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June 3, 2010

According to a new research brief from Berg Insight, LBS (location-based services) in Europe are expected to grow rapidly over the next four to five years.

Berg Insight notes that it expects LBS service revenues for the segment could grow at about a 12.2 percent compound annual rate from approximately $270 million last year to about $515 million in five years from now.

The research firm also noted that the revenue model for LBS is shifting from a premium add-on to an advertising-funded model.

This is mostly highlighted by Google, which has a history of offering its Google Maps application for free to consumers and has recently began providing turn-by-turn navigation through its Android operating system.

The move is also echoed by Nokia for its devices.

The research firm cited local search, GPS navigational services and social networking as the drivers for the market and that it expects about 35 to 40 percent of all European mobile subscribers will use some sort of location-enhanced application on a regular basis in four to five years from now.

“LBS are finally on the verge of mainstream acceptance,” said André Malm, Senior Analyst, Berg Insight. “Increasing sales of smartphones and the iPad are driving end-user awareness of mobile Internet services and applications in general. On-device application stores enable access to mobile services for a broader audience at the same time as flat-rate data plans make pricing more transparent. More and more mobile developers are now adding location support in their applications to enhance the end-user experience.”

However, Berg Insight did warn that revenues may not grow at the same rate as usage in the mobile advertising segment is still in its infancy, especially in Europe.

“It will probably take a few years before a really successful business model has been established that allows mobile advertisers to reach out to a critical mass of active users,” Borg added.

“This is especially the case for emerging location-based advertising,” the firm said.

According to a report from WiseHarbor Research, overall, wireless broadband technologies, including LTE, HSPA and the CDMA 2000 1x EV-DO implementation are should be dominating the mobile segment until at least 2020, though the rise isn't expected to hit its peak until about 2015, however.

WiseHarbor, which laid out a number of forecasts for the next ten years, said it expects mobile broadband technologies will actually bridge the digital divide through the current decade for Web and data communications by 2020.

It also added that this will follow the lead that GSM and CDMA 2000 1x achieved in the voice and text messaging segment.

The Asia Pacific region is also expected to lead the world in mobile broadband and LTE device sales beginning in 2011, according to the report, which added that developed nations will lead in devices sold per capita.

On the other hand, global revenues from mobile handsets, wireless modems and embedded modules is expected to peak in in about five years before being hit by dropping selling prices and saturated demand.

Revenue growth will then come from non-traditional wireless devices that will see some increase in connectivity options for mobile users.

“Whereas WiMAX has made significant business progress by occupying the unpaired spectrum that tends to be much less costlier than the paired spectrum used for CDMA-based technologies including EV-DO and HSPA, TD-LTE will still eclipse WiMAX technology by prevailing in the use of unpaired spectrum as well as the paired spectrum already employed commercially by LTE,” the report suggests.

Yesterday, according to a report from WiseHarbor Research, wireless broadband technologies, including LTE, HSPA and the CDMA 2000 1x EV-DO implementation are should be dominating the mobile segment until at least 2020, though the rise isn't expected to hit its peak until about 2015, however.

WiseHarbor, which laid out a number of forecasts for the next ten years, said it expects mobile broadband technologies will actually bridge the digital divide through the current decade for Web and data communications by 2020.

It also added that this will follow the lead that GSM and CDMA 2000 1x achieved in the voice and text messaging segment.

The Asia Pacific region is also expected to lead the world in mobile broadband and LTE device sales beginning in 2011, according to the report, which added that developed nations will lead in devices sold per capita.

On the other hand, global revenues from mobile handsets, wireless modems and embedded modules is expected to peak in in about five years before being hit by dropping selling prices and saturated demand.

Revenue growth will then come from non-traditional wireless devices that will see some increase in connectivity options for mobile users.

“Whereas WiMAX has made significant business progress by occupying the unpaired spectrum that tends to be much less costlier than the paired spectrum used for CDMA-based technologies including EV-DO and HSPA, TD-LTE will still eclipse WiMAX technology by prevailing in the use of unpaired spectrum as well as the paired spectrum already employed commercially by LTE,” the report suggests.

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Source: Borg Insight.