TCS is not a pure player in the LBS industry (its government business amounts for 53% of the company revenue) but it operates on a large spectrum: LBS apps, LBS infrastructure for carriers, 9-1-1 systems and telematics.
Based on its financial presentation, TCS commercial segment revenue is made of three buckets. The largest one - almost 40 to 45 percent is made of 9-1-1 related services such as cellular and VoIP call routing and network monitoring as next generation 9-1-1. This first part is growing. The second segment (around 25-30 percent) is made of location-based apps: navigation, traffic, people and asset locators. It also includes the Blackberry contract and the telematics business. The last segment (30 to 35 percent) is made of LBS and SMS infrastructure as well as IP monetization.
Altogether the commercial segment business represented $170 million in revenue for TCS in 2013, but it has been slowly declining every year since 2010 when it made $202 million.
GPS Business News discussed with Jay Whitehurst about the challenges and opportunities for the company in the LBS and telematics markets.
Watch the video below: