    • GPS World Magazine is GPS-Wireless 2012’s official media partner. GPS-Wireless 2012 will be March 21-22 at the Hyatt Regency—San Francisco Airport.
    • LBS Insider will be covering the Consumer Electronics Show in Las Vegas next month. Please send me your news tips and releases.

  • 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.
     

  • 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.”