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China's LBS market shows promise

By He Wei (China Daily Shanghai Bureau)
Updated: 2011-04-14 19:51

SHANGHAI - Location-based service (LBS) has formed a duopoly in the map data supply market for China's telecom operators, a recent study shows.

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According to Enfodesk, a business survey group, LBS map data of telecom operators in China were mainly sourced from AutoNavi and NavInfo, with AutoNavi accounting for 60.1 percent of the market share, NavInfo taking 38.6 percent, and the rest going to other suppliers.

Location-based service (LBS) is an information or entertainment service, accessible with mobile devices through the mobile network and utilizing the ability to make use of the geographical position of the mobile device. It includes services to identify the location of a person or object, such as discovering the nearest banking cash machine or the whereabouts of a friend or employee.

The survey found that the LBS market in China has gained rapid development in recent years, with various LBS products springing up, such as E-surfing Navigation, Navidog, Minimap, and mobile navigation.

China Mobile, the world's largest telecom operator by subscribers, first launched its LBS in 2002. China Unicom followed suit the next year.

While LBS maintains a strategic importance in the Chinese telecom market, the service is still at its infancy stage. The report said user needs have yet to be met effectively, and the application framework and user experience are still the main barriers for business performance.

According to the report, enrichment of service content system through cooperation with local partners and map data suppliers, and the expansion of LBS coverage will be the key factors to drive the development of this promising market.