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Shosteck Group says location-based services may be delayed

WHEATON, Md.-According to a new study by The Shosteck Group, we may not be as ready for location-based services as many would like to think.

“Standards are not defined, interoperability is virtually non-existent, and upgrade paths remain cloudy. Network operators who deploy in the short term will end up with almost entirely proprietary systems. These factors make most published revenue forecasts and deployment schedules questionable,” Jane Zweig, chief executive officer of The Shosteck Group, explained.

The study, “Location Based Services: Positioning For Success,” outlined several key theories surrounding the deployment of location-based services, including assertions that: location-based services will be held back by operational problems and inadequate supporting technologies; no single position determination system meets the requirements of all commercial applications; and privacy issues will be greater than the wireless industry generally expects.

“Given the delaying factors, we foresee a peak revenue opportunity for network operators from approximately 2005-2007,” Zweig added. “However, it is quite possible that the business case for network operator-provided location-based services will evaporate just as the market is becoming profitable. Strategies of network operators, and their vendors, should take this timeline into account.”

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