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Tag: Wireless LBS Insider

  • 2014: Big Move to Retail Indoor Location Market

    Macy's plans to add Shopkick indoor location beacons in preparation for holiday shopping. (Photo by Nicholas Eckhart is licensed under CC BY 2.0.)
    Macy’s added Shopkick indoor location beacons in preparation for holiday shopping. (Photo by Nicholas Eckhart is licensed under CC BY 2.0.)

    This year was filled with hope and some success for the location industry. In what was probably the biggest deal, Qualcomm bought United Kingdom-based CSR for $2.5 billion — at the same time, spinning off its own location beacon company, Gimbal. While the connected car continued to get a lot of press at the biggest trade shows, indoor location technology matured to a point that many retailers are believing it’s a way to get consumers back into the stores — and away from their computers.

    As we come to the end of 2014, many industry observers view indoor technology and markets to be like where outdoor location was in the early 1990s: many technologies and providers all pushing different solutions. However, the gap between the beneficiaries of the market, the retailers and brands, and the indoor location technology providers is narrowing as tests become more prevalent.

    Such retailers as Walgreens, Home Depot, Lowe’s, Macy’s and CVS have rolled out, or planning to launch, tests that include indoor mapping and a product locator.

    “iBeacons and other beacons proved to be the fastest location-proximity technologies that are being deployed full scale by Macy’s, CVS and other retailers for a first quarter 2015 rollout,” said Kris Kolodziej, an indoor location-based services advisor. “I see more acquisitions like the one of Groupon acquiring Swarm Mobile, a beacon platform for smaller tier-two retailers and businesses. In addition, we will see more partnerships like the one between Gimbal and Urban Airship to provide a holistic outdoor-indoor solution for geofencing and engagement platforms.”

    Location companies paid attention to mobile carriers’ focus on launching and advancing their LTE services in 2014, said Keith Bhatia, TeleCommunication Systems vice president, business development.

    “2014 has been the year of transitioning location-based services from 2G to 3G to complete 2G-3G-4G platforms,” he said. “The other significant location market event for TCS during 2014 has been growth of user plane services by (over-the-top) apps. The operators who have chosen to compete with OTT players have seen location requests exponentially expand.”

    TCS believes that the location market, in the next five years, will evolve to a machine-to-machine and Internet of Things (IoT) concepts that will expand into consumers’ everyday lives, Bhatia said. “From the connected car to telemedicine, health devices, connected home and smart cities, all mobile connected devices will benefit from location-based services,” he said. “We believe that location services will continue its rapid growth for years to come.”

    Selling retails on the promise of indoor positioning and proximity marketing has been tough in the past few years — and some providers have focused on the wrong message, Bhatia said. “As mobile device adoption continues to surge, indoor positioning and proximity marketing will become an important tool for many retailers. A significant barrier so far has been too much focus on coupon delivery,” he said. “We believe the retailers will find real benefits in terms of understanding layout, traffic and congregation of users. Combining this location information with their retail data will provide early insights into trends and early indications of potential challenges.”

    Dave Hutingford, CSR director of product line for location, believes the big selling point for retailers is striking the balance between what benefits they obtain from the app versus what benefits the consumer gets — what he calls the equity balance.

    “Too many irrelevant notifications while walking around the shop will result in people not wanting to run the app, and can potentially harm consumer acceptance of retail applications. The interest is already there from the retailers’ side as the benefits are somewhat obvious, but the question is what do you give back to an increasingly technology-smart consumer?” he said.

    Overall, the indoor location market is attracting major interest from retailers — which is refreshing to many industry observers after seeing online sales cut into brick-and-mortar stores’ profits.

    “Removing the need for dedicated infrastructure to run indoor location was a big hurdle removed from the ecosystem. Certainly we expect to see good pick-up of the solution over the next few months for a wide variety of location services, and being handset-agnostic is a big benefit for any developer,” Hutingford said. “However, if you are looking for accuracy down in the meter range, you will need to add infrastructure to supplement the location calculation, which can come in many forms.”

    Connected-Car Market Made Headlines in 2014

    If an industry executive attended any of the bigger trade shows this year — CES, CTIA in Las Vegas, or the Mobile World Congress in Spain, it was the same thing — connected vehicles are the big story. Adoption by automotive manufacturers, as a number of analysts have pointed out this year, was the most important news story for the connected-car industry in 2014, said John Horn, Kore Telematics executive vice president and chief strategy officer.

    “Essentially every vehicle that rolls off the assembly line in 2015 will have an element of connectivity built into it. To keep up with the level of demand, we are starting to see scale and scope really start to matter to the companies that power this type of connectivity,” he said. “2015 will prove to be another huge year for industry consolidation, which will be necessary to keep up with the global demand for connected-car technologies.”

    The biggest trend in 2014 connected-car technology was the emergence of infotainment content for connected cars, said Scott Frank, Airbiquity vice president, marketing. “Before 2014, the most an average consumer would expect out of a high-end vehicle head unit were features like navigation, basic cell-phone connectivity, and hands-free calling,” he said. “Today, drivers are able to get a wide-variety of apps in their vehicles to do things like stream music and keep up with their social media channels. User experience advancements were also made to provide a seamless transition for digitally oriented drivers as they moved from office, to car, to home, and back again. For example, with the NissanConnect Mobile Apps system, someone listening to a streaming music app like Pandora on their PC in the office can put it on hold, get into their car for the drive home, and pick up the song right where they left off — as well as see their favorite playlists, album selections, and cover art.”

    However, as with any industry that experiences quick growth, there will be growing pains, Horn said. “The automotive world has already started to experience some of those pains as connected technologies continue to advance at a rapid pace. We saw how the analog shutdown left many OnStar customers stranded with obsolete hardware,” he said. “We’ll likely see similarities as 2G, 3G, and 4G networks are eventually turned down in favor of more advanced technologies. I’ve been saying this for years, but now is really the time for the removable module. Connected technologies will turn over much faster than cars, and the only way I can see to future-proof against this is through the removable module.”

    Airbiquity’s Frank said that there are definitely consumer acceptance and technology barriers for the automotive industry going forward related to connected car as we know it today and autonomous car as its being forecast going forward.

    Like waves of technology that have come before, functional consumer awareness and adoption will follow the technology adoption curve, Frank said. “Certain generations and user types will be early adopters and more likely to accept new and evolving connected-car technology and features — and the user experiences and value that come with it — the minute it’s made available,” he said. “While others will be either blissfully unaware of the technology built into their car — and the value it could bring them — or are simply satisfied with traditional technology like basic AM-FM and satellite radio. One thing for sure is there’s a correlation between early adopters of technology like smartphones and early adopters of connected-car technology and related features.”

    Frank quoted a recent Parks Associates study that found 48 percent of vehicle owners that own smartphones are very interested in the ability to view maps — or receive directions in their cars. This compares to 37 percent of vehicle owners that own/don’t own smartphones. “Like flip-phone users that transitioned to smartphones after understanding the end benefits, consumers will increasingly become aware of and use their connected-car systems,” he said. “We’re seeing evidence of the connected-car adoption curve in the increasing activation rates and time of usage for our customer’s connected-car programs.”

    Horn, who headed RacoWireless, which was acquired by Kore for an undisclosed amount this year, said in 2015 industry will start to see the connected car become much more easily monetized. “We’ve seen this first hand, as we have just rolled out some new features with AT&T and Audi. Now, your Audi Connect subscription can be part of your AT&T Mobile Share plan and treated just like another line,” he said. “It is going to be easier than ever to consume in-vehicle connectivity and the business model will advance to the point that makes it appealing for both the consumer and the solution provider.”

    In 2015, driving-centric apps and services will begin to appear and eventually become as important as infotainment content in the consumer purchasing process, Frank said. “The current automotive manufacturers’ focus on providing infotainment delivery reflects their desire to meet the expectations of digital lifestyle consumers who are heavy users of smartphones and want to use their favorite apps and services inside their cars,” he said. “This is a logical first step, but these savvy consumers will increasingly value apps that are truly useful and relative to the driving experience. An example is an app that proactively and dynamically recommends modifications to a driver’s high-frequency routes to help them optimize fuel consumption, lower CO2 emissions, minimize engine wear, and avoid road hazards. As a result, apps that don’t add to the consumer experience relative to driving will eventually die off from lack of use, and automotive manufacturers will replace them with more and more driving-centric apps to satisfy their customers and differentiate themselves from competitors.”

    The rise of autonomous vehicles, a derivative from connected-car technology, will keep automakers, carriers, suppliers and government agencies busy for decades.

    “When it comes to autonomous vehicles, we expect the adoption curve to be more extended than what we’ll see for the connected car, given the increased consumer concerns about safety and adapting to the new fangled idea of riding in a car without a human driver,” Frank said. “Consumers will not only want to know what this fancy new technology is and how it works, they will also need to feel confident that it will run perfectly and not put themselves, their passengers, or other people and property in harm’s way. Consumers will also have concerns about who will be legally and financially liable if an accident occurs.”

    In other location news:

    • Two Trimble companies, PeopleNet and ALK, recently provided real-time tracking of the 2014 Capitol Christmas Tree’s cross-country journey from the Chippewa National Forest in Minnesota to the front lawn of the U.S. Capitol Building in Washington. The companies used enterprise products for routing, mileage, mapping and visualization to track the tree.
    • LBS Insider’s Kevin Dennehy will be attending the 2015 Consumer Electronics Show in Las Vegas next month. Please contact him at [email protected] with your story ideas.

  • Industry Battles Indoor Location Rules

    Janice Partyka
    Janice Partyka

    The FCC will soon make a ruling on indoor location rules for 911 calls. If you worked in the location industry in the late 1990s, you may remember when the FCC ruled that wireless carriers would have to automatically locate a mobile phone that dialed 911 from the outdoors. From a seat on the E9-1-1 Institute’s board, a non-profit organization that supported Congress on 911 public safety issues, I watched the wireless carriers fight meaningful 911 location accuracy standards and monitoring.

    With the large number of calls to 911 from the indoors today, the FCC is about to require carriers to automatically provide emergency dispatchers with indoor location information on calls. In the short term, the FCC is proposing indoor location that would provide sufficient information to identify a building, with more granular accuracy in the long term at the room or office suite level. In addition to horizontal locations, the FCC proposes adding vertical location, a critical metric for multi-storied buildings.

    The comment period for the FCC’s proposal just ended and it is now up to the agency to act. During the comment period, carriers, public safety entities and vendors fought over accuracy rules and monitoring. NENA and APCO, leading public safety organizations, negotiated a consensus agreement on indoor location rules that many other prominent public safety agencies have decried as objectionable. It is surprising that NENA and APCO would sign on to such a watered-down version of the FCC proposal.

    On a better note, indoor location for commercial applications is an industry bright spot. Hyper-location is king and is moving beyond retail to enterprise, personal asset tracking (please find my keys) and the connected home. “Over the past 12 months there has been a considerable change in deployments as companies have moved from a handful of deployments to getting into the hundreds and thousands of stores,” said Patrick Connolly of ABI Research.

    In 2015, Connolly also expects to see camera analytics companies like Shoppertrak, Irisys and Brickstream have an increasing presence as they expand their offerings into BLE, Wi-Fi and in-store analytics. LED lights for location positioning within retail outlets and large public venues are on Connolly’s list for market growth in the coming year. The lights enable communication with the cameras on customers’ smartphones to determine their locations. Retailers can send information, redemptions, maps and services to customers via their mobile device at precise locations within the store.

    I’d like to close the year with a “departure.” In Los Angeles, a proposed cemetery on the tony bluffs of Malibu would forego headstones, raised or flat, and depend on the grieved using GPS to find the burial spots of loved ones. A small disc on the plot would verify the coordinates. GPS as we didn’t imagine it.

  • Connected Car Show: Issues Arise as Automakers Look to Autonomous Vehicles

    Hacking, Privacy, and Consumer Acceptance Top the List

    Vehicle styling, speed and looks took the back seat while capabilities driven by GPS, sensors and data were up front at this week’s Los Angeles Auto Show’s Connected Car Expo. Privacy and security, distractibility and safety, and human interfaces were all hot issues. The terms connected car and autonomous cars were being used interchangeably, as a continuum of an evolving set of capabilities. The least-asked question: If we build an autonomous vehicle, will it sell or become an expensive niche product? And how will the market respond to mechanical failures or accidents, even if the vehicles are proved to be overall safer and more reliable?

    Not Happy with Navigation. With little to individually distinguish car models, auto makers are looking to infotainment to uniquely brand their vehicles. Yet drivers identify navigation and multimedia among the “lower quality” features of their vehicles. While consumers report that the quality of almost all other features of their vehicles are improving, they indicate that the quality of their navigation and multimedia are declining. “The problem is overly complex systems,” reports Renne Stephens of J.D. Power. “Usability is now considered by consumers as a factor of quality.”

    Car makers are under enormous pressure to add functionality demanded by consumers, and make the whole experience simpler. Many of the features embraced by automakers have not attracted the interest of drivers. Stephens reports that valued features include surround view camera with rear vision, wireless charging station, near field communication and smartphone field integration. What they don’t value are eye tracking, tactile touch screens, hand gesture control and laser headlights.

    Hacking. Discussions on security were enlivened with the inclusion of hacker Chris Valasek. You may remember that last year Valasek and his partner, Charlie Miller, hacked into the steering and brakes of a Prius and Ford Escape, solely by attaching a laptop to the vehicles. Members of an Israeli intelligence unit reported that they had remotely hacked into a vehicle wirelessly via an aftermarket insurance dongle (in this case, Zubie) that was plugged into the vehicle’s OBDII port. Dongles might make people safer drivers, but could they lead to an unwanted adventure?

    Valasek and Miller created a list of the most hackable vehicles with the Jeep Cherokee, Cadillac Escalade and Toyota Prius as the most vulnerable. The Dodge Viper, Audi A8 and Honda Accord top the most secure list. Malicious attacks could range from enabling a microphone to eavesdrop to the catastrophic, such as controlling steering or brakes.

    Valasek assured conference goers that hacking vehicles isn’t easy. No matter how many layers of protection are created, no vehicle that communicates with the outside world will be hack-proof. Last month, automakers announced that they are forming a consortium that will be dedicated to deterring “black hat hackers” and will create a venue for the auto industry to share information about hacking attempts.

     

    Dreams and Nightmares. The best-case scenario for the automotive OEMs is a connected vehicle industry in which they control the ecosystem and derive high revenues, as well as driverless cars starting to become common around 2024. In reality, the OEMS may encounter lagging consumer acceptance, perhaps shattered by catastrophic accidents, reliability issues or privacy troubles. Regulation might cause insurmountable constraints. The driverless car could become a niche product and a costly failure.

    In another possible scenario, the connected autonomous vehicle becomes a success, but the tech and digital companies win the market with parallels similar to how the PCs took the industry from IBM. The OEMs become a pipeline with little value and the tech companies take home the bacon. If the market fails, the VCs will stop investing and some of these tech companies may fold. The Tesla offers an example of how this scenario might unfold.

    Privacy. Automakers are making a commitment to privacy in the vehicle far beyond that made by companies like Apple or Google, which are vying for a piece of connected vehicles. Nineteen automakers just signed a set of principles delivered to the Federal Trade Commission. “Google may want to become an automaker, but we don’t want to become Google,” said Mitch Bainwol of the Alliance of Automobile Manufacturers. The OEMs provide assurance that they will not share information from vehicles that is streamed back to automakers or that is downloaded from the vehicle’s computers. They pledge information won’t be handed over to authorities without a court order, sold to insurance or other companies or used to bombard them with ads for Starbucks, gas stations or other businesses they drive past, without their permission.

    “You just don’t want your car spying on you,” said Marc Rotenberg of the Electronic Privacy Information Center. “That’s the practical consequence of a lot of the new technologies that are being built into cars.” The automakers signing on to the principles are: Aston Martin, BMW, Chrysler, Ferrari, Ford, General Motors, Honda, Hyundai, Kia, Maserati, Mazda, Mercedes-Benz, Mitsubishi, Nissan, Porsche, Subaru, Toyota, Volkswagen and Volvo.

    Uptake. About half of us like to drive and the other half just want to get there, reports futurist Peter Schwartz. Younger populations are increasingly in the transport camp, as illustrated by the popularity of Uber, Lyft and Zip Cars. How to win the whole market is to “automate the boring parts of driving,” says Håkan Samuelsson of Volvo.”

    J.D. Powers reports that consumers perceive the autonomous vehicle as a driver completely detached from the driving experience. This isn’t too close to the reality that is within reach; the driver will need to be engaged and ready to assume control when called upon. But the dream of catching a few winks on the way to work is a good one. Will this vision be led by Detroit or Silicon Valley? We should find out soon.

  • Autonomous Vehicles Are Coming…But When?

    IAV_OMD_3760 Photo: Denso
    IAV Automotive Engineering test vehicle. Photo: Denso

    The autonomous, or driverless, vehicle market seems to be a big side topic at connected car conferences. Location technology will continue to play a role in the development of autonomous vehicle markets. However, many view a fully autonomous vehicle to be more than 10 years away — these are usually folks from the auto industry or academia. Others, those who lurk around Silicon Valley, believe that driverless cars will be on the road in half that time…and once again, if Detroit doesn’t move on it, they will.

     

    Just as GPS was once thought of as science fiction — something that naysayers said would not be fully operational for decades — autonomous vehicles are now thought of as an extension of the connected vehicle market. However, technology and legal issues will make the implementation of an autonomous, or driverless car, a tenuous road in the next few years.

    One executive from Verizon Telematics, which is a major player in connected car technology, said it is going to take time, perhaps between the years 2025-2030, to grow the autonomous vehicle market.

    “You just can’t flip a switch and have autonomous vehicles [on the road]. You have to take baby steps to develop a network, build an infrastructure and condition the marketplace,” said Kevin Link, Verizon Telematics senior vice president. “The collaboration is going to have to be more than one player, including the government. It was a while before desktop computers evolved into laptops.”

    While the technology hurdles will be significant for autonomous vehicles, there are features today that will help shape the market, Link said. “Mercedes cars remind people to steer and turn around corners, when to stop at a safe distance and to change lanes,” he said. “These are not taking you from point A to point B autonomously, but real-time connected car features will feed into the autonomous car.”

    The evolution of autonomous vehicles will not be derailed at this point, given the intensive research and investment focus from both the private and public sector, said Tim Johnson, NextEnergy director of transportation initiatives. “However, cars that ‘drive themselves’ will not be in mass production in the next five years. Ten years, maybe. Five, no,” he said. “This is not a technology-limited premise. The technologies are rapidly approaching realistic use in limited applications, but the regulatory, liability and infrastructure aspects are far from being fully implemented in the next five years.”

    Technology Hurdles Await Early Autonomous Vehicles — More Regulation than Technology?

    Some of the technology hurdles center around the speed, capacity and logic of the vehicle and infrastructure systems to manage the significant amount of information required for self-driving vehicles, Johnson said. “If it was possible to wave a magic wand and have all vehicles made simultaneously capable of these communications and logic decisions, it would be much more viable to create a mass, public environment for self-driving cars,” he said. “In reality, there will be an extensive transition period, possibly 15 to 20 years, where capable vehicles will need to deal with incapable vehicles. Once again, this is not so much a technology issue as it is policy, regulation and liability.”

    Autonomous Products Already Out There…

    Autonomous vehicles will only continue their current momentum as the technology for assisted driving is already well underway with features like self-parking, lane departure warning, predictive collision warning, back-up collision intervention and blind spot prevention, said Scott Frank, Airbiquity vice president of marketing.

    An example is the Infiniti Q50, which uses Airbiquity technology for Infiniti InTouch Apps. “What we’re going to see from here is a shift from driver assistance to zero driver involvement — the ultimate expression of autonomous vehicle — where the car does all the driving and there isn’t even a steering wheel or brake pedal,” Frank said. “We won’t see fully autonomous vehicles becoming commonplace in five years’ time due to the massive amount of technology, infrastructure development and integration that needs to happen to ensure the requisite amount of safety.”

    NextEnergy’s Johnson said that cars that drive themselves are already in use in restricted access sites, such as military bases, restricted commercial and university locations, national lab campuses and more. “These are the first real-world applications of both the vehicle and infrastructure technologies to test the practical limits of semi-autonomous driver-still-behind-the-wheel cars,” he said. “Much like the FAA use of limited test sites for the development of regulatory aspects of drone flight, these sites are providing the information and insight to move the potential of cars that drive themselves closer to everyday use.”

    Denso-W Photo: Denso
    A Denso autonomous test vehicle drives the track while a plastic friend looks on. Photo: Denso

    Will Public Transit Be the First Proving Ground?

    Most companies have different opinions when asked whether the public transit area will be the first major market, and serve as the catalyst, for autonomous vehicle growth. “Although we don’t know for sure, it could be that automated public transit programs, will operate in controlled environments with known routes [meaning low speed operation with pedestrians/bicycles operating on the same thoroughfare, but the automated transit system does not have rails or guide ways — the route planning is easily changeable with no impact to the transportation infrastructure],” said Roger Berg, Denso North American Research and Development office vice president.

    Denso believes the autonomous vehicle market will encourage additional functionality within the premium car model lines, but gradually these advanced driver assist systems will become more and more common and eventually spread through even the economy car segment, Berg said. “First systems deploy warnings or simple lateral and longitudinal vehicle control. But then functionality for what most people refer to as ‘driverless cars’ or ‘automated driving’ would only be usable under fairly benign driving and traffic conditions, such as some level of automated highway driving,” he said.

    Public transit as an “early adopter” business model is viewed to be less probable in the near term as many of the technical challenges facing autonomous operation require significant research and development and capital investment, said Chris Hennessy, IAV Automotive vice president, engineering. “Most of this capital is centered on markets where the return on the investment can be substantial. At the moment, the most likely scenario for a reasonable ROI is in the premium-brand automotive market, where consumers are willing to pay a premium for new technology,” he said. “This market and the technology growth that will occur from this early-adopter market will provide a foundation for cost-effective proliferation of this technology to other markets, where either the operational boundary conditions are narrower or the available capital is lower, which is typically where public transit would fall. Exceptions to this condition could be analogous to the light-rail market, where the interaction to the general public can be controlled and managed with isolated tracks or lanes of travel, but this would require significant planning and capital investment in infrastructure.”

    Airbiquity believes that public transit will not be a first adopter. “No, the first adopters will be private parties in urban areas providing a value proposition to people struggling with congested cities, long commutes, and high parking costs. You’re going to see small and innovative companies offering car services with autonomous vehicles operating on city grids at lower speeds,” Frank said. “They will source the autonomous vehicles from non-traditional automotive makers that move faster than traditional automotive makers. Local government will also be involved, since they own the majority of the infrastructure and need to ensure safety standards are established and met.”

    In other location news:

    • Kore Telematics, fueled by a large investment in it by ABRY Partners, bought RacoWireless in an all-cash deal, according to published reports. The transaction will give the companies a combined 3 million M2M subscribers.

  • Fleet Remains Strong Worldwide Location Market

    Photo by born1945 is licensed under CC BY 2.0
    Photo by born1945 is licensed under CC BY 2.0.

    Because of nonstop government regulation, which can help and hinder the trucking industry, the mobile resource management market will continue to be one of the strongest location segments. In other news this month, while it doesn’t get much bigger a deal in the location industry than a $2.5 billion purchase, as in the case of Qualcomm buying CSR, one smaller deal that should not be overlooked is ST Telecom’s acquisition of Shopkick, a growing indoor location provider.

    SAN DIEGO — The global trucking market for fleet management products has always been strong — and one of the first location segments to have prospered over the last 15 years. This market growth will continue because of new technology and government requirements, say attendees at the American Trucking Association annual management conference here.

    An American Transport Research Institute report offered at ATA, “Critical Issues in the Trucking Industry – 2014,” outlines 10 issues, mainly driven by government regulation, that concern fleet owners.

    One of the big issues is hours of service (HOS). Rules adopted by the feds require 11 hours of driving — and a 34-hour break before restart. This includes a 30-minute break before driving again after eight hours. ATRI believes these rules cost carriers $1.6 billion to $3.9 billion annually in driver pay impacts.

    An electronic device (ELD) mandate requires all drivers to keep records of duty status via a logging device. A mandate could come in 2016 that outlines hardware specs.

    Another big issue is truck parking — and could be an opportunity for mapping and location companies. Because HOS regulations require drivers to take many breaks, shortage of parking is a big and dangerous concern because drivers are operating beyond allowable rules to find areas to park. ATRI wants closed public rest areas to reopen. They want real-time truck parking information availability and trucking parking reservation systems.

    Driver distraction in the form of texting and driving is a growing concern. ATRI wants the feds to ban hand-held cell-phone use/texting for all motorists, encourage harsher penalties and more aggressive enforcement, and to continue to research to understand the size of the distracted-driving problem.

    Other issues include driver shortage, health and retention; compliance, safety, Accountability (CSA); and congestion funding.

    “My takeaway from [ATA’s] luncheon panel was that the trucking sector is in pretty good shape overall, except for the driver shortage. In regard to mobile resource management (MRM), I would estimate overall growth in in-cab and trailer monitoring at less than 10 percent per year,” said Clem Driscoll, president, CJ Driscoll Associates. “The Truckload sector is heavily penetrated with in-cab solutions. Most large carriers have a system. CSA is motivating some sales to mid-size fleets, but many small fleets are waiting for the ELD regulations. So, the delays with ELD regulations have probably been slowing market growth.”

    Such companies as AT&T are trying to address the growing trucking requirements with new and existing products. For example, Saia LTL Freight, a trucking and logistics company, is managing its fleet of trucks with several AT&T products. Saia drivers are using handheld computers to connect with dispatch managers and monitor fuel consumption, safety, and location using AT&T’s wireless network.

    “[SAIA] is a trucking company that is using all our capabilities. We partnered with them from an early stage, starting with the [Electronic Device Mandate] requirements,” said John Moscatelli, AT&T advance resource management solutions director. “Then we helped them with rugged handhelds and voice where necessary.”

    Overall, Moscatelli sees a few fleet trends emerging. “There have been a lot of mergers and acquisitions in this industry. I also see that trucking companies are very aware of forced hours of service regulations for every company [mandated by the government],” he said. “It will not necessarily be the first adopter of technology that will be needing units. We have looked at the demographics, and even small and medium fleets are going to need affordable connected systems. The other trend is the growth of government sales — local, state and federal — very strong.”

    Targeting a large worldwide market, Trimble has acquired several companies in the fleet space in recent years. One of them is Minneapolis-based PeopleNet, which is gearing up for the ELD mandate with an “Internet of Transportation Things” strategy that includes multiple devices talking to each other, said Randy Boyles, company senior vice president, tailored solutions.

    The company rolled out its Wi-Fi-enabled in-cab scanning feature at ATA that allows drivers to scan and transmit transportation documents.

    PeopleNet, along with ALK, GEOTrac, Vusion and TMW Sysems, are part of Trimble’s Transportation and Logistics division. Trimble has allowed their purchased companies to operate autonomously.

    “About 95 percent of our management team is still intact. TMW still works with Omnitracs and others, but you will see a convergence with [other Trimble companies],” said Boyles, who believes that oil and gas pipeline monitoring/mapping is a growing niche.

    The fleet and enterprise market is a growing space for Magellan, said Mark Perini, company associate vice president. The company has been offering its Magellan RoadMate 9496T-LMB Android unit for the fleet market.

    “The unit enables bulk updates using our smart GPS technology. The Android operating system has been a growing technology for fleets,” Perini said. “The HOS regulations require reporting of how many hours truckers are off duty. With our management system, operators can implement a full set of protocols [to achieve HOS compliance]. It’s on a server, so the driver can’t change anything.”

    Telogis Partners with Ford

    Telogis has grown from a small company to a major player in the fleet market. The company recently announced it will be the “technology provider” for the Ford Crew Chief in North America, which is an expansion of its European partnership with the automaker.

    In Europe, Ford’s telematics products will be offered to customers as a dealer-installed option and will feature vehicle location, diagnostics and performance.

    The company has also been a major player in the U.S. market, integrating into Volvo Link, said Kevin Moore, Telogis vice president of OEM sales at ATA.

    “While the trucking business is huge, the aftermarket is also growing,” he said. “While location information is central to what we do, we are constantly growing the platform. We are looking to be the only product that provides crowdsourcing for the commercial market.”

    Even though the U.S. fleet market is growing, other world markets are growing by double digits each year. Driscoll, in his China Commercial Telematics Market Study, says the Chinese markets are growing at 20 percent, or more, each year. “China is manufacturing over 600,000 commercial trucks per year for internal use, so the addressable market is growing at a very fast rate,” he said. “China has a very inefficient logistics system and spends far more on logistics than the U.S. or Europe as a percentage of GDP. The government is very aware of the problem and is mandating the use of satellite tracking solutions in a number of sectors. Systems being sold in China today typically support both GPS and BeiDou (Compass).”

    In other ATA news:

    • Orbcomm rolled out its GT 1100 chassis tracking solution to allow trucking companies to monitor where their rigs are located. It also allows operators to see if a trailer is mounted.
    • 10-4 Systems is offering real-time data products NonStop, NonStop Mobile and NonStop premium. The company has a track/trace asset management capability for operators.

    Qualcomm to Buy CSR for $2.5 Billion

    The recent announcement by Qualcomm saying it would buy United Kingdom-based CSR for $2.5 billion signals continued inroads into the connected car and Internet of Things markets for the San Diego company.

    In 2009, CSR, which stands for Cambridge Silicon Radio, purchased SiRF Technology, a GPS pioneer that was making huge strides in indoor location technologies. CSR, mainly known for its wireless Bluetooth technology, has chips in such products as audio speakers and Apple-owned Beats headphones.

    The connected car market will be a big one for Qualcomm in the future. The connect car market, a dominant topic at most wireless trade shows, is expected to grow to $20 billion by 2018, according to Juniper Research. Another research company, SBD, has even higher expectations for the technology, saying the connected car market will grow to $54 billion by 2018.

    Macy's plans to add Shopkick indoor location beacons in preparation for holiday shopping. (Photo by Nicholas Eckhart is licensed under CC BY 2.0.)
    Macy’s plans to add Shopkick indoor location beacons in preparation for holiday shopping. (Photo by Nicholas Eckhart is licensed under CC BY 2.0.)

    Shopkicking It at Macy’s

    In another big industry acquisition, SK Planet, part of South Korean mobile carrier SK Telecom, bought indoor location provider Shopkick for $200 million. The sale indicates how valuable the worldwide indoor location market is becoming.

    Macy’s announced it was installing 4,000 Shopkick beacons prior to the holiday shopping season, according to published reports. The company has nearly 8 million active users and relationships with 20 retailers

    In other location news:

    • General Motors OnStar is arguing for less restrictive open Internet rules for wireless carriers, according to published reports. OnStar argues that future connected services (Wi-Fi hotspots, wireless collision avoidance systems, streaming video and audio) that are going into cars make the net neutrality issue vital for the auto industry. The auto giant, which works with such carriers as AT&T Mobility, is siding with the wireless carriers in their battle with the FCC over net neutrality.
    • A number of location companies, and companies using the technology, are seeing major investments. Most notably, INRIX received a $55 million investment from Porsche. XAd, which develops mobile advertising products, received $50 million in funding from a number of partners. Geofeedia, an LBS social media monitoring company, raised $3.5 million. The company gathers social data from such sources as Twitter, Instagram, YouTube, Flickr, Facebook and others.
    • Nokia’s HERE mapping platform is now available on Samsung’s Galaxy smartphones. The HERE app, available in Samsung’s Galaxy App Store, will run on devices operating Android 4.1. Currently, Google Maps is the default mapping service on Android phones. However, the HERE platform gives consumers another Android option.
    • TomTom said it has “extended [its] location-based services product portfolio with an online turn-by-turn navigation service” with support from deCarta. While TomTom has many customers, including Apple, it has never offered an off-board, server-based navigation service. Industry sources say that this announcement will allow TomTom to better compete in the Internet of Things/connected car market.

  • Mapping Our Inner GPS

    How does our brain understand where our body is in space, and navigate us from home to work? The components of Google Maps are easy for us to discern. We readily understand the mix of GPS location, an extensive map and a sophisticated way-finding algorithm. Our ability to understand our body’s innate relationship to location is far more complex. Discovery of the “inner GPS” of the brain was recently recognized with the 2014 Nobel Prize in Physiology or Medicine, awarded to John O’Keefe, May-Britt Moser and Edvard Moser.

    O’Keefe discovered the first component of the brain’s positioning system. He found that a type of nerve cell in the brain’s hippocampus, our short-term memory storage bin, was always activated when a rat was at a certain place in a room. As a rat ran through a maze, a particular sequence of individual neurons fired. Other nerve cells were activated when the rat was positioned elsewhere. O’Keefe concluded that these “place cells” formed a map of the room.

    When the rats slept, the same sequences of place cells that were fired earlier in the day fired again. Researchers think that this replay helps to transfer the rat’s memory of the maze from the hippocampus into long-term storage. Place cells also attach to memories of a particular location. When sitting at a table, a person or maybe even a rat might remember a pizza that was eaten at that spot.

    Many decades later, the Mosers discovered another component of the brain’s positioning system. They identified “grid cells,” which are thought to act like a dead reckoning system and generate a coordinate system to allow for precise positioning and pathfinding. The grid cells create a location to put place cells and organize position locations. Rats running around an open floor (hopefully not mine), will fire neurons that map out a grid of equilateral triangles that serve as a spatial map. Grid cells can function in complete darkness, without visual cues. Together, place and grid cells make it possible to determine position and to navigate.

    While place and grid cells were first discovered in rats, studies using brain imaging indicate that they also occur in humans. Alzheimer’s patients and those with other neurological diseases are sometimes unable to recognize familiar locales and lose their way. The areas of the brain with the place and grid cells are in the precise area of the brain that is usually affected by Alzheimer’s disease.

    With nav apps and access to cell phones, we don’t need to exercise our innate mapping and positioning abilities as much. I wonder if the neurons that were created to help us find our way will suffer from underuse. The opposite seems to be true. A study found that the hippocampi of experienced London taxi drivers were significantly bigger than those of us regular folks. Perhaps a byproduct of Google Maps is a stunted hippocampus. My head feels smaller already.

  • CTIA SMW Features Large Connected Car Presence

    CTIA’s Super Mobility Week featured machine-to-machine technology, connected vehicle vendors, and a few location-based services companies. While combining its spring and fall conferences, which drew a big crowd, CTIA also tried to be everything to everyone in wireless. Meeting planners also placed the conference with conflicting dates — as the Institute of Navigation, Berlin IFA and ITS World Congress were held in the same week. One of my goals as a reporter was to make sense of a big trade show — and to limit the times an interviewee said “Internet of Things.”

    LAS VEGAS — Outside of the announcement by GM and AT&T to expand OnStar to Europe, the CTIA Super Mobility Week here featured several connected car panels, but limited location news. The action seemed to be in company backroom meetings with existing clients — or trying to find additional niche opportunities for location products.

    One company, Annapolis, Maryland-based TeleCommunication Systems, said it is proving its navigation product for the Atlanta-based AT&T Drive Studio. The company is involved in most location markets, now ranked No. 2 in terms of units deployed (second to Ericsson, according to one source), said Jay Whitehurst, TCS president, commercial software group.

    TCS’ Location ToolKit, which will be used in the 5,000-square foot AT&T Drive Studio, offers navigation, with automatic map updates, traffic, real-time gas prices, weather, movies and showtimes.

    Whitehurst said a market that is growing is e-health and mobile payments, which are both big topics at CTIA SMW and at the Barcelona Mobile World Congress. “We are developing a new product in conjunction with physicians to allow first responders to be able to reach patients who are not responsive. We are working the system into clinical workflows to provide diagnosis,” he said.

    Standards, particularly for connected vehicles and handsets that control functions, will be important as new systems and vehicles offer this technology, said Alan Ewing, Car Connectivity Consortium president and executive director.

    “Having a proprietary service is okay until someone says, ‘Hey, we don’t want to do this anymore,’ then there is a button in a car that does nothing,” he said. “We want to ensure that button is meaningful. While a lot of cars have MirrorLink built in, what happens when it disappears and consumers don’t know where to buy a compatible phone? [Consumers] don’t want three different phones for their vehicles.”

    Ewing said that despite proponents’ arguments that autonomous vehicles are here to stay, he believes it is a generational issue. “I don’t want to give up control of a vehicle. But it is a surprise to hear younger people are not even getting driver’s licenses.”

    Ford, which is not a MirrorLink member, had its inaugural developer’s conference at CTIA SMW. The developer’s conference was a big hit, with more than 200 application developers, said Douglas VanDagens, Ford global director, connected services solutions organization.

     

    u-blox Rolls Out New Module, Outlines Marketing Strategy

    Several companies at CTIA SMW are attempting to find niche opportunities in the crowded machine-to-machine market — and Switzerland-based u-blox is no exception. The company is focusing on the mobile, industrial and consumer-location markets, said Thomas Seiler, u-blox CEO.

    While Seiler says there is no one dominant market for u-blox, the fleet market has been very good for the company. In addition, asset tracking has been a good market, he said.

    “We are also seeing consumer markets such as e-bikes, golf carts, commercial helicopters and drones growing,” Seiler said.

    While many location companies are fretting about government regulation, u-blox is taking the position that most agency requirements have actually helped build the market. “Regulatory requirements have been driving business for us. The [National Highway Traffic Safety Administration] proposes that vehicles report location, speed and direction,” said Nikolaos Papadopoulos, u-blox America president. “The collision avoidance regulations have helped to create an ecosystem that drives business.”

    The company recently rolled out its ODIN-W160 multi-radio module for automotive, industrial, medical and security applications.

    Nick Papadopoulos, president of u-blox America, tells CTIA Super Mobility Week show-goers what they should see at the u-blox booth.

    Numerex Exec Talks Omnilink Purchase

    The recent $37.5 million purchase of offender-monitoring company Omnilink allowed Numerex to boost its presence in the tracking of prisoners, Alzheimer’s patients and children, said Kelly Gay, Numerex president, security solutions.

    “Our strategic focus is on M2M solutions — the Omnilink purchase is a perfect fit. Both companies are based in Atlanta and we have a lot of products we are working on together,” she said. “It’s been a great four months [since the acquisition].”

    Gay said Numerex is focusing on four markets, or “battlefields” for growth: solutions as a service; asset identification and tracking; supply chain delivery; and remote monitoring, which includes oil and gas, tank monitoring, water systems and tracking weather.

    LBS Companies Few and Far at CTIA…

    While there were only a handful of LBS companies at CTIA SMW, one company, Mexia Interactive, mapped the exhibit hall in the Sands Convention Center. The Winnipeg, Canada-based company is offering indoor location beacons — and has installations in four airports, with six more under contract.

    “We set up 80 sensors in this area to capture data from mobile devices, every 10 seconds, to place the information on a heat map. With this heat map, retailers can see how many people are in a registration area, patterns of who is going to booths — and who is not,” said Glenn Tinley, Mexia president and CEO.

    While Tinley says his company, which was founded in 2010, can work with both Apple and Android systems, he believes Apple is pushing Android out of the indoor market.

    At airports, both security and airlines can see how long lines are with the technology to open up new lines and distribute personnel to meet the need, Tinley said. “We can instantly send a text alert to have a new check-in line established. Retailers can do the same thing at check out,” he said. “At retailers, [long lines] represent potentially billions in losses each year.”

    Iridium Expanding M2M Market Demand

    Iridium recently reduced the price of its short-burst data receivers by 50 percent to allow its OEMs and value-added resellers to offer a product that works worldwide in areas with no cellular coverage.

    “The machine-to-machine market is one of our fastest growing [segments]. We see a combination of new services being developed,” said David Wigglesworth, Iridium vice president and general manager. “By the end of the year, we should have a push-to-talk service like the old Nextel phone.”

    Big changes are coming to Iridium and its satellite constellation. The Iridium NEXT satellite network will consist of 66 in-orbit satellites and several in-orbit spares. The constellation is expected to begin launching in 2015 and will offer greater bandwidth and data speeds when fully operational in 2017.

    “We are replacing the whole Iridium system. Space X is our launch partner — and they have been great,” Wigglesworth said. “The new constellation will allow new services. We see aviation as being a big market. The satellite industry has many niche markets.”

    In other CTIA SMW news:

    • One of a handful of antenna companies exhibiting at SMW was Ireland-based Taoglas, which says there is growth in distributed antenna systems, said Dermot O’Shea, Taoglas president. “We are seeing a huge movement to LTE,” he said. One of Taoglas’ customers is Omnilink, which uses a custom GPS antenna in its offender-monitoring product.
    • Stockholm-based Birdstep is getting into the connected car market, based on its defense experience, with future data plans that turn off when a car is stationary. “Why should consumers pay for a data plan when a car is parked 90 percent of the time?” asked Lonnie Schilling, Birdstep CEO.
    • Spirent Communications launched its Elevate Test Framework for M2M devices and services. Because of the surge in smartphone and M2M devices, the new testing device allows evaluation and performance tests to enable faster development cycles, the company said.
    • Fleet Freedom rolled out a new mobile resource-management product that works with Android, iOS and Magellan’s RoadMate fleet units at SMW. “This unit is the fourth generation. It features dispatch integrated, while most of our competitors view this as a separate product,” said Andrew Singer, Fleet Freedom general manager.
  • What Mattered at CTIA

    What Mattered at CTIA

    The morning sunlight steams into the Sands Expo Center.
    The morning sunlight steams into the Sands Expo Center.

    To those attending CTIA’s Super Mobility Week in Las Vegas September 9-11, it was clear that we’ve entered a period of divergence. Sensors, multiple platforms, all sorts of devices, computing in clouds, processing in clouds, car companies, connected houses, smart watches and indoor location positioning are being touted as part of the “Internet of Things” that will work together seamlessly. Some day. The connected car was a highlight of the show and Ford held (purportedly) the automotive industry’s first developers’ conference. The exhibit floor was jammed with machine-to-machine (M2M) solutions, some positioned for the Internet of Things, most for traditional telematics. In the past, wearable devices were in the show’s fringe, but new smart watches have mainstreamed wearables.

    Telematics solutions were plentiful at CTIA, but these companies are all looking for new markets. The second-largest telematics market in the world is China, but it has been a bit of a mystery. C.J. Driscoll and Associates’ report on the Chinese commercial telematics market was just released. “There are five million fleet vehicles in China that use a tracking system,” says Clem Driscoll. “Regulations are part of the impetus for telematics, but the cost of transporting goods in China is very high, so economics play a role in the adoption.” Almost all telematics devices sold in the U.S. market are being manufactured in China.

    Jeff Lawson, CEO of Twilio, comparing "hardware people" and "software people," says Tesla's Model S interior forgoes extra buttons for useful, adaptable software.
    Jeff Lawson, CEO of Twilio, comparing “hardware people” and “software people,” says Tesla’s Model S interior forgoes extra buttons for useful, adaptable software.

    Ford, a newbie at CTIA, entered the conference with a bang, hosting what it claimed to be the first developers’ conference for the automobile. Developers from 17 countries participated and received access to simulated vehicle data, including speed, fuel economy and GPS, based on data from Los Angeles. As the night wore on, I expect the floor was littered with spent energy drinks, coffee and pizza in the all-night coding session. Currently, there are 60 apps developed for Ford; the company forbids apps with games, videos and complicated demands on the driver. Ford had been at the forefront of the connected vehicle and already has connected collision avoidance, adaptive cruise control, smartphone integration, and parallel parking assistance.

    GM is furthest ahead in bringing cars to market with embedded connectivity and, unlike Ford, has plans for an app store. Embedding connectivity into the car greatly deepens the functionality of car apps and also allows for over-the-air updates of firmware and software (FOTA and SOTA). Maintenance issues can be caught quickly. “Software and firmware updates save OEMs the $400-$500 that it costs each time a vehicle is serviced at the dealer for a recall,” said Egil Juliussen of market research firm IHS. “Currently, 70 percent of recalls come into the dealers, but with over-the air-updates, I expect about 95 percent of car owners will obtain updates.” Juliussen expects to see self-driving vehicles on highway lanes in 2017, followed by automated lane switching and local road driving in 2025. His assessment is consistent with other automotive experts.

    CTIA President Meredith Atwell Baker laughs as The Daily Show's Larry Wilmore provides news updates between opening keynotes.
    CTIA President Meredith Atwell Baker laughs as The Daily Show’s Larry Wilmore provides news updates between opening keynotes.

    Besides pleading to the FCC for more spectrum, most keynote speakers talked about technologies or products that require LTE (often called 4G) for fast connectivity. GM, in partnership with AT&T, leads U.S. car makers in LTE deployment. The 2015 Chevrolet Malibu is the first 4G LTE-equipped GM vehicle, to be followed by more than 30 more GM models by the end of the year. In 2016, GM plans to roll out “Super Cruise” for hands-free highway driving, at both highway and stop-and-go speeds, as well as lane following, speed control and braking that will be available in an undisclosed Cadillac model in 2017.

    To spur usage, a three-month free data trial is being offered by GM, and 90 percent of owners with cars equipped with LTE are participating. Billing for in-car connectivity is complicated. Few OEMs have a mechanism for collecting ongoing fees, such as for data services. With the GM offering, current customers of AT&T can add a car (similar to adding another phone) onto a phone plan for $10 per month. Otherwise, data can be purchased in increments, the same way some pre-paid phone plans work.

    CTIA fielded a panel of experts moderated by CNBC's Julia Boorstin to respond to Apple's Live Event.
    CTIA fielded a panel of experts moderated by CNBC’s Julia Boorstin to respond to Apple’s Live Event.

    Google and Apple each want to get a proprietary connected platform into vehicles as a way to control the integration of apps with vehicles, as well as to “own” the ecosystem. The traditional automotive players, including the OEMs, have banded together to create MirrorLink, a collaborative, standards-based non-proprietary platform, an effort facilitated by the Car Connectivity Consortium. MirrorLink is being created by collaborators from 105 countries who grapple with standardization issues. “The biggest concern we have right now, is how to get the platform distributed throughout the world,” remarked Alan Ewing of Car Connectivity Consortium. “In three years we will be talking about the ecosystem of apps, and you will see 100 more times than what we see today.” Who prevails with this platform — MirrorLink, Apple or Google — will have a huge advantage.

    The location services that deliver content to vehicles and devices have been in the foreground, but there is a quieter category of location services. Companies like LocationSmart and Locate are automatically identifying the location of customers (with permission) for enterprises that include asset management, mobile gaming, financial security services, and customer management services. Initially, the services were based on identifying the location of callers to customer service centers, who could then route callers accordingly. A broader set of use cases is now seen. “We’ve moved far beyond traditional location determination,” says Mario Proietti of LocationSmart. “For instance, LocationSmart is providing financial service companies with the location of a customer’s phone, which is matched with the location of financial transactions.” If a credit card is being used at a store in Chicago while the customer’s cell phone is in Miami, fraud may be involved.

    An engaging heat map of all attendees in the exhibit hall demonstrated the power of indoor positioning. On the hall’s ceiling, Mexia Interactive installed Wi-Fi/Bluetooth sensors to receive attendees’ cellular signals. The sensors were spaced at about every 10,000 square feet. Mexia has the distinction of being the only exhibitor mentioning a bathroom use case. A customer is using the sensors to keep 90 bathrooms clean. After the sensor receives signals from a set number of phones, the cleaning staff receives an alert to service the bathroom.

    The show floor heat map, by Mexia, uses sensors throughout Sands Expo to show where people are connecting to Wi-Fi.
    The show floor heat map, by Mexia, uses sensors throughout Sands Expo to show where people are connecting to Wi-Fi.

    Things people said:

    • “Wearable smart watches are not quite enough to get everyone to buy one.”  — Steve Mollenkopf, CEO, Qualcomm
    • “Wearables are highly unregulated. Experiential apps will always have a privacy component.  The most privacy-sensitive areas are fitness, health and children.” — Rudy Zefo, Vice President, Intel.
    • “Of consumers looking to buy a car within the next two years, 50 percent are willing to switch brands to get connected services.” — Ralph de la Vega, President and CEO, AT&T Mobile and Business Solutions.

    What will we be talking about at CTIA 2015? I’m betting that we will still be focused on the connected car and the Internet of Things.  I expect to see more automotive and indoor location companies, and of course, smart watches. And yes, there will be more pleas for added spectrum.

  • Indoor Location Has Major Growing Pains, but Big Upside

    A number of factors are holding the proximity marketing/indoor positioning markets back: standardization issues, consumer acceptance/privacy, retailer awareness and the technology itself. However, as one location executive put it, it may be the one way that retailers with brick and mortar stores can compete with Amazon and other online giants. 

    Indoor location and proximity marketing may be the way large and small brick and mortar stores can compete with online retailers in the future, said panelists at the New York Place conference, held July 22. But all of this indoor location market talk doesn’t mean much if consumers don’t find a need for it.

    “I am in an aisle at a grocery store and you sent me a coupon for cat food, and I don’t have a cat, I am not going to be interested. The retailer gets to own the data by providing a great experience to the consumer, not the spontaneous ‘you are in a store — here’s some information,’” said John Dempsey, Datalogix head of mobile and video.

    While having a broad picture of a consumer’s “mobile moment” is important, there is something to be said about bombarding a consumer with too many location-based applications, said Doug Kilponen, Wanderful Media chief operating officer. “There are a limited number of apps consumers are willing to have, but not 200 different ones. It’s one thing to have an app for say, Target, but trying to find out what is broadly available during shopping makes shopping too much work,” he said. “Trying to find out what’s available becomes too much work as there are too many options [for the consumer].”

    From a retailer’s perspective, they want consumer’s data, and will share it with partners, but they also want control, said Catherine Lindner, Shelfbucks chief marketing and merchant officer, who was an executive at Walgreens.  “If you think about your own shopping behavior, there is only a few places you actually go to and spend money — a grocer, drug store.  That retailer wants your data, and it makes sense,” she said.  “How do we spend the money to grow the business?  The idea that there is one bucket of money to transfer is not going to happen.”

    One company says that consumers don’t want to be “advertazed” by retailers. “Their job is to show you Calvin Klein, but sometimes there is not enough information or context.  They hijack moments, rather than create them,” said Scott Townsend, Urban Airstrip director of agency programs.

    Still, retailers are increasingly using indoor location as part of their mobile strategies. Jewelry chain Alex and Ani has three beacons in their Boston and New York stores, said Ryan Bonifacino, Alex and Ani vice president, digital strategy. “We really want to prove that this [indoor location] can really work.  We really want to get in front of people who wouldn’t have discovered us,” he said.

    Indoor Location Standardization? What Standardization?

    Like any new technology and market, industry standardization will have growing pains, and a lot of the problem may be with the retailers, said panel members. “There are issues with standardization. If Walmart puts a [indoor positioning] in to its store — they don’t care if it works anywhere else,” said Don Dodge, Google developer advocate.

    Indoor location is the classic chicken-before-the-egg situation, said Chris Goodall, Trusted Positioning founder and CEO. “There currently are no standards for indoor [positioning], maybe we need it.  Databases are not standardized,” he said.

    A lot of the reason that standardization has not be resolved is that no big application, the old killer app, has appeared. “Indoor is something that has not emerged yet, it’s a long tail story,” said Dan Ryan, ByteLight co-founder and CEO.  “Every location company is trying to build a network — and naturally attract developers.”

    Making Proximity and Indoor Location Relevant to Retailers 

    Some retail chains like Walgreens have used indoor positioning technology for years and are considered some of the major early adopters. However, making consumer-purchasing behavior data relevant to retailers is the only way for indoor marketing to take off.

    The concept of geofencing each store has been tested in several locations. One company envisions an image of a celebrity greeting consumers in a store with an offer. “Walgreens focused on not invading people’s privacy. But they basically asked users, what’s important to them when they walk into a store,” said aisle411 founder and CEO Nathan Pettyjohn. “[Bluetooth Low Energy] beacons can do this very elegantly.  When a consumer walks through a store, perhaps they see a celebrity popping out to greet them.”

    In many successful mobile marketing campaigns, all have a common theme — proximity components always enhance sales, said James Smith, Verve chief revenue officer.  “Every one of our studies says it drives sales. Sometimes we hear that geofences don’t work — my answer to that is they are in the wrong places,” he said. “A person can go into a place 15 days later and a beacon locks on them — the retailer is happy because it works. Consumers are more empowered because they have a research device in their hand to go where they want to go.”

    Case Study: Walkbase

    A Finland-based company is delivering market research to retailers that examines consumers’ in-store shopping behavior and loyalty patterns. Walkbase, which signed a deal with Helsinki airport operator Finavia, started in 2007 when it spun off from an indoor location company.

    “It’s a retail tool that analyzes indoor performance of marketing campaigns and [sales] conversion. It measures when consumers come into a store — do they bounce out or are they engaged?” said Juha Mattsson, Walkbase vice president, sales and marketing.  “A retailer can launch a campaign that is affected by a consumer’s indoor journey. Whether that is through coupons, or not, as some retailers don’t want that.”

    Mattsson says that the company is operating primarily in Europe — and is waiting for what indoor technologies will win. “It is just a matter of time before the market takes off. Retailers are very interested in these types of consumer spending analytics,” he said. “We will be launching a U.S. white paper on in-store optimization as it’s all about education. We also are rolling out a version 2.0 of our product in the third quarter.”

    In other LBS news:

    • According to published reports, Michael Halbherr, CEO of Nokia’s HERE mapping unit, will be stepping down. Halbherr, who is based in Berlin, steps down after eight years at the company.  As recently as 2012, HERE, then called Navteq, had been losing money but had stabilized recently. Cliff Fox, HERE senior vice president, will be acting CEO until a replacement is found.
    • I will be covering CTIA’s Super Mobility Week in Las Vegas, Sept. 8-11.  To arrange an interview with me for Wireless LBS Insider, or to submit press releases, contact me at [email protected].

     

  • Connected Car Isn’t a Smart Car

    Janice Partyka
    Janice Partyka

    The most interesting thing in mobile and location in 2014 is the connected vehicle. Back in the early 1990s, a bigger vision of smarter highways began to be explored. The technology was refined, and resulted in successful demos of cars talking to each other and to roadside infrastructure like traffic lights. If you lived in Southern California, you might remember seeing platoons of automated vehicles zipping along a closed section of Route 15.

    Since those heady days, the timing and visioning for smart highways and vehicles were tempered by the massive cost of the infrastructure required. Now we are seeing the “connected vehicle” starting to roll out of the doors of dealerships, but with a different and more limited type of connectivity than we started to envision in the 1990s.

    Reminiscent of the mission started decades ago, a new year-long “smart car” project and demo will be held in Ann Arbor, Michigan. The objective of the smart car project is to determine whether wireless communication between vehicles can improve safety  Three thousand cars, buses and trucks will utilize data recorders and a technology similar to Wi-Fi that can transmit information about accidents or hazardous traffic conditions.

    Drivers participating in the demo will be warned of sudden changes in traffic patterns or potential collisions through data transmitted from similarly equipped cars and roadside devices. Eight major automakers will provide vehicles and engineering assistance to the study.

    Currently, some new car models are equipped with active safety devices that can alert drivers if they are drifting out of a traffic lane or traveling too close to another car. But the smart car demo differs because will share safety information with other smart cars on the road.

    The smart car system can give drivers visual or audio warnings about sudden traffic changes experienced by another connected vehicle. Several cameras installed in the connected vehicles will also capture data on how the drivers respond to accidents and sudden changes in traffic conditions.

    Today’s connected vehicle is sometimes referred to as a smartphone on wheels, a limited vision of what can be. Now is the time to determine if the savings of fewer accidents or increased capacity on our roads will outweigh the cost of new infrastructure and added functionality in vehicles.

     

     

  • Who Will Win at Indoor Location?

    Janice Partyka
    Janice Partyka

    Where are bets on new technology being placed? Prominent venture capital (VC) firms are investing in companies with indoor location solutions. But with more than 50 companies to choose from and at least ten unique technologies, it is hard to judge who will make it into the winner’s circle. There is no early leader to put money on, and unlike other location-based markets like mapping, I expect this market to support many competitors and not be dominated by a few. The vertical markets that are ripe for indoor location have different needs for accuracy, cost and speed. Promising applications include retail, advertising, manufacturing, asset tracking, gaming, intelligence and public safety, but who knows what other applications will emerge. GPS has infiltrated everyday life in ways unimagined at its start.

    With no obvious front-runner technology, many companies hedge their bets and offer multiple technology solutions. With infrastructure already installed throughout the great indoors, the easiest solution may appear to be Wi-Fi triangulation. While the cost may be attractive, the accuracy is not precise enough for many apps. Other solutions include Wi-Fi fingerprinting, Bluetooth, sensors and beacons.

    Some companies are offering technologies outside of the mainstream. ByteLight provides a solution based on LED lights mounted in the ceiling that generate fast pulses that can’t be seen by people. A smartphone can detect the pulses and triangulate position by identifying different lights by pulse pattern. Indoor Atlas and Indoo.rs use sensors to detect Earth’s natural magnetic fields for positioning. Camera technology is being used by WhereLab and Omiimii. Object recognition software determines location.

    The accuracy requirements of applications will drive the choice of technologies. Low accuracy is more than 11 meters, and medium accuracy is six to ten meters. High accuracy is one to five meters. High-accuracy solutions are generally more expensive and require more infrastructure.

    Apple iBeacon Changes to Opt-Out

    Anything that Apple does garners attention, including iBeacon for indoor location, which uses low-energy Bluetooth to communicate to phones and computers. Apple has some showcases, including a few Eagle and Safeway grocery stores using the iBeacon to send marketing messages to customers. The Peeble smartwatch added iBeacon support and reportedly can zero in on a lost phone. iBeacon technology at some of the Virgin Atlantic gates can trigger an app to automatically display a boarding pass as a traveler approaches. BeHere automates classroom attendance.

    I often write about privacy issues, and so I wonder, where are the techno-privacy advocates challenging Apple on iBeacon? You would think that there would be a tangle of permissions required of users, including turning on the beacon and giving an app permission to locate the user and for receiving notifications. Apparently, Apple thought the permissions were unwieldy. Apple users had to opt-in to turn on iBeacon, but in March with the new iOS release, the default changed to opt-out.

    Apple users may be unaware that an app using iBeacon doesn’t need to be open to interact with the phone. If the Safeway app is installed, the user will receive messages from the store, even when the app isn’t running and phone screen is locked. Even though iBeacons don’t track users or collect data from them, I find this functionality to be unsettling.

     

    Advertising in Minority Report was very personal.
    Advertising in Minority Report was very personal.

     

    Stores are having trouble competing with online shopping and are looking for ways to interact with shoppers when they come through the door. That interaction might be loyalty points, greetings or personalized special offers. Only three percent of retailers currently have the ability to identify customers coming through their doors, according to a survey of top retailers by Boston Retail Partners. ABI Research predicts beacons will be installed at 30,000 locations worldwide by year’s end. If beacons alone can generate such widespread usage so quickly, it is easy to see why indoor positioning technology companies have been a magnet for VCs.

    Do you remember the scene in the movie Minority Report when Tom Cruise enters a clothing store? As Cruise passes by advertisements, they address him by name. Indoor location can get creepy.

  • Indoor Positioning Gaining Retail, Advertising Agency Notice

    Kevin Dennehy
    Kevin Dennehy

    Proximity and indoor positioning will grow as technology gets better — and consumers value its benefits. Attendees at the recent Place conference in New York had the opportunity to hear from companies who advocated Bluetooth, Wi-Fi and even magnetic positioning technology. In addition, several advertising agencies and retailers attended, showing that the nascent proximity/indoor location niche could be a major market in the next few years.

    NEW YORK — The potential for indoor positioning and proximity marketing is huge if even a fraction of overall retail sales are attributed to the information the technology gives to retailers, said panel members at the July 22 Place conference here.

    The indoor opportunity is huge as studies have shown that 70 percent to 89 percent of consumers use smartphones in stores to compare prices and shop for coupons, said Greg Sterling, Opus Research senior analyst. “About $20 to $50 billion of purchases were influenced at point-of-sale in stores. $500 billion of retail sales came without any premeditated product selections,” he said. “Even if a small fraction shifts to mobile devices, that’s an enormous amount of money.”

    Sterling said that despite consumers’ ambivalence to privacy issues, if they are guaranteed some sort of benefits to being tracked, they will opt-in. “72 percent said they don’t want tracking [without benefits]. That number goes up to 66.4 percent who say ‘yes’ if there are specific benefits — rewards and discounts,” he said. “It is about educating consumers [as to benefits of location-based advertising].”

    Technology improvements and retailer awareness in the last two years have made such mobile advertising agencies as Joule interesting in location as a data point beyond geofencing, said Michael Lieberman, company co-president.

    “I am biased as we are mobile agency, so for us, most of our clients are using location to identify buyers. Ideally, we see a device in multiple locations, we understand consumers’ behavior,” Lieberman said. “If I see you every morning at a Starbucks, you are a coffee drinker and I should target you that way. However, if you are trying to use location as a national campaign you will only get a percentage of accuracy — you are missing out on other information.”

    Right now, retailers have little idea how and why a consumer makes a purchase, Lieberman said. “The [important] point is in [indoor location’s] measurement — what happens in the store environment. You walk in store, make a purchase, right now we have no idea what they did to buy a product,” he said. “We are losing that piece — and it is a big gap in thinking. Everything about consumer path in that store determines a purchase. What’s valuable is the in-store data that gives you the most actionable information.”

    Location today is used for targeting, but not for the total consumer measurement that Facebook requires, said Doug Stotland, Facebook product marketing director. “IKEA recently ran a campaign in a local radius, they wanted to see who showed up in their parking lot,” Stotland said. “It’s really compelling when you look at the methodology — you want to see if people actually showed up at the store. The home run is how to tie it to what they actually buy.”

    Stotland said Facebook uses location information for targeting, but basically users tell the company where they live and that’s it. “We can do better than that — there is definitely a big opportunity there. The great thing about Facebook is that I am always logged in — there is no value for targeting if I am not.”

    In a case study session at Place, Korean telecom provider SK Telecom has been making inroads in indoor positioning markets for several years, said John Kim, SK Telecom senior business development manager. “While we are the number one mobile operator in Korea, like other companies, we were hitting saturation levels,” Kim said. “We found that location-based services for telecos are a key service, basing this on earlier tracking, navigation and security markets.”

    SK Telecom ran indoor positioning tests at Seoul National University Hospital, which has 1,360 beds, making it hard to find patients. Kim said younger indoor positioning users liked the service and found it easy to use. “We also found that it was difficult for active marketing — what does a hospital use to promote it? Two-for-one x-rays?” Kim said. “The service was also difficult for remote maintenance and support.

    Kim said that SK Telecom is installing the product as a test in a Seoul sports stadium and at the L’Oreal Madrid flagship store. “We are also partnering with [Herndon, Va.-based] APX to work in their Google Glass product to provide location information.”

    Overall, the upside of indoor location is huge, said Don Dodge, Google developer advocate. “Imagine if you can look at phone to know exactly what stores your family members are in at the mall. At CES, you have no idea where 15 to 20 of your friends are,” he said. “If my wife gives me a list of groceries, I can find them in certain areas and know what price they are. First responders, fire departments, can find their way around in a burning building — and find a safe way out.”

    Privacy: The Attack on Opt-In

    In a privacy panel, members put a dark cloud over the ubiquitous answer by many companies that consumer opt-in alleviates all concerns for the location industry.

    Amanda Koulousias, a Federal Trade Commission attorney, said Section Five of the FTC Act, which has been expanded to cover tracking users over a certain time, prohibits deceptive practices that are likely to mislead people acting reasonably.

    Privacy seems to be a hot topic for reporters. Kate Kaye, a panel member who is a reporter with Advertising Age, said that security issues around beacons and leakages is a story. She also said that the Associated Press recently ran a story critical of the new Verizon rewards program. “The story typifies the balance a lot of marketers are trying to straddle — how much information can we gather, and how do we not [anger] consumers. Verizon Wireless prompts you to join their loyalty rewards program, but you have to opt-in to their location data program,” she said.

    Privacy panel moderator Jules Polonetsky, Future of Privacy Forum executive director, said a way some companies get consumers to opt in to being tracked is just to say “download this app.”

    The location industry’s privacy issues are not going away — and the path for resolution isn’t clear, said Greg Turetsky, principal engineer in Intel’s wireless communications group. “The privacy issue is so complex legally, economically and socially, that I expect it will not be resolved any time soon,” he said.

    In other Place conference news:

    • Opus Research, the organizer of the conference, published a report on magnetic positioning, which has a unique footprint. The company contends that magnetic positioning, which can be complimented by other technologies, offers six-foot accuracy with 90 percent precision. In comparison, Bluetooth offers proximity, but not the blue dot solution magnetic positioning currently has. In addition, Opus believes that Wi-Fi positioning, which has 40-foot accuracy, needs too much support and is expensive.