Copyright Mobile Lifestreams Ltd 2000 Vision on Location Services Cell Broadcast as kick- start for...

Copyright Mobile Lifestreams Ltd 2000

Vision on Location Services

Cell Broadcast as kick-start for Mobile Location

Presenter: Simon Buckingham Founder and CEO Mobile Lifestreams Ltd


Who is Mobile Lifestreams?

Founded in January 1999 Cash flow funded, no VC Aim: to be a long-term

independent player Global team of 15 people Expanding executive and non-

executive management From publications to consulting

to the “Mobile Data Dot.com”


Web Strategy

Owner of 500 mobile URLs; B2B and B2C

Currently managing over 50 B2B Websites including MobilePositioning.com, MobileCellB.com

B2C: Ringtones.com, PictureMessaging.com, MobileWAP.com, MobileDataShop.com


Cell Broadcast

Point to multipoint service that is much more efficient than SMS for same transaction

Broadcast SMS is too slow and variable and does not scale

Lottery, football etc. “concentrated” services need CB not SMS


Cell Broadcast

Why hasn’t it taken off and what will help it to take off?

Value Chain Analysis Handsets -Applications- Servers-

Networks


Handsets

Non-standardized (like SMS) Man Machine Interface causes customer service problems

Handset vendors must test MMI in advanced CB markets and improve

Siemens CB phones are best of breed currently- re-read, forward as SMS, set phone to get one more etc.


User Complexity

Another successful issue is up to 999 channels to select from, including a menu channel

Unless customers knows right channel number, sees nothing

If receives several channels, could become intrusive


Applications

Advertising (Cell&Sell), not necessarily location sensitive

Traffic and transport Applications enablers such as

Materna Application developers such

as 1-2-snap


Servers

CMG Comverse Network

Systems Logica Sema


Networks

30 or so networks have trial or commercial Cell Broadcast Centres installed

Limited bandwidth- maximum 1 CB message every 2 seconds is total capacity of CB channel- limits number of applications that can be run over CB channel


Networks

What is value of limited bandwidth- how much can/ should networks charge for access to valuable and limited CB channel?

Nobody has set a tariff for CB unlike 15 US c for SMS that became widespread


Revenue Streams

1. Triggers for other call types- premium rate voice, SMS etc.

2. Advertising- indirect revenues from merchants

3. Subscription services- recently enabled by SIM Toolkit- can now stop everyone from viewing- send decryption key using SIM Toolkit, else illegible


Existing Operator Challenges

Increase Revenue (and share price) Differentiate their service offering Reduce Churn Stay ahead of the Competition

Location Based services can address all these

challenges!


What is driving the Market?

Operator drivers (as above) Infrastructure development as

mandated by FCC(June 1996 ruling requiring all mobile network operators o provide location information on all calls to “911” by October 1st 2001)

Terminal advancement / GPS technology

End user paradigm shift


Current Market Landscape Most operators realise significance

of Mobile Location Services Actual implementations limited

apart from trials and vertical markets

Recent Strategis Group Survey *:- 17% Location based billing- 15% Traffic / Navigation Updates- 11% Roadside Assistance- 9% Location Info Services- 48% have no MLS in place!

*Source: Strategis Group Report: European Wireless Location Based Services - March 2000

Survey of 40 Operators in 12 European Countries


Mobile Location Value Chain

Fragmented Multiple technology standards Handsets approaches Server approaches Accuracy Standards

Technology is not ready for mass market deployments


Technical Considerations No single standard for Location

leading to Analysis Paralysis:

- Cell of Origin (COO / Cell ID)- Enhanced Observed Time Difference (E-OTD)- Time of Arrival (TOA)- Global Positioning System (GPS)- Angle of Arrival (AOA)- Signal Attenuation- Intelligent Network Solutions- etc…

Accuracy Network / Handset Implementation?


Other considerations Privacy Handset availability Roaming 3rd party access to Location

Info Market evolution:

- Accuracy, devices, standards, applications, cost of deployment


Who is doing what? Mobile Location Services are in

fact alive and well – users just don’t realise (“vocal” location)

Apart “vocal” location majority of Location Services are using Cell IDe.g.:- Location based billing (Libertel, Mannesmann, BT Cellnet, Vodafone UK, Radiolinja etc.)


Desirable “on the move”

Content of office or home PC Travel information

Timetables and current status

Directions and maps Location-specific

entertainment Hotel guides Restaurant guides Theatre and cinema guides


Categories of Location Services

SAFETYEmergency servicesRoadside assistance

BILLINGLocation sensitive billingWireless officeResidential useEvent billing

INFORMATIONLifestyle informationEvent informationTraffic information

TRACKINGFleet managementAsset trackingPeople tracking


Technology Schemes

Technology Scheme Network or Handset based

Advantages Disadvantages

COO (Cell of Origin)

Network No modifications needed to networks or handsets

Relatively low accuracy

E-OTD (Enhanced Offset Time Division)

Network Software modified handsets needed

TOA (Time of Arrival)

Network Uses existing CDMA network features

Relatively low accuracy

GPS

Handset GPS is free to use New handset needed

AOA (Angle of Arrival)

Network Complicated antennae required

IN (Intelligent Network)

Network Location Finding System independent


Traffic maps on WAP phones


Device Innovation- the Benefon ESC!


So what are the opportunities? Location Sensitive Billing Info Services Traffic Info / Congestion

Pricing Tracking

- People (Personal Security)- Products (Courier, Theft, Asset Tracking)- Vehicles (Roadside Assistance / Fleet)

Tolling


Location Sensitive Billing Most Established Location

Service Price of call based on Location- Home Zone, Shared Zone (e.g. Office), Other Zones (e.g. Airports, Stadiums, Festivals)

Enables Operators to target Wire-line minutes

Often promotes off-peak traffic Applies to both Prepaid and

Postpaid

OPPORTUNITY = HIGH


Info Services

Already established market (Yellow Pages / Scoot etc..)

Content delivery mechanisms User paradigm shift

increasing awareness and desire (e.g. WAP)

Use Cell ID initially (Service Evolution)

Key factor for success of 3GOPPORTUNITY = HIGH


Traffic Info/ Congestion Pricing

Some overlap with Info Services but category in own right

Existing Infrastructure can be exploited in some casese.g.: Trafficmaster, existing traffic phone lines

Strong consumer interest Regulatory interest (Congestion /

Tolls)

OPPORTUNITY = HIGH


Tracking

Huge potential market 3 key categories (people,

products, vehicles) Already several deployments

in Vertical Markets In vehicle integration

OPPORTUNITY = MEDIUM to HIGH


Revenue Models

Flat Rate- addition to subscription (not suited to Prepaid)

Per Use- Attractive for Prepaid but can be costly to end user

Content- subscription based services depending on content


Market Opportunity Potential US$15 Billion Market??

“One in five consumers would be likely to subscribe to local phone service from wireless carrier if both charged same price – potential US$15 billion market opportunity” – Source: Business Research Group (BRG)

Potential US$32.9 Billion Market in Europe by 2005?Total market in Europe of $81.9 billion (2003 to 2005) – Source: Strategis

Real Opportunity – difficult to measure – most likely will be incremental revenue gain.

ML predict global market of US$20 Billion per year by 2005.


CB Technology Evolution

CB is in UMTS release 99

WAP over CB

CB for TDMA/ PDC

Integration with GPRS point to multipoint


Summary Provides significant opportunity

to operators in terms of differentiation, segmentation and revenue

Three quarters of location applications could be implemented with little investment

Technology fragmentation not conducive to rapid market growth (Standards, APIs etc)

Cell Broadcast value chain has come of age- the time is right


Contact Us

Simon Buckingham

Mobile Lifestreams

Tel: +44 7000 366366

Fax: +44 7000 366367Email:[email protected]

Web: www.mobileLifestreams.com

Copyright Mobile Lifestreams Ltd 2000 Vision on Location Services Cell Broadcast as kick- start for...

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