For the past couple of years, mobile operators have sought ways to become an indispensible part of the lifestyle of their consumers through mobile applications. This is especially the case now, as mobile devices have become versatile instruments facilitating many day-to-day activities beyond communication to also include commerce, social networking, health monitoring, entertainment and education. Location-based services (LBS) are one such category of application and over-the-top (OTT) players, for the most part, are strong in the market. Potentially generating revenues not just from data access, but also from advertising and additional subscription revenues, mobile operators have been testing different LBS applications and business models especially in the past four years to monetise on this opportunity.
Location-based services: from navigation to mobile advertising
LBS are generally GPS-based
US mobile operators compete with branded navigation service
Little difference in the value proposition with OTT offers
Operators split subscription revenues with LBS solutions providers
Case Study: TeleNav—AT&T and Sprint