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`L-Commerce Poised For Big Splash
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`Publication info: GPS World 11.7 (Jul 2000): 50.
`ProQuest document link
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`Abstract (English): A convergence of technologies, regulation, and business opportunities is jump-starting a
`rapidly emerging market known alternately as location-based (or -enhanced) information services, wireless
`location, mobile location services, mobile commerce, or location commerce.
`Regardless of the name applied, real-time positioning information in cellular phones, pagers, personal digital
`assistants (PDAs), and other portable devices -- typically with integrated GPS, but also through network-based
`or other terrestrial systems -- is a critical enabling technology for what The Strategis Group estimates will be a
`$3.9 billion annual market within a few years.
`These location-sensitive information services include location-aware billing (for instance, of mobile telephone
`service), advertising that is automatically triggered when an end user enters a predetermined geographic area,
`and location-based information -- such as nearby hotels, traffic conditions,
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`Full text: A convergence of technologies, regulation, and business opportunities is jump-starting a rapidly
`emerging market known alternately as location-based (or -enhanced) information services, wireless location,
`mobile location services, mobile commerce, or location commerce.
`Regardless of the name applied, real-time positioning information in cellular phones, pagers, personal digital
`assistants (PDAs), and other portable devices -- typically with integrated GPS, but also through network-based
`or other terrestrial systems -- is a critical enabling technology for what The Strategis Group estimates will be a
`$3.9 billion annual market within a few years.
`These location-sensitive information services include location-aware billing (for instance, of mobile telephone
`service), advertising that is automatically triggered when an end user enters a predetermined geographic area,
`and location-based information -- such as nearby hotels, traffic conditions, or automotive services -- sought by
`the user based on his or her own location.
`The primary value created by the equipment in these applications is usually not position/location information in
`and of itself. However, the positioning/location function is critical, serving as a filter or magnet to extract relevant
`information from a larger database, whether online or integrated into the user equipment.
`A revised Federal Communications Commission rule for enhanced 911 (E-911) emergency caller location
`capability is already moving some carriers and handset manufacturers to look favorably on the GPS/handset
`solution for the 2001 requirement. Moreover, the elimination of selective availability (SA) last month has
`reinforced the likelihood of GPS becoming the positioning technology of choice for this applications market.
`The arrival of integrated GPS products from major cellular handset manufacturers may signal the beginning of
`real growth for the business segment. Finland's Benefon Oyj has launched the Benefon Esc! Personal
`Navigation Phone with 12-channel GPS, high-resolution graphical display, and BeneMaps geographic
`information system that can download maps to the phone through the Arbonaut mobile map service.
`At the CeBit consumer electronics show in Hannover, Germany, in February, Ericsson introduced its GSM
`Communicator, a working prototype with built-in GPS receiver that represents the platform on which the
`Swedish company intends to build future commercial products to support mobile Internet applications and
`location-based information services. Also at CeBit, Finland's Nokia promoted its future concept for a built-in
`GPS receiver supporting emergency and consumer applications.
`photo omitted
`The rapid penetration and adoption of the Internet by businesses and consumers has also been critical for the
`emergence of commercial interest in location commerce. The Gartner Group business technology consultancy
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`predicts that 70 percent of cellular phones will have Internet capability by 2004 (and that an equal proportion of
`PDAs will be free or subsidized by the end of 2003).
`Location commerce appears likely to alter the e-commerce business model. Until now, Internet revenues have
`stemmed primarily from banner ads on websites, subscriptions, and transaction fees. But location-sensitive
`"personalized" advertising for mobile Internet users is expected to grow rapidly in the coming years.
`Ovum, a UK-based IT and telecom research and consulting firm, predicts that companies will spend $2.9 billion
`on wireless advertising in the United States by 2004, just part of the $24 billion in Internet advertising projected
`by 2003.
`Partnering is the name of the game for many location commerce entrants. Take Seattle, Washington-based
`InfoMove, a two-year-old firm that has partnered with a diverse cast of commercial firms to provide real-time
`location-based Internet applications: Info-Space information infrastructure service, Casio and Clifford
`Electronics for devices, Etak and NavTech for digital maps, Integrated Data Communications for voice-channel
`wireless information delivery, PACCAR for in-vehicle systems, and ALLDATA for vehicle systems monitoring
`and guidance to the nearest service facility in its 30,000 repair shop network. InfoMove adds a proprietary
`server and packages the capabilities for an equally diverse set of customer categories.
`"Our core competency is the integration of a feature set enabled by our back-office engine," says Peter Holland,
`InfoMove's president and CEO. "Our business model is to aggregate and disseminate application services that
`are rebranded or co-branded for customers. We're not competing; we're coopting to the greatest extent
`possible."
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`Subject: All company; All market information; E-Commerce; Industry forecasts; Market size; Sales; Aerospace
`&defense; Business services; Mobile communications; Telecom services; Telecommunications
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`Location: North America; United States; World
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`Product classification: 381252: Global positioning systems (GPSs; 481200: Radiotelephone communications;
`731900: Advertising NEC
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`Alternate title: Location-sensitive information services could $3.9 bil/yr market within few years; firms may spend
`$2.9 bil on US wireless advertising by 2004
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`Publication title: GPS World
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`Volume: 11
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`Issue: 7
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`Pagination: 50
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`Publication date: Jul 2000
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`Publisher: Questex Media Group, Inc.
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`Place of publication: United States
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`ISSN: 1048-5104
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`Journal code: GPSWORL
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`Source type: Magazine/Journal
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`Language of publication: English
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`Document type: Magazine/Journal
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`Source attribution: Gale Group Business And Industry, © Publisher specific
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`Accession number: 25754336
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`Document URL: http://dialog.proquest.com/professional/docview/1086002719?accountid=153965
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`Copyright: Copyright 2000 Questex Media Group, Inc.
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`Updates: 2012-10-05
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`First available: 2012-10-05
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`Database: Business &Industry (1994 - current)
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