1. Mobile Location Services: Market Strategies Ovum Report 2000 Part C: Users and Applications Pasi Pekkinen pasi.pekkinen@navinova.com Navinova Oy Navinova Oy

2. Ovum Report 2000: Mobile Location Services 16.11.2015 / PP2 Key messages Information services important for consumersInformation services important for consumers –as mobile Internet services improve –new revenue models emerge (sponsorship) –devices become more sophisticated Tracking applications key for vertical segmentTracking applications key for vertical segment –few substitutes available –penetration will increase as terminals develop and web-based presentations become available

3. Ovum Report 2000: Mobile Location Services 16.11.2015 / PP3 Key messages (2) Tracking applications for consumers require higher level of integration with networkTracking applications for consumers require higher level of integration with network Locasion based routing of calls to nearest retailer will be an enablerLocasion based routing of calls to nearest retailer will be an enabler Positional accuracy less important IFF aplications and user interfaces well designedPositional accuracy less important IFF aplications and user interfaces well designed

4. Ovum Report 2000: Mobile Location Services 16.11.2015 / PP4 Users: Vertical segment Industry segments where mobile location info fundamental to the success of the business:Industry segments where mobile location info fundamental to the success of the business: –transport companies –distribution sector –building and construction sector –emergency service organisations –security staff –social services field staff –other mobile professionals Focus: Extending the control of the organisationFocus: Extending the control of the organisation

5. Ovum Report 2000: Mobile Location Services 16.11.2015 / PP5 Users: Business segment Functions in organisations where mobile LCS enable the operation of the businessFunctions in organisations where mobile LCS enable the operation of the business –sales representatives –mobile managers –client-facing staff Focus: Providing service to the end user rather than the organisationFocus: Providing service to the end user rather than the organisation

6. Ovum Report 2000: Mobile Location Services 16.11.2015 / PP6 Users: Consumer segment Personal users getting added value byPersonal users getting added value by –increased convenience –security –saving money Sub-segmentation bySub-segmentation by –age, usage level, psycho-demographic profile, type of mobility Receives most attention currentlyReceives most attention currently

7. Ovum Report 2000: Mobile Location Services 16.11.2015 / PP7 Which market to target Applicationfocus+- VerticalConsumer Tracking fleet mgmt asset tracking remote workforce mgmt well established need demonsrable value readiness to pay few substitutes complete solutions required long sales cycle few customers Information finding services, friends news directions great potential in subscriptions simple sales process generic products possible many substitutes low ARPU low tolerance for poor performance

8. Ovum Report 2000: Mobile Location Services 16.11.2015 / PP8 Applications 1.Tracking: monitoring people or objects 2.Regulatory-driven applications 3.Localised information 4.Location sensitive call routing 5.Location sensitive charging and billing

9. Ovum Report 2000: Mobile Location Services 16.11.2015 / PP9 1) Tracking Objects or peopleObjects or people Inside or outsideInside or outside Consumer or business segmentConsumer or business segment Simplest form: position derived via GPS and transmitted via mobile phoneSimplest form: position derived via GPS and transmitted via mobile phone

10. Ovum Report 2000: Mobile Location Services 16.11.2015 / PP10 2) Regulatory-driven Emergency callsEmergency calls –fixed line calls provide phone number and position mobile calls a challengemobile calls a challenge –users more likely to use mobile in emergency, also less likely to know where they are –automatic emergency calls from vehicles –US E-911 program; Europe similar E-112 Positioning of callers to law enforcementPositioning of callers to law enforcement

11. Ovum Report 2000: Mobile Location Services 16.11.2015 / PP11 3) Localised info All kind of content; Free, paid-for or sponsoredAll kind of content; Free, paid-for or sponsored 1.Finding (mobile yellow pages, restaurants, cinemas) 2.Directions (simple line map, textual or spoken) 3.Localised news (traffic&weather info, transport info, car- park space) 4.Information tracking hybrids (tracking a bus) 5.Locasion based communities 6.Advertising

12. Ovum Report 2000: Mobile Location Services 16.11.2015 / PP12 4) Call routing Locasion used as a condition in call routingLocasion used as a condition in call routing –e.g. call is routed to a nearby outlet Integrated with trackingIntegrated with tracking –user calls to a generic taxi number, the call is diverted to closest taxi, taxi driver confirms order and receives the position of the pick up Not just voice callsNot just voice calls –SMS to all friends nearby –chat boards

13. Ovum Report 2000: Mobile Location Services 16.11.2015 / PP13 5) Charging and billing Users charged depending on their locationUsers charged depending on their location Objective: new kind of tariff to stimulate new usageObjective: new kind of tariff to stimulate new usage Typically used for homezonesTypically used for homezones –has not been successful (based on Cell ID) coverage overlaps/network resources lead to situations where user is sometimes in home cell, sometimes notcoverage overlaps/network resources lead to situations where user is sometimes in home cell, sometimes not Requires changes to billing systemRequires changes to billing system

14. Ovum Report 2000: Mobile Location Services 16.11.2015 / PP14 Locasion enabled m- commerce Ability to complete the transactionAbility to complete the transaction –e.g. booking a table in the nearby restaurant Advantageous if there are many possible suppliers but the actual supply is limitedAdvantageous if there are many possible suppliers but the actual supply is limited Advantageous if possible to avoid some of the inconveniences of face to face commerceAdvantageous if possible to avoid some of the inconveniences of face to face commerce –e.g. queueing

15. Ovum Report 2000: Mobile Location Services 16.11.2015 / PP15 Importance of accuracy Finding outlet Finding friend Directions News Advertising Call routing Billing Fleet management Child tracking Fleet management Child tracking Personal safety E911 E911 Remote workforce management Asset tracking LOW MEDIUM HIGH