Subject: [NEXTEL-1] In-Stat/MDR Reports Location-Based Services to Generate Millions, Not Billions of Dollars

From: Marcel <[email-masked]>
Date: Tue, 19 Nov 2002 18:00:47 -0500

In-Stat/MDR Reports Location-Based Services to Generate Millions, Not Billions of Dollars
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In-Stat/MDR Reports Location-Based Services to Generate Millions, Not Billions of Dollars

SCOTTSDALE, Ariz., Nov. 18 /PRNewswire-FirstCall/ -- Even though the total
addressable market for offering location based services (LBS) will be large
through 2006, the actual potential of that market will actually be quite
small, according to In-Stat/MDR ( http://www.instat.com ). The high-tech
market research firm reports that, despite the fact that practically every
American wireless subscriber will be able to receive highly accurate location
information on their mobile phones by 2005, the cost to carriers of this
compliance will total in the billions of dollars and it is highly unlikely
that US carriers will achieve break-even on this investment before the end of
the decade.
"US wireless carriers should look at every opportunity to find relief from
the US government for the costs of complying with the FCC's E911 mandate,"
says Ken Hyers, a Senior Analyst with In-Stat/MDR. "In addition, these
carriers should explore applications and services that use LBS and cultivate
the developer community to create these applications and services, with the
aim of training customers to adopt and use LBS as quickly as possible in order
to speed the point at which carriers can begin to see a return on their
location investment." However, In-Stat/MDR believes that the opportunity for
revenue for wireless carriers from location-based services will be quite small
through 2006, and can be measured in millions, not billions, of dollars.

In-Stat/MDR has also found that:

-- In Japan, where there are often no street names or addresses except
on main roads, there is a high demand for location-based services.

-- In Western Europe, where some less precise location-based services
are now available, less than 1% of revenue for location providers
comes from mobile users.

-- The revenue opportunity for wireless carriers for location-based
services is expected to grow from $5 million in 2002 to more than
$167 million in 2006. Revenues will grow through the adoption of
various services, especially of those that are non-intrusive and are
initiated by the user.

-- While the E911 mandate is US based, In-Stat/MDR expects location
services to continue to be rolled out in other countries as well.

-- The total addressable market of location-enabled subscribers by 2006
will top 1.3 billion subscribers. However, in earlier years of
In-Stat/MDR's forecast (2003 - 2004) when network based solutions are
less precise, the addressable market will actually be much less,
comprising, primarily, GPS enabled subscribers, which will make up 14%
and 26% of the total wireless subscriber base.

The report, "Location, Location, Location: Meeting the E911 Mandate and
Monetizing Location Based Services" (#IN020260WP), summarizes the progress
made by US mobile carriers to comply with the FCC's E911 mandate, and more
particularly, their compliance, and expected compliance, with Phase II of the
mandate. This report provides detailed forecasts through 2006 of the number
of mobile subscribers that will be covered by the mandate, and breaks these
forecasts out by Tier I wireless carriers, as well as total wireless carriers,
and by airlink. To purchase this report, or for more information, please
visit http://www.instat.com/catalog/cat-wp.htm or contact Erin McKeighan;
[email-masked] at 480.609.4551. The report is priced at
$3,995 USD.

In-Stat/MDR ( http://www.instat.com ) offers a broad range of information
resources and analytical assets to technology vendors, service providers,
technology professionals, and market specialists worldwide. The company
stands alone in its ability to integrate both supply-side and demand-side
research methodologies into a single comprehensive view of technology markets
and products. This capability relies on a unique ability to cover the entire
value chain from engineering-level technology, through equipment,
infrastructure, services and end-users.

In-Stat/MDR is part of the Reed Electronics Group, a division of Reed
Elsevier ( http://www.reedelsevier.com ), a world-leading publisher and information
provider. With over 38,000 employees worldwide, Reed Elsevier operates in the
science & medical, legal, education and business-to-business industry sectors,
providing high value and flexible information solutions to professional end
users, with increasing emphasis on the Internet.

For further information please contact: Kenneth Hyers, Senior Analyst -
Mobile Commerce, +1-617-558-4528, [email-masked], or Kirsten Skedd,
Marketing Manager, +1-480-609-4534, [email-masked], both of
In-Stat/MDR

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SOURCE In-Stat/MDR

Web Site: http://www.instat.com

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