The Value of Carrier LBS Platforms Is Shifting

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4Q 2013 | IN-1017291


Carriers Have Been Behind on Location


Over 10 years, the carrier LBS market has evolved significantly, but it now faces insurmountable barriers to long-term success. Much of the blame can be placed on smartphone application stores, which have commoditized both location and personal consumer LBS services. The huge potential of location-based advertising has been stymied by the slower than expected uptake of mobile advertising in general and the industry’s reluctance to commit to location as a key metric. However, it is important to outline that carriers must bear much of the blame. They have failed to capitalize fully on their location capabilities, reluctantly opening up APIs to developers too late in the game. Four years ago, there was a viable argument as to who would be more successful on LBS: carriers or smartphone application stores. The huge barriers created by carriers for developers, coupled with significant overcharging for location data, have largely fo...

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