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Security management firm specializing in investigative, computer and network services.

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IT Support, Security, IT Outsourcing Companies, Computer Services

Optimal Networks serving Maryland, Virginia, Washington, DC area companies, small, mid-sized businesses, associations, law firms with IT outsourcing, IT support, security, computer ...

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Location-Based Services Trends in 2009

We believe that there is a perfect storm brewing that will cause location-based services to take off in a big way in 2009 and 2010. It has already taken off in the portable navigation device (PND), but now it will happen on your mobile smartphone.

What are location-based services? The best known example would be your Garmin or TomTom driving navigation. But that's a very basic example. LBS can include things like Buddy Beacon where you can track where your friends are, locating someone for emergency 911 response, finding what are the best restaurants near you, etc.

Here are some recent events brewing up the big storm:

  • Mature PND Market. The portable navigation device (PND) market is mature. In 2008, 50 million units were shipped.
  • PND Makers Need New Revenue Streams. Since the PND market is mature, consolidations are happening, and margins are now razor-thin. PND makers are proactively trying to apply their technologies to increase their revenue stream from other sources. The Garmin nuviFone is a prime example.
  • Users Understand LBS. Location-based services are gaining customer acceptance in the market, with services like the VZNavigator and a slew of location-based apps on the iPhone.
  • Location Technology Development. Whereas traditional GPS chips require a long first time-to-lock on the position, Assisted GPS (A-GPS) uses cell towers for triangulation to shorten lock times. This translates to a much better user experience.
  • GPS Chips are Cheap. The mature PND market has driven GPS chips down. Today, a GPS chip can be added to a smartphone for less than $1 USD. Practically very smartphone shipped in 2009 will have built-in GPS or A-GPS.
  • Astounding Smartphone Growth. Mobile phones are getting more sophisticated and can now access the web with very reasonable user experience. While the overall mobile phone market grew only by 11% in 2007, the smartphone segment grew by over 50%. It's the new frontier for every major company to compete for advertising dollars as there will be more smartphones in use than PCs and laptops combined.

So what does this all mean? It means we will see an acceleration of innovation on both hardware and software over the next couple of years. The iPhone and Android-based handsets are leading the charge to make location-based applications and services mainstream. Consumers will also get increasingly used to them as new innovations tackle the problems of privacy and location management. To read more about location-based services and other mobile computing topics, visit us at http://www.skratchboard.com .

Are you location-aware yet?

James is the Founder of SkratchBoard.com - enthusiast site dedicated to Mobile Computing. We pride ourselves in having an independent perspective and unique opinion of the mobile market

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