Research Firms Predicts Growth in Mobile Nav Users

A European research firm has predicted that there is bound to be increase in the number of subscribers who use their mobile phones to download navigation routes. This is based on the recent trend of interest shown by users who possess GPS enabled mobile phones. According to the firm,the number will grow from 16 million users in 2008 at a compound annual growth rate (CAGR) of 27.9 percent to reach 70 million users in 2014, all things being equal. The firm also offered that revenue from subscriptions and advertisements will reach €597 million ($747.8 million) by 2014 from €177 million ($221.7 million) in 2008, a CAGR of 22.4 percent. According to the report several important drivers are finally about to bring a breakthrough for LBS in Europe. With mobile penetration reaching saturation, intensified competition and regulations driving call prices down, mobile network operators increasingly seek new ways of maintaining revenue growth. Increased focus on delivering value added services, including various location-based services, is one means of achieving this. The performance of new handsets is gradually improving, with a growing share of handsets featuring larger displays with higher resolution.
In a statement made available by André Malm, telecom analyst, Berg Insight "The mobile industry is now starting to reap the benefits from the introduction of GPS enabled handsets. However, most mobile navigation users only use the service during a free trial period. The key challenge will be to convert these test-users into paying subscribers." In the meantime, he U.S. market has continued to grow to a level of 6 million active subscribers of mobile navigation services in the second quarter of 2008. The anticipated launch of GPS enabled handsets by GSM operators AT&T and T-Mobile USA will drive further growth in 2009.