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May 1, 2008

Overall, wireless carriers in the United States can more efficiently leverage the investment they are required to make to improve E-911 services, according to a recent study performed by research firm Frost & Sullivan.

The report says all that is needed is improved technology to better market location-based services (LBS).

Frost & Sullivan says that LBS promises a lucrative revenue stream for wireless carriers and presents them with a rather unique way to differentiate various services in an increasingly competitive mobile environment.

The research firm completed a white paper which reveals that with annual U.S. LBS revenues projected to reach $3.5 billion in less than five years from now, many high-revenue services such as navigation, fleet management, friend or family finder apps, mobile social networking and local search require higher accuracy from the wireless network.

To achieve such higher levels of accuracy, Frost & Sullivan suggests carriers consider deploying a hybrid location determination solution that meets both the E-911 standards and customers’ LBS requirements.

Brent Iadarola, research director for Mobile & Wireless Communications at Frost & Sullivan says “one of the worst things a wireless carrier can do is hype LBS and then not deliver an adequate level of service to its customers.”

Overall, U.S. wireless subscriber penetration today stands at over 75.2 percent, with more than 250 million Americans using mobile phones.

Recognizing the growing enthusiasm for location-enabled wireless applications and anticipating the ongoing resolution of various market and technological issues, Frost & Sullivan now forecasts a sizable LBS market opportunity in the U.S.

But the company also warns that currently no single technology alone meets the location accuracy needs of L.B.S. applications and E911 across all calling environments.

Iadarola added “overall customer dissatisfaction can be avoided by deploying a location technology that directly addresses the largest markets and seamlessly integrates complementary technologies to provide the highest possible accuracy across all environments.”

There's no doubt that the next twelve to eighteen months will be critical for most wireless carriers that wish to indulge in E911 emergency services, and if they do, they would have to act quickly if they wish to reap the long-term benefits over the next five to ten years.

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Source: Frost and Sullivan Research.