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Deloitte predict ‘LBS the mobile killer app…2007’?

Location Based Services (LBS), the wireless ‘killer app’, remember the hype on the back of the FCC’s 911 communications act 1999? Articles from the fool, at the height of the last dot com boom talking about LBS, potentially a $40 billion dollar market by 2006? Well according to Deloitte, LBS is back, and it’s well positioned to be the mobile killer application in 2007 – oh, but they’ve changed the name, it’s now Presence Based Services (PBS).

Over the weekend I read an article from the Technology, Media and Telecommunications group at Deloitte that was published last month and discusses some of their predictions for 2007.

Deloitte TMT Predictions

Their boldest suggestion is the notion that the internet will grind to a halt in 2007, as the pipes currently in place will struggle to cope with the ever increasing number of videos, maps and globes we want to stream across the web*. In light of this problem, a resolution will have to be found to the net neutrality debate.

Supporters of net neutrality, suggest the proposed plans for prioritising some web traffic, over other web traffic, has little to do with covering the cost of maintaining the network, it’s just a guise for the telephone companies (Telco’s) to grab a bigger slice of the pie – currently being eaten predominately by Google (and one or two other online companies). Telco’s, both wired and wireless, are under pressure to deliver increased returns to shareholders; with this in mind Deloitte consider some killer applications that could help them do this, and for mobile operators in 2007 that could mean delivering on the hype of ‘Presence Based Services’.

The report is well worth a read, some random points I found interesting are bulleted below:

  • The volume of traffic flowing over the World’s largest Internet hub in Amsterdam, which caries 20% of all of Europe’s Internet traffic, grew at a compound monthly average of 7.4% in 2006.

  • Daily traffic at the exchange exceeded one petabyte in Feb 2007, it’s expected the exceed two petabytes per day by Oct 2007.

  • In 2002 adult internet penetration in the USA hit 60%, it was another 4 years before it clocked 70%.

  • The PC is acting as a bottle neck to the internet, as there is usually only one per house, members of the household are prevented from accessing the internet at the same time. This should spawn the development of other lower cost devices that provide access to the Internet at the same time as the PC (e.g. radio’s & video phones).

  • Mobile TV won’t work – mobile operators should concentrate on getting content (e.g. pictures & movie clips) off the mobile to more suitable devices (e.g. widescreen TV’s) if they want to boost revenue.


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