Fixed Mobile Convergence

According to SNL Kagan, a comprehensive resource for financial intelligence in the media and communications sector, there was bound to be a rapid increase in the number of active users of Location based Services in the United States, up from 12.3 million in 2009 and predicted to hit 33.2 million at the end of 2010.

This dramatic rise has been attributed largely to the equally dramatic rise in smartphone adoption. The number of subscribers using smartphones is predicted to touch 41 percent at the end of 2010, and was expected to rise to 50 percent at the end of 2011.

Although advertising for LBS was still in the nascent stage, and revenues for the top six companies was expected to total only $11.9 million at the end of 2010, analyst John Fletcher noted “Cashing out from checking in will largely come from advertising and promotions as the services have a unique ability to communicate with users while they are on the town with wallets and purses in tow. For now, most social location networks are currently pursuing a land grab and focusing on growing users to attract advertisers.”

The study reveals that location-aware social networks were beginning to lure consumers and the leading six companies combined for a total of 18.1 million registered users as of Sept. 2010.

Economics of Location-Based Services provides an in-depth look at LBS, including user projections, business models, mobile advertising projections and company profiles. This study and others are available exclusively as part of the SNL Kagan Unlimited Information Service.