LBS in Asia Pacific to grow 15% CAGR between 2006-2009



LBS in Asia Pacific to grow 15% CAGR between 2006-2009
A new report from Frost and Sullivan, « Asia Pacific Location-based Services Market », reveals that the market - covering 13 major Asia-Pacific economies - was worth US$291.7 million in 2006, and is expected to grow at a CAGR (compound annual growth rate) of 15.3 percent (2006-2009) to reach an estimated US$447 million by end-2009.

“LBS is emerging as the benchmark for service differentiation among mobile operators. Despite being a fairly small segment, this niche market is gradually shifting from a mere complementary service into a significant source of revenues,” says Frost & Sullivan industry manager Janice Chong.

Japan and South Korea are by far the most developed LBS markets accounting for nearly 92 percent of the total revenues in Asia-Pacific. Much of this is attributed to the advanced data market in both these countries, the existence of a complete mobile eco-system which is conducive for both application developers and content providers, and the availability of reasonable LBS plans with flat rates.

Janice Chong, Industry Manager with the ICT Practice Telecom Research team at Frost & Sullivan Asia Pacific
Janice Chong, Industry Manager with the ICT Practice Telecom Research team at Frost & Sullivan Asia Pacific
Janice Chong, Industry Manager with the ICT Practice Telecom Research team at Frost & Sullivan Asia Pacific
Janice Chong, Industry Manager with the ICT Practice Telecom Research team at Frost & Sullivan Asia Pacific
“These markets also exhibit a much higher consumer-to-enterprise LBS ratio. The consumer segment provides a more durable payoff since there is a tight nexus to mobile advertising, allowing more potential for growth,” notes Chong.

The demand for LBS in the rest of Asia-Pacific however has been primarily inhibited by various issues including privacy infringement concerns, inter-operability issues, lack of advanced GPS (global positioning system)-enabled handsets, and to a large extent, a general lack of a conducive eco-system and user interest.

In most of these markets, mobile operators’ foremost priority is limited to expanding subscriber base and driving greater data traffic amongst mobile users - offering basic mobile data services which are simpler, provide quicker return-on-investment (ROI), and appeal to a larger target audience.

“However, with wider availability of GPS-enabled handsets, value-added mash-up services and intense advertising, the adoption of LBS throughout the rest of Asia-Pacific is expected to increase,” says Chong.

Thursday, July 5th 2007

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