1. LOCATION-BASED SERVICES Presented by Alan Reiter President, Wireless Internet & Mobile Computing reiter@wirelessinternet.com 301-715-3678

2. THE FIVE-DAY SCHEDULE January 3: The location-based revolution January 4: Multiple location technologies January 5: Precarious privacy & security pitfalls January 6: Bankruptcy versus bounty: Bottom-line challenges January 7: Paradise or panopticon: Location’s fuzzy future

3. JAN. 3: LOCATION-BASED SERVICES The location-based revolution We have progressed from huge tracking devices costing cost tens of thousands of dollars that could fit only in trucks to tiny chips that cost less than $10. Literally hundreds of location-based products and software are available for consumers, enterprises, and even pets. It's a multi-billion dollar global business that offers tremendous benefits as well as significant dangers, and affects almost everyone.

4. EXPLOSION IN NUMBER OF USES, PROGRAMS Vertical market Tracking pallets and packages, taxis, trucks, airplanes, field service workers, railroad cars, farm machinery, shipping containers, hospital equipment, pallets, banking, and stock transactions

5. EXPLOSION IN NUMBER OF USES, PROGRAMS Horizontal market Locate children/the elderly/pets, locate “nearest” (ATM, gas station, restaurant, tourist attraction), emergency calls, turn-by turn directions, shopping apps, electronic guide books/augmented reality, social networking, advertising Smartphones dominate, not specialized vertical devices

6. WHY LOCATION SERVICES NOW? Federal Communications Commission requirements for E-911 For handset-based location 50 meters for 67% of calls, 150 meters for 95% For network-based location 100 meters for 67% of calls, 300 meters for 95% Almost two-thirds of E-911 calls from cellular, but up to 40% don’t provide accurate location data FCC continues to look at location for Next Generation E-911 VoIP location requirement?

7. WHY LOCATION SERVICES NOW? Europe’s E112 initiatives + law enforcement initiatives European location platforms (servers, middleware) will grow from €18 million in 2009 to €35 million in 2015 – Berg Insight Multiple location technologies and decreasing technology costs Decreasing costs of smartphones combined with decreasing costs of GPS chips

8. WHY LOCATION SERVICES NOW? Free or inexpensive location services Google Bing Nokia Voice navigation Critical mass of applications Cellular operator navigation, free navigation, “check-in” apps, cellphone locator apps (MobileMe), social networking location, location games

9. SIMPLEGEO All applications can contain location data Information about places, demographics, schools, congressional districts – all free

10. INCREASING NUMBERS OF GPS PHONES Berg Insight: GSM/WCDMA phones shipped 2009: 150 million 2014: 770 million

11. HUGE NUMBER OF LOCATION-ENABLED PHONES Source: iSuppli

12. LOCATION NOT JUST IN PHONES iSuppli 2014: 18% of laptops and 42% of portable video game players will incorporate GPS

13. WHO’S USING LOCATION? Pew Internet Location survey August 9, 2010 - September 13, 2010 3,001 people surveyed, 18 years old and older 4% of adults online use a location service such as Foursquare or Gowalla 6% men, 3% women 1% of Internet users use these services every day

14. PEW RESEARCH CENTER

16. FORRESTER RESEARCH: ONLINE ADULTS USING LOCATION

17. WELL KNOWN LOCATION APPS GROWING, BUT STILL MODEST Foursquare: 5 million Google Latitude: 9 million Facebook Places: 30 million Twitter: 145 million Facebook: 500 million+

18. WHAT ARE PEOPLE DOING WITH LOCATION? JiWire Mobile Audience Insights Report JiWire’s WiFi database: More than 315,000 hotspots in 140 countries

19. LOCATION NOT JUST AIMED AT MALE TECHIES Disney + Gowalla venture 100 new stamps/pins now and 100 more later this year for checking in at Walt Disney World and Disney Resorts Check-ins, maps, mini-itineraries Win rewards, virtual goods

20. TREMENDOUS CHALLENGES AHEAD Developing more accurate location technology, especially in major cities (GPS problems) and indoors (ditto) Creating sustainable business models Balancing need for users’ information to generate revenues (e.g., for advertisers) with privacy/security concerns

21. MORE TREMENDOUS CHALLENGES Ensuring government agencies can access location data when absolutely necessary, but not going on unwarranted “fishing expeditions” Ensuring consumers and businesses understand the value – and dangers – of location services Living in a world with almost ubiquitous tracking and less privacy

22. THANK YOU! Alan Reiter reiter@wirelessinternet.com