Mobile Telephone Owners Are Ready For Location-Based Services
59 % of owners are interested in location-based services
59 % of owners are interested in location-based services
Paris - Services that are linked to the location of mobile telephone owners (city guides, movie theaters, restaurants and other practical services and local businesses, etc.) could become a decisive competitive advantage for telecommunications and portal site operators.
According to a survey conducted by MORI/Demoscopie in France for AirFlash, the leading supplier of development platforms for mobile Internet applications related to user location, 59% of the owners of mobile telephones said they were interested in this type of service. And 44% of owners interested in such services said they would be willing to switch operators in order to have access to them. This compares with 26% of this group who said they might change operators before the additional services were discussed. Clearly, this new service offering is a means for increasing customer loyalty and attracting new customers.
Quickly locating the nearest services, such as movie theaters, bars, ATMs, gas stations, etc., was considered the most appealing feature (for 52% of those interested in location-based services). In addition, 46% of those questioned said they would like to be able to share information with friends and indicate their present location.
Of the potential users, 44% also said they would like to be able to find the nearest taxi stand or emergency service. Ordering gifts or making restaurant reservations at the last minute was appealing to 36%. And 19% of this group said they thought that intelligent mobile services would help them work more efficiently, while 5% felt that they would be more attractive if they had a mobile phone featuring these new functions!
While users said they are willing to pay for the new services, they wanted to avoid large increases in their bills. Of those interested in the service, 14% said they would be willing to pay 60 FF or more extra per month, this group alone representing at least 120m FF per month in potential revenue. And 20% of the users wanted to have these new services without paying any additional charges.
These services also offer a new advertising avenue. 52% of those interested in the services discussed said they would appreciate ads for last-minute offers (shows, sports events, etc.) at cut rates. Information on local services (e.g., restaurants) or on department store sales would also be welcomed by 36% and 29% of the users. Only 20% of them said they would not want to receive any such messages.
Since almost half of the French population now owns mobile telephones, these figures reveal promising growth prospects for telecommunications and portal operators. With users showing such a high interest potential, such services also offer mobile telephone operators a way to boost their customer loyalty.
"This study shows that the market is ripe for the introduction of user location-based services and that these services can be economically viable," said Rama Aysola, chairman and founder of AirFlash.
The Survey
The survey was conducted by MORI (Great Britain)/Demoscopie for AirFlash in December 2000 on a sample of 1,000 adults (428 mobile phone owners) aged 15 and over, with interviews held in France. The same survey was conducted simultaneously in Great Britain and in Germany, where the findings were similar.
