Business Models and Social Legal Aspects of LBS

8/8/2019 Business Models and Social Legal Aspects of LBS

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ISHTAR - IST-2004-015929-SSA

ISHTAR Project

Business Models & Socio-Legal Aspects of LBSJoint ISHTAR/LIAISON Workshop28-29 September, 2006 - Athens


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Presentation Contents

Socio-legal Aspects of LBSLBS Business ModelsLBS Forum


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LBS Penetration Drivers

IncomeFirst approximation for average citizenscapacity to buy location-based servicesIndicator: Gross National Income (GNI)Categories (source: World Bank, 2004 WorldDevelopment Indicators):

High Income Economies: GNI $56,000Upper Middle Income Economies: $56,000 GNI $37,000Lower Middle Income Economies: $3000 GNI $750Lower Income Economies: GNI $750


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LBS Penetration DriversHuman Development

GNI does not indicate goods, services or distributionof equitable incomeHuman Development Index (HMI)3 Basic Dimensions of Human Development (sources:

United Nations development report, 2004)Life ExpectancyAdult Literacy RateStandard of Living (measure by GDP)

Categories:High Human DevelopmentMedium Human DevelopmentLow Human Development


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LBS Penetration DriversTechnological Affinity

Technological Achievement Index (TAI) definedby UN Human Development Office4 Dimensions of Technological Capacity:

Creation of Technology

Diffusion of Recent InnovationsDiffusion of Old InnovationsHuman Skills

Categories

LeadersPotential LeadersDynamic AdoptersMarginalised Countries


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LBS Penetration Drivers

UrbanisationConcentration of people in urban areasHigh density of population lowers cost of providing servicesWorld Population Prospect actual andforecast urbanisation level of eachcountry (Dept of Economic and SocialAffairs, Population Division - UNSecretariat)


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Ethical IssuesControl - Issues arise mainly in workplace

Personal data collected and/or stored should:Not be processed to control behaviour or monitor workprogress of individual workersBe subject to workers consentBe used exclusively for the purpose of the serviceNot be kept longer than is required of the serviceNot be made available to third partiesBe protected from misuse

Continuous monitoring should be permitted if necessary for health, safety, security or protection of the worker


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Ethical IssuesTrust

Perceived reliability of the technology and service providerReliance on the service in planned usage situationsUser confidence that he/she can keep the service under controland that personal data will not be misused

PrivacyPrivacy attributes should be defined by user

Codeword/passwordPrivacy Exception List determines which services may haveaccess to position information of subscribers terminalService Type PrivacyPrivacy Override Indicator (emergency services, lawfulinterception, etc.)


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EU Legislations

Data Protection Directive 95/46/ECData Protection in the TelecommunicationsSector Directive 97/66/ECProcessing of Personal Data and Protectionof Privacy in Electronic CommunicationsDirective 2002/55/ECProcessing of personal data has to complywith legal rules resulting from the nationaltranspositions of the EU-Directives


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LBS Added-Value Chain


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Terminals

FeaturesCommunication CapabilitiesLocation Technologies (Handset-based includes GPS receiver)

ApplicationsHardware (screen size, battery life, etc.)

ActorsHandset Vendors/ManufacturersTechnology Vendors


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Network Element

FeaturesCommunicationLocation Technologies (Networks-based Cell ID, triangulation, etc.)

ActorsMobile Network Operators


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LBS Infrastructure

FeaturesLocation ServerGeospatial Platform

ActorsLocation Platform VendorsGeospatial Platform Vendors


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Content/Services

FeaturesGIS Content

MapsPoints of InterestDirectory/Information servicesShopping

ActorsContent/Service Providers, Distributors,Aggregators


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LBS Business Models

Network Operator-Centric ModelSubscriber is in agreement with networkoperator to provide:

Telecommunication services

Value-added services (offered by any of theactors in the value-chain)Network Operator responsible for:

Service & Content AggregationCollecting Charging InformationProviding a Single Bill


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LBS Business Models

Service/Content Provider-CentricModel

Service/Content Provider comes intoagreement with network provider for

delivery of contentSubscriber charged directly byservice/content providerRevenue sharing between networkoperator and services provider based oncommercial aggreements


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LBS Business Models

Service/Content Aggregator-Centric ModelService/Content Aggregator is responsible forproviding subscribers with services and accessto content/servicesSubscriber contracts with service/content

aggregator and network providerService/Content Aggregator defines prices,collects charging information and chargessubscriber for transport part as well

Revenue sharing between network operator andservice/content aggregator based on commercialagreements


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LBS Revenue-SharingStreams

User FeesCharging of subscribers for thecontent they access

Per UsageSubscription

Shopping products within vicinityof subscriber sold over the mobileInternet (e.g. restaurants, cinematickets, etc.)


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LBS Revenue-SharingStreams

Advertising sending of adds to subscribers which

are sensitive to their location, current weathercondition, time of day, etc.Advertisers send fee to services providers for addingadvertising info to content sent to subscribers in theform of:

Traffic-based feesFlat fees

Marketing sending of notification to subscribers foritems of interest when in vicinity of suchRevenue Sharing distribution of revenues betweenthe various actors


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Lack of LBS take-off in Europe

Fear of being tracked

High price of servicesNot much interest in existing services (except fornavigation)Lack of cooperation between companies in LBStechnologiesLarge LBS value chain making cooperation amongstplayers complicatedLack of handover between out-door and in-doorpositioning technologies

(source: Positioning Location Based Services for Take-Off article)


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Integration/Successof LBS

Existing IN Services are profitable forOperatorsNeed to integrate LBS with these for

successful adoption of LBSExample: IST Project Mobile-INHarmonised Services over

Heterogeneous Mobile, IN and WLANInfrastructures


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Example Application- My favourite Pizza


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LBS Forum

Users Group to enable people fromall aspects of LBS to come togetherand discuss (among other things)LBS!Currently, there is a need for LBSawareness actions

Forum: place where these actions canbe performed


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Roles

Board: consisting of representatives from

each player in the value chainMembers of the LBS Forum nurture from:

Regularly updated information on new

developments in the LBS ArenaSpecial Access to DemonstrationsClose networking between LBS Key Players


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QUESTIONS?

Documents

Business Models and Social Legal Aspects of LBS