Mobile Navigation Services and Devices

Transcription

1 LBS Research Series Mobile Navigation Services and Devices Mobile Navigation Services and Devices is the fifth consecutive report from Berg Insight analysing the latest developments on the global PND and mobile turn-by-turn navigation market. This report in the LBS Research Series provides you with 160 pages of unique business intelligence including 5-year industry forecasts and expert commentary on which to base your business decisions. This report will allow you to: Profit from 30 new executive interviews with market leading companies. Understand the dynamics of the navigation markets in Europe, North America and ROW. Benefit from expert market analysis including detailed regional forecasts. Learn about the latest mobile navigation propositions from device vendors and service providers. Comprehend how navigation applications can integrate with other location-based services to improve the user experience. Evaluate the impact of free navigation applications and evolving new business models. Identify new business opportunities in connected services and real-time traffic information. Order now! Please visit our web site to order this report and find more information about our other titles at See inside for further details Berg Insight s LBS Research Series What are the real business opportunities for LBS on the global market? Berg Insight s LBS Research Series is a unique series of market reports published on a quarterly basis. Each title offers detailed analysis of the most interesting LBS topics such as handset-based satellite positioning technology, mobile personal navigation services and location-enabled content services. Once per year we also publish a summary of our research with detailed forecasts for the major regions.

2 LBS Research Series What are the latest developments on the personal navigation market? Navigation systems and services for car and pedestrian navigation can be divided into multiple categories. Car manufacturers offer factory installed in-dash navigation systems as standard or optional equipment on a majority of their models sold in developed markets. Drivers that want to add navigation to their existing vehicle can choose among a number of aftermarket solutions. Examples include in-dash navigation systems, Personal Navigation Devices (PNDs) and navigation apps for mobile phones. New device categories such as Internet tablets are also being equipped with GPS and navigation software. At the end of 2011, there were 340 million navigation systems in use worldwide, including an estimated 60 million factory installed and aftermarket indash navigation systems, about 150 million PNDs and an estimated 130 million navigation-enabled mobile phones. Even though the share of new cars fitted with factory installed in-dash navigation systems will grow fast as prices decline, the actual penetration of in-dash navigation systems will grow slowly. The average age of vehicles in North America and Europe has grown to about 9 years and is even higher in most other markets. Aftermarket navigation solutions will thus account for a majority of navigation systems sold in the foreseeable future. Since the different solutions are tailored for slightly different usecases, multiple navigation-capable device solutions can be expected to co-exist in the future. Many consumers are also likely to use more than one category of navigation capable device. In many developed markets such as Europe and North America where the PND penetration is already high, the PND device category is facing increasing competition from handset-based navigation services and low cost in-dash navigation systems. Worldwide shipments of PNDs fell to about 33 million units in 2011, down from nearly 38 million in Berg Insight believes that PND shipments in Europe and North America have peaked and will gradually decline to about 7 and 6 million units per annum respectively in New markets in other parts of the world will only partly compensate for the decline in the mature markets. Worldwide shipments of PNDs are forecasted to gradually decline to 23 million units in Increasing competition has already forced several vendors to exit the PND segment either in the most competitive markets or altogether. There is also a consolidation trend among the remaining PND vendors. MiTAC has acquired the PND operations of Navman and the assets Million Active navigation app users Installed base of PNDs Installed base of PNDs and active mobile turn-by-turn navigation users (World ) Year of the consumer product division of Magellan Navigation. Garmin completed the acquisition of Navigon in July United Navigation, which began operations in early 2010, has licensed the rights to use the Falk and Becker brands for navigation solutions. The PND market is now dominated by the three vendors Garmin, TomTom and MiTAC that together maintain a 75 percent market share. These companies have highly integrated operations ranging from hardware and software development to distribution. Moreover, these companies are now increasingly focusing on in-dash navigation systems. The adoption of handset-based navigation apps and services is increasing along with the popularity of smartphones. The global active installed base of smartphones surpassed 700 million units at the 2011, which is approximately 15 percent of all mobile phones in use. Berg Insight forecasts that smartphone shipments will grow from an estimated 450 million units in 2011 to 1,300 million units in In the future, virtually all GPS-enabled handsets can be expected to have mapping and navigation software as part of the standard feature set. Today, handset navigation solutions are primarily available as on-board apps with map data stored in the memory of the handset and off-board services that rely on maps stored on a server. Over time, many solutions will converge into hybrid services that store frequently used maps in the internal memory and leverage wireless connectivity to access dynamic content. The main distribution channels for handset navigation apps include mobile network operators, handset vendors and on-device application stores. Free turn-by-turn navigation services have been available for several years from niche players, but the launch of Google Maps Navigation for Android handsets in late 2009 and Nokia Maps with free navigation in early 2010 started a major transformation of the handset navigation market in both Europe and North America. Whitelabel navigation developers are now working with mobile operators to create unique localised offerings and service bundles. Increasingly, navigation service providers are focusing on the freemium business model where the core turn-by-turn navigation service is free and users have the option to purchase additional content and features. This report answers the following questions: How are business models for PNDs and mobile navigation services evolving? What impact has free navigation services had on the personal navigation market? How are device manufacturers positioning themselves on the growing mobile navigation market? Will turn-by-turn navigation services for mobile phones replace portable navigation devices? Which are the leading developers of turn-by-turn navigation applications for mobile phones? Which mobile operators have introduced mobile turnby-turn navigation services? What will be the winning formula for connected PNDs and associated services? How will mobile navigation services evolve in the future?

3 Table of Contents 1 Personal navigation solutions 1.1 Vehicle fleets and navigation system penetration The European passenger car market The North American passenger car and light truck market 1.2 Overview of personal navigation systems and services Factory installed in-dash navigation and telematics solutions Aftermarket in-dash navigation systems Personal Navigation Devices Smartphones and mobile phones Internet tablets and media players 1.3 PND categories and segments Standalone car navigation PNDs Embedded PNDs Multimode and rugged PNDs Truck PNDs 1.4 Handset-based navigation services On-board navigation apps Off-board navigation services 1.5 Navigation service distribution channels and business models Mobile network operators Handset vendors On-device app stores Active handset navigation users 2 Map data and content providers 2.1 Digital map data and image suppliers NAVTEQ TomTom Maps AND AutoNavi Blom CE Info Systems DigitalGloble GeoEye Intermap Technologies OpenStreetMap ZENRIN 2.2 Traffic information services Traffic information systems RDS-TMC services The VICS traffic information system The TPEG standard AirSage Clear Channel Radio s Total Traffic Network Decell INRIX Mediamobile TrafficCast Trafficmaster 2.3 Speed camera warning devices and database providers Coyote Systems Cyclops FoxyTag Road Angel RoadPilot Wikango 2.4 Travel guide, POI data and weather information providers CustomWeather Foreca Fodor s Travel Langenscheidt Mairdumont NavX ViaMichelin Wcities 2.5 Directory publishers PagesJaunes and Mappy Truvo Yell Group 3 Navigation software developers 3.1 Technology overview On-board, off-board and hybrid navigation software Evolution of navigation software features 3.2 Vendor market shares Handset navigation app market shares in Europe Handset navigation app market shares in North America 3.3 Company profiles and strategies ALK Technologies Appello Systems decarta Elektrobit Fullpower Technologies Google GPS Tuner Intrinsyc Software Maction Technologies Mireo NavGuard NaviExpert Navitel NAVITIME Navmii NDrive NNG PH Informatica ROUTE Skobbler Sygic TeleCommunication Systems TeleNav Telmap UbiEst Waze Wikitude Yapp Mobile 4 Mobile operator service offerings 4.1 Navigation services from mobile operators in North America AT&T Bell Mobility MetroPCS Rogers Wireless Sprint Nextel TELUS Verizon Wireless 4.2 Navigation services from mobile operators in Europe Deutsche Telekom Group Orange Group SFR Telefónica Group Telekom Austria Group TeliaSonera Group Vodafone Group 4.3 Navigation services from mobile operators in Asia Pacific Country profile: Australia Country profile: Japan Country profile: South Korea SingTel Group Tata Indicom Vodafone New Zealand 4.4 Navigation services in other countries Country profile: Israel Country profile: South Africa América Móvil NII Holdings Telefónica Latin America Mobile TeleSystems 5 Device vendor profiles 5.1 PND market developments PND feature evolution Market consolidation 5.2 PND shipments and vendor market shares Shipments by geographical region PND hardware revenues Vendor market shares 5.3 PND vendor profiles and strategies Garmin Navigon TomTom MiTAC Airis AvMap Mappy / Logicom MEDION Panasonic Shinco Sony Thinkware Systems UniStrong United Navigation 5.4 Handset market developments Smartphone evolution Handset vendor market shares Handset vendor navigation service strategies 5.5 Handset vendor profiles and strategies Apple HTC LG Electronics Motorola Nokia RIM Samsung Electronics Sony Ericsson 6 Market analysis and forecasts 6.1 Navigation industry trends The total navigation system penetration rate is still low globally Low cost in-dash navigation systems drive take rates Evolution of handset navigation distribution channels Evolution of handset navigation business models 6.2 Regional markets The European mobile navigation market The European PND market The North American mobile navigation market The North American PND market The Rest of World mobile navigation market The Rest of World PND market Glossary

4 About the Author LBS Research Series André Malm is a Senior Analyst with a Masters degree from Chalmers University of Technology. He joined Berg Insight in 2006 and his areas of expertise include locationbased services, wireless M2M and personal navigation services. Berg Insight offers premier business intelligence to the telecom industry. We produce concise reports providing key facts and strategic insights about pivotal developments in our focus areas. From time to time we also perform custom research assignments. Our vision is to be the most valuable source of intelligence for our customers. Who should buy this report? Related products Mobile Navigation Services and Devices is the foremost source of information about the emerging personal navigation market focusing on both PNDs and mobile phone navigation. Whether you are a vendor, telecom operator, investor, consultant, application developer or government agency, you will gain valuable insights from our in-depth research. Mobile Location-Based Services Fleet Management in Europe The Global Wireless M2M Market Car Telematics and Wireless M2M Berg Insight AB - No. 80 Order form TO RECEIVE YOUR COPY OF Mobile Navigation Services and Devices You can place your order in the following alternative ways: 1. Place your order online in our web shop at 2. Fax this order sheet to us at fax number: Mail this order sheet to us at: Berg Insight AB, Viktoriagatan 3, Gothenburg, Sweden 4. your order to: info@berginsight.com 5. Phone us at Choose type of format Paper copy EUR PDF 1-5 user license EUR PDF corporate license EUR Family/Surname Forename Position Company Address Country Postcode Telephone FAX VAT is chargeable on all orders from Sweden. Orders from all other countries in the European Union must include the buyer s VAT Registration number below in order to avoid the addition of VAT. Your PO number Your VAT/TVA/IVA/BTW/MWST number Please charge my credit card VISA Mastercard Card number Cardholder s name Billing address Signature Expiry date (MM/YY) / CV code Reports will be dispatched once full payment has been received. For any enquiries regarding this, please contact us. Payment may be made by credit card, cheque made payable to Berg Insight AB, Viktoriagatan 3, Gothenburg, Sweden or by direct bank transfer to Skandinaviska Enskilda Banken, Stockholm, Sweden. Postcode Country Account Holder: Berg Insight AB Account number: BIC/SWIFT: ESSESESS IBAN: SE We enclose our cheque payable to Berg Insight AB Please invoice me Signature Date Berg Insight AB, Viktoriagatan 3, SE Gothenburg, Sweden Phone Fax info@berginsight.com

5 LBS Research Series Mobile Location-Based Services Mobile Location-Based Services is the sixth consecutive report from Berg Insight analysing the latest developments on the European and North American LBS markets. This report in the LBS Research Series from Berg Insight provides you with 140 pages of unique business intelligence including 5-year industry forecasts and expert commentary on which to base your business decisions. This report will allow you to: Learn about the LBS strategies of major telecom operators in Europe and North America. Profit from 30 new executive interviews with market leading companies. Identify key players on the European and North American mobile LBS market. Understand the opportunities and challenges for locationbased advertising. Benefit from valuable insights about the most successful LBS propositions on the market. Comprehend how location technologies affect the user experience of LBS. Predict future business opportunities for mobile industry players in LBS. Order now! Please visit our web site to order this report and find more information about our other titles at See inside for further details Berg Insight s LBS Research Series What are the real business opportunities for LBS on the global market? Berg Insight s LBS Research Series is a unique series of market reports published on a quarterly basis. Each title offers detailed analysis of the most interesting LBS topics such as handset-based satellite positioning technology, mobile personal navigation services and location-enabled content services. Once per year we also publish a summary of our research with detailed forecasts for the major regions.

6 LBS Research Series Business models for LBS shift to freemium and advertising Mobile location-based services (LBS) are gradually achieving mainstream market acceptance. Popular service categories include mapping and navigation, search and information, social networking and entertainment, recreation and fitness as well as tracking. Mapping and navigation is the leading segment in terms of revenues and the second largest in terms of number of active users. Despite continued growth of active users driven by rising adoption of smartphones, revenues for mapping and navigation services are only growing slowly as competition from free and low cost services has intensified. Whitelabel navigation developers are now working with mobile operators to create unique localised offerings and attractive service bundles. Some navigation service providers are focusing on freemium apps where the core turn-by-turn navigation service is free and users have the option to purchase additional content and features. Usage of search and information services is growing fast as more subscribers adopt mobile Internet services and handsets with improved capabilities. Local search is now the leading LBS category in terms of unique users. The popular social networking services are also experiencing rapidly growing uptake from mobile users. Increasingly, these services add various forms of location support. Berg Insight estimates that the number of active users of locationbased services and apps more than doubled in At the end of the year, about 20 percent of mobile subscribers in Europe are frequent users of location-based services. In North America where adoption of smartphones and GPS-enabled handsets is higher, an estimated one third of all handset users now access location-based services regularly. However, the significant growth in usage and number of active LBS users have not yet resulted in substantial growth in revenues. Total LBS service revenues in the EU 27+2 reached 205 million in 2010 and Berg Insight forecasts LBS revenues to grow to about 435 million in In North America, revenues are forecasted to grow from US$ 620 million in 2010 to an estimated US$ 710 million in Ad-funding is already the main source of revenues in many consumer LBS categories. Notable exceptions include the mapping and navigation as well as tracking service categories where ad revenues now account for less than 10 percent of total revenues. Along with increasing usage and a maturing advertising ecosystem, ad revenues will grow both in absolute terms and as a share of total revenues also in the mapping and navigation segment. Many actors in the mobile value chain show great interest in location targeted ads. Although location can be a very valuable targeting attribute for some brands and campaigns, many other attributes are available that can be more relevant. Moreover, several issues such as user privacy and pricing of location data need to be resolved before location-based ad campaigns can leave the trial stage and contribute significantly to overall revenues. Historically, mobile operators have been key partners and the main distribution channel for app and service developers. Operators have had a unique position with a direct relationship with a large user base, allowing them to market services, pre-install applications on new handsets, present links to services from their portals and handle end-user billing. This central role is now being challenged by the rising smartphone ecosystems such as Android, ios and Windows Phone that in many cases integrate key location-based services and give developers access to location data, distribution channels in the form of on-device app stores as well as billing and advertising solutions for monetisation. Developers can also access location data from numerous independent Wi-Fi and cellular base station location database providers. These location services are well suited for a range of consumer-oriented services primarily targeting smartphone users. Many operators are now opening their location platforms to third party developers and location aggregators that play an important role as intermediaries between mobile operators and developers. Networkbased location data is valuable for developers and third parties that need to locate any device, not only GPS-enabled smartphones, without the need to install a client app that collects location data on each device. Most operators location platforms have a limited capacity and operators therefore maintain relatively high prices for each location look-up. This is a justifiable cost for services where a successful location look-up adds significant value and the developer can charge their customers accordingly. This is the case for a range of enterprise and B2B services including asset tracking, workforce management, authentication and fraud prevention. This report answers the following questions: million Europe 27+2 America What is the current status of the European and North American mobile LBS market? How are free navigation offerings affecting the market dynamics? 400 What are the mobile strategies of search engines and directory publishers? 300 How is location technology used by mobile social networks and communities? 200 How is GPS-technology altering the conditions for tracking services? 100 Which operators have introduced branded location-based services? Year How is location being used to add value in mobile advertising? Mobile LBS revenue forecast, million ( )

7 Table of Contents 1 Introduction to location-based services 1.1 Definition of mobile location-based services 1.2 Mobile communication services Mobile voice and SMS service revenues Mobile data and application revenues Location apps and service revenues 1.3 Mobile LBS categories Mapping and navigation Local search and information Social networking and entertainment Recreation and fitness Tracking services Other services 1.4 Mobile app monetisation strategies and business models Free apps Paid apps Freemium apps and in-app payments Ad-funding New channel to market Bundled products and services Mobile app business model trends 1.5 Mobile location technologies and platforms Mobile network-based location technologies GNSS: GPS, GLONASS, Galileo and Compass Hybrid and mixed mode technologies Accuracy requirements for LBS 1.6 The regulatory environment in Europe and North America European emergency call and privacy regulations LBS regulatory environment in the US Emergency call regulations in Canada 2 Smartphone ecosystems 2.1 Smartphone OS platforms Android ios Windows Phone Symbian BlackBerry OS and BBX Samsung s Bada platform 2.2 App stores Android Market Apple App Store BlackBerry App World Nokia Ovi Store Windows Phone Marketplace 2.3 Ad networks and in-app ad solutions Apple iad RIM BlackBerry Advertising Service Microsoft Windows Phone 7 and Microsoft Advertising Nokia in-app advertising and NAVTEQ Media Solutions Google Admob 2.4 Leading smartphone vendors Apple HTC LG Electronics Motorola Mobility Nokia RIM Samsung Electronics Sony Ericsson 2.5 Industry analysis New vertical silos Towards a complete LBS stack Operator strategies Handset vendor strategies The mobile web, HTML5 web apps and native apps 3 Operator LBS offerings and strategies 3.1 The European operator LBS market Group Deutsche Telekom Group KPN Group Orange Group Telecom Italia Mobile Telefónica Group Telenor Group TeliaSonera Group Vodafone Group 3.2 The North American operator LBS market AT&T Mobility Bell Mobility MetroPCS Rogers Wireless Sprint Nextel TELUS T-Mobile USA Verizon Wireless 3.3 Location aggregators and Locationas-a-Service providers Deveryware LOC-AID Location Labs Lociloci Mobile Commerce TechnoCom 3.4 Industry analysis Organisational capabilities and goals limit operator s ability to provide LBS Smartphone platforms challenge operators central role The rise of third party developers and apps 4 Key LBS categories 4.1 Mapping and navigation Mapping and routing services Traffic information services Turn-by-turn navigation services Mapping and navigation industry trends Mobile operator service offerings Handset vendor offerings App stores and service providers Key market players 4.2 Local search and information Directory services Local discovery and review services Travel planning, guides and information services Shopping and coupon services 4.3 Social networking and entertainment Social networking and community services Check-in services Friendfinder services Chat and instant messaging services Location-based games 4.4 Recreation and fitness Geocaching apps Outdoor navigation Sports tracking apps 4.5 Tracking services Family locator services Smartphone tracking apps Enterprise tracking services 5 Market analysis and forecasts 5.1 Summary of the LBS market The European LBS market The North American LBS market 5.2 Mobile advertising and location Challenges and opportunities for mobile advertising Location can improve ROI for advertisers 5.3 Vertical market trends Mapping and navigation services become free for end-users Search and information services growth driven by smartphone uptake Social networking and entertainment services gradually add location Smartphones are increasingly used as recreation and fitness devices Corporate efficiency investments drive tracking service revenues Glossary

8 About the Author LBS Research Series André Malm is a senior analyst with a Masters degree from Chalmers University of Technology. He joined Berg Insight in 2006 and his areas of expertise include locationbased services, personal navigation services and wireless M2M markets. Berg Insight offers premier business intelligence to the telecom industry. We produce concise reports providing key facts and strategic insights about pivotal developments in our focus areas. From time to time we also perform custom research assignments. Our vision is to be the most valuable source of intelligence for our customers. Who should buy this report? Related products Mobile Location-Based Services is the foremost source of information about the European and North American mobile LBS market. Whether you are a vendor, telecom operator, investor, consultant or government agency, you will gain valuable insights from our in-depth research. Fleet Management in Europe Personal Navigation Devices The Global Wireless M2M Market Mobile Navigation Services Berg Insight AB - No. 77 Order form TO RECEIVE YOUR COPY OF Mobile Location-Based Services You can place your order in the following alternative ways: 1. Place your order online in our web shop at 2. Fax this order sheet to us at fax number: Mail this order sheet to us at: Berg Insight AB, Viktoriagatan 3, Gothenburg, Sweden 4. your order to: info@berginsight.com 5. Phone us at Choose type of format Paper copy EUR PDF 1-5 user license EUR PDF corporate license EUR Family/Surname Forename Position Company Address Country Postcode Telephone FAX VAT is chargeable on all orders from Sweden. Orders from all other countries in the European Union must include the buyer s VAT Registration number below in order to avoid the addition of VAT. Your PO number Your VAT/TVA/IVA/BTW/MWST number Please charge my credit card VISA Mastercard Card number Cardholder s name Billing address Signature Expiry date (MM/YY) / CV code Reports will be dispatched once full payment has been received. For any enquiries regarding this, please contact us. Payment may be made by credit card, cheque made payable to Berg Insight AB, Viktoriagatan 3, Gothenburg, Sweden or by direct bank transfer to Skandinaviska Enskilda Banken, Stockholm, Sweden. Postcode Country Account Holder: Berg Insight AB Account number: BIC/SWIFT: ESSESESS IBAN: SE We enclose our cheque payable to Berg Insight AB Please invoice me Signature Date Berg Insight AB, Viktoriagatan 3, SE Gothenburg, Sweden Phone Fax info@berginsight.com

9 LBS Research Series LBS Platforms and Technologies LBS Platforms and Technologies is the third consecutive report from Berg Insight analysing the latest developments on the global market for LBS platforms and middleware. This report in the LBS Research Series from Berg Insight provides you with 120 pages of unique business intelligence including 5-year industry forecasts and expert commentary on which to base your business decisions. This report will allow you to: Profit from 30 new executive interviews with market leading companies. Learn about the latest trends for location platforms and technologies worldwide. Identify new business opportunities enabled by new location platform architectures. Predict which location technologies will be deployed in the future. Anticipate future drivers for location platforms and middleware revenues. Understand the opportunities and challenges for mobile location-based services globally. Order now! Please visit our web site to order this report and find more information about our other titles at See inside for further details Berg Insight s LBS Research Series What are the real business opportunities for LBS on the global market? Berg Insight s LBS Research Series is a unique series of market reports published on a quarterly basis. Each title offers detailed analysis of the most interesting LBS topics such as handset-based satellite positioning technology, mobile personal navigation services and location-enabled content services. Once per year we also publish a summary of our research with detailed forecasts for the global mobile LBS market.

10 LBS Research Series The global market for LBS platforms and middleware to double in the next 5 years Mobile location platforms enable mobile network operators to offer location-based services (LBS). Location platforms typically comprise software extensions to network infrastructure components that together can calculate the position of a handset. Many mobile operators also deploy location middleware that functions as a mediator between the location platform, applications and support systems and more importantly, provides centralised control of privacy settings for all applications. Mobile location platforms enable three categories of services: public safety services, national security and law enforcement applications, as well as commercial LBS. Nearly 70 percent of all emergency calls are today placed from mobile phones and it can often be difficult for the caller to convey their location accurately to first responders. Automatic location platforms can reduce the time to find the location of the caller. They also enable more efficient handling of simultaneous calls from people reporting the same incident to distinguish single accidents from multiple events. Another use area is public warning systems that can locate and send messages to all mobile users within a geo-fenced area. Government agencies can also use location platforms and data mining systems for border security, critical infrastructure protection and locationenhanced lawful intercept. LBS are services that in some way utilise the geographic location of a handset, either to enhance existing applications, or enable new types of applications. An example of the first case is search services that use the subscriber s known location as a filter for presenting relevant content. In the second case, location is used as an enabler for new applications that are fully dependent on knowing the location of a user or an asset; examples include navigation and tracking services. Today, countless consumer and corporate services make use of automatic location of handsets or other assets. However, a majority of the services use location data obtained directly from GPS receivers in the handset or various third party location databases rather than directly from operators. Location technologies can be divided into handset-based technologies (such as GPS) with intelligence in the handset, network-based technologies (for instance Cell-ID, Enhanced Cell-ID and U-TDOA) with intelligence in the network and hybrid technologies (for instance A-GPS) with intelligence in both the handset and the network. Handset-based and million Location platform and middleware revenue forecast, million (World ) Year hybrid technologies often require additional hardware and software in the handset, while network-based technologies require deployment of hardware and software in the mobile network. Each technology has different characteristics and ultimately, no single technology performs best in every aspect. The Federal Communications Commission s (FCC) E911 mandates for location of mobile emergency calls released in 1996 was a major driver behind the development of location platforms for the North American market. In Europe, as well as in other developed countries such as Japan and South Korea, the early deployment of location platforms focused on supporting commercial services due to the lack of a clear mandate for emergency services. In the first deployment phase, lasting from 2000 to 2003, operators invested in platforms and ready-made location services. The results were in many cases limited uptake whereby many operators lost interest in LBS as a mass-market proposition. However, governments and telecom regulators in many regions worldwide are now introducing some form of emergency call and lawful intercept mandates that require at least basic location platforms and technologies. Although the regulators have typically not yet imposed any specific location accuracy requirements as part of the mandates, it is highly likely that more stringent location accuracy will be demanded in the future as technologies mature and costs decrease. An estimated 30 percent of the mobile network operators worldwide have now deployed at least some type of basic location platform. Additional deployments and updates of existing platforms can be expected in most markets in the coming years, primarily driven by government mandates since commercial LBS increasingly rely on alternative location sources including GNSS, Wi-Fi location and third party Cell-ID databases. Berg Insight forecasts that total global annual revenues for GMLC/MPC, SMLC/PDE and SUPL A-GNSS location systems and services will grow from 150 million in 2010 to 300 million in These revenues comprise integration fees and licenses for new platform deployments as well as capacity and technology upgrades, maintenance and associated services. This report answers the following questions: What is the current status of the global mobile LBS platform market? Which mobile operators have deployed LBS platforms and middleware? How is GPS-technology altering the conditions for providers of location-based services? What is the current status of E112 in Europe and similar programs in other regions? How is GPS-technology affecting network-based location technologies? How will lawful intercept requirements affect technology choice for operators? Which location platforms and technologies are best suited for location-based advertising? Which vendors provide location platforms and middleware today?

11 Table of Contents 1 Introduction to location platforms 1.1 Location platforms and locationbased services Overview of mobile location platforms A brief history of location platforms and services 1.2 Mobile communication services Mobile voice and data subscribers Mobile voice and SMS service revenues Mobile data and application revenues Location apps and service revenues 1.3 Mobile location platforms and technologies Mobile location platforms Mobile location technologies Location middleware and GIS 1.4 The mobile LBS value chain Location platform and network equipment vendors Location technology developers LBS middleware vendors Mobile network operators Location aggregators Handset manufacturers Mobile application developers and service providers 1.5 Location platform pricing models Capacity-based model Transaction-based model Subscriber-based model 1.6 Telecoms regulations drive location platform deployments European emergency call and privacy regulations LBS regulatory environment in the US Emergency call regulations in Australia Emergency call regulations in Canada Emergency call regulations in Japan 2 Technology overview 2.1 Mobile network location platforms Location architecture for GSM/UMTS networks Location architecture for LTE networks Control Plane and User Plane location platforms OMA SUPL OMA SUPL OMA SUPL Network-based positioning technologies Cell-ID Enhanced Cell-ID and RF Pattern Matching methods E-OTD and OTDOA Uplink Time Difference of Arrival (U-TDOA) Location platforms and technologies in 3GPP2 networks Location in converged IP networks 2.3 GNSS and hybrid location technologies GNSS: GPS, GLONASS, Galileo and Compass Assisted GPS and A-GNSS Hybrid, mixed mode and indoor location technologies 2.4 Theoretical limitations of positioning technologies 3 Commercial deployments 3.1 Platform deployments in Europe Group Deutsche Telekom Group KPN Group Orange Group Telecom Italia Mobile Telefónica Group Telenor Group TeliaSonera Group Vodafone Group 3.2 Platform deployments in the Americas AT&T Mobility Bell Mobility Rogers Wireless Sprint Nextel TELUS Verizon Wireless Wind Mobile 3.3 Platform deployments in Asia-Pacific BSNL China Mobile NTT DoCoMo Telstra Telkomsel 3.4 Platform deployments in ROW 4 Market forecasts and trends 4.1 LBS market trends Emergency call mandates remain the key driver for platform deployments Location-enabled lawful intercept LBS service revenue forecast 4.2 Handset market trends Smartphones GPS attach rates driven by higher smartphone sales Proliferation of GPS-enabled GSM/ WCDMA handset models GPS-enabled GSM/WCDMA handset shipment forecasts by segment 4.3 Location platform deployments Vendor market shares GMLC and SMLC platform deployment forecasts SUPL A-GPS server deployment forecast Location middleware deployment forecast 5 Location platform and technology vendor profiles 5.1 Location platform and infrastructure vendors Alcatel-Lucent CommScope Creativity Software Ericsson Mobile Arts Nokia Siemens Networks Oksijen Openwave Redknee Septier TeleCommunication Systems TruePosition 5.2 Location technology developers Broadcom CSR GBSD Technologies GloPos Technologies Intersec Location Labs Navizon Polaris Wireless Pole Star Qualcomm Rx Networks Skyhook Wireless 5.3 Middleware vendors CellVision Genasys Mobilaris Reach-U Telenity Glossary

12 About the Author LBS Research Series André Malm is a Senior Analyst with a Masters degree from Chalmers University of Technology. He joined Berg Insight in 2006 and his areas of expertise include locationbased services, wireless M2M and personal navigation services. Berg Insight offers premier business intelligence to the telecom industry. We produce concise reports providing key facts and strategic insights about pivotal developments in our focus areas. From time to time we also perform custom research assignments. Our vision is to be the most valuable source of intelligence for our customers. Who should buy this report? Related products LBS Platforms and Technologies is the foremost source of information about this market in all major regions. Whether you are a vendor, telecom operator, investor, consultant, application developer or government agency, you will gain valuable insights from our in-depth research. Mobile Location-Based Services Mobile Navigation Services Personal Navigation Devices The Global Wireless M2M Market Berg Insight AB - No. 75 Order form TO RECEIVE YOUR COPY OF LBS Platforms and Technologies You can place your order in the following alternative ways: 1. Place your order online in our web shop at 2. Fax this order sheet to us at fax number: Mail this order sheet to us at: Berg Insight AB, Viktoriagatan 3, Gothenburg, Sweden 4. your order to: info@berginsight.com 5. Phone us at Choose type of format Paper copy EUR PDF 1-5 user license EUR PDF corporate license EUR Family/Surname Forename Position Company Address Country Postcode Telephone FAX VAT is chargeable on all orders from Sweden. Orders from all other countries in the European Union must include the buyer s VAT Registration number below in order to avoid the addition of VAT. Your PO number Your VAT/TVA/IVA/BTW/MWST number Please charge my credit card VISA Mastercard Card number Cardholder s name Billing address Signature Expiry date (MM/YY) / CV code Reports will be dispatched once full payment has been received. For any enquiries regarding this, please contact us. Payment may be made by credit card, cheque made payable to Berg Insight AB, Viktoriagatan 3, Gothenburg, Sweden or by direct bank transfer to Skandinaviska Enskilda Banken, Stockholm, Sweden. Postcode Country Account Holder: Berg Insight AB Account number: BIC/SWIFT: ESSESESS IBAN: SE We enclose our cheque payable to Berg Insight AB Please invoice me Signature Date Berg Insight AB, Viktoriagatan 3, SE Gothenburg, Sweden Phone Fax info@berginsight.com

13 NGT Research Series Handset Connectivity Technologies Handset Connectivity Technologies is the second consecutive report from Berg Insight analysing the latest trends on the world wide market for GNSS, Bluetooth, WLAN and NFC technologies in mobile handsets. This report in the NGT Research Series from Berg Insight provides you with 120 pages of unique business intelligence including 5-year industry forecasts and expert commentary on which to base your business decisions. This report will allow you to: Profit from numerous executive interviews with market leading companies. Identify the opportunities and challenges with integration of new connectivity technologies in mobile handsets. Learn about the strategies of the leading chipset and handset vendors. Understand the drivers and barriers for industry-wide adoption of new technology. Predict future connectivity design trends and technology developments. Realize the importance of Assisted-GPS and hybrid location technologies. Comprehend how NFC technology in handsets can enable new services. Order now! Please visit our web site to order this report and find more information about our other titles at See inside for further details Berg Insight s NGT Research Series How will the mobile market evolve in the future? Berg Insight s Next Generation Technologies Research Series examines the latest advances in mobile technology and the new business opportunities they create. Each title analyses development roadmaps, potential applications and addressable market segments for a technology. Topics currently covered by the series include smartphones, femtocells, mobile broad band and short-range handset connectivity.

14 NGT Research Series Which connectivity technologies will be standard in future handsets? Handset shipments grew 8 percent in 2010 to 1.3 billion units as the world economy started to recover. Mobile phones can be divided into segments based on price or device capabilities. A broad distinction can be made between smartphones that support native third party applications and featurephones that do not. Smartphones is the fastest growing segment with shipments increasing almost 74 percent in 2010 to 295 million units. Smartphones are receiving more attention from handset manufacturers, network operators and application developers. Handset vendors adopt smartphone operating systems in order to reduce development time and cost for new advanced handset models. Operators promote smartphones that drive adoption of postpaid subscriptions and data plans. Both handset vendors and operators also strive to attract developers that can bring additional revenues and customer interest from their applications. Most importantly, an increasing number of users are now discovering how smartphones can act as personal computing devices enabling access to the mobile web and applications, besides voice and text services. The attach rates for wireless connectivity technologies including Bluetooth, WLAN and GPS in handsets are increasing steadily as the adoption of smartphones accelerates. Bluetooth is now a standard feature on most featurephones and virtually all smartphones. An estimated 900 million Bluetooth-enabled handsets shipped in 2010 and the attach rate grew to about 70 percent across all handset segments. WLAN connectivity, which is gaining support from most operators as a means to offload data traffic from cellular networks, has grown to about 80 percent in the smartphone segment in However, the attach rate for WLAN is still less than 3 percent in the featurephone segment. Starting in the second half of 2011, more handsets supporting the Near Field Communication (NFC) standard for short-range wireless, point-to-point communication between devices will also become available. When deployed in mobile phones, NFC can be used for countless applications, ranging from information exchange, electronic ticketing and payment, to simple device pairing for establishing Bluetooth or WLAN connections. Technical developments enabling GPS integration in mass-market handsets was driven by the FCC s E911 emergency call mandates requiring all US mobile operators to provide high-accuracy location of emergency calls. CDMA and iden operators chose to use GPS technology, which led to a high penetration of GPS in iden and CDMA handsets in North America and other parts of the world where CDMA is % Projected attach rate for handset connectivity technologies (World ) Year widely deployed. Emergency call regulation is being introduced in other regions as well. Canada has chosen to stipulate location accuracy requirements as in the US, while no such rules are yet in place in Europe where Cell-ID-type location accuracy is enough for compliance today. The number of GPS-enabled GSM/WCDMA handset models is growing fast. The number of models from tier-1 vendors available on the market has grown from four in 2005 to more than 170 at the end of Since 2008, all tier-1 vendors have shipped GPS-enabled GSM/ WCDMA phones for markets worldwide. Sales of GPS-enabled GSM/ WCDMA handsets grew from 150 million devices in 2009 to an estimated 265 million units in Berg Insight forecasts that shipments of GPS-enabled GSM/WCDMA/LTE handsets will grow to 940 million units in 2015, representing an attach rate of 61 percent. Including handsets based on other air interface standards such as CDMA and iden, GPS-enabled handsets sales are estimated to reach about 1,090 million, or 64 percent of total handset shipments in GPS technology for handsets has matured, offering much better performance in terms of sensitivity, power consumption, size and price than was possible a few years ago. Support for other satellite systems such as GLONASS, Galileo and Compass will also be added over time. The first handsets with receivers for GPS and GLONASS are already available and mobile phones with Galileo compatible receivers can be expected in greater numbers in 2014 when the new system will become operational. Besides adding support for more satellite systems that ensures additional visible satellites and incrementally better performance in urban canyons, handset vendors are also starting to adopt hybrid location technologies to improve indoor performance. These technologies combine GPS with other wireless and sensor-based technologies, including Wi-Fi positioning, accelerometers, gyroscopes or electronic compasses to improve performance in challenging environments were GPS signals are extremely weak or unavailable. This report answers the following questions: What is driving the adoption of GPS technology in GSM/ WCDMA handsets? What are the benefits with Assisted-GPS, A-GNSS and hybrid location technologies? How will Bluetooth evolve in the future handset environment? What is the roadmap for integration of WLAN in mass-market mobile phones? When will NFC become a widespread handset connectivity technology? Which connectivity technologies are being adopted by the main handset manufacturers? What impact will new technologies have on the wireless chipset value chain? How is the greater diversity of radios affecting wireless chipset and handset design? Who are the leading developers of cellular and connectivity chipsets?

15 Table of Contents 1 Mobile handsets and smartphones 1.1 Introduction 1.2 Wireless communication technologies Cellular communication technologies Personal and local area networks Spectrum and interference 1.3 Broadcast connectivity technologies Radio Mobile TV Global navigation satellite systems 1.4 Connectivity technology integration in handsets Handset hardware and software platforms Horizontal and vertical integration of connectivity technologies 1.5 Overview of handset segments Growing end-user demand for smartphones Popular handset categories and form factors Evolution of smartphone input mechanisms and user interfaces Best selling smartphones in Handset connectivity trends Wireless connectivity attach rates driven by higher smartphone sales Proliferation of GPS-enabled GSM/ WCDMA handset models NFC is the next new connectivity technology for handsets 2 Handset platform vendors 2.1 The handset chipset industry Industry consolidation continues Handset baseband vendors Connectivity chipset vendors Sensor IC vendors 2.2 Cellular platform vendor profiles Broadcom Intel Marvell MediaTek Qualcomm Renesas Electronics ST-Ericsson 3 GNSS technologies 3.1 Overview of global navigation satellite systems Global Positioning System (GPS) Galileo GLONASS Compass/Beidou Mobile location technologies and platforms Mobile location platforms Control plane and user plane location platforms Assisted GPS and GNSS Hybrid and mixed mode technologies 3.3 GPS and GNSS chipsets for handsets Standalone receivers Host-based receivers Integrated receiver architectures Software-based receivers GPS IC vendor market shares 3.4 GNSS chipset and software vendors CellGuide SkyTraq u-blox 4 Bluetooth, mobile Wireless LAN and NFC technologies 4.1 Bluetooth technology Bluetooth specifications Bluetooth applications and profiles 4.2 Wireless LAN technologies IEEE WLAN standards WLAN in mobile phones WLAN handset shipments WLAN chipset vendor market shares 4.3 Near Field Communication technologies NFC Forum specifications NFC modes NFC solution architectures and chipsets NFC mobile payment trials and initiatives 4.4 Connectivity chipset vendor profiles CSR INSIDE Secure Nanoradio NXP Semiconductors STMicroelectronics Texas Instruments 5 Handset manufacturers 5.1 The handset market in Device shipments reach new record Smartphone sales drive handset revenues to an all-time high 5.2 Nokia Device portfolio Handset shipments 5.3 Samsung Electronics Device portfolio Handset shipments 5.4 LG Electronics Device portfolio Handset shipments 5.5 Research In Motion Device portfolio Handset shipments 5.6 Apple Device portfolio Handset shipments 5.7 Sony Ericsson Device portfolio Handset shipments 5.8 Motorola Device portfolio Handset shipments 5.9 HTC Device portfolio Handset shipments 5.10 Second tier handset vendors Acer Dell Fujitsu Toshiba Mobile Communications Hewlett Packard Huawei Kyocera Sanyo Telecom Lenovo Mobile Communications NEC Casio Mobile Communications Panasonic Mobile Communications Pantech Sharp TCL Communication ZTE 6 Market trends and forecasts 6.1 Market trends Focus on smartphones among vendors and operators is growing Changing demands drives consolidation in the wireless chipset industry Cost requirements drive development of integrated chipsets Further performance improvements from hybrid location technologies 6.2 Handset shipments and market shares Smartphone shipments by OS Smartphone shipments by vendor GPS-enabled handset shipments by vendor 6.3 Handset shipment forecasts Handset shipment forecasts by primary access technology Handset shipment forecasts by feature and price segment GPS-enabled GSM/WCDMA handset shipment forecasts by segment GPS handset shipment forecasts by geographical region WLAN-enabled handset shipment forecasts NFC handset shipment forecasts 6.4 Connectivity chipset shipments and revenue forecasts GPS receiver solution revenue forecasts Bluetooth and WLAN chipset revenue forecasts Glossary

16 About the Author NGT Research Series André Malm is a Senior Analyst with a Masters degree from Chalmers University of Technology. He joined Berg Insight in 2006 and his areas of expertise include locationbased services, handset technologies and wireless M2M markets. Berg Insight offers premier business intelligence to the telecom industry. We produce concise reports providing key facts and strategic insights about pivotal developments in our focus areas. From time to time we also perform custom research assignments. Our vision is to be the most valuable source of intelligence for our customers. Who should buy this report? Related products Handset Connectivity Technologies is the foremost source of information about this market. Whether you are a telecom vendor, mobile operator, manufacturer, investor, consultant, application developer or government agency, you will gain valuable insights from our in-depth research. Mobile Navigation Services Mobile Location-Based Services LBS Platforms and Technologies Smartphone Markets and Technologies Berg Insight AB - No. 65 Order form TO RECEIVE YOUR COPY OF Handset Connectivity Technologies You can place your order in the following alternative ways: 1. Place your order online in our web shop at 2. Fax this order sheet to us at fax number: Mail this order sheet to us at: Berg Insight AB, Viktoriagatan 3, Gothenburg, Sweden 4. your order to: info@berginsight.com 5. Phone us at Choose type of format Paper copy EUR PDF 1-5 user license EUR PDF corporate license EUR Family/Surname Forename Position Company Address Country Postcode Telephone FAX VAT is chargeable on all orders from Sweden. Orders from all other countries in the European Union must include the buyer s VAT Registration number below in order to avoid the addition of VAT. Your PO number Your VAT/TVA/IVA/BTW/MWST number Please charge my credit card VISA Mastercard Card number Cardholder s name Billing address Signature Expiry date (MM/YY) / CV code Reports will be dispatched once full payment has been received. For any enquiries regarding this, please contact us. Payment may be made by credit card, cheque made payable to Berg Insight AB, Viktoriagatan 3, Gothenburg, Sweden or by direct bank transfer to Skandinaviska Enskilda Banken, Stockholm, Sweden. Postcode Country Account Holder: Berg Insight AB Account number: BIC/SWIFT: ESSESESS IBAN: SE We enclose our cheque payable to Berg Insight AB Please invoice me Signature Date Berg Insight AB, Viktoriagatan 3, SE Gothenburg, Sweden Phone Fax info@berginsight.com