Can Location based services drive operators revenue in India ?

Indian mobile market has the optimum potential for the location-based services (LBS), as it has one of the largest wireless networks in the world with around 900 million subscribers. The network operators can reap significant benefits from this service.

Indian operators are looking at offering LBS to provide information services, navigation, city sightseeing, public services, location-based charging services, call routing, assets management, traffic monitoring, mobile yellow pages and advertisements.

The network providers can earn considerable revenues by offering such services. The major chunk of the revenue would be from the advertisements. Through LBS, network operators can offer location-based and targeted advertisements to the customers.

Globally, smartphones have seen a massive uptake and in India too, as consumers are opting for the next-gen smartphones. These smartphones offer great mobility to the consumers and because of it mobile operators in India can earn high revenue from location based advts.

“Factors like- Network based technologies, consumers’ need for LBS, app development ecosystem, regulatory mandate and accessibility of high end handsets will drive the growth of LBS in India. LBS is a $20 billion potential value market and 70 percent of people say that they use services like navigation, alerts etc,” said Rajesh Gandhi, AVP VAS Technologies & Enterprise Solutions at TATA Teleservices.

Many information companies like Oracle have come up with certain Big Data solutions, which can help the service providers to offer location-based targeted advertisements to the customers.

With the help of location-navigation of customers and specifically tabulated data by these data solutions, operators can place advertisements to consumers, which could possess good chances to execute, as they are based on their preferences.

At the recently held LBS India 2012 business conference Sivarama Krishna, executive director, Consulting of PricewaterhouseCoopers discussed the issue of revenue for the operators and said, “Mobile operators can earn high revenue from Location Based Ads. The elections are approaching and this opportunity can give an immense amount of revenue through the Location Based Ads, leave the rest”.

Krishna, however, added that the key factors like- complex ecosystem, marketing & promotion of services, business models, security/privacy issues and infrastructure constraints can hinder the deployment of LBS in India.

In addition, less coverage of signals in rural and semi-urban areas could also pose a challenge for the operators to offer LBS.

According to a study by Juniper Research, the rapid evolution of mobile phones, both on hardware and a software level, combined with a surge in apps with deployments of higher-capacity network infrastructure and recent developments in positioning technologies could drive revenues from mobile location-based services to more than $12.7 billion by 2014.

The study found that improvements in handset UIs together with easier consumer access to a range of app distribution channels had led to greater interest from service providers in providing mobile location-based applications. The study also predicted that advertising will likely form an increasing share of MLBS-related revenues over the next five years

Via : Source


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