you have mentioned cost as a barrier for the growth of LBS but I would like to add one point here is that success of LBS will primarily depend on total cost of ownership (Internet enabled devices + data charges) and value proposition / benefit derived by end consumers. Another barrier could be applications….

Thanks for sharing the article.

Would have been nice if the article talked about issues/bottlenecks towards adoption of LBS services in developing world!! From experience i have seen – high cost graphical maps, additional investments at the network level (SMLC, licenses for Lb, Lc.. interfaces, or passive probes) and lack of accuracy keeping operators from deploying LBS.

1. Market for Location Based Services and Technologies

http://viodi.com/2008/06/13/location-based-servic...

2. IEEE ComSoc-SCV Workshop: Location Based Technologies and Services

http://viodi.com/2008/06/26/ieee-comsoc-scv-works...

When I talked about high mobile internet cost as a barrier, I was referring to past data (2-3 years back) whereas the Apple application store data is very recent. Moreover, this is one of the reasons in many countries but not necessary that all the countries had this as a barrier.

Regards,

Mohit

I would love to see location based transactions for items like parking in commercial parking lots, gasoline. In such cases the LBS value is a percent, likely 1% or so of the transaction.

Location based advertising looks really attractive, especially for low cost food and beverage, since the ads can be so well targeted – and interactive so that the user pulls the ads that make sense.

My favorite is LBS docent service. I have no clue how to monetize, but how about a Wiki Open Air Museum with the history of what happened in a given street in a city, or geology on long boring drives.

I really enjoyed your insightful article. However, it seems there is always something missing in the equation

For example, you mention as one of the reasons for slow LBS growth the lack of mobile internet usage due to high costs. On the other hand you show how many iPhone apps are LBS. In South Africa on the other hand you have low mobile internet usage costs, but the iPhone sets you back about US$1,000, so very few people can enjoy its LBS apps.

I would presume that over time, and when LBS apps are more widely offered on different phones, the service will grown rapidly.

Regards
Alexander

Such GPS and Cell-ID services are correctly identified as hygiene, but the real value proposition (and therefore the business driver) is the increased productivity enjoyed by the business that adopts these services, coupled with payroll, job despatch and other business continuity and productivity tools. Examine the offerings of organisations such as Orbis Media (http://www.orbismedia.in) and ADP in the US and you will discover two organisations that are cleverly partnering to deliver cost-effective, competitive solutions for business.