By Rafay Khan

SPEAK to any technology pundit and they will agree that location-based services (LBS) are taking the world by storm. Some of the first LBS were launched commercially in Japan (in 2001), and then grew quickly in North America and Europe.

We have already seen GPS-enabled handsets and personal navigation devices (PNDs) proliferate in Asia, and with the rapid launch of 3G services, we can expect the opportunities for LBS offerings to grow dramatically for developers, entrepreneurs and service providers.

The first example of a widespread LBS application in Asia is likely to be point-to-point navigation, as consumer demand for more accurate and intelligent routing is becoming a standard. However, it is important to note that LBS go far beyond routing from point A to point B; opportunities for innovation are limitless.

Given the premise that the first big LBS application to be adopted in the Asia-Pacific region (APAC) will be navigation, it is interesting to note some of the research recently conducted by NAVTEQ among North American and west European GPS navigation users. In two separate studies, results indicate a strong demand for dynamic LBS information such as traffic, weather, parking and fuel pricing. It is reasonable to extrapolate that these LBS will also be sought after in APAC.

Another area of LBS growth that may prove very useful for APAC consumers is real estate, given the many burgeoning urban markets in the region. An example of a location-based real estate service to examine is Smarter Agent, a company based in the United States. This company successfully developed a line of services for real estate agents that allows users to sort through the highly fragmented and confusing world of real estate. The dynamic, location-relevant content allows agents to learn about the properties, neighbourhoods and interesting places around them as well as get in touch with nearby contacts and services.

Personal safety is another area where companies are achieving success. UbiEst, an Italian company, developed a service called UbiSafe, an application which manages a user's personal security, including the whereabouts of emergency contacts. Among other things, users can monitor the movements of a child or an elderly relative by setting a geographic security radius - essentially a safe area within which they want the person to remain.

We are also seeing more and more LBS developed specifically for enterprise use. For example, Coca-Cola in Australia worked with map database and route optimisation specialists to strategically plan the movements of its 900-strong vehicle fleet to maximise efficiency. This has enabled Coca-Cola Amatil to deliver more than 150 million cartons a year to over 100,000 locations nationwide. In addition to mapping out its delivery routes and sales team movements with greater accuracy, the intelligent route planning has helped to improve customer service, cost savings and safety. This example highlights the logistical benefits of detailed digital maps for organisations with a large vehicle fleet or mobile workforce.

Organisations planning the movements of their mobile workforce or vehicle fleet emphasise the importance of accuracy. Without detailed map data, the accuracy of the route and the travel time are less reliable.

Developer events provide a gauge for key trends in various vertical segments. This year, a NAVTEQ-organised contest took place in Singapore for the first time, and social networking and user-generated content were two of the biggest trends that emerged for the Asia-Pacific region. This is no surprise given the pervasiveness of sophisticated handheld devices and the tech-savvy consumers across Asian nations. A South Korean company, Point-I, was a finalist with a social networking solution called "On2Gether". This service provides communication, location information, security and entertainment all at once. Location-based features include messaging, calling and chatting, avatars, and sharing pictures between friends.

We believe there is an unmet opportunity for location-enabled multiple mobile applications to create new services, for example, a friend finder service that links to Facebook. This expectation is echoed by many developers.

Finally, with the proliferation of GPS chips offered by handheld devices in APAC, the time is ripe for mobile operators and service providers to offer LBS as an additional service. Currently, all three mobile operators in Singapore offer different types of LBS. As user awareness increases, the appetite for innovative and differentiated LBS is expected increase. According to research company Gartner, "operators and service providers should capitalise on advertising and implement a two-pronged pricing strategy where users can opt in or out of advertising to receive a discount on the service".

The LBS industry in Asia has much to offer - creativity from developers, high levels of competition to maintain price pressures and positive consumer trends. We believe all the key drivers in the industry are in place for the huge growth of LBS in Asia. Developers, entrepreneurs and service providers are recognising that getting involved in LBS makes sense today with an eye towards the future.

The writer is vice-president, Business Development (APAC), NAVTEQ

This article was first published in The Business Times on October 02, 2008.