Analyst perspectives on key wireless industry topics including mobile devices, network infrastructure, mobile operators, mobile content, and short range wireless connectivity.

Predictive Location Technology - The Next Frontier in LBS
Author: Ken Hyers, Principal Analyst, Mobile Wireless Research
Thu, 31 Aug 2006 16:05:21 EDT

I’ve just finished reading a fascinating article looking at the evolution of cellular location technology and I’m torn between admiration and unease.  Those of us who’ve followed the location-based services (LBS) space for some time are quite familiar with the concept of walking past a coffee shop and having our phone receive an SMS offering a coupon to visit the shop and get a discount on a double mocha latte.  Thankfully this will only happen if someone opts-in to receive the offering, and as far as I know, no coffee shop is doing this yet. 

However, bright people in the LBS industry are already looking at the next frontier – predictive location technology.  This will allow mobile operators and marketers to identify not just where somewhere is at a certain point in time, but where they will be at some time in the future.  The concept is based on the knowledge that most people are creatures of habit – they take the same routes to work each day, they shop at the same place, etc.  Based on this knowledge, a coffee shop might know that you or I will pass by their shop at a certain time each day, and rather than send a SMS coupon to visit when we are near it, will send it to us before we even begin our commute.  Potentially, another competitor’s coffee shop could send us the coupon in hopes that we might switch.

Although the technology would be used in a way to help mobile subscribers, I admit that I’m uneasy with the concept that people or companies might predict my movements, even before I make them.  However, as with traditional LBS, users will still retain control and need not opt-in to any of these services, and can even turn their phone’s location feature off if they choose.  Still, operators and companies intent on using predictive location technology will need to exercise care in how they position and market these services to make sure they don’t make their customers fear a new kind of Big Brother.  The technology’s a few years off in the future, but it’s not too early to start thinking about its impact, and unintended consequences. 

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