Wireless Location Services Will Generate More Than US$ 81.9 Billion For European Cellular Operators by 2005 - report from the Strategis Group - Industry Trend or Event

Cambridge Telcom Report, April 10, 2000

Over the next five years, wireless location services will generate more than US$ 81.9 billion in service revenues for the European cellular operators in the top 12 European markets, The Strategis Group estimates in a new report, European Wireless Location Services.

"Wireless location technologies will become a crucial tool for providing the right service, at the right time, for the right location to their mobile customers. In the fast approaching age of the wireless Internet, end users will not want to pay wireless Internet charges for non-relevant information. Cellular operators must be able to deliver pertinent and accessible information to their customers," said Jake Saunders, Regional Director for The Strategis Group Europe.

Total Wireless Location Services Users (Millions)

                 2000      2001    2002      2003      2004   2005
Location-based   5.4       14.     28.8     50.5      73.9     98.1
Billing
Location-based   2.5       27.7    77.     132.4     180.1    216.6
Information
Roadside
 Assistance      1.6        4.2     8.9     17.8      27.5     37.8

Traffic &
 Navigation      2.2        5.5    11.5     21.5      32.7     44.8

Source: The Strategis Group, Inc.

There are essentially four types of wireless location service (WLS): * Trigger Services are automatically initiated when the end user is monitored as having entered a pre-determined area. Examples include location-based billing and advertising services.

* Location-based Information Services include any application whereby requested information is delivered based on the location of the user.

* Third Party Tracking Services include both corporate and consumer applications, whereby information regarding the location of a third party is required. Examples include fleet management, asset tracking, and 'people finding'.

* End User Assistance Services are low-usage services designed to provide the end user with a safety net should they be placed in difficulty.

Examples include roadside assistance and emergency services. In the short-term, European cellular operators will use their existing network capabilities to offer cell identification-based WLS to their customers. Once customers have become familiar with using their mobile phones to browse and request information, European cellular operators will invest in either a network-based wireless location technology solution or handset-based technology solution such as GPS. "It is quite a big market to play for," commented Jamie Moss, an analyst with The Strategis Group. "GPS-based solutions have the potential to deliver very high positioning accuracy, but are not available in handsets at the present time. Network-based solutions, on the other hand, are generally less precise, require significant network investment, but can invariably use existing subscriber handsets."

The Strategis Group interviewed approximately 75 percent of the 40 mobile operators in Europe's top 12 markets. The subscriber bases of these operators represent 81 percent of all Eastern and Western European subscribers. In terms of interest in WLS technologies, 38 percent of the operators stated that they were seriously evaluating network-based solutions to support future services, 28 percent also said they were evaluating a GPS solution, and 9 percent stated that cell ID technology could still be used for future WLS.

"The Strategis Group believes 2000 will be a watershed year for the development of location-based wireless services for the European market," said Stephan Beckert, Director of Wireless Data for The Strategis Group. "Many of the operators interviewed by The Strategis Group said they would have a definitive location-services strategy before the year is out."

The Strategis Group, with offices in Washington, D.C., London and Singapore, publishes in-depth industry research reports, provides customized consulting services and supplies continuous information solutions to the cable TV, satellite, Internet, competitive telephony, broadband and wireless communications industries. European Wireless Location Services is available in electronic and print formats.