3G offers potential for LBS in China

15 Oct 2008

3G network trials during the first half of the year have brought opportunities for location-based services (LBS) in China but challenges still exists, according to CCID Consulting.

Although there are a lot of defects during the trial, TD-SCDMA networks developed a huge market space for LBS services, according to a recent CCID report.

Getting along with China Mobile's strengthening on TD-SCDMA network construction and the release of 3G licenses, the LBS industry is sure to enter a rapid growth period.

Mobile phone maps, mobile navigation, together with mobile payment and mobile search have been the key products in China Mobile's telecommunications value added service lists.

The relatively low popularity degree of mobile phone maps and navigation means considerable development space, which will be the new growth point for operators, CCID said.

According to CCID, statistics show that the market scale of LBS reached 485 million in the first half of 2008.

LBS services refer to value added services that are provided by operators to provide location, navigation, and other services to mobile phone users through SMS, WAP, and other methods.

The three most important roles in the LBS industry are map providers, software providers, and operators. CCID stressed the importance collaboration between these three types of players.

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