[September 29, 2014]

Carriers Entering New Era of Location Services, Says ABI Research

As carriers' traditional revenue streams decrease, the move to LTE (News - Alert), retail, big data, CEM and advertising, location technology and services are back with a bang. In the report, Carrier Location Technology Opportunities, ABI Research (News - Alert) considers the applications, verticals, and technologies that will drive new location-based revenue growth for carriers worldwide. Senior analyst Patrick Connolly commented, "Location for carriers is no longer about navigation applications. Location will become an essential tool in network optimization and CEM, as we move to LTE, HetNets, and personalized subscriber packages. While this in itself gives a clear ROI, there is also significant upside on new exciting areas such as retail/indoor, financial/banking, big data analytics, and advertising. Huge tertiary benefits aside, ABI Research forecasts direct carrier revenues to approach $US2 billion by 2019 in a market with far greater long-term potential."

This is reflected in a number of new and upcoming announcements from major carriers like Verizon (Precision Market Insights, Smart Rewards), AT&T (Location Information Services), SK Telecom (Indoor Location), Telefónica (News - Alert) Germany, O2 (Dynamic Insights), Orange (Data for Development), and Sprint (Pinsight Media). From an avertising and analytics perspective, ABI Research has also noted an increase in joint ventures between carriers, such as Weve in the United Kingdom, providing the scale and frequency needed to compete. If this proves to be a success, it will be quickly replicated worldwide.

Connolly added, "Carriers have been sitting on a location goldmine for too long, fearing a privacy backlash. However, through careful segmentation of aggregated, anonymous analytics and advertising, coupled with clear opt in/out options and third party approval of anonymity, carriers can overcome these unnecessary fears, while giving subscribers the power to choose how their data is used, if at all. Demand is growing for location-based information and there is always a need for a Google (News - Alert) alternative. Carriers are well placed in the analytics, retail, financial and advertising spaces to be just that."

These findings are part of ABI Research's Location Based Services Market Research (https://www.abiresearch.com/market-research/service/location-enabled-services/).

ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research's worldwide team of experts advises thousands of decision makers through 70+ research and advisory services. Est. 1990. For more information visit www.abiresearch.com, or call +1.516.624.2500.

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