Global Off-Deck LBS Application Activations to Exceed 260 Million in 2010, Says ABI Research

LONDON--(Business Wire)--
The surging popularity enjoyed by affordable off-deck LBS applications is
creating new momentum, a more open environment, and increased competition in a
location industry that has long been dominated by carriers offering expensive
subscription-based on-deck services. ABI Research expects off-deck LBS
application downloads to increase to more than 260 million in 2010 and to reach
almost two billion by 2014.

"The main drivers of this off-deck LBS revolution are the sudden rise in
popularity of a new generation of touch-screen GPS-enabled smartphones, combined
with a wide range of application stores launched by handset and mobile operating
system vendors," says ABI Research practice director Dominique Bonte. "While
Apple has set the stage with the iPhone/iTunes platform, it is now being copied
by Google (Android), RIM, Nokia (Symbian), and Microsoft (Windows Mobile),
allowing smaller LBS developers to compete with traditional off-deck LBS players
such as Telenav, Networks in Motion, and Loopt. This competition results from a
lower cost structure based on crowd-sourced location content, advertising-funded
business models, alternative positioning technologies, and viral marketing
techniques."

However, the nascent off-deck LBS environment is already threatened by looming
fragmentation both within and between platforms, and by increasing uncertainty
surrounding viable business models, with the ubiquitous freemium and ad-funded
approaches illustrating end users` limited willingness to pay. Google`s recent
announcement offering free turn-by-turn navigation on Android phones has cast
further doubt on the prospects for monetizing off-deck LBS, while at the same
time undermining the valuation of established hardware players such as Garmin
and TomTom, despite both companies recently having launched handset-based
products.

While stand-alone off-deck LBS applications will continue to flourish in the
coming years, in the longer term they will be gradually replaced by embedded
location services such as geo-enabled browsers, location-aware messaging,
micro-blogging and other mobile services: these integrated solutions will offer
a superior user experience to the average consumer, compared with downloading
and managing a portfolio of separate applications.

ABI Research`s new "Off-Deck LBS" (http://www.abiresearch.com/research/1004494)
study examines the drivers behind this fast-growing segment. It includes
descriptions of off-deck LBS pricing, business models, and value chains
technologies, players, and activation and revenue forecasts per region, LBS
application category and smartphone platform. This report is part of the
Location Based Services Research Service
(http://www.abiresearch.com/products/service/SE-LBS).

ABI Research provides in-depth analysis and quantitative forecasting of trends
in global connectivity and other emerging technologies. From offices in North
America, Europe and Asia, ABI Research`s worldwide team of experts advise
thousands of decision makers through 27 research and advisory services. Est.
1990. For more information visit www.abiresearch.com, or call +1.516.624.2500.

ABI Research
Christine Gallen, +44.203.326.0142
pr@abiresearch.com

Copyright Business Wire 2009