Wireless carriers are increasingly being pushed out of the location-based services market by companies like Nokia and Google, according to the latest research from Strategy Analytics.
The research firm says that while operators have long focused on offering navigation services, people locators, and point of interest databases, the proliferation of GPS-enabled handsets, location databases like those from Skyhook Wireless and Navizon, as well as third-party application stores, is driving user adoption outside of their control.
Nokia and Google are the two companies Strategy Analytics pinpoints as being the biggest threat to providers.
“Nokia has made significant moves in location-based services through its acquisition of mapping data provider, Navteq, and smaller companies, such as Plazes and bit-side. Nokia’s significant handset market share, combined with its ability to integrate location applications onto its handsets, places it in a strong position to compete with carrier and internet brands for ownership of location service users. Similarly, Google’s significant brand strength and carrier independent location positioning database threatens to disintermediate the operator from the location services value chain,” said David MacQueen, Director of Strategy Analytics.
The firm estimates that the LBS market will grow to $8 billion by 2013 and 80 percent of revenue will be generated from third-party navigation applications.