<?xml version="1.0" encoding="UTF-8"?>
<!--Generated by Squarespace Site Server v5.11.5 (http://www.squarespace.com/) on Fri, 30 Jul 2010 12:57:06 GMT--><rss xmlns:content="http://purl.org/rss/1.0/modules/content/" xmlns:wfw="http://wellformedweb.org/CommentAPI/" xmlns:itunes="http://www.itunes.com/dtds/podcast-1.0.dtd" xmlns:dc="http://purl.org/dc/elements/1.1/" version="2.0"><channel><title>Jon Spinney</title><link>http://www.jonspinney.com/jonspinneycom/</link><description></description><lastBuildDate>Thu, 29 Jul 2010 20:13:39 +0000</lastBuildDate><copyright></copyright><language>en-US</language><generator>Squarespace Site Server v5.11.5 (http://www.squarespace.com/)</generator><item><title>A Decade of Location-Based Services Mergers &amp; Acquisitions</title><category>M&amp;A</category><category>Research</category><category>Visualizations</category><dc:creator>Jon</dc:creator><pubDate>Sat, 24 Jul 2010 20:25:14 +0000</pubDate><link>http://www.jonspinney.com/jonspinneycom/2010/7/24/a-decade-of-location-based-services-mergers-acquisitions.html</link><guid isPermaLink="false">143527:1308190:8351479</guid><description><![CDATA[<p>For about four years, I've made a hobby of collecting Location Technology mergers and acquisitions transaction data - a project I started to support my own independent market research. In addition to my own uses of the information, I've also always made the it&nbsp;<a href="https://spreadsheets.google.com/ccc?key=0AuEM2ZFJBUzgcGZwbXZ4T2wzQlNIalJ2cFdBa2hwYlE&amp;hl=en#gid=0">publicly available</a> as a community resource. I've received feedback that it's useful and that it has helped a few folks. That's all I could hope for. If it helps the community, great. &nbsp;</p>
<p>That said, I've recently felt pressure to continue regular upkeep of the list, and as a result, I've entrusted&nbsp;<a href="http://twitter.com/mprioleau">Marc Prioleau</a> to help keep it in good standing going forward. Before passing the&nbsp;baton&nbsp;however, I wanted to publish one last piece of good will. The below infographic was created by <a href="http://www.infographicworld.com/">Infographic World</a>. They did a fantastic job creating this&nbsp;beautiful image from the list. I can't thank Justin enough for all his effort to produce it. If you ever need an infographic, please give him a call.&nbsp;&nbsp;</p>
<p><span class="thumbnail-image-block ssNonEditable"><span><a href="javascript:showFullImage('/display/ShowImage?imageUrl=%2Fstorage%2FMA.jpg%3F__SQUARESPACE_CACHEVERSION%3D1280434404398',7506,1216);"><img src="http://www.jonspinney.com/storage/thumbnails/1308188-7916614-thumbnail.jpg?__SQUARESPACE_CACHEVERSION=1280434404400" alt="" /></a></span></span>&nbsp;</p>]]></description><wfw:commentRss>http://www.jonspinney.com/jonspinneycom/rss-comments-entry-8351479.xml</wfw:commentRss></item><item><title>Google Geo Teachers Institute Here I Come</title><category>Education</category><category>Events</category><dc:creator>Jon</dc:creator><pubDate>Tue, 15 Jun 2010 03:30:04 +0000</pubDate><link>http://www.jonspinney.com/jonspinneycom/2010/6/14/google-geo-teachers-institute-here-i-come.html</link><guid isPermaLink="false">143527:1308190:7983445</guid><description><![CDATA[<p>Those who know me well, know I've been teaching a Location-based Services masters topic at the University of London since I graduated there in&nbsp;2001. When I joined the University as a student, the <a href="http://www.bbk.ac.uk/gisc/learning/">GISc distance learning course</a> was the first&nbsp;correspondence&nbsp;MS in GISc program in the world. Today, I help students located all over the world two days per year. It occupies little time to contribute, I'm happy to do it, and proud of the now ten-year affiliation I have with the college.</p>
<p>When I was enrolled as a student, the Internet and tools &amp; tricks of the Web made it possible for me to learn. Today, those tools are even more powerful, helping anyone with the will, a computer, and broadband to pursue a world class education from the comfort of their home or office with flexible study hours. It's a wonderful thing. &nbsp;</p>
<p>A few weeks ago, Google posted an invitation to Geo educators on their Lat/Long blog.</p>
<blockquote>
<p><span class="full-image-float-left ssNonEditable"><span><a href="http://google-latlong.blogspot.com/2010/05/save-date-google-geo-teachers-institute.html"><img style="width: 200px;" src="http://www.jonspinney.com/storage/GTI-Logo-RGB.jpg?__SQUARESPACE_CACHEVERSION=1276573841540" alt="" /></a></span></span>This July, Google is hosting the first Google Geo Teachers Institute. This event is a FREE professional development experience designed to help educators get the most from Google's Geo products and technologies. The Geo Teachers Institute is an intensive, two-day event where participants get hands-on experience with Google's Geo products: Google Earth, Google Maps, and SketchUp, including a focus on features like Mars, Moon and Sky in Google Earth. Attendees will learn about innovative instructional strategies and receive resources to share with colleagues. The Google Geo Education team hopes this event will empower educators to bring the world's geographic information to students in a<br />compelling, fresh, and fun way.</p>
</blockquote>
<p>I applied as soon as I saw the above. Today I received an acceptance email from Google to join them and 200 other educators from all over the world for two days at the Googleplex. I can't wait to get my hands on more Geo tools and learn more tricks to help others learn the same way I did. Thanks Google. My hope is to take away new skills and ideas to inspire other students to continue outstanding location-based services research work such as <a href="http://www.lhrnoisemap.org/">this</a>.&nbsp;</p>]]></description><wfw:commentRss>http://www.jonspinney.com/jonspinneycom/rss-comments-entry-7983445.xml</wfw:commentRss></item><item><title>I Can't Make a Personal Nautical Chart with ArcGIS.com</title><category>GIS</category><category>Open Data</category><category>Outdoor Mobility</category><dc:creator>Jon</dc:creator><pubDate>Wed, 26 May 2010 02:31:02 +0000</pubDate><link>http://www.jonspinney.com/jonspinneycom/2010/5/25/i-cant-make-a-personal-nautical-chart-with-arcgiscom.html</link><guid isPermaLink="false">143527:1308190:7777598</guid><description><![CDATA[<p><span class="full-image-float-left ssNonEditable"><span><a href="http://bit.ly/bRLoH0"><img style="width: 300px;" src="http://www.jonspinney.com/storage/isleofwightsail.jpg?__SQUARESPACE_CACHEVERSION=1274845065963" alt="" /></a></span></span>I just returned from an extended-family visit to the UK - a trip I try to do once a year. Our Hythe home on Southampton Water is a great base both for my rods &amp; reals passion and for launching off to visit relatives. Every year, my father-in-law insists on a final Sunday pub lunch at The Foley on the Isle of Wight, which is a half-hour sail from his marina. I tracked our sail this visit and posted our speedy ride using a trusty tool I use religiously for tracking another outdoor passion-pursuit on the west side of the pond - <a href="http://JonSpinneysSnoBoBlog.bimjournals.com">snowboarding</a>.&nbsp;The&nbsp;map is decent for context, but not great. I wanted to make it better...</p>
<p>Last week, I was excited to hear about the beta release of <a href="http://www.arcgis.com/home/">ArcGIS.com</a> - esri's new "maps-and-apps-for-everyone" offering. I was also itching to get my hands on their basemap options, which from what I saw from <a href="http://www.youtube.com/watch?v=YK9ny-t_CdQ">Jack &amp; Jeremy's demo at Where 2.0</a>, would allow me to overlay my 'UGC' content atop a vast variety of esri basemap options, including supported nautical charts which aren't available on other common Web mapping portals. Here's a snapshot of esri's world nautical chart, plus a view of what other tiled basemap options are available from esri and ArcGIS.com:</p>
<p><span class="full-image-block ssNonEditable"><span><img style="width: 550px;" src="http://www.jonspinney.com/storage/charts.jpg?__SQUARESPACE_CACHEVERSION=1274843496396" alt="" /></span></span></p>
<p>I liked the above map more than what Google offered, so I proceeded to the next step in ArcGIS.com to create a map - my hope was I could export out the&nbsp;KML or GPX file from my trusty service and simply upload personal data into ArcGIS.com to create a more relevant nautical chart map to post, share, and archive in a travel diary. When I tried to upload <a href="http://maps.google.com/maps/ms?ie=UTF8&amp;hl=en&amp;msa=0&amp;ll=50.831115,-1.347869&amp;spn=0.230289,0.441513&amp;z=11&amp;msid=114641198961384490061.00048777a72c900b7570d">the KML file</a>, here's what happened:</p>
<p><span class="full-image-block ssNonEditable"><span><img style="width: 550px;" src="http://www.jonspinney.com/storage/esri.jpg?__SQUARESPACE_CACHEVERSION=1274844079131" alt="" /></span></span></p>
<blockquote>
<p>ArcGIS Online supports ArcGIS map files (mxd, nmf, 3dd, sxd, ncfg, mpk, wmpk, and pmf), ArcGIS layer files (lyr, lpk, and nmc), and ArcGIS tools (eaz, and esriaddin).</p>
</blockquote>
<p>So it seems in order to make a simple nautical chart map, I must now find a data conversion tool&nbsp;in order to convert my KML data (which I might add is an OGC standard) to something more esri friendly. I thought we were beyond this formatting nonsense consuming endless hours of time...&nbsp;In his talk at Where 2.0, Jack emphasized the freedom and freeness of ArcGIS.com. If I have to spend time finding a shareware converter or buy ArcGIS, FME, Arc2Earth, or some other data converter to publish a Web map, it's not free nor is it open from my perspective. I was really looking forward to making a different map for this now not-so-different experience.&nbsp;Come on esri... ArcGIS.com has tremendous potential.&nbsp;You can do better than this. Please open up a bit more. It won't hurt business, just make special maps more special &amp; useful. &nbsp;</p>]]></description><wfw:commentRss>http://www.jonspinney.com/jonspinneycom/rss-comments-entry-7777598.xml</wfw:commentRss></item><item><title>Multitasking OS Background Location Limitations</title><category>Semiconductors</category><category>Wireless Freedom</category><category>iPhone</category><dc:creator>Jon</dc:creator><pubDate>Thu, 22 Apr 2010 16:43:00 +0000</pubDate><link>http://www.jonspinney.com/jonspinneycom/2010/4/22/multitasking-os-background-location-limitations.html</link><guid isPermaLink="false">143527:1308190:7353734</guid><description><![CDATA[<p>An article headline appeared in my saved search results over a hundred times last week. It was about iPhone background Location and its importance once OS 4 is released. The same&nbsp;piece gathered retweeted signaling status at least another hundred times. I honestly don't know what all the fuss was about, but suspect some assume multitasking support for background location will change everything and lead to new apps and business models unseen thus far leading to billions in new revenue. It won't.&nbsp;</p>
<p>The iPhone is not the first mobile phone or smartphone to support background location atop a multitasking OS. While I&nbsp;appreciate the Weborati excitement, and empathize&nbsp;with it to a common degree, before getting too excited about the possibilities, it might be helpful to revisit some mobile location history and lessons learned from other multitasking background capabilities that arose, won brief time to shine, and later became red herring examples of what not to do. For those of you rolling your eyes, thinking "oh geez Spinney, not another history lesson", please bear with me. This one is&nbsp;abbreviated. I promise :-)</p>
<p>I <a href="http://twitter.com/jspinney/status/12125397625">asked</a> a couple weeks ago if anyone remembered the Motorola i58sr and its background GPS capabilities. No one responded (even though I offered a prize incentive) so I can only assume my tweets are not <a href="http://tweetlevel.edelman.com/user/jspinney">worth </a>responding to or no one recalled. Released in 2002, it was the US' first Java-programmble GPS-enabled mobile phone. A brick-ishly ugly, feature-dumb phone, it sported a postage stamp-sized monochrome screen, an ARM 7 processor, a SiRF (now CSR) chipset with a mediocre ceramic GPS antenna, a multitasking JVM with support for a JSR-179 layer atop it, and included a battery juiced for 2.75 hrs of continuous talk time with 71 hrs of standby time. Location data (via autonomous GPS) was easily accessible (Motorola had a freely available SDK) and developers built apps by the thousands&nbsp;despite its swine-like appearance. &nbsp;Initially, developers used the i58sr to build check-in apps focused on workforce payroll automation and job order auditing. &nbsp;Others, such as David Cohen's venture iContact built mobile social networking services atop and around the device, <a href="http://www.facebook.com/video/video.php?v=90337590697">which admittedly failed</a>.</p>
<p>Early check-in apps for workforce payroll automation and job order auditing&nbsp;worked fine. When workers weren't chirping back and forth with each other and the office over push-to-talk, they were using their i58sr's as digital time cards. They opened their app, selected 'start job' and then put the device away while they got to work. The 'start job' action captured a time-stamped location. When they finished their job, they hit 'end job' which captured another time-stamped location. The check-in and check-out interpolated times were used to supply back-end payroll systems with data needed to automate hourly payroll and audit jobs - essentially knowing where and when a worker was throughout the day in comparison to a daily job manifest. &nbsp;Here's an example:</p>
<p><span class="full-image-block ssNonEditable"><span><img src="http://www.jonspinney.com/storage/i58sr.jpg?__SQUARESPACE_CACHEVERSION=1271954327397" alt="" /></span></span></p>
<p>Things then got crazy. A few developers discovered the multitasking JVM could support both background GPS queries while running other "apps" like PTT, voice, and simultaneous data, so they designed apps to continually poll the GPS locally on the phone thinking they could track users all day. Ignoring physics is sometimes liberating for right-sided creativity, but it's certainly not practical in most cases, and certainly not with a device sporting a cheap GPS antenna and weak battery. The dung eventually hit the fan. A deluge of complaints flooded customer support lines - "I think I need a new battery", "Your battery sucks!", "There's something wrong with my phone.", "This thing only works for three hours at a time!", "I constantly have to recharge this piece of crap" were all commonly overheard customer sentiments shared with first lines of support at SMBs. &nbsp; &nbsp;&nbsp;</p>
<p>Accessible background location in iPhone will either use wifi or GPS. iPhone's wifi implementation will continually query reference points to update itself. The GPS implementation will search the sky find a 3D fix and continue fixing itself over and over. Either option will drain battery power - fast! Apple can either throw hardware at the problem (a reason why I believe Sarantel is <a href="http://www.jonspinney.com/jonspinneycom/2010/3/4/top-10-location-technology-acquisition-candidates.html">undervalued</a>), or they can try to figure it out with a combination of mobile software, cellular networks, and mobile hardware. Steve Cheney summarized the later nicely in a recent <a href="http://stevecheney.posterous.com/foursquare-geolocation-and-product-technology">post</a>. Either way, there's no getting around the science of this problem with a cool app. I have a sneaking suspicion check-in start-ups and others betting on background iPhone location plays will learn all over again what others painfully learned six years ago with the i58sr, despite the current state of the lithium-ion art.</p>]]></description><wfw:commentRss>http://www.jonspinney.com/jonspinneycom/rss-comments-entry-7353734.xml</wfw:commentRss></item><item><title>Location in the Cloud (Parts 1 and 2)</title><category>Events</category><category>Where 2.0</category><dc:creator>Jon</dc:creator><pubDate>Tue, 13 Apr 2010 17:42:26 +0000</pubDate><link>http://www.jonspinney.com/jonspinneycom/2010/4/13/location-in-the-cloud-parts-1-and-2.html</link><guid isPermaLink="false">143527:1308190:7313611</guid><description><![CDATA[<p><span class="full-image-float-left ssNonEditable"><span><img style="width: 200px;" src="http://www.jonspinney.com/storage/radar_logo.gif?__SQUARESPACE_CACHEVERSION=1271180982785" alt="" /></span></span>Here are a couple write-ups from Where 2.0 on <em>Location in the Cloud, </em><a href="http://radar.oreilly.com/2010/04/veriplace-mobile-location-beyo.html">Part 1</a>&nbsp;focusing on <em>Wireless Location</em> and <a href="http://radar.oreilly.com/2010/04/location-in-the-cloud-part-2.html">Part 2</a> focusing on <em>Social Location. </em>Thanks to the O'Reilly team for inviting me to write about the topics while attending the event.<em>&nbsp;</em></p>]]></description><wfw:commentRss>http://www.jonspinney.com/jonspinneycom/rss-comments-entry-7313611.xml</wfw:commentRss></item><item><title>Beware of the (New) Gatekeepers</title><category>Business Models</category><category>Infrastructure</category><category>Tools/SDKs</category><dc:creator>Jon</dc:creator><pubDate>Thu, 11 Mar 2010 17:25:53 +0000</pubDate><link>http://www.jonspinney.com/jonspinneycom/2010/3/11/beware-of-the-new-gatekeepers.html</link><guid isPermaLink="false">143527:1308190:6979094</guid><description><![CDATA[<p>Someone asked what I meant by <a href="http://twitter.com/jspinney/status/9935727095">this.</a>&nbsp;This post&nbsp;embellishes&nbsp;the thinking a bit more.&nbsp;I see three new mobile location data gatekeepers emerging; Social Location Aggregators, Network Location Aggregators, and others with their own hardware/software/services/content stack</p>
<p><strong> Social Location Aggregators</strong></p>
<p>Facebook and Twitter. These players are leveraging dozens of smartphone publishing-contributors that&nbsp;<em>push</em> location data up to their larger platforms where it's made Web-available to other developers and applications.&nbsp;A healthy ecosystem of client-publisher-contributors and developer-consumers, Twitter and Facebook have middleman control over access. Beware... they have the keys and can lock the back or front doors at anytime.&nbsp;</p>
<p><span class="full-image-block ssNonEditable"><span><img style="width: 550px;" src="http://www.jonspinney.com/storage/SLA3.png?__SQUARESPACE_CACHEVERSION=1268370618075" alt="" /></span></span></p>
<p><strong>Network Location Aggregators</strong></p>
<p>Alcatel-Lucent, LOC-AID, Neustar, Technocom, ULocate, Useful-Networks, Wavemarket. &nbsp;...Call these players the new gatekeepers of yesterdays wireless carrier gatekeepers. Using the wireless network to <em>pull</em> down mobile location data (by phone number), they then run their own privacy protection authorization and authentication management on web services exposed to developers. Years ago, similar aggregation approaches released SMS from individual network stovepipes, subsequently fueling explosive growth for messaging. Network-location aggregators hope the same happens for cross-carrier location data; it helps that all the Tier I's are finally aboard, but beware... they have the keys and can lock the door at anytime.&nbsp;</p>
<p><span class="full-image-block ssNonEditable"><span><img style="width: 550px;" src="http://www.jonspinney.com/storage/NLA3.png?__SQUARESPACE_CACHEVERSION=1268370649305" alt="" /></span></span></p>
<p><strong>Others who have their own hardware/software/services/content stack</strong></p>
<p>Apple, Google, Microsoft, Nokia. They each have their own location-ready devices, positioning databases, mobile OSs, applications, services, and content (including the geo variety). Its their party; we're all just guests. Threatening their core focus could get one expelled (or acquired). Beware... they too have the keys and can lock the door at anytime.</p>]]></description><wfw:commentRss>http://www.jonspinney.com/jonspinneycom/rss-comments-entry-6979094.xml</wfw:commentRss></item><item><title>Top 10 Location Technology Acquisition Candidates</title><category>M&amp;A</category><dc:creator>Jon</dc:creator><pubDate>Thu, 04 Mar 2010 16:09:28 +0000</pubDate><link>http://www.jonspinney.com/jonspinneycom/2010/3/4/top-10-location-technology-acquisition-candidates.html</link><guid isPermaLink="false">143527:1308190:6906049</guid><description><![CDATA[<p>The below inspired me to pen this post.</p>
<p><span class="full-image-block ssNonEditable"><span><a href="http://twitter.com/andreitr/status/9793730248"><img style="width: 550px;" src="http://www.jonspinney.com/storage/andreitr.jpg?__SQUARESPACE_CACHEVERSION=1267719106188" alt="" /></a></span></span></p>
<p>This little exercise is long overdue.&nbsp;We now have <a href="https://spreadsheets.google.com/ccc?key=0AuEM2ZFJBUzgcGZwbXZ4T2wzQlNIalJ2cFdBa2hwYlE&amp;hl=en">heaps of historical data for location technology acquisitions</a>, and since I know understanding the past is critical to manage the present and plan for the future, I'll use this historical M&amp;A data to claim the following top 10 location technology acquisition candidates.</p>
<ol>
<li><a href="http://www.intermap.com/">Intermap</a>.&nbsp;Tops in the top content category, 3D LIDAR long-timer Intermap is in the midst of major transitions from a contract services company to a product company. They need help. Anyone smart enough to snatch them up will have a complete North American and Western Europe 3D data set equal to Microsoft and Google. &nbsp; &nbsp;&nbsp;</li>
<li><a href="http://www.xora.com/">Xora/Gearworks</a>. After merging in August 2009, these two together now command the US enterprise mobility space built around carrier partnerships and broad handset portfolio support. They're almost large enough to start annoying Trimble. &nbsp;</li>
<li><a href="http://www.umapper.com/">UMapper</a>. There aren't many smaller players left in the GIS/mapping category. Most are now too large for acquisition or have an acquisition incompatible mismatch between investments, revenues, and exit multipliers. UMapper is still small and on the cusp. They need someone else larger to help propel them across the chasm.&nbsp;</li>
<li><a href="http://www.skyhookwireless.com/">Skyhook</a>. Ted Morgan brought Skyhook from a NAVTEQ Challenge semi-finalist to one of the most prominent players in the positioning space. iPhone will award that status. Cupertino should just get on with it and branch out a location technology office in Boston.&nbsp;</li>
<li><a href="http://www.loopt.com/">Loopt</a>. Not because they are a social location player in a red-hot emerging social location category, but because they do it differently (and better) from others with the help of wireless carriers, and because they have broad reach beyond smartphones. Another mainstream social net with a diverse global subscriber base could benefit from Loopt's know-how to reach the masses publishing through a variety of mobile modes. &nbsp;&nbsp;</li>
<li><a href="http://www.u-blox.com/">U-blox</a>. Probably one of the only remaining independent GPS semi providers, it just follows the historical pattern of semi acquisitions for a larger provider to take over U-Blox. &nbsp;</li>
<li><a href="http://www.technocom-wireless.com/">TechnoCom</a>. A Fast-50 in SoCal and like most other silent infrastructure players,&nbsp;most folks haven't heard of TechnoCom. They touch nearly every US wireless location transaction and manage nearly all carrier 911 QA systems. Intrado or TCS would make good parents. &nbsp;</li>
<li><a href="http://www.appello.se">Appello</a>. Like the GIS category, players in the Navigation category are either too large for acquisition or have an exit-incompatible mismatch between existing investments and revenues. That doesn't help in a market where free is becoming the new consumer expectation. Appello is still small enough for another handset provider or carrier to get in on the action and offer a solid <em>feature </em>to boot. &nbsp;</li>
<li><a href="http://www.sarantel.com/">Sarantel</a>. The best GPS Antenna in the market, hands down. If Apple gets serious about owning the entire location tech hardware stack and strives for superior performance, they (or someone else in the hardware category) should consider adding Sarantel. &nbsp;</li>
<li><a href="http://layar.com/">Layar</a>. Augmented Reality still needs to prove itself as a money-making mode to browse the world, but maybe it won't have to. It's likely most smartphone providers will offer AR features themselves. Those that need a head start and an existing content publisher community should consider Layar.&nbsp;&nbsp;&nbsp;</li>
</ol>]]></description><wfw:commentRss>http://www.jonspinney.com/jonspinneycom/rss-comments-entry-6906049.xml</wfw:commentRss></item><item><title>The Proverbial Privacy Issue (Revisited)</title><category>Legislation</category><category>Lying With Maps</category><category>Privacy</category><dc:creator>Jon</dc:creator><pubDate>Mon, 22 Feb 2010 20:02:00 +0000</pubDate><link>http://www.jonspinney.com/jonspinneycom/2010/2/22/the-proverbial-privacy-issue-revisited.html</link><guid isPermaLink="false">143527:1308190:6735323</guid><description><![CDATA[<p>This Wednesday the House Subcommittee on Commerce, Trade, and Consumer Protection and Subcommittee on Communications, Technology, and the Internet will hold a joint hearing on <a href="http://energycommerce.house.gov/index.php?option=com_jcalpro&amp;Itemid=54&amp;extmode=view&amp;extid=139">The Collection and Use of Location Information for Commercial Purposes</a>. Very important committees in the House, the topic brings Location Privacy to the forefront of Congressional oversight. An important topic in any digital era, I <a href="http://www.mobilein.com/Privacy.pdf">published</a>&nbsp;thoughts&nbsp;six years ago -&nbsp;before Clouds, Google Maps, iPhone &amp; Android, Foursquare, Facebook, Twitter, and Buzz; even before GPS semiconductor ubiquity within mobile devices, and when cellular networks were often the&nbsp;<em>only</em>&nbsp;option available to passively extract user location data. It's enlightening to revisit the topic again - much has changed.</p>
<p><strong>Cellular Privacy</strong></p>
<p>Six years ago, mobile location privacy issue discussions de jour focused predominantly&nbsp;on passive extractions common to cellular network capabilities. Two broad issues were:&nbsp;</p>
<ol>
<li>Corporate-liable location privacy: Companies, businesses, or corporations had legal rights to locate and track mobile devices or vehicles considered corporate property, similar to an insured asset. Locke might have agreed with this notion of property ownership, but some individuals representing labor unions <a href="http://www.bsk.com/pdfinfomemos/lpd%2007-2008%20manufacturing%20matters%20article.pdf">did not</a>!&nbsp;&nbsp;&nbsp;</li>
<li>Individual-liable location privacy: Individuals, consumers, citizens must provide opt-in consent to a software or platform as a service locating or tracking them. The software or platform must authenticate and authorize individual opt-in provisions with requested server-initiated location queries.&nbsp;</li>
</ol>
<p>To protect themselves, partners, and users from invasive threats, most cellular providers crafted supporting legalese with technology deployments written to safeguard personally identifiable information with included location information. Boiler agreements I recall reviewing protected individuals and application &amp; service providers from intentional abuse and/or accidental misuse of location information coupled to a phone number (wireless' <a href="http://www.jonspinney.com/jonspinneycom/2007/5/11/4g-devices-uniform-identity-and-location.html">personal identity primary key</a>). Most agreements looked similar to the below click-thru, but were less efficient and typically required legal review and sign-off - particularly for group activations.&nbsp;</p>
<p><span class="full-image-block ssNonEditable"><span><img style="width: 550px;" src="http://www.jonspinney.com/storage/priv1.jpg?__SQUARESPACE_CACHEVERSION=1266515029889" alt="" /></span></span></p>
<p>While safeguards introduced then protected carriers, application providers, companies and individual constituents for transactions, little discussion revolved around location information histories and storage of location data for other post-transaction commercial uses. Some early movers had foresight to include protection clauses within terms of service agreements explicitly&nbsp;stating location data history with&nbsp;personally&nbsp;identifiable information shall not be stored for post-processing analytics, but it's commonly known crude cellular-identification positioning techniques accompany every wireless transaction detail record. It's also known some of these historical records were attained from wireless carriers on the receiving end of issued subpeonas covered by the Patriot Act, which raises concerns and questions... Is it acceptable to store and analyze personally identifiable location information histories for government and security uses, while unacceptable for commercial purposes? ...Questions I expect the hearing addresses not just in the context of cellular provider behavior, but in the larger and more general context of the privacy discussion.</p>
<p><strong>Social Web Privacy</strong></p>
<p>Beyond cellular network approaches to location information capture and storage, we're now entering a new era of availability, accessibility, and concern. Today, GPS and other positioning technologies are ubiquitous within mobile devices to a point where Mobility is now synonymous with Location. At the same time, the Web has evolved from a read-only Web to a writable Web where volunteered status updates from location-capable smartphone applications post personally identifiable location information to social nets interconnected across the Web.&nbsp;Boutique check-in, "I am here" location broadcasting&nbsp;services linked to larger social networking services like&nbsp;<a href="http://twitter.com/#search?q=4sq">Twitter</a>&nbsp;are leading the movement, while <a href="http://www.businessinsider.com/warning-google-buzz-has-a-huge-privacy-flaw-2010-2">controversial</a> services such as Google's Buzz have recently emerged. While these new mobile &amp; Web services offer local protection safeguards for users to control and manage how location information is shared and published, it's anything but clear or publicized how back-end services will use location information in post-processed commercial contexts.&nbsp;It's widely speculated bits of private information will be used for local advertising, based on stored, analyzed, and synthesized personal location information histories.</p>
<p>As an example, I use Latitude on my smartphone which offers local privacy controls for publishing and sharing.</p>
<p><span class="full-image-block ssNonEditable"><span><img style="width: 550px;" src="http://www.jonspinney.com/storage/priv2.jpg?__SQUARESPACE_CACHEVERSION=1266858318058" alt="" /></span></span></p>
<p>While I control privacy provisions for peer sharing, I don't yet know how Google (or any other Web property aggregator) uses my stored location histories. I assume they synthesize <a href="http://www.vimeo.com/8103453">my mobility movements</a> into predictability patterns for profit, where in the future businesses in business with them tap derived intelligence and insert ads into my mobile life, and while I might want to share my location with my social network, I might not want the former. At this time, it appears I must do both, without choice.&nbsp;Also, who else could they sell my historical data to? Could they themselves also use my data without my authorization for their own data-product improvements? Will they grant government entities access to my information? These are all unknowns not of my personal concern, but of public concern - additional items I hope the House committee addresses on Wednesday.&nbsp;</p>
<p><strong>Pseudonymity, Dishonesty, &amp; the New Privacy</strong></p>
<p>Scott McNealy's now infamous utterance "You have zero privacy, get over it" may be true (or become reality soon), but it doesn't have to. In order for location information histories to create value for commercial purposes, the data must be associated with individual, unique identity. In the cellular arena it's impossible to fake individual identity because monthly bills and validated billing information define accountable relationships between individuals and service providers. However, on the Web, where 'free' defines the loose relationship between individuals and services, individual pseudonymity and dishonesty may become the currency for identity privacy on the Web. Lying about identity is wrong, but perhaps it's the only way for individuals to protect themselves while benefiting from the good-side of services on the Web &amp; Social Web.&nbsp;It's&nbsp;troubling to think we might become <a href="http://www.jonspinney.com/jonspinneycom/2010/1/12/foursquare-users-and-moral-decay.html">a society of liars</a> killing trust, but Web &amp; Social Web influences may&nbsp;inadvertently&nbsp;encourage social dishonesty as a means of personal privacy protection.&nbsp;Will the&nbsp;House address these digital dishonesty issues as well? They should.</p>
<p><script src="http://twitter.2gov.org/w/src/?issue_id=22" type="text/javascript"></script></p>]]></description><wfw:commentRss>http://www.jonspinney.com/jonspinneycom/rss-comments-entry-6735323.xml</wfw:commentRss></item><item><title>Please Rob Me</title><category>Lying With Maps</category><category>Privacy</category><dc:creator>Jon</dc:creator><pubDate>Wed, 17 Feb 2010 19:03:53 +0000</pubDate><link>http://www.jonspinney.com/jonspinneycom/2010/2/17/please-rob-me.html</link><guid isPermaLink="false">143527:1308190:6726722</guid><description><![CDATA[<p>Now here's an interesting way to raise awareness about social location check-in privacy.</p>
<p><span class="full-image-block ssNonEditable"><span><a href="http://pleaserobme.com/"><img src="http://www.jonspinney.com/storage/Sprite 7.jpg?__SQUARESPACE_CACHEVERSION=1266433607611" alt="" /></a></span></span></p>
<p>&nbsp;Of course, I can always spoof my location as part of a trap. Caution all around.&nbsp;</p>]]></description><wfw:commentRss>http://www.jonspinney.com/jonspinneycom/rss-comments-entry-6726722.xml</wfw:commentRss></item><item><title>Apple's Relationship of Convenience with AT&amp;T</title><category>4G</category><category>Semiconductors</category><category>Sensors</category><category>iPad</category><dc:creator>Jon</dc:creator><pubDate>Sat, 30 Jan 2010 16:18:06 +0000</pubDate><link>http://www.jonspinney.com/jonspinneycom/2010/1/30/apples-relationship-of-convenience-with-att.html</link><guid isPermaLink="false">143527:1308190:6475043</guid><description><![CDATA[<p>The Atlantic ran <a href="http://business.theatlantic.com/2010/01/the_significance_of_apples_choice_of_att_for_the_ipad.php">a story</a> yesterday on the significance of Apple selecting AT&amp;T for their iPad launch. The piece comments inspired me to pen this post and share a little secret... I love semiconductors - not the technology itself, but I get excited about lowest common denominator technology in general. If semiconductors&nbsp;are doing well and innovating rapidly, everyone else in the downstream ecosystem should do as well. I like the semi space for this reason; <a href="http://www.jonspinney.com/jonspinneycom/2009/12/15/how-the-nexus-one-could-destroy-conventional-mobile-industry.html">I also like building devices</a>&nbsp;- another reason I'm drawn to them.&nbsp;</p>
<p>Okay Spinney..., but what the hell does this have to do with Apple staying with AT&amp;T to launch the iPad, particularly when users complain about network performance, dropped calls, and 3G coverage? The answer, I think, can be found by examining lowest common denominator effects.&nbsp;</p>
<p>Everyone knows AT&amp;T is one of two tier-I GSM carriers in the US along with T-Mobile - the smallest in the tier-I camp, and as such not a reasonable choice for Apple. Sprint and Verizon are CDMA carriers. Not everyone knows Qualcomm invented CDMA, owns most patents for it, and licenses these patents along with semiconductor sales for tons of dough to equipment vendors and handset manufacturers who supply Sprint and Verizon with their network gear and devices. If you're a mobile device supplier and want to launch a CDMA handset on a CDMA network, you're paying Qualcomm something - either for IP usage or for their chipsets. I can't imagine this sits well with Apple (it certainly doesn't with others like Nokia), but that's only perhaps one reason Apple launched iPad on AT&amp;T instead of Verizon (Sprint, I suspect, was out of consideration since they too are CDMA plus connect the competitive Kindle e-reader).</p>
<p>The main reasons I suspect Apple continued <em>a relationship of convenience</em> with AT&amp;T at this time was the A4 and Apple's vertical approach to product development, which is directly at competitive odds with Qualcomm's full system-on-a-chip Snapdragon offering currently being adopted by Android, Chrome OS, BREW, WinMo, and Linux. The situation may change when Verizon builds out a new 4G LTE network atop their 700 Mhz spectrum and when Apple will be free from Qualcomm IP licensing, but until then, AT&amp;T looks like the long term winner of all wireless Apple products in the US because AT&amp;T is a GSM network and at this time, that means freedom to control everything for Apple.&nbsp;</p>
<p>Back to the A4... Remember that little thing his Steveness mentioned last week?</p>
<p><span class="full-image-block ssNonEditable"><span><img src="http://www.jonspinney.com/storage/A4.jpg?__SQUARESPACE_CACHEVERSION=1264882372248" alt="" /></span></span></p>
<p>The A4 is Apple's 1Ghz processor (they <a href="http://www.forbes.com/2008/04/23/apple-buys-pasemi-tech-ebiz-cz_eb_0422apple.html">acquired </a>the technology), similar to Qualcomm's Snapdragon 1Ghz processor. However, unlike Qualcomm's Snapdragon, the A4 doesn't include a 3G modem, GPS, or other full system-on-a-chip capabilities that most wireless semiconductor providers have built into 3G offerings. 3G support inside iPad is a&nbsp;separate&nbsp;module from the A4 processor. I suspect it's Infineon's offering since they rule the iPhone (on a side note, Infineon's GPS also supports the iPhone). &nbsp;Like Qualcomm did with their own BREW software, Jobs made it clear last week that Apple strives for super tight integration between their software and silicon to reach optimal performance, vertical scalability, and software development flexibility. Using Qualcomm-inside technology might have made it more difficult for Apple to achieve these goals while limiting their <em>control</em>. It's for this reason they chose to continue with AT&amp;T!</p>
<p>Eventually, the same freedom-from-control that comes with vertical product development may be the reason Apple extends the A4 to build their own full system-on-a-chip that includes 3G and 4G modems, A-GPS, plus all the other <a href="http://www.qctconnect.com/products/snapdragon.html#Technical Features for QSD8x50 chipsets">features</a>&nbsp;competing solutions have. I wouldn't be surprised if they did. Apple has proven&nbsp;controlling the whole stack&nbsp;and experience has competitive advantages while igniting explosive innovation with openness at the SDK and API level.</p>]]></description><wfw:commentRss>http://www.jonspinney.com/jonspinneycom/rss-comments-entry-6475043.xml</wfw:commentRss></item><item><title>Foursquare Users And Moral Decay</title><category>Gaming</category><category>Geodata</category><category>Lying With Maps</category><category>Social Networks</category><dc:creator>Jon</dc:creator><pubDate>Tue, 12 Jan 2010 19:07:55 +0000</pubDate><link>http://www.jonspinney.com/jonspinneycom/2010/1/12/foursquare-users-and-moral-decay.html</link><guid isPermaLink="false">143527:1308190:6303437</guid><description><![CDATA[<p>It's easy to lie with check-in based social location sharing utilities like Brightkite, Gowalla, and Foursquare. I've used them all (though recently have lost interest). With each I can fake my mobile location at anytime, and sometimes <a href="http://www.jonspinney.com/jonspinneycom/2009/9/24/apples-arent-oranges.html">I have when in a punchy mood</a>. &nbsp;There are measurable social implications to this - that is making lying easy - supporting a moral decay killing local trust, particularly in the US. That's a heavy academic topic unsuitable for this site, but one I still spend time thinking about.</p>
<p>On a much lighter note, Foursquare must absolutely love user <a href="http://foursquare.com/user/-25130">Joseph G</a> of NYC. He has an&nbsp;average&nbsp;of <a href="http://twitter.com/micah/status/7678799902">24 check-ins per evening</a>&nbsp;and he's mayor of 177 NYC spots of interest.</p>
<p><span class="full-image-block ssNonEditable"><span><a href="http://foursquare.com/user/-25130"><img style="width: 590px;" src="http://www.jonspinney.com/storage/JosephG.jpg?__SQUARESPACE_CACHEVERSION=1263832411023" alt="" /></a></span></span></p>
<p>Clearly, he's a cheater; exactly the kind Foursquare must want. After all, the more he fibs, the better Foursquare's POI database gets. I have no interest in helping Foursquare build a POI databases for their benefit,&nbsp;particularly&nbsp;when there's none reciprocated other than bragging rights shared amongst a user community all doing the same.&nbsp;</p>
<p>I'll keep using Latitude. It's <a href="http://www.youtube.com/watch?v=45Npuc0e77g">incapable of lying</a>, mostly&nbsp;importantly, to myself :-)</p>]]></description><wfw:commentRss>http://www.jonspinney.com/jonspinneycom/rss-comments-entry-6303437.xml</wfw:commentRss></item><item><title>TCS on Carrier Business, Location-Based Experiences, and Google</title><category>Business Models</category><category>Carrier Control</category><category>M&amp;A</category><category>Navigation</category><category>Network-Location</category><category>Strategy</category><dc:creator>Jon</dc:creator><pubDate>Tue, 05 Jan 2010 21:32:00 +0000</pubDate><link>http://www.jonspinney.com/jonspinneycom/2010/1/5/tcs-on-carrier-business-location-based-experiences-and-googl.html</link><guid isPermaLink="false">143527:1308190:6221714</guid><description><![CDATA[<p>While the Web goes wireless in the mobile&nbsp;era with Ads, Androidification, iPhone-ness, alternative distribution &amp; billing, and while working-around-the-pipe, <a href="http://www.telecomsys.com/">TCS </a>stays focused on the same wireless carrier business and partnerships they've nurtured for over a decade. If not familiar with TCS, their location-based offerings have grown from legislation-driven e911 emergency services in the late 90s with their acquisition of xyPoint, through their acquisitions runs of Kivera and Autodesk Location Services, and now through their $170M buyout of Networks In Motion - one of two location-focused mobile app companies in the US making <a href="http://phx.corporate-ir.net/phoenix.zhtml?c=123361&amp;p=irol-newsArticle_Print&amp;ID=1366304&amp;highlight=">enough money to be worthy of recognition</a>. Strangely enough, not a single news pub, reputable blog, or Valley socialite covering location-based services mentioned the later last December - an indication to me that most haven't a clue about the history of the space TCS has earned steady &amp; predictable revenues and profits in.&nbsp;At a time when more companies are distancing themselves from working with carriers, TCS continues to invest in the backend, less flashy part of location with stable business-minded due diligence driven exclusively by ongoing trusted relationship discussions with their carrier customers and partners. Curious why, I&nbsp;recently caught up with Elliott Hamilton, a friend, former colleague, and TCS' Sr. Director of Strategy. I mostly wanted to understand why TCS continues to invest in more geoservices and applications through the acquisition of NIM. TCS already had a robust geo engine and suite of similar apps in their product portfolio from their 2004 Kivera acquisition. I also found the timing of the NIM deal strange, coinciding with free-Google-Nav-inside Droids hitting Verizon - NIMs main channel partner a la VZ Navigator.</p>
<p>Here's what Elliott had to say...&nbsp;</p>
<p>"The NIM acquisition is about servicing our operator customers as best as possible, with our infrastructure, services, with applications. We obviously did our due diligence with Verizon and other operator customers, and we feel there's lots of room for growth. While today, the operators offer point solutions, I can definitely envision them having very powerful integrated location-based experiences that include navigation, locators, and search, all with parental controls and social phonebooks built-in. We'll continue to offer them whatever they want, if that's advertising or pay-for apps and experiences."</p>
<p>When asked about challenges faced by free alternatives...</p>
<p>"We don't see Google taking over the world, because operators don't want Google to take over the world. Google may get 20% market share, but not all of it, and we see the total market growing 3X over the next five years. No one is going to let Google dominate because they understand Google is not looking out for their interests. If an app is still making money, operators will continue to market it as a premium service while watching free Android apps and emerging ad revenues carefully. It will also be interesting to see how other handset manufacturers now using Android react to Google's own device launch."</p>]]></description><wfw:commentRss>http://www.jonspinney.com/jonspinneycom/rss-comments-entry-6221714.xml</wfw:commentRss></item><item><title>5 Predictions From 2009, and 5 More for 2010</title><category>Analysis</category><dc:creator>Jon</dc:creator><pubDate>Mon, 04 Jan 2010 17:44:25 +0000</pubDate><link>http://www.jonspinney.com/jonspinneycom/2010/1/4/5-predictions-from-2009-and-5-more-for-2010.html</link><guid isPermaLink="false">143527:1308190:6218330</guid><description><![CDATA[<p><span class="full-image-float-right ssNonEditable"><span><img style="width: 255px;" src="http://www.jonspinney.com/storage/binoculars2.jpg?__SQUARESPACE_CACHEVERSION=1262663146823" alt="" /></span></span>At the beginning of 2009 I ran the&nbsp;ridiculous&nbsp;and proverbial fools errand of predicting trends for the year. As I <a href="http://www.jonspinney.com/jonspinneycom/2008/12/31/5-predictions-for-2009.html">said </a>then, if I scored better than 60%, I would tackle the trending tightrope again in 2010. Before I do, here's what I speculated last year and how I faired against myself. &nbsp;</p>
<ol>
<li>More consolidation in the LBS space. Check. Not only did we see Google <a href="http://www.jonspinney.com/jonspinneycom/2009/8/20/googles-street-view-streets-cell-ids-3d-buildings-mobile-os.html">do everything themselves</a>, simplifying the once-overly complex supply and value chain considerably, but we also saw&nbsp;<a href="http://spreadsheets.google.com/ccc?key=0AuEM2ZFJBUzgcGZwbXZ4T2wzQlNIalJ2cFdBa2hwYlE&amp;hl=en">LBS M&amp;A deals</a>&nbsp;nearly level with the explosive growth of 2007.</li>
<li>Carrier Network-As-A-Service irrelevance. I didn't nail this one, but got it partially correct. SDPs are still around and more <a href="http://developer.clear.com/wiki/location-based-serv/Resources_and_Tools">modern APIs</a> are now available, but when I talk to developers about these, they aren't aware they exist and are instead focused on handset only development where Location is now a measly feature everyone uses. Also, Mobile Browser support for device resource access isn't quite there yet, but W3C's GeoLocation API is prime time, endorsed and supported by all the new webkit entrants. It's coming, soon. &nbsp;</li>
<li>App Store proliferation and carrier billing disintermediation. There are now over 100K Apps in the iTunes App store. Need I say more?</li>
<li>Smartphones will&nbsp;receive first-class subsidy care and marketing. When was the last time you saw a carrier ad promoting a feature phone? 'Nuff said.&nbsp;</li>
<li>A resurgence in mobile enterprise applications coverage. I didn't get this one right, but <a href="http://gigaom.com/2010/01/02/googles-to-do-list-for-2010/">look for it to happen</a> in 2010. &nbsp; &nbsp;</li>
</ol>
<p>I give myself a mark of 75% for the above - a pass- and as such, here we go... <strong>My 5 predictions for 2010</strong>. &nbsp;</p>
<ol>
<li>Still more consolidation, in three main areas. First, expect one or two vertically-integrated mobile behemoths&nbsp;to buyout other ailing and aging yesteryear map service and mobile hardware behemoths. Second, smaller social location start-ups will get consumed by larger more established social players. We've already seen <a href="http://www.techcrunch.com/2009/12/23/twitter-acquires-mixer-labs/">some initial movement</a>. Third, content-related&nbsp;acquisitions&nbsp;will continue and include buyouts of 3D digital elevation model data providers and place-based POI providers who leverage social feedback loops for ratings and rankings.</li>
<li>The&nbsp;tectonic shift from voice to data economics will finally start to gain real momentum and circuit-switched networks will begin to be phased out of existence. With this, location-contextual voice will emerge as a new killer enabler and with it a whole new slew of integrated communications and networking applications. Wireless 911 as we know it will change.&nbsp;</li>
<li>Mobility (connectivity + location) beyond-the-phone trends will continue and become common in M2M infrastructure processes and services managed in the utilities, local government, transportation, healthcare, and energy sectors. GIS has an opportunity to shine again in a new connected mobile era.&nbsp;</li>
<li>Desktop operating systems &amp; software environments will get further pushed into the specialty back-office, as thinner, lighting-fast operating systems with the Browser, and hybrid clouds start to handle repetitive 'desktop' activities; activities increasingly more mobile-accessible, via WAN connected, location-smart tablets &amp; netbooks. &nbsp;Contextual cloud-sync services will define how users interact with email, calendars, contacts, media files, and map data. More niche social sharing tools will emerge for professional collaboration.&nbsp;</li>
<li>Location will be included in *every* new mobile application that is introduced. I realize this is nearly impossible to track, but I'll try to keep an eye on it and report back next year. &nbsp;&nbsp;</li>
</ol>
<p>That's all. I'll keep score again, and a year from now, let you know how I faired. Good luck this year!</p>]]></description><wfw:commentRss>http://www.jonspinney.com/jonspinneycom/rss-comments-entry-6218330.xml</wfw:commentRss></item><item><title>Google, You're Popular (Again)</title><category>Google Mobile</category><dc:creator>Jon</dc:creator><pubDate>Fri, 01 Jan 2010 01:54:09 +0000</pubDate><link>http://www.jonspinney.com/jonspinneycom/2009/12/31/google-youre-popular-again.html</link><guid isPermaLink="false">143527:1308190:6185757</guid><description><![CDATA[<p><span class="full-image-float-left ssNonEditable"><span><img style="width: 175px;" src="http://www.jonspinney.com/storage/Google_logo.gif?__SQUARESPACE_CACHEVERSION=1262311741592" alt="" /></span></span>At the end of 2008, the <a href="http://www.jonspinney.com/jonspinneycom/2008/12/31/google-youre-popular.html">most popular post</a>&nbsp;on this blog visited by readers covered&nbsp;<a href="http://www.jonspinney.com/maperture/2008/3/24/how-does-googles-mylocation-really-work.html">Google's MyLocation service</a>. We <a href="http://www.jonspinney.com/jonspinneycom/2009/11/4/google-speculations-confirmed-rest-easy.html">learned </a>this year Google's Cell-ID data source originates from wireless sensors mounted on their street cars, confirmed shortly after other <a href="http://www.jonspinney.com/jonspinneycom/2009/8/20/googles-street-view-streets-cell-ids-3d-buildings-mobile-os.html">'wild' speculation</a>&nbsp;surfaced. Confirmed indeed, the entire LBS tech supplier and value chain has been consolidated under Google. Mountain View is serious about owning this mode of mobile Search, and organizing the&nbsp;necessary&nbsp;geo info to make it universally accessible is a spare-no-expense pursuit.&nbsp;</p>
<p>Anyway... like last year, a Google topic this year again wins the most visited and popular post on this blog for 2009 - "<a href="http://www.jonspinney.com/jonspinneycom/2009/12/15/how-the-nexus-one-could-destroy-conventional-mobile-industry.html">How The Nexus One Could Destroy Conventional Mobile Industry Supply Chain Economics</a>". However, unlike last year, I won't further speculate about the Nexus One. I'm done speculating about Google (week-after-week innovations speak for themselves). Plus, we should all know more about the Nexus One in a couple weeks upon release.</p>
<p>At this point, I'm thrilled to see mobile industry US-company wins for&nbsp;Qualcomm's&nbsp;Snapdragon offering (they've earned it) and for a cloud-sync mobile era that Google is leading in&nbsp;lieu&nbsp;of other mobile leaders&nbsp;<em>seemingly&nbsp;</em>caring less about either.&nbsp;I'm also expecting exciting things for 2010. This year looks like the breakout year for contextual voice, mobile VoIP, and over-the-top data-driven smart voice offerings. Maybe we'll even see Apple do a connected mobiletop for widgets and connect that iPhone mobile computer to network mobility. Novel! ;-)</p>]]></description><wfw:commentRss>http://www.jonspinney.com/jonspinneycom/rss-comments-entry-6185757.xml</wfw:commentRss></item><item><title>How The Nexus One Could Destroy Conventional Mobile Industry Supply Chain Economics</title><category>Android</category><category>Business Models</category><category>Carrier Control</category><category>Google Mobile</category><category>Wireless Freedom</category><dc:creator>Jon</dc:creator><pubDate>Tue, 15 Dec 2009 14:56:55 +0000</pubDate><link>http://www.jonspinney.com/jonspinneycom/2009/12/15/how-the-nexus-one-could-destroy-conventional-mobile-industry.html</link><guid isPermaLink="false">143527:1308190:6068198</guid><description><![CDATA[<p>I had an off-the-cuff thought yesterday and tweeted it:</p>
<p><span class="full-image-block ssNonEditable"><span><a href="http://twitter.com/jspinney/status/6671970685"><img src="http://www.jonspinney.com/storage/2.jpg?__SQUARESPACE_CACHEVERSION=1260917683457" alt="" /></a></span></span></p>
<p>Seems far fetched right? Perhaps not. Hear me out on this one... Three years ago, Schmidt made it clear and in no uncertain terms he believes <a href="http://www.msnbc.msn.com/id/15700344/">phones should become free</a>&nbsp;as ad impressions per user out-earn two-year carrier contract subsidies plus mobile device hardware costs. Widely considered industry blasphemy back then, I'll admit I didn't fully understand how an ad subsidized free device might be possible. I've come to learn it's feasible through experience... A year after Schmidt made his thoughts public, I started working for a handset <a href="http://www.sonimtech.com/index.php">manufacturer</a>&nbsp;where I&nbsp;was responsible for inking deals with vendors in the supply chain.&nbsp;</p>
<p>While building phones, I learned there are many components that go into a production and distribution, and each have costs in a complex array of supply chain economics. Our total bill of materials was about $60. Beyond the core BOM, we also budgeted for ancillary packaging, shipping, distribution, logistics, and GSM patent licensing costs, plus one-off FCC certification, tooling and assembly line costs - the later two of which were charged-for by our Chinese OEM, Nollec. Nearly all of our silicon and component costs were available at discounted prices, primarily because Nollec had previously used our selected piece parts in designs for other manufacturers and preexisting supply chain contracts were in place - we simply inherited what was already available in the market and used two-year old technology that was less expensive. &nbsp;After all costs, our unlocked street price generated a 45% gross margin for the business, which made it&nbsp;profitable. &nbsp;</p>
<p>Anyway, the mobile industry supply chain I worked in (the one that still exists today) is complex - as is its money flow. If Google were to pull-off offering a free&nbsp;phone (or an easily obtainable inexpensive one), I suspect they would have to front at least some of the initial supply chain and manufacturing costs themselves - initial up-front costs run too much red for HTC and&nbsp;their technology suppliers to bear in suspended after market return. That said, I do not doubt that ad revenues generated per user over time could indeed cover all&nbsp;embedded&nbsp;and production costs needed to maintain existing profit margins for supply chain vendors and OEMs.</p>
<p>Pretend for a moment that the Nexus One costs $300 to produce. This cost may seem high, but with all the cutting edge tech inside it, this may be a fair estimate. HTC, Qualcomm, and everyone else needs to earn what they earn now from a $300 BOM. Could Google generate the $300 over the life of the device from businesses advertising through them? I think so, but in order for it to be&nbsp;profitable&nbsp;for Google, they would need an additional margin beyond the BOM costs. Is that possible? &nbsp;Sure. I can see a device like the Nexus One generating a couple thousand dollars per user from businesses seeking third screen reach through highly&nbsp;contextual and personalized mediums. &nbsp;So, free <em>could </em>be possible.&nbsp;</p>
<p>Others&nbsp;<a href="http://twitter.com/andreascon/status/6692269664">speculate </a>if a free or even inexpensive Nexus One is launched, it will leave little reason for other handset OEMs to follow or care about Android if hardware profits are eliminated.&nbsp;</p>
<p><span class="full-image-block ssNonEditable"><span><a href="http://twitter.com/andreascon/status/6692269664"><img src="http://www.jonspinney.com/storage/1.jpg?__SQUARESPACE_CACHEVERSION=1260917695929" alt="" /></a></span></span></p>
<p>I'm not so sure. Profits aren't eliminated with this model, they just have a different point of origin and the money flows differently. Assuming the existing supply chain&nbsp;earns&nbsp;what they've grown comfortable with, why should anyone care if payment originates from businesses who pay Google to advertise versus&nbsp;payment originating from consumers, through the carrier, onto handset manufacturer's and subsequently onto the technology supply chains. From this perspective, a free Nexus One&nbsp;seems possible, and I wouldn't be a bit surprised if it happens. It's disruptive as hell, and "as long as you're on the side of the consumer, you'll be fine", right? :-)</p>]]></description><wfw:commentRss>http://www.jonspinney.com/jonspinneycom/rss-comments-entry-6068198.xml</wfw:commentRss></item></channel></rss>