Location based services

What Is Location Based Services?

Location based services (LBS) are software applications that integrate geographic data with information technology to provide services or information tailored to a user's real-time physical location. Falling under the broader umbrella of Information Technology, LBS leverage various positioning technologies to determine the geographical coordinates of a mobile device or asset, enabling a wide array of functionalities. These services are crucial in modern mobile computing, enhancing user experience, streamlining operations, and enabling new business models by making data contextually relevant to a specific place.

History and Origin

The conceptual underpinnings of location based services can be traced to early navigation methods and the development of radio navigation systems like LORAN during World War II. However, the true genesis of modern LBS lies in the advent of satellite navigation. The United States Department of Defense launched the Global Positioning System (GPS) project in 1973 to create a global network of satellites for accurate positioning data, becoming fully operational in 1993¹⁰,⁹. Initially intended for military applications, the potential for civilian use of GPS became evident following incidents such as the downing of Korean Air Lines Flight 007 in 1983, after which President Ronald Reagan announced that GPS would be made available for civilian use⁸.

A significant driver for the commercialization and widespread adoption of location based services was the United States' Federal Communications Commission (FCC). In the mid-1990s, the FCC mandated wireless carriers to pinpoint the location of emergency callers to improve public safety, leading to the development of Enhanced 911 (E911) services. This regulatory pressure spurred innovation in mobile location technologies beyond GPS, integrating cellular network data and later Wi-Fi for more precise positioning⁷,⁶. Early location based services applications in the early 2000s began to leverage these advancements, paving the way for the sophisticated LBS ecosystem seen today⁵.

Key Takeaways

• Location based services (LBS) use geographical data to deliver context-aware information and functionalities.
• They are enabled by technologies such as GPS, Wi-Fi, and cellular network triangulation.
• LBS applications range from navigation and mapping to targeted marketing and asset tracking.
• Regulatory mandates, like the FCC's E911 requirements, played a significant role in their development.
• Data privacy and security are crucial considerations for location based services.

Interpreting Location Based Services

Interpreting location based services involves understanding how geographic information translates into actionable insights or enhanced user experiences. When an application uses LBS, it processes raw location data (e.g., latitude, longitude, altitude) and integrates it with other datasets. For instance, a mapping software interprets a user's GPS coordinates to display their position on a map, suggest nearby points of interest, or calculate optimal routes. Businesses interpret patterns in aggregated LBS data to understand customer relationship management trends, optimize logistics, or inform urban planning. The interpretation moves beyond simple positioning to contextual relevance, allowing systems to respond intelligently to a user's or asset's presence in a particular area.

Hypothetical Example

Consider "GeoInvest," a hypothetical financial application designed to help users discover investment opportunities related to local economic activity. Sarah, a user of GeoInvest, travels to a new city. As she opens the app, her smartphone's location based services detect her current position. The app then leverages this data to:

1. Identify Local Economic Indicators: GeoInvest pulls real-time data on local business openings, commercial real estate trends, and employment statistics within a 5-mile radius of Sarah's location.
2. Suggest Local Investment Opportunities: Based on this analysis, the app might highlight local publicly traded companies with significant operations in the area, real estate investment trusts (REITs) focused on the region, or even local bonds.
3. Provide Contextual News: It could also present news articles or economic reports specifically relevant to the city or neighborhood Sarah is in, enriching her understanding of the local market.

In this scenario, location based services transform raw geographical coordinates into financially relevant, context-specific insights, helping Sarah make informed decisions related to potential investments in her immediate surroundings.

Practical Applications

Location based services have permeated numerous sectors, offering practical solutions and creating new markets. Some prominent applications include:

• Navigation and Mapping: Core to daily life, applications provide turn-by-turn directions, traffic updates, and public transportation information by utilizing global navigation satellite system data.
• Asset Management and Fleet Tracking: Companies use LBS to monitor the location of vehicles, equipment, and goods, optimizing supply chain management and improving operational efficiency. This is particularly vital for logistics and distribution networks.
• Location-Based Marketing and Advertising: Businesses deliver targeted promotions, coupons, or advertisements to consumers based on their proximity to stores or points of interest. This relies on advanced marketing analytics.
• Emergency Services and Public Safety: As mandated by regulations like the FCC's E911 rules, wireless carriers provide caller location to emergency services dispatchers, significantly reducing response times in critical situations⁴,³.
• Social Networking and Gaming: Many social platforms allow users to share their location, check into venues, or find nearby friends. Location-based games, such as augmented reality titles, also integrate real-world locations into gameplay.
• Internet of Things (IoT): LBS underpins many internet of things applications, where smart devices communicate their positions to a central system for monitoring, control, or automation.

Limitations and Criticisms

Despite their widespread utility, location based services are not without limitations and criticisms. A primary concern revolves around data privacy. The continuous collection and transmission of location data raise significant questions about user surveillance and the potential for misuse of personal information. As highlighted by organizations like the Electronic Frontier Foundation, location data can reveal highly sensitive details about an individual's life, including their routines, relationships, and health conditions, making its security paramount². The potential for location data to be intercepted, sold, or used without explicit consent poses substantial risks.

Technological limitations also exist. While Global Positioning System (GPS) works well outdoors with clear sky views, its accuracy can degrade significantly in "urban canyons" (areas with tall buildings), dense foliage, or indoors. Reliance on cellular signals or Wi-Fi triangulation for indoor positioning can offer varying degrees of accuracy depending on network density and signal strength. Developing precise indoor location based services remains a technical challenge. Furthermore, the constant use of LBS applications can lead to increased battery consumption on mobile devices due to the ongoing need for wireless networks and sensor activity.

Location Based Services vs. Global Positioning System

While often used interchangeably, Location Based Services (LBS) and the Global Positioning System (GPS) are distinct concepts. GPS is a specific satellite-based global navigation satellite system that provides precise positioning, navigation, and timing information. It is a fundamental technology that enables many location based services by determining a device's geographical coordinates¹.

In contrast, Location Based Services is a broader term encompassing any service or application that uses location data. While GPS is a primary source of this data, LBS can also leverage other technologies to determine location, such as Wi-Fi positioning, cellular network triangulation, IP address lookup, and even manual user input. An LBS application may combine data from multiple sources to improve accuracy or provide location in environments where GPS signals are unavailable, such as indoors. Therefore, GPS is a key component of many LBS, but LBS can exist and function using other location determination methods.

FAQs

How do location based services determine my location?

Location based services primarily determine your location using several technologies, often in combination. The most common is the Global Positioning System (GPS), which uses signals from satellites to triangulate your device's position. Other methods include Wi-Fi positioning (using signals from nearby Wi-Fi networks), cellular triangulation (measuring signal strength from cell towers), and sometimes even Bluetooth beacons for indoor accuracy. The application typically selects the most accurate and available method at any given time.

Are location based services always active on my phone?

No, location based services are not always active. They only function when an application or system feature requests your location. You typically have control over which applications can access your location data through your device's privacy settings. It is generally advisable to review and manage these permissions to control your data privacy.

What are some common examples of location based services in everyday life?

Everyday examples of location based services include navigation apps that provide directions, ride-sharing apps that connect you with nearby drivers, weather apps that give forecasts for your current area, and social media platforms that allow you to "check-in" to places. Many retail apps also use LBS to show you nearby store locations or send you relevant promotions.

Do location based services consume a lot of battery?

The impact of location based services on battery life depends on how frequently and accurately your location is being requested. Continuous, high-accuracy tracking (like during turn-by-turn navigation) can consume more battery than occasional, lower-accuracy requests. Managing app permissions and turning off location services when not needed can help conserve battery.

How do businesses use location based services?

Businesses use location based services for various purposes, including optimizing logistics and supply chain management (e.g., tracking delivery vehicles), targeted advertising (sending promotions to customers near a store), analyzing consumer foot traffic patterns, and enhancing customer relationship management by offering personalized experiences. LBS also supports strategic planning, such as site selection for new businesses, by providing insights into local demographics and economic activity through geographical information systems.