 | Issue: | Latin America 2002 |
| Article no.: | 13 | |
| Topic: | Where Location-Based Services Meet Messaging and Entertainment | |
| Author: | Jerome Nadel | |
| Title: | Vice- President for Marketing Intelligence and Communications | |
| Organisation: | Telecom, Gemplus | |
| PDF size: | 24KB |
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Article abstract
By 2006, 70% of mobile subscribers will use location-based services (LBS) generating 20% of operator revenues. LBS content providers use SIM – smart card – based systems to simplify interactive user interfaces and provide safe, confidential, personal data exchanges. SIMs allow operators to remotely activate services and content. Operators look to partnerships with LBS service and content providers to strengthen relationships with end- users. LBS services include city and entertainment guides, maps and driving directions via cell phones, among others.
Full Article
Putting subscribers’ expectations first In an evolving wireless eco-system where the mobile consumer has become the Holy Grail, operators are on a constant look out to provide services tailored to their subscribers’ lifestyles in the effort to safeguard, prolong and strengthen their relationships. Location-based services (LBS) have been identified as a key application to enable this. Analysts Frost and Sullivan predict that in 2006, 70% of mobile users will access local information via a personal portable device (February 2002). Also predicted is that LBS will represent 20% of operators’ revenues with $3.6 billion coming from the end-user market segment. (Source: BWCS, May 2002). Taking a Step Back Picture the 2G scene where the mobile carrier has been blissfully managing the GSM network and two-way relationship with their subscribers for many years. With the increasing demand for data services, they are realizing that this is no longer the route to profitability. They need to open their networks and strike deals with content providers, all while protecting their own interests. In order to stay competitive and be more than a pipe for the content provider, they need to offer the latest “hot” applications to differentiate their own service offering and encourage end-user stickiness. Couple this with slowing revenues due to voice commoditization, and it becomes clear that operators need to find new ways to generate income. The Value of Location-Based Services LBS will prove invaluable to consumers and businesses in all aspects of everyday life. As LBS focuses on delivering information upon demand to users, depending on their current location, the subscriber is able to access information and offers relevant to their situation and interests. However, for LBS to succeed it has to be user-friendly and easy to use or, quite simply, it won’t work. LBS content providers are turning to the advantages offered by the SIM (smart card) in order to address this. The card makes services easier to use since the SIM, itself, manages access and helps provide security. On the operator side, the OTA (over the air) communication channel enables operators to push and update SIM-based services with added convenience. Content can be remotely activated, changed or deleted according to the individual profile and requests. This make it possible to create a user-friendly and highly interactive environment. Partnerships between vendors and content providers are starting to emerge as a way of maintaining the balance of the operator-subscriber relationship. The background thought is that if the operator can provide value- added services directly to its customer base, then they will be able to protect their privileged relationship with the end-user, while giving the content provider access through this unique and direct link. How Does It Work? By using smart card technology, the end-user need only click on a pre-defined menu, stored in the SIM card, to generate an automatic request to the location server that will answer with the relevant information. Without the SIM, such a request would have to be generated manually by the end-user by sending a specific message. The menu stored on the SIM can be updated if necessary or additional pages can be added during the wireless session, giving them the ability to navigate and select relevant information. The subscriber can request information based on their location via the SIM and receive information related to their position, such as the location of the nearest Chinese restaurant, cinema, supermarket, etc. Bearing in mind that with every click that the end-user has to make, the operator loses 50% of subscribers to the service, it makes sense to use SIM- based applications, which simplifies the navigation or click stream, to access functions. “The easier the service and the less there is to remember, the more likely it is that the end-user will re-use it.” It makes the information request transparent to the end-user and saves them from carrying a guide to the service by storing all the relevant numbers and menus. The easier the service and the less there is to remember, the more likely it is that the end-user will re-use it. By using the SIM ToolKit (STK) and other standardized software to provide secure mobile Internet access a range of off-the-shelf applications are being created that slot neatly into the operator’s marketing strategy. Designed to reinforce the role of the operator, these applications will generate and boost SMS (short messaging) traffic while getting the subscriber used to using their mobile device for more than just voice. One longtime supplier of mobile technology and applications, believes that by 2004 subscribers will be consulting city guides, entertainment guides and maps and even get driving directions through their mobile handset. They offer a service enabling subscribers to benefit from mobile tourist information, helping them find accommodation or restaurants, tap into the local news and get the latest weather forecast relevant to their current position. This uses a SIM-browsing solution that improves the user experience by providing instant delivery of information: one-click action for direct phone connection to the chosen point of interest and service personalization. Why Stop There? Everyone seems convinced about the power of location- based services as one of the main instigators of data applications. But what if we combined this with mobile entertainment or messaging and made it user-friendly and fun to use? This is the principle behind a new mobile dating service. Daniel enters his profile through a user-friendly STK menu which transmits his location data so that he can be matched with possible dates in his geographical area. The service processes the command and provides a list of potential matches. Daniel selects his ideal date, Aphrodite, and the service sends her a message requesting her permission for Daniel to get in touch. Aphrodite thinks it is wonderful idea and agrees, Daniel’s message is sent to her and they agree to meet that night. The rest is history. In addition, combining location-based services with information on demand gives subscribers access to information designed to make life easier. Maria is a businesswoman travelling to Mexico City. Not knowing the city, she consults the travel service in her mobile phone to find a restaurant for the evening. Using the scroll- down menu embedded in the SIM, she clicks on “Restaurants” and then narrows the choice to Italian. The system locates the nearest restaurants that meet her criteria and sends Maria a list of Time Out- recommended restaurants in the vicinity. Once Maria has selected one of these, she receives a message with address details and an approximate distance from where she is. Maria would like to know more, so clicks on “More info” and receives the following message: “This excellent restaurant expertly combines traditional flavors with novel ingredients. The seafood linguine is worth every penny”. Convinced that she is on to a good thing, she calls the restaurant, through the menu in the SIM, to make her reservation. The transaction is complete and Maria is a satisfied customer. Location- based systems can also be used to build and maintain mobile communities. The My Buddy Tracker, for example, enables users to locate, monitor and communicate with friends and family. It combines the essence of LBS with chat, enabling users to request location information on their buddies, see the results, get the results in a SMS and then chat with them. Steven is going to meet his friends at the shopping mall. He decides to locate his friends and sees that everyone is in the town centre. Steven then sends all his friends a message indicating a change of plan because everyone is so near the cinema. Therefore they should meet at Starbucks down town. Already commercially deployed by Iceland Telecom, the My Buddy Tracker is already enjoying considerable success thanks to the use of STK-enabled handsets. An offshoot of this is ChildTracker; it enables parents to keep a “mobile eye” on their kids. Managing Your Privacy Individuals are increasingly concerned about both the security and privacy implications of what happens to the data that the carrier collects about them. “The end-user will be able to employ filters to block unwanted mobile traffic by using an “Opt in / Opt out” function.” Who has access to it? How can they protect themselves from invasions of privacy? Since the early days of GSM, the SIM card has played an important role in the success of the technology and the evolution of the services it has spawned. The SIM provides security and authentication and acts as a controller for privacy management by enabling the consumer to keep control over the use of his or her personal information. The end-user will be able to employ filters to block unwanted mobile traffic by using an “Opt in / Opt out” function. In this way, the card becomes a proactive marketing tool allowing the operator to push relevant services while respecting the rights of the end-user subject to local laws and the request of the individual. If LBS is to become more widely used, end-users need to trust the security and their relationship with the operator. They need to know that their data won’t be abused and the operator has their best interests at heart. This is why the SIM plays such an important role. Conclusion Location-based applications providers agree that for any mobile service to succeed, it needs to be user-friendly and uncomplicated, instant and above all, relevant. Partnerships with applications providers allow the operator to retain his control through data services and maintain his privileged relationship with the end-user. The deployment of LBS via existing GSM networks simplifies matters for the content provider and the end-user gets the service they want, when and, most importantly, where they want it.
