ESRI User Conference LBS Challenge Summary July Robert Gourdine Marketing Director Internet/Wireless Marketing

Transcription

1 ESRI User Conference LBS Challenge Summary July 2005 Robert Gourdine Marketing Director Internet/Wireless Marketing

2 Wireless Carrier Perspective Robert Gourdine Marketing Director Internet/Wireless Marketing

3 Carriers Have Clear Business Rationale for LBS Compensation for continuing commodization of voice revenues Increase in Average Revenue Per User (ARPU) through higher data penetration Stabilization of Churn Leverage of E911 Mandate Investment get milk from the cow Protect market capitalization on the Street meet expectations of continuous growth 8/4/2005 3

4 LBS is Key to Long Term ARPU for Carriers Advanced data services will generate incremental ARPU ARPU/month (dollars) $80 $70 $60 $50 $40 $30 $20 $10 $0 $51.00 Wireless Voice Service ARPU $39.43 Projection with wireless advanced LBS $47.69 $29.60 Projection without Wireless Advanced LBS /4/ Source: CTIA and Forrester Research

5 Key Drivers for Commercial LBS Wall Street demands ever increasing carrier ARPU which direct carriers towards data services E911 initiative is creating baseline and critical mass of location-ready devices* Embedded GPS in CDMA handsets A location-aware application is all that s needed to turn device into ARPU enhancing vehicle Carrier Technology Subscribers Est d % GPS Capable Est d Population of GPS-Capable Handsets Verizon Wireless CDMA 43.8 million ~80% 35.0 million Sprint PCS CDMA 21.3 million ~80% 17.0 million Nextel iden 15.0 million ~70% 10.5 million Alltel CDMA 10.1 million ~70% 7.0 million Cingular GSM, TDMA 50.4 million ~0% 0 T-Mobile GSM 10.4 million ~ mil 8/4/ * Based on 10K s and FCC Quarterly Compliance reports Q104- Q105

6 LBS Market Inhibitors/Risks Lack of understanding of high ARPU services and lack of service breadth Delays of FCC e911 technical implementations Current limitations in bandwidth and supporting devices Standards and interoperability issues Privacy/security perceptions Consumer demand + willingness to pay Regulatory environment Verizon Wireless LBS 2005 Nextel 9+ Available LBS Solutions Sprint -??? In process Cared for Open areas 8/4/2005 6

7 Many Possibilities for Location - Enabled Services.. Vertical Advanced LBS Ecosystem Potential Scope In Vehicle Navigator Primary solutions focus scope Pedestrian Navigator Find A Friend Track My Movement Locate My Child Location Based Commerce Location Based Entertainment Complexity Implementation and Device Location Based Messaging Location Aware Push To Talk Horizontal Opportunities Area 8/4/2005 7

8 .. But Few Surfaced in Market Vertical Advanced LBS Ecosystem Potential Scope In Vehicle Navigator Pedestrian Navigator Find A Friend Track My Movement Locate My Child Location Based Commerce Location Based Entertainment Complexity Implementation and Device Location Based Messaging Location Aware Push To Talk Horizontal 8/4/ e.g. NuvoStudios

9 Facilitating Location From the Rear At far left of value chain, NAVTEQ has little influence on basic technical and regulatory areas or demand Map Data Application Developer Platform Provider Wireless Carrier However, as a major component in any location-enabled solution, we are well positioned to facilitate/stimulate development of wider range of solutions In 2003, together with pioneering partner ESRI, we kicked off LBS Challenge program to this end Program expanded globally in and to be expanded in /4/2005 9

10 Global LBS Challenge Invest in the Future

11 Global LBS Challenge Overview Objectives The NAVTEQ Global LBS Challenge is a program designed to stimulate the development of creative location-enabled applications in the wireless space By proactively investing in stimulating this market segment category the wireless segment benefits in a number of ways: Surfaces the best developer talent and supports raising the quality bar for solutions Provides showcase opportunities from small talented companies to get on radar of wireless carriers with little or no financial risk Creates a defacto ecosystem of creative, location-enabled solutions Provides carriers with resource effective vehicle for getting first look at the future and solution sets that will drive their ARPU 8/4/

12 Global LBS Challenge Overview Structured as contest with definitive rules $450k in cash/prizes to winners Open to application developers from selected countries Submitted solutions could not be commercially available prior to final awards event High profile kickoff event held at CTIA in Fall 2004 Final official judging and awards ceremony took place at CTIA in New Orleans March /4/

13 Global LBS Challenge Overview Judges selected from across the Wireless Industry including wireless carriers, technology providers and industry insider evaluate a series of solutions from LBS application developers and solution providers. Solutions judged in one of six categories: 1. Personal Security 2. Peer to Peer / Find Me 3. Navigation/POI Look Up/Traffic 4. Commerce/Advertising/Buying/Billing 5. Asset Tracking/Field Services 6. Gaming/Location Based Imaging Up to 3 semi-finalists from each category invited to CTIA for final official judging Winners awarded for each of the six categories and a grand prize winner selected from the winners across the categories cash and prizes including free NAVTEQ data licenses 8/4/

14 Official Judges GPS World HP MapQuest Motorola Nextel Sprint Microsoft US Cellular XM Satellite Radio * Based on key learnings from program 8/4/

15 Event Maturity and Growth Sponsors Registrants Submissions/Winners Winners /4/

16 Profile of Winners 8/4/

17 Profile of Winners (cont.) 8/4/

18 Build on Success What happens to participants from past programs? 3 companies integral part of 2005 major carrier launch 1 company being embedded into Nextel devices (Televigation) 1 company prominently featured on deck of Canadian carrier 2 companies received venture capital funding after exposure from the Challenge 8/4/

19 Look Ahead to Challenge Program will be further globalized and expanded into Europe Two programs under one umbrella There will be two divisions: NA overall winner, EU overall winner Parallel categories in EU and NA $400k + in cash and prizes to winners (per continent) Six individual category winners in EU and NA Electronic registration available in lobby at NAVTEQ kiosk NA will have formal kickoff event at CTIA in September 05 and awards event at CTIA March 06 EU will culminate with judging/awards event at GSM World Congress in February 06 8/4/

20 Global LBS Challenge Category Summary Navigation/Traffic e.g. applications that provide directions and/or traffic. POI look-up is a feature of these type of applications. Social Networking e.g. peer and find me applications that enables a person to actively communicate where one is or will be. Personal Security/Safety e.g. applications related to child/senior monitoring, safety alerts, and location. Leisure/Entertainment e.g. applications related to travel, athletics, location imaging and gaming. Asset Track/Field Services e.g. business applications related to inventory and people to function efficiently. Commerce e.g. advertising, buying, and billing applications for B to C interaction. 8/4/

21 Why Participate? Exposure Media Carriers Peers Access to new business opportunities Financial Cash 1 year free data licensing agreement ($75k value) 8/4/

22 QUESTIONS?