Mobile subscribers in Europe that use location-based services are expected to number more than 100 million by 2012, according to a new report from the telecom research firm Berg Insight. The top applications are believed to be mapping, navigation, and search followed by social networking and tracking. “All the pieces needed for successful LBS are more or less in place now”, said André Malm, telecom analyst, Berg Insight.

Mr. Malm added, “GPS is about to become a standard feature in mass-market handsets which are highly advanced and support third party applications. Many will try and a few players will most likely succeed in creating location-enabled mobile applications that will have the same impact on the mobile industry as MySpace and Facebook had on the Internet.” High adoption rates will however not immediately translate into high revenues. LBS providers are going to have to depend on advertising sales in the same way as other online players. The mobile advertising eco-system is still undeveloped and needs many more years to become mature. “First there must be a critical mass of active users to work with, then someone must create a successful model for reaching out to these individuals via their handsets and after that the mobile media must be embraced by the top spenders in the advertising industry,”

About Berg Insight

Berg Insight offers premier business intelligence to the telecom industry. We produce concise reports providing key facts and strategic insights about pivotal developments in our focus areas. Our vision is to be the most valuable source of intelligence for our customers.

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