Polaris sees interest picking up in location-based services
Business News Americas
December 31st, 2010
Location-based service software provider Polaris is expecting operator interest in location to soar in Latin America in 2011, driven by its potential use for social networking and friend finding, mobile advertising, and combating crime, the company's VP of international sales, Pedro Sotomayor, told BNamericas.
According to the executive, initial experiences with location-based technology several years ago put off many people, as accuracy was very relative. But accuracy has improved, and Polaris has been honing its focus on Latin America in the last six months.
Today, most location-based solutions require the user to either have a GPS-enabled phone - which Sotomayor believes is less than 5% of Latin American mobile users - or the operator to have equipment in the base stations.
Polaris believes it has an attractive solution because it is software-based and requires neither of the above.
Mike Doherty, Polaris' product marketing and communications director, told BNamericas that the company's technology can pinpoint a mobile device within 50m. The solution has been used widely by the US government in anti-terrorism initiatives and also in locating callers using the 911 emergency number.
The US is one of the few countries where law requires operators to include a solution that enables the devices to be located for 911 purposes.
"We live in the server. We don't need to deploy equipment in each and every cell site. Unlike GPS, our solution does not require any equipment within the device, which means you can locate any device anywhere in the network, not just a GPS-specific one," Doherty said.
"So when used for anti-terrorism, anti-criminal types of applications become important because the bad guys can't disable the device, meaning they can still be located."
Sotomayor added that offering a non-GPS solution has its advantages in predominantly prepaid markets like Latin America, where most customers tend to buy the cheapest handsets, which are not GPS enabled.
ABI Research has predicted that Latin America's location service market could double to more than US$4bn in 2014, from US$2bn in 2010.
According to Polaris, the most popular uses of location service are tracking people and pets, and mapping and navigation.
GOVERNMENT AND COMMERCIAL USE
Governments in Chile, Brazil and Colombia have expressed interest in adopting the solution to help with national emergencies and combating crime, Sotomayor said.
Brazil in particular has to introduce international security standards ahead of its hosting the World Cup in 2014 and the Summer Olympics in 2016, he added.
Friend- and family finder solutions have been popular services in the US, and Sotomayor sees the same potential in Latin America.
Also, location is becoming a popular trend with social networking sites, as users want to let their followers know where they are every time they check in.
The company has not reached any contracts with operators in Latin America, but it is in discussions with America Movil (NYSE: AMX), Telefonica (NYSE: TEF) and Entel Chile, and expects the first deal in the region to be signed in late 2011 or early 2012.
As regards mobile advertising, retailers can locate potential customers as they pass by their stores and send them promotions. This implies that accuracy of the location is key.
Regulation obliging operators to incorporate location services is one way of boosting use of the service. However, it is difficult to oblige powerful companies like America Movil and Telefonica if there is nothing in it for them, Sotomayor said. But if the operators can combine generating revenues with providing a service that brings a benefit to society, they are more likely to play ball.
