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Location based services: is the GSM camp lost? asks ABI Research

OYSTER BAY, N.Y., Nov. 2, 2004--Location Based Services have been around for several years. So why is the GSM camp taking so long to roll them out?

By 2005 the GSM camp needs to have LBS in their strategic plan or they will find themselves at a disadvantage, according to ABI Research's principal analyst of semiconductor research, Alan Varghese.

He believes that while the GSM operators settled for less accurate network positioning solutions such as Cell-ID and TDOA in order to meet FCC E911 requirements, they better not wait much longer to mandate GPS in the handset, or they will find themselves "lost" as far as LBS are concerned.

GPS technology in the cellular handset had some drawbacks initially - it took about 20 seconds to get a position fix from a cold start, for example. And GPS ICs added up to about $15, making them too expensive to integrate into such a cost sensitive device.

Meanwhile the CDMA camp, with Qualcomm at its helm, had already integrated GPS functionality into their chipset. Today CDMA operators such as SK Telecom in Korea and KDDI in Japan offer location-based services that provide them increased ARPU and market share. Nextel in the U.S., with its proprietary iDEN handsets, has used the SIRF GPS chipset to offer navigation as well as asset and employee logistics to their enterprise customers, who propel them to the highest ARPUs in the nation.

"Does the price of the GPS IC really need to hit the magic $5 number before GSM vendors take notice?" asks Varghese "That may be the case," he says, "but they'd better not wait that long."

ABI Research's studies, "GPS IC Markets" and "Location Based Services" examine the state of the market, operators' strategies for deploying LBS (including telematics in the vehicle) and the implications of adding GPS ICs and functionality to the handset.

Founded in 1990 and headquartered in New York, ABI Research maintains global operations that support annual research programs, quarterly intelligence services and market reports in wireless, automotive, semiconductors, broadband, and energy. Their market research products can be found on the web at www.abiresearch.com, or by calling 516.624.2500.



Location Based Services 
Beth Schechner, 516-624-2528
pr@abiresearch.com

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