1. What Developers Need to Know AboutLaunching Location-Based Services July 2, 2007Blair Swedeen

2. About Partenza Consulting Founded in August 2006 to focus on providing clients Location-BasedServices (LBS) product strategy and business development expertise. Eight total years of experience in product strategy, management,marketing for software and content products. Four years experience in LBS working with: Application Developers Middleware Providers Content providers Device Makers Wireless Carriers Local Search Portals Unique value proposition: LBS experience cutting across allLBS channels, geographies and value chain positions 2Copyright 2007 Partenza Consulting. All Rights Reserved 3. Questions for Discussion Today What is LBS? What makes LBS different for developers? Why should I consider developing an LBS app? Whats the LBS market look like? How do I get started developing my own LBS app? What are some of the challenges in LBS? What about Europe? Most importantly ask questions! 3 Copyright 2007 Partenza Consulting. All Rights Reserved 4. What is Mobile LBS? Mobile Location-based services (LBS) allow end-users to answer questions such as: Where am I? Whats near me? Where is ______? How do I get there? 31 When did Bobby leave school? This is accomplished through the 2 combination of some or all of the following technologies: GeoSpatial software Spatial databases (Assisted) GPS Wireless data networks Mobile applications 4 Copyright 2007 Partenza Consulting. All Rights Reserved 5. Why LBS? Consumers Want It5 Copyright 2007 Partenza Consulting. All Rights Reserved 6. Why LBS? Largest Revenue Generator in Downloadable App CategoryApplication Category Share of Downloadable Revenue10%All National Carriers, US 4% Location Based Services 31% Weather 7% Sports Wallpaper/Pics Music Maps/Directions 9%PIM/Tools Chat/Community Other 8% 13%9%Source: Telephia Mobile Applications Report Q1 20079% 6 Copyright 2007 Partenza Consulting. All Rights Reserved 7. Why LBS? Significant Price Premium in the Downloadable Apps Space All National Carriers 30.0% $10 Q107, US $8.25 Share of Downloads$8 Avg Price Paid 20.0% $5.31 $6$4.74 $4.29$4.12$3.93$3.39$4 10.0%$2 0.0% $0S rt s icer s nsLBlsre us th ooo io tu eaMSp ct ic/TW ir e /Per er /D izan aps aprg lpM al OWalon rs Pe *Total revenue received in Q107, covering downloads and subscription feesSource: Telephia Mobile Applications Report Q1 20077 Copyright 2007 Partenza Consulting. All Rights Reserved 8. Whats Next? Location is Moving from a Vertical Stand- alone Application to a Horizontal Supporting Multiple Apps Turn-by-turn Navigation ServiceWorkforce Management Comparison ShoppingSocial Networking Active LifestyleENABLER of ENABLER of Location AwarenessLocation Awareness8 Copyright 2007 Partenza Consulting. All Rights Reserved 9. As a Result, There are Now Many Different Types of LBS Apps Consumer EnterpriseNavigation Vertical-specific InsuranceFamily TrackerSocial NetworkingConstructionTransportationShopping/Coupons Real EstateActive LifestyleMobile Local SearchWorkforce managementReal Estate Search Fleet dispatch & trackingImagingStolen vehicle trackingGaming 9Copyright 2007 Partenza Consulting. All Rights Reserved 10. Enterprise Has Very Different Functional Requirements than ConsumerMobile asset and people tracking1 Route optimization and generation2Schedule management3 Workflow management (paperless order processing)4Integration with back-office ERP/inventory systems5Business models also differ greatly. Enterprise requiresdirect sales force and large marketing budget.10Copyright 2007 Partenza Consulting. All Rights Reserved 11. What Makes LBS Different? Assisted-GPS.GPS satellites Time To First Fix Normal GPS- Outdoor 45 - 120sec.- Indoor N/AAssisted GPS Assisted GPS -- Outdoor 1 -- 5 s. Outdoor 1 5 s. -- Indoor 10 -- 30 s. Reference Indoor 10 30 s. ReferenceNetworkAGPS ServerAGPS Server Assistance data: -GPS Time -Visible satellites -Ephemeris data (position) -Almanac dataA-GPS Makes LBS a True Client-Server Network Service Source: BlueSky Positioning11 Copyright 2007 Partenza Consulting. All Rights Reserved 12. Whats the NA LBS Market Look Like?Developers GPS Chipsets Handset OS/Dev PlatformBranded Carriers CustomersTier 1Enterprises Handset Makers Tier 2 White LabelLBS Platform Spatial Content ConsumersInternet Brands Location Server Internet Brands Off-deckOn-deckNon-GPSWindows GeoSpatial PlatformLive Search 12Copyright 2007 Partenza Consulting. All Rights Reserved 13. What Does the LBS Platform Do? GeoSpatial Platform Provides the database management technology for location based services: Searching Geocoding Map Rendering Navigation/Route CalculationMiddleware Communicates with the Carriers internal systems and manages those functions not related to the core geo-spatial actions Location determination interfaces Authentication and Privacy Hooks into carrier billing systems Messaging interfaces (SMS, MMS) Content managementSpatial Databases Provides all the necessary Map and POI data for a location-based service Verizon mandates NAVTEQ Sprint allows developer to choose between TA and NTLocation Server Provides API to access the subscribers A-GPS Lat/Long Defined by carrier13Copyright 2007 Partenza Consulting. All Rights Reserved 14. Developer Programs Essential to Shortening Time to Market and Assisting in MarketingSeveral players have developer programs with LBS support: Geospatial Platforms Autodesk: http://usa.autodesk.com/adsk/servlet/index?siteID=123112&id=7764394 deCarta: http://www.decarta.com/products/dz/index.html ESRI: http://www.esri.com/industries/locationservices/business/enterprise.html Carriers Sprint: https://developer.sprint.com/site/global/develop/technologies/location_based_serv/p_lbs.jsp Verizon/US Cellular (BREW): http://brew.qualcomm.com Alltel: http://developer.alltel.com Handset Makers Motorola: http://developer.motorola.com Samsung: http://developer.samsungmobile.com Nokia/S60: http://www.forum.nokia.com Map Providers NAVTEQ: http://developer.navteq.com/site/global/home/p_home.jsp TeleAtlas: https://developerlink.teleatlas.com/index.cfm?ses=1 OS/Dev Environments BREW: http://brew.qualcomm.com/brew/en/developer/resources/dev_resources.html Microsoft: http://msdn.microsoft.com/mobility/default.aspx Symbian: http://developer.symbian.com 14 Copyright 2007 Partenza Consulting. All Rights Reserved 15. To Be Successful, You Must Build Your Business Case Market Analysis Is there a large defined market opportunity? Who are you targeting to buy the service? Is your solution unique and differentiated vis--vis the competition? How will you market and sell the application?Product What pain point are you solving? Will it meet the privacy requirements from the carriers? Could your grandmother use it? Are you a mass market or a niche application? Consider your scope carefully and be specific about what you do that is better.Launching with Carriers1 Align sufficient financial backing to support the service once its launched. Dont oversell what you have to carriers. Admit what youve accomplished versus trying to sell what is really a work in progress. Align yourself with good partners to introduce you to carriers. 1. Paul Reddick, 10 Tips for Startups Who Want to Work With Sprint 15 Copyright 2007 Partenza Consulting. All Rights Reserved 16. A Quick Word About Europe EU expected to be second largest LBS market after US, but is at earliest stages Virtually no A-GPS infrastructure Very few GPS handsetsNavigation, Local Search and Enterprise expected to be largest app opportunitiesHandset makers will likely dominate Swappable SIM cards ~50% pre-paid data and voice High cross-country data roaming charges means on-board more attractive Fragmented carrier base Consumers used to autonomous GPS and on-board distributionNokia has early lead Purchased Gate5 navigation software vendor Adding GPS to entire N-Series within 1 2 years Nokias Series 60 client UI contains all the handset interfaces for A-GPS and LBSEU LBS market could now ramp up quickly Europe poised to adopt E-112 regulation which will mandate positioning a la E-911 within 18 months New technologies such as SIM A-GPS and software-only GPS mean vastly improved economics for adding GPS.16 Copyright 2007 Partenza Consulting. All Rights Reserved 17. Challenges in Getting to MarketExpect to test, test, and test some more1Handset differencesInfrastructure differences for location dataSpatial data issuesDifferent players own and operate different components Limited distribution optionsVerizon pursuing carrier-branded strategy, and have filled much of their current LBS needs2Sprint more open with open ecosystem approachTier 2 BREW carriers such as US Cellular and Alltel can be a good place to start Cost per device goes up as you add locationPorting becoming a larger issue as more handsets support GPSCertification covers signal strength, power, compliance for privacy standards, etc.Its very difficult to track down all of the issues you run into, and it ultimately falls on the developer. Its a long process. Be prepared and be persistent! 1. Kevin Tsurutome, TCS, BREW Conference 2007 2. Barry Ross, Verizon, BREW Conference 2007 17 Copyright 2007 Partenza Consulting. All Rights Reserved 18. Contact Info Blair Swedeen Partenza Consulting e: blair@partenzaconsulting.com o: +1.415.513.5650 m: +1.773.727.1375 w: http://www.partenzaconsulting.comPresentation will be made available at http://www.partenzaconsulting.com.Thanks and good luck!18 Copyright 2007 Partenza Consulting. All Rights Reserved