BEIJING, Oct. 7 /Xinhua-PRNewswire/ -- CCID Consulting, China's leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong (Hong Kong Stock Exchange: HK08235), recently released its article on China's LBS market in 2008H1.
The final construction of the trial 3G network brought opportunities to the LBS industry in 2008H1. Although there are a lot of defects during the trial, TD-SCDMA networks developed a huge market space for LBS services. Getting along with China Mobile's strengthening on TD-SCDMA network construction and the release of 3G licenses, the LBS industry is sure to enter a rapid growth period.
CCID Consulting (HK8235) statistics show that the market scale of LBS reached 485 million in 2008H1. LBS services refer to value added services that are provided by operators to provide location, navigation, and other services to mobile phone users through SMS, WAP, and other methods.
Figure 1: LBS Market Scale in China, 2003-2008
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Source: CCID Consulting, July 2008
Through a Complete Industrial Chain, LBS Market Waits for Opportunities
The three most important roles in the LBS industry are map providers, software providers, and operators. Navinfo, Autonavi, Emapgo, Liingtu, and Ritu take the leading positions in the map market. Getting along with technology innovation and the growing demand for location services, map providers can provide basic geography information, as well as POI information, real time transportation information, and even positions of cameras and velocimeters for traffic management. In the location service software field, overseas companies are taking advantage. Navigation software from Aisin and Denso from Japan are widely used in location service solutions of Navinfo, Autonavi. Zdor, Yaxon Network, and other domestic companies have also gained considerable market share despite starting relatively late. LBS has been the focus of operators for a long time. In 2001, China Mobile launched location services based on Monternet. In 2003, basing on advantages of its CDMA network, China Unicom also planned LBS services independently. In 2008H1, China Mobile occupied a market share of more than 60% due to the large number of users. China Unicom took 30% based on CDMA location services.
Figure 2: China's LBS Brand Structure in 2008 H1
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Source: CCID Consulting, July 2008
LBS will be the New Growth Point in the 3G Age
LBS will be one of the most popular 3G services in the coming 3G age. Mobile phone maps, mobile navigation, together with mobile payment and mobile search have been the key products in China Mobile's telecommunications value added service lists. The relatively low popularity degree of mobile phone maps and navigation means considerable development space, which will be the new growth point for operators. LBS services over CDMA networks have achieved great success. As China Telecom begins to operate CDMA networks from October, problems such as limited CDMA users and expensive CDMA terminals will be relieved effectively. SMS and WAP are still the two major methods for LBS services. However, SMS will be replaced by MMS, WAP, JAVA, Brew, and other methods due to a lifted network capacity in the 3G age.
Figure 3: China's LBS Service Structure in 2008 H1
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Source: CCID Consulting, July 2008
Mobile Communications and Internet Trends to be Integrated, and the Mode of LBS as a Value Added Service is Challenged
The Ovi service provided by Nokia, the popular iPhone of Apple, the Andriod mobile phone operating platform, and other activities show the convergence of mobile communications and the Internet. In China, mobile operators always try to migrate Internet services to mobile phones as value added services. However, Internet companies can provide services to users independently, steering clear of mobile operators when entering the mobile value added services field. In the LBS market, the popularity of mobile phones with GPS functions threatens the development of LBS services. Mobile phone enterprises can install maps and navigation software in advance to provide location services. Consumers can obtain free mobile location services for 1-2 years after purchasing a GPS mobile phone. It is possible that the core position of operators in the location service industrial chain will be replaced in the near future. The mode of LBS as a value added service is challenged.
The LBS Service Market has a Bright Future
The popularization of GPS mobile phones brings a great impact on LBS services. However, LBS services have advantages in map real time upgrading, software upgrading, interaction, and group communications. In the 3G age, it is necessary for operators to educate user habits, develop innovative products, focus on user participation and experiences, and strengthen service advantages of real time, interactive, and comprehensive to drive the development of the LBS market. CCID Consulting forecasts that LBS will achieve rapid growth 3G users and services develop. In 2012, the LBS market scale will reach 3.824 billion Yuan.
Figure 4: China's LBS Market Scale in 2008-2012
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Source: CCID Consulting, July 2008
About CCID Consulting
CCID Consulting Co., Ltd. (hereinafter known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: 8235.HK), is directly affiliated with China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen, Wuhan and Chengdu, with over 300 professional consultants after many years of development. The company's business scope has covered over 200 large and medium-sized cities in China.
Based on major areas of competitiveness: industrial resources, information technology and data channels, CCID Consulting provides customers with public policy establishment, industry competitiveness upgrading, development strategy and planning, marketing strategy and research, HR management, IT programming and management. CCID Consulting's customers range from industrial users in electronics, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks. CCID Consulting commits itself to becoming the No. 1 advisor for enterprise management, the No. 1 consultancy for government decisions and the No. 1 brand for informatization consulting.
For more information, please contact:
Cynthia Liu
Coordinating Manager
CCID Consulting Co., Ltd.
Tel: +86-10-8855-9080
Email: liuyan@ccidconsulting.com
