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Wireless Location- based Services Technologies, Applications and Management By Graham Chen
© Dr. Graham Chen 2002 2 Contents Overview Drivers and markets Wireless positioning technology Applications and services LBS Platform Market outlook
© Dr. Graham Chen 2002 3 Lets Begin... Overview Drivers and markets Wireless positioning technology Applications and services LBS Platform Market outlook
© Dr. Graham Chen 2002 4 A Fundamental Paradigm Shift By 2005 most wireless devices will be location- aware This means that over 500 million people (consumers, employees and employers) will be able to access where they are, and use location based services This is possibly the most fundamental paradigm shift in spatial information usage since the invention of the map……
© Dr. Graham Chen 2002 5 Wireless Market Overview McKinseys definition of 3 waves: Wireless Internet Access Location-based personalized services 3G
© Dr. Graham Chen 2002 6 Wireless Market Overview AllNetDevices classification of applications: Messaging (personal) services Financial services Navigation (telematics) and location services There will be continued strong growth in personal SMS market and its combination with LBS
© Dr. Graham Chen 2002 7 Wireless Market Overview Market still searching for the right revenue model Revenue sharing an established model in SMS services: Revenue from SMS messages Service subscription Transactions
© Dr. Graham Chen 2002 8 Wireless Market Overview The reality: Wireless Internet access is only a novelty Wireless applications still live in a virtual world (hard to compete against internet) LBS shows no sign of reaching maturity, revenue prediction a wide range (3.7b to 20b by 2006) 3G is a question mark. What do you want bandwidth on your phone for if there are no contents? (Strategic Analytics predicts 2.5G will dominate for the next decade)
© Dr. Graham Chen 2002 9 Wireless Market Overview Transaction model not well defined: Customers dont want to pay transaction cost for some apps Operators need increase the usage volume to reduce per-transaction cost Data service providers dont have the billing systems to generate and collect transaction revenue Network operators accounting and billing OSS cant support value-added data services for billing purposes Packet-based charging model (led by DoCoMo) need more test
© Dr. Graham Chen 2002 10 LBS Market Overview... Ovum predicts the LBS market will reach 20 billion p.a. by 2006 Ovum findings: Personalize contents by location information the key No clear dominance of location technology yet No clear-cut business model emerged Accuracy not very important Analysys says $18.5 billion pa by 2006 BWCS says, pessimistically $3.7 billion pa by 2006
© Dr. Graham Chen 2002 11 LBS Market Overview Which one do you believe?
© Dr. Graham Chen 2002 12 Progress Check... Overview Drivers and markets Wireless positioning technology Applications and services LBS Platform Market outlook
© Dr. Graham Chen 2002 13 Business Drivers for Mobile LBS The mandate from the FCC: Government regulations The desire for service providers to recoup the cost Upsurge in interest in wireless data services A perceived future demand for such services
© Dr. Graham Chen 2002 14 North America: FCC E911 FCC Timetable (Phase II) Position enabled handsets 1 October 2001: selling and activating 31 Dec 2001: 25% new handsets 30 June 2002: 50%new handsets 31 Dec 2002: 100% new handsets Accuracy (handset based) 67% handsets at 50 meters 95% handsets at 150 meters Accuracy (network based) 67% handsets at 100 meters 95% handsets at 300 meters
© Dr. Graham Chen 2002 15 Source: FinPro North America Dec 2001 North America: FCC E911 Most recent commitments by Operators AT&T (E-OTD): Ship only E911 compliant phones by end 2002 Nextel (A-GPS): Begin shipping E911 compliant phones by end 2002 Sprint (A-GPS): Will ship only E911 compliant phones by end 2002 Verizon (A-GPS): Will ship only E911 compliant phones by end 2003 Cingular Wireless (E-OTD): Will ship only E911 compliant phones by Sept 2002
© Dr. Graham Chen 2002 16 Europe Gradually moving to a unified emergence service number 112. Europe Commission decided against issuing a minimum accuracy requirements ECs 1999 Communications Review sets 1 January 2003 as the start data Most European countries have Cell-ID based positioning in operation and in process of positioning trials/rollouts.
© Dr. Graham Chen 2002 17 Asia Pacific Most countries have no formal move towards regulation. Asia Pacific countries have Cell-ID based positioning in operation Singapore leading with high accuracy E-OTD network rollout. Japan and Korea made most progress: Japan already has advanced network positioning on its mobile systems KDDI selling 288,000 GPS and video enabled phones SK completes GPS-based positioning system trial
© Dr. Graham Chen 2002 18 Handset Drivers Semi-conductor manufacturers diversifying into internet appliances Handsets will be the largest population of any electronic device by 2003 (more than TVs or PCs) Handset manufacturers driving for competitive edge in innovative use of new data networks The speed of innovation is astounding with handsets superseded in months!
© Dr. Graham Chen 2002 19 Business Driver Stakeholders Carriers: Return on wireless data network investments Semi-conductor manufacturers: Diversification into huge handset and wireless appliance mass market Network Equipment Vendors: Significant sales in network upgrades – 2.5G, 3G and positioning
© Dr. Graham Chen 2002 20 Business Driver Stakeholders Electronics Vendors: Handset differentiation & faster handset renewal rates Positioning Technology Vendors: Significant return on positioning technology sales PortalsChargeable applications Governments: Emergency tracking (E911), government oversight, military & overall economy improvements
© Dr. Graham Chen 2002 21 Technology Drivers 2.5G networks are now extensively deployed North America mobile handset penetration will equal Europe by 2006 Positioning systems are rolling out, with blanket US coverage by 2005 Some handsets are GPS enabled now Handsets are rapidly evolving to color screen, data capable, positioning capable units Extensive spatial & navigation datasets are now available
© Dr. Graham Chen 2002 22 Business Needs Services and products to :- Reduce Costs Reduce asset losses Increase employee and asset safety Increase Revenue and Return on Investment Increase effectiveness in the workforce Increase customer loyalty Fulfill legislative requirements
© Dr. Graham Chen 2002 23 Consumer Needs Need to feel secure Need to keep loved ones secure Desire for asset/property protection Desire for entertainment Desire for Time and Frustration Saving services Desire for cool services and services that create peer bonding
© Dr. Graham Chen 2002 24 Telematics Many cars in design now will roll off production lines in 2005 with in-built wireless telematics This includes GPS positioning, wireless communications and in-vehicle computer screens. Cars will be a mobile device just like a handset or a PDA
© Dr. Graham Chen 2002 25 Market Development Market development hindrances Privacy concerns Network evolution Handsets and device interoperability Multi-technology and multi-standards Operators caution and lack of speed Other location centric services
© Dr. Graham Chen 2002 26 Progress Check... Overview Drivers and markets Wireless positioning technology Applications and services LBS Platform Market outlook
© Dr. Graham Chen 2002 27 LBS Technologies Network-based position technologies Handset-based positioning technologies Handsets Technology hindrances
© Dr. Graham Chen 2002 28 Network-based Position Technology Cell-ID Relies on the cell a mobile in connecting to. Different variations exist: with Timing Advance (CELL-ID TA), with SIM Toolkit (STK), with IN and with WAP. All suitable in a home network and roaming environment Poor accuracy (cell size, 500m in large cell size)
© Dr. Graham Chen 2002 29 Network-based Position Technology Time of Arrival (TOA) triangulation technology requires three or more base stations to locate mobile units Expensive to deploy, requires location measurement unit (LMU) for each base station and Position Calculation functions on each Serving Mobile Location Centre (SMLC) 100m accuracy if 3 base stations are in range
© Dr. Graham Chen 2002 30 Network-based Position Technology Angle of Arrival (AOA) Requires array of antenna elements to determine the direction of mobile signal Good for tracking continuous signal Very expensive to deploy, accuracy >125m
© Dr. Graham Chen 2002 31 Handset-based Position Technology.. Global positioning system GPS Satellite-based position technologies Navstar of USA, Glonass of Russia Accuracy to 10 metres European based GPS Systems EGNOS and Galileo
© Dr. Graham Chen 2002 32 Handset-based Position Technology Oberved time difference of arrival (OTDOA) Positioning technology with UMTS Enhanced observed time difference (E-OTD) GSM and UMTS network Bluetooth Other hybrid solutions
© Dr. Graham Chen 2002 33 Positioning Accuracy Requirements
© Dr. Graham Chen 2002 34 Handsets Phones have become smart and data capable (and are further evolving), by: Integrating advanced graphic screens & PDA functionality Using Bluetooth to give access to other advanced portable devices, like PDAs Adding Java processing functionality to become smart on a small device Obeying Moores Law
© Dr. Graham Chen 2002 35 Handsets Handsets are not limited by their screens With Bluetooth handsets become the connection point between a wireless personal area network and the wireless data communications network Hence the user is free to use any device with the phone providing the connection to the outside world.
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© Dr. Graham Chen 2002 39 Technology Hindrances Complexity Expenses Privacy concerns Network evolution Handsets and device interoperability Multi-technology and multi-standards
© Dr. Graham Chen 2002 40 Progress Check... Overview Drivers and markets Wireless positioning technology Applications and services LBS Platform Market outlook
© Dr. Graham Chen 2002 41 Location-based Services Employee Services Tracking Services Emergency Services Information Services Medical Medical Crime Crime Distress Distress Information in the field Information in the field Enterprise Integration Enterprise Integration Customer Service Customer Service Vehicle Tracking Vehicle Tracking People Tracking People Tracking Assets Tracking Assets Tracking Lifestyle Information Lifestyle Information Business Information Business Information Traffic Information Traffic Information
© Dr. Graham Chen 2002 42 Search for Kill Apps Recent Ericsson ConsumerLab survey with 16,000 users in 8 different markets concluded that most desirable LBS is personal safety services: emergency location alarm notification (home break-ins, or car break-ins) road-side assistance
© Dr. Graham Chen 2002 43 Personal Safety and Security Some trial commercial services: Keep tracking of children or aged relatives Personal locator devices, locating individuals through GPS Tracking family members Dubious long term revenue model (initial device plus subscription) Cumbersome GPS technology and coverage Will remain in very niche market for some time.
© Dr. Graham Chen 2002 44 Mobile Advertising and mCommerce Push model advertising causes so much annoyance to consumers Some opt-in pull model commercial trials: High operation cost to know how opted to receive what advertising Can easily repeat junk mail scenario with much less consumer control Dubious long term revenue model Users reluctance to purchase (mCommerce) Annoyance factor much worse than internet
© Dr. Graham Chen 2002 45 Traffic and Transport Services Fueled by telematics industry: GMs OnStar reports 1.8m wireless-enabled cars in more than half of its models Wingcast (JV, Ford and Qualcomm) deal with Verizon DoCoMo and Nissan with advanced telematics service Vodafone with Ford Fiat install in-car wireless systems Ericsson, Volvo and Telia form WirelessCar Mercedes launches TeleAid
© Dr. Graham Chen 2002 46 Traffic and Transport Services Marriage of convenience between car manufacturers offering in-car wireless equipment, and operators offering services. Basis for revenue model exists for value-added services: roadside assistance traffic information routing information maps on the phone
© Dr. Graham Chen 2002 47 Personal Find-a-Friend Services Multiple commercial trials SignalSoft Bfound service Omnisky (Nomad IQ) Build on the huge success of Instant Messaging service Extended to groups and communities including to the corporate world May become a sticky service Likely a niche application for youth market
© Dr. Graham Chen 2002 48 Consumer Market Characteristics... Diversity in its service requirements, handsets, and spending capacity. Most dominant successful applications are still personal messaging service. Difference between like the service and pay for the service Difference between use the service to stick to the service
© Dr. Graham Chen 2002 49 Consumer Market Characteristics Consumer acceptance hurdles: usage cost, hardware and software costs, and satisfactory viewing conditions significant consumer education and marketing exposure significant modification of current systems correlation to basic human needs cultural and social conformity.
© Dr. Graham Chen 2002 50 Enterprise Market Applications Key demand for LBS for corporate customers: Asset tracking and management CRM tools and sales and marketing tool Fleet management Workforce management
© Dr. Graham Chen 2002 51 Premises Wireless Market Solutions are location, venue, campus or area- based Support a physical community of interest Numerous Premises wireless infrastructure providers exist but lack the applications Opportunities exist to provide mobile users with access to information and services within a particular geographic area Opportunities are in two segments: venue-based wireless and campus-based wireless.
© Dr. Graham Chen 2002 52 Venue-based Wireless Target public places to implement premises wireless for broadband localised access. Sports StadiumsOrder popcorn from your seat, view statistics, find concessions and receive promotions. AirportsInternet access, e-mail, travel information, send/receive faxes, get directions, automatically update your pocket organizer. Trade ShowsFind exhibits, monitor session changes, access coupons or special events. Shopping CentresDirections, specials, coupon sales, locate empty parking spaces.
© Dr. Graham Chen 2002 53 Campus-based Wireless... Provide services to a community with common interests. UniversitiesCampus based communications, alerts, administration, faculty and student operations. HospitalsNurse call, pharmacy, test results. Hotels, Motels and ResortsStaff, concierge, rental to guests for premises access, specials, food- beverage-media, conference planning, ordering, information access.
© Dr. Graham Chen 2002 54 Campus-based Wireless Provide services to a community with common interests. Shopping Centresmaintenance, security, availability of merchandise check. Large EnterprisesMulti-floor or multi-building environments. Voice mail control and access.
© Dr. Graham Chen 2002 55 New Application Paradigm Personalized services Intelligent personal devices and networks More fusion of physical world (GIS domain) and virtual world (Internet domain) More mixed independent and inter-dependent entities (devices, people, networks) People, places and things model
© Dr. Graham Chen 2002 56 Progress Check... Overview Drivers and markets Wireless positioning technology Applications and services LBS Platform Market outlook
© Dr. Graham Chen 2002 57 Structure of LBS Platform Positioning platform Application middleware GIS and mapping Location server Personal agent Service directory
© Dr. Graham Chen 2002 58 Functional Structure of LBS Platform Presence and Access (multi-channel, Web, WAP, SMS, Voice, registration, enrollment) LBS Applications and Services mService Transaction Platform (Transactions, billing, service repository, security) Communications Infrastructure (WAP, SMS, GPRS, 3G, MPS, GPS) Service Directory Location ServerPersonal Agent
© Dr. Graham Chen 2002 59 Supply Chain of LBS Platform mService Transaction Platform Personal AgentLocation Server Service Directory Platform Provider Presence and AccessService Provider Wireless Applications and Services Application Provider Wireless Communication Infrastructure Infrastructure Provider
© Dr. Graham Chen 2002 60 Location Server... Support different level of location concept: Physical location GIS location Logic (application defined) location Conduct different mappings Interface with MPS, GPS and GIS
© Dr. Graham Chen 2002 61 Location Server Personalize location information Give a location a name Mapping of logical location to physical and GIS locations User control to set their location User control over the release of location information User permission to allow another entity to track a user Support for location-related alerts, e.g. proximity, within an area
© Dr. Graham Chen 2002 62 Personal Agent... Customers exist independently of services Individuals have different needs and preferences Customers should be able to control the content of their own profiles if they wish Customer properties are important to the services offered but need to be managed separately from the services
© Dr. Graham Chen 2002 63 Personal Agent... Personalisation deals with the following aspects of a service delivery: Service contents, to personalise services and service features Alerts, to be notified when required information is available Multiple modality, using customer defined modality to interact with services. This often contains strong wireless flavour, i.e. to support mobile access and delivery of services.
© Dr. Graham Chen 2002 64 Personal Agent Supports a customer-centred, multi-service personalisation requirements Provides multiple levels of personalisation: Presentation level Contents level Rule based personal services Cross service personalisation
© Dr. Graham Chen 2002 65 Notifications and Alerts Support for real-time monitoring of customer- configured alert conditions Generation of an appropriate alert (Voice, SMS, Email) with relevant information when a condition is met
© Dr. Graham Chen 2002 66 GIS and Mapping Interact with GIS datasets Generate maps and direction instructions Provide logical view of physical positioning (coordinates) Provide you are here marks on map Support points of interest for different applications Support routing and navigation
© Dr. Graham Chen 2002 67 Directory Services Multilevel directory and catalog information Level 1 – White Pages (Name, Address, Phone) Level 2 – Yellow Pages (Business Information) Level 3 – Catalog of products and services supplied by a business Data management capability – businesses manage their own catalog data Advanced natural-language search capability Integrates with location services for location- based search
© Dr. Graham Chen 2002 68 mService Transaction Transaction processing support such as transactional messaging Accounting and billing functions Interfaces and adaptors with databases Underlying security support
© Dr. Graham Chen 2002 69 Communications Infrastructure The Web and IP (Internet Protocol) Wireless protocols Interfaces with multiple wireless technologies such as SMS gateways, WAP gateways, and other wireless platforms. Positioning technologies Interfaces with different positioning technologies such as MPS and GPS.
© Dr. Graham Chen 2002 70 Characteristics: Platforms Fragmented solution portfolio: Physical positioning systems Servers to process the physical location information Middleware for integration apps with positioning equipment Accounting, billing and authentication functions Software components to support application development Maps and contents Directory or database systems
© Dr. Graham Chen 2002 71 Characteristics: Platforms Too many players Positioning technology vendors, (GPS and MPS) GIS/map vendors Wireless data application providers Startups Contents providers Wireless hardware and software infrastructure providers Middleware platform providers shifting to wireless market Big guys: Microsoft, HP, IBM and Sun
© Dr. Graham Chen 2002 72 Progress Check... Overview Drivers and markets Wireless positioning technology Applications and services LBS Platform Market outlook
© Dr. Graham Chen 2002 73 By 2006…… Convergence will be complete Most mobile users (>500M) will have location aware devices A vast range of services will exist which take advantage of that location awareness It will be abnormal for a carrier, portal or enterprise service not to capitalize on the location awareness, data delivery and functional capabilities of these new smart devices – its expected as a standard service.
© Dr. Graham Chen 2002 74 By 2006… You (and a billion others) will have a smart phone, bluetooth enabled, on at least a 2.5G network Your smart phone will be positioning capable to 50-100m You will have access to a wide range of Location Services, many using accurate, navigable map datasets You, (plus half a billion others), will use these services. 3G may or may not be here…..
© Dr. Graham Chen 2002 75 Growth of LBS User Base 2002 2005 2004 2003 2006 43m 82m 109m 133m 31m Asia Europe US Rest of world Source: BWCS
© Dr. Graham Chen 2002 76 Growth of LBS Revenue Base 20022005200420032006 $422m $780m $1,263m $1,948m $222m Asia Europe US Rest of world Source: BWCS
© Dr. Graham Chen 2002 77 Fragmented Value Chain... Technology Platform Vendors Infrastructure & Equipment Vendors Mobile Portal Providers Application Developers Application Platform Vendors Customers Mobile Service Providers Mobile Network Operators Content Providers & Aggregators Handset Vendors Technology Providers Application Providers Service Providers
© Dr. Graham Chen 2002 78 Fragmented Value Chain Current supply chain in LBS market: MPS vendors, GIS vendors Application and content vendors Network operators Systems integrators and IT vendors Lack of integrated LBS platforms Lack of integrated application/service providers
© Dr. Graham Chen 2002 79 Future LBS Value Chain LBS platform suppliers: MPS vendors, GIS vendors Tools Service development and deployment environment Portal tools Integrated application/service providers Network operators Mobile portals
© Dr. Graham Chen 2002 80 Continued Search for Applications Personalised services Reflect new interaction model centred on individualslocation is an attribute of a personal property Lowest available technology Offer business values beyond a novelty value.
© Dr. Graham Chen 2002 81 Further Readings BWCS, Mobile location-based services: where is the revenue? Ovum, Mobile location services: market strategies LOCUS, Overview of location services. FINPRO, North American wireless market review: Personal location-based services. FINPRO, A market study on personal navigation in Japan
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