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Has GPS enabled Mobile Social Networking arrived??

In the middle of November I blogged that Boost Mobile (subsidiary of Sprint Nextel) had launched a mobile buddy finder application called Boost Loopt.  This weekend I saw ads for the service plastered on ESPN.  It was a cool ad, playing off of the Boost "Where you at?" tag line.  Two guys go back and forth asking each other where they're at....next you see their locations as dots on the screen.  The ad concludes with a call to action to text the word "dots" to the short code BOOST - 26678. 

So, main stream marketing does not necessarily mean that a product category has arrived, but it looks like Boost is putting a lot of effort behind the ad campaign.  Soon after the launch Boost boasted 40,000 users on Boost Loopt.  I wonder what they have today.

Comcast gets into the Cell phone business

Last week, Comcast announced that they are beginning to offer cell phone service through Sprint in the Boston area.  While this goal has been widely know, there was an interesting piece in this story at Reuters that included the following comment: "Comcast is offering wireless as an add-on for subscribers of its "triple play" package of cable TV, telephone and Internet services. The price is $33 a month for 200 minutes and such services as voicemail, navigation and call forwarding."  Interesting to note that the $33 service will include navigation.  I know that Sprint offers navigation services from MapQuest, Telenav, Garmin and Rand McNally.  I wonder if one of them got a deal to bundle in the service. 

20 Million Buddy/Friend/Family Finder users by 2011

According to a press release from ABI Research, the mobile friend and family finder  market in North America will reach 20 million by 2011.  ABI is estimating 500,000 users on currently deployed solutions such as Sprint Family Locator , Verizon Wireless Chaperone, Family Locator from Disney, and other recently launched services such as Helio's Buddy Beacon.  According to the research, the customer base for these services will more than double every year for the next 5 years. 

The press release is a sales pitch for the full blown research report, so it is unclear what will drive the growth, but the release does mention the expectation that GSM operators (read: Cingular) will begin to deploy location based services in 2007.   

Thursday Thought - Google

So, it has been a while since I have had a thought...a Thursday Thought that is.  My every week idea has slipped to once a quarter...I will work on that. 

So, I just read the cNet News.com interview with Deep Nishar, Dir of Product Management at Google.  The title of the article is "Google's ambitions going mobile."  I thought that it has been an interesting few weeks with regards to Google and their mobile ambitions. 

First, Eric Schmidt, Google’s CEO in an interview with Reuters says that cell phones should be free.    He said that cell phones are becoming more like personal computers, and that advertising should be a viable form of subsidy.

Next, we hear from Chris Sacca, head of special initiatives at Google, criticizing cell phone carriers for attempting to block Google from delivering their downloadable applications to carrier customers.   

So Mr. Schmidt wants carriers to give the phones away for free, very much implying that the future revenue stream on mobile devices is in advertising.  I am curious about the "advertising should make them free" model.  The last catalog that I got from Dell was not offering free computers so that I can search for stuff on Google.  The Best Buy catalog was not offering free HDTVs so that I can watch TV ads.  I understand the objective, and think that this may be an early salvo for Google to test the waters of the concept of offering their own phones.  I have long believed that they would have their name etched onto the outside of a phone, not just on an app that appears therein. 

Then Mr. Sacca is complaining that the carriers are trying to block Googles access to their customers.  Was this an attempt to paint the carriers into a corner? -  The internet is free, tear down those walled gardens and give us your customers.  Mr. Sacca feels that a carrier wanting to have some control over what a subscriber downloads to their handset has "scary, scary implications".   From a carrier perspective, the notion of hundreds of thousands of phone calls into their customer service call centers (vs. the application developers) when the applications do not work have scary implications. 

Next, Mr. Nishar discusses location based services as the "second big category we are focusing on".   Not too much of a surprise here.  LBS and advertising will go hand in hand.  LBS will increase the value of an ad impression exponentially.  The cell phone makes things individual, the location makes things relevant.  Advertisers will pay top dollar for both.  When asked what is next for Google in the mobile market, Mr. Nishar says "I think you'll see us do more with location-based services, like developing more locally flavored products."   Advertising is Googles product. 

So, free phones + carrier compliance + location flavored products = huge mobile advertising push for Google.  Think about it...there are many more cell phones connected to the internet worldwide than there are computers.  Google's business model is advertising.  In order to sustain their dominant position in the advertising business, Google needs to dive deep into mobile. 

The question...err Thought that I have is this, will Google, and if so when, make a strong move into the mobile space?  When will we see a Google MVNO branded Moto RaZR offered for $10 per month with unlimited advertising?  I think it is on the horizon.  What do you think?

InfoSpace offers 60 day free trial

In the increasingly competitive space of mobile local search, InfoSpace just announced a 60 day free trial of their Find It service.  Based on a new clip on RCRNews.com the Find It service offers "GPS-enabled local search, spoken turn-by-turn directions, help in locating Wi-Fi hot spots, and local event listings. It also offers up-to-date movie listings and the ability to make phone calls with one click instead of dialing a full number".   

The free trial is available only to Sprint's Power Vision Subscribers.   InfoSpace's site gives the following instructions:

If you are a Sprint or Nextel Power Vision subscriber, you can download the 60 Day Free Trial of InfoSpace Find It! Plus.

Visit the Get It! section to get directions on how to download the Free Trial!

More NAVTEQ news

In a press release on Monday, NAVTEQ announced the availability of a new service that will allow retail merchants direct access to the NAVTEQ database to update information related to their locations.  Dubbed NAVTEQ Direct Access, this service will enable companies like Starbucks, Walgreens, and other to make real time updates to the data every time they open or close a location.  Now JAVA crazed people will have a chance to find a closer Starbucks to get their fix, as Starbucks opens another 2,400 stores next year.

I found this news release interesting for two reasons.  1. How will users of a PND get updates?  I guess they will come loaded on the new cards/CDs that consumers will have to buy to get the updates.  I wonder if NAVTEQ is considering a model to get the merchants to pay for the updates decreasing the update downside of standalone PNDs.  Alas, there is probably too much profit in those razor blades...I mean update CDs.  2. Will this lead to advertising in PNDs?  If merchants are granted access to update their information, could they update it with coming soon messages - a form of advertising?  Will they be granted categorical advertising access?  hmmm...this one could get interesting.

Navteq buys Traffic.com

Earlier this month NAVTEQ announced that they were purchasing Traffic.com.  Price tag on the deal is $179 million a mix of cash and stock. 

From the press release:

“Our focus is on enhancing our map with content that brings the map to life and increases the utility and convenience of navigation devices.  We have long believed in the value of traffic data and this acquisition is a natural and logical progression for NAVTEQ,” said Judson Green, President and CEO of NAVTEQ.  “Traffic.com brings a stream of high-quality, proprietary traffic content and a unique technology platform for the delivery of this and potentially other content.   Combined, the two companies have the potential to create and deliver advanced dynamic content that will fuel the next generation of location-enabled applications.”

NAVTEQ has fully baked Traffic.com data into their content offering.  Was this a protective move to ensure they have control of traffic content going forward (Traffic.com was 50% off the IPO price at the time of this deal)?  Or, was it a competitive move?  There are other data sources for Traffic on the market.  Was this the best use of funds?  The PR also says that Traffic.com is a "critical data component".   Is the witness leading the jury?

GPS Article in Wireless Week

An interesting article highlighted the cover of Wireless Week in the latest print edition - click here for article. The article, written by Brad Smith, was titled GPS: the Mobile Way.  The article takes a stab at challenging the in car navigation business, saying that navigation from a GPS enabled mobile cell phone is better.  A few points that highlight the argument include the cost – it is cheaper to run and update navigation apps on a cell phone than embedded.   Also, cell phone based navigation systems are not powered on the handset, rather they are networked application which eliminate the need to buy expensive cards to update the systems database.

It was a good and thorough article; however it excluded comments from Sprint Nextel who has led the way with GPS on cell phones.  A major focus was on TeleNav, and there was no mention of Garmin, Rand McNally, MapQuest and others who are in the space.  Did these guys not return calls for comment?  I wonder. 

Some interesting highlights include:

• Qualcomm is stating that they have shipped over 200 million handsets with embedded GPS via their gpsONE technology.
• Ken Hyers of ABI Research says that there are 12 million subscribers worldwide utilizing GPS on their cell phone.  He expects that number to reach 315 million in 5 years.
• IMS Research is predicting a 40% compound annual growth rate (CAGR) in revenues attributed to cellular based GPS applications.
• Cingular, who recently launched TeleNavs navigation application has been pleased with the results - "Based on our plans, we are ahead of our sales expectations," Laura Johnson senior director of enterprise solutions.
• Verizon is claiming that their pricing model for VZ Navigator is one of the reasons that it is so popular with subscribers.  Verizon offers the service for $2.99 for 24 hours of usage.
• Rob Rovetta of Qualcomm thinks that we will be seeing more social networking applications in the future…buddy finders and date finders.

Interesting GPS article in NY Times

There was an interesting article in the New York Times this weekend on the increase in the number of GPS enabled application that are finding homes on cell phones.  The article highlights that growth and sophistication in the applications that will pin point your location on a map, show us local movie theaters, guide us to nearby restaurants, and more.  The author, Randall Stross, further highlights recent product launches by Sprints Boost Mobile with the social networking application called Loopt (blogged here), and Buddy Beacon, a friend finder from startup Helio (blogged here). 

The article continues to give a general overview of the applications, highlighting the security/privacy  aspects of each - showing that the Helio application does not automatically provide updates, and the Boost application allows for updated location posting at 15 minute intervals. The author then takes a clear turn to the Big Brother privacy angle and highlights how easy it could be for your location information to be shared without your knowledge, highlighting the highly publicized Hewlett Packard scandal. 

To his credit, Mr. Stross highlights the Wireless Communications and Public Safety Act of 1999,  which brought the e911 mandate to wireless carriers.  The mandate requires wireless carriers (at varying degrees of of accuracy and over a period of time)  to provide the location to first responders/ and law enforcement in the event of a 911 call, and in some other situations.  I have not found any stats on the success of the element of the act, but undoubtedly it has saved lives.  In this act, Congress also deemed location information as protected as CPNI (consumer proprietary network information).  The author did not point out however that in July 2002, the FCC passed their Final Order on CPNI.  The order require the express consent or opt-in by a customer before a carrier can release their information to a third party.  While not rock solid (due to the "affiliates language" that remains somewhat vague), I think carriers understand that they need your permission to release your location data to another person/entity. 

While a good article, I don't like the negative implications of the GPS services.  They are built by companies that want to help people connect with others.  There are features built in that allow you to turn off your location, or disable the application from updating your location.  Further, these apps require that the subscriber invite others into their group, thus controlling who can locate them.    Rather than the negative, it would be great to see some press on how these applications are helping people keep in touch - and I would love to see stats on e911 if anyone knows where to find them.

Helio's Buddy Beacon

As previously blogged, Helio recently launched a buddy finder application called Buddy Beacon.  The app was developed by Walt Doyle and the crew at uLocate.  I asked Walt the significance of this launch and he said that he "is excited to see the continued momentum in the wireless LBS space.”   I am too.

Check out the latest Helio commercial that features Buddy Beacon - link here on You Tube.