13.1 Location-Based Services: Examples and Revenue Possibilities

Even if they do not have a universal mobile telephony system (UMTS), the second generation GSM operators can provide location-based services (LBS) to their subscribers as well as to their roaming visitors. This technology will still be valid for 2.5G or 3G systems. Some examples of applications include the following:

• Make a call to a short number (a special number such as 66123) and obtain an SMS with the address of the closest automatic teller machine (ATM) (money retrieval).

• Send an SMS to an special number with the text BANK, DOCTOR, and so on and receive by SMS a list of the closest addresses for those services. Such a service could be offered to roaming visitors and it is a way to attract them to one's network.

• Locate missing people or track stolen vehicles.

Revenues are obtained from roaming charges, from SMS-MO, and from sponsorships by restaurants and entertainment places that pay to be in the database.

In this chapter, we explain the detailed mathematical methods for accomplishing these LBS offerings. If this is not your cup of tea, you may want to stop reading after Section 13.5.

13.2 Mobile-Originated LBS

The principle behind LBS is illustrated in Figure 13.1. The LBS system must be connected to an operator SS7 network, and it integrates three functions:

1. A gateway mobile location center