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Facing
FCC Pressure, Carriers Favor GPS-Enabled Handsets
Wireless carriers
appear to favor using location identification-enabled handsets
over network solutions to meet the Federal Communications
Commission's requirement to provide the location of 911 callers
as is done with wired emergency phone calls. This preference
will help drive sales of GPS-enabled handsets in the United
States from zero units in 2000 to nearly 85 million in 2005,
according to Cahners In-Stat Group.
Up until now,
because of enormous pressure to boost profit margins, handset
manufacturers have been reluctant to add GPS capabilities
to their products. GPS capability currently adds from $7-12
to handset costs when embedded within the cellular baseband
chipset and from $40-50 when added in a separate chipset or
module.
 Manufacturers
are more likely to add GPS capability over the next few years
as the FCC deadline approaches for carriers and the cost of
GPS functionality drops. Carriers can deploy location identification
through network or handset-based systems. Those who choose
the handset solution-which will become the most popular strategy-must
start offering new subscribers location-enabled handsets this
year and 95% of their subscribers must have them by the end
of 2005, according to FCC regulations. Within the next few
years, many component makers will embed GPS functionality
within phones' basebands so that the cost of adding GPS to
handsets will drop to $5-8 on average, In-Stat believes.
GPS, which
uses a constellation of geosynchronous satellites to determine
a user's location typically provides a more accurate positioning
fix than network-based location identification solutions.
But the GPS option requires that users purchase a new type
of handset that is more expensive due to extra component content.
GPS-enabled
handsets provide the most accurate position fix for cellular
calls and thus the FCC has the most stringent requirements
for that technology. Handset-based systems will be required
to locate callers within a 50-meter range for 67% of calls
and within 150 meters for 95% of calls. Network-based systems
will have to locate 67% of calls within 100 meters and 95%
of calls within 300 meters.
The four network-based
location identification systems-Cell of Origin (COO), Time
Difference of Arrival (TDOA), Angle of Arrival (AOA), and
Location Pattern Matching-all work with existing handsets.
Unless two or more are used in combination, however, they
may not meet the FCC's accuracy requirements under some conditions.
The network-based
systems have several advantages and disadvantages:
- TDOA -
Has been emerging as most popular form of location technology.
Works by determining how far a handset is from three or
more basestations. This option is relatively easy to deploy
and works with existing handsets. It, however, offers much
poorer accuracy than GPS and cannot provide users' altitude.
- AOA - Works
with the aid of an added antenna array on each basestation
tower. Works with existing handsets and requires at least
two basestations for a fix. Accuracy is typically much worse
than GPS and cannot provide users' altitudes.
- Location
Pattern Matching - The least accurate method, but works
with existing handsets and just one basestation.
In addition
to providing increased safety for users, wireless carriers
are preparing to leverage location identification technology
to add several services that can bring in new revenue including
Subscribers
in other parts of the world will also adopt GPS and other
location identification services rapidly over the next several
years. More than two-thirds of the world's wireless subscribers
will have access to these services by 2005, up from just over
2% in 2000, In-Stat predicts.
Report Information
In the United States, the F.C.C. is the
driving force behind the deployment of mobile location technologies,
and their requirements are having a major impact on the cellular
industry. This report looks at the FCC Phase II requirements,
location technologies available, the carriers' view, and a
listing of GPS components available for use in wireless handsets.
Forecasts include GPS enabled handset sales by region, location
enabled subscribers by technology, GPS handset chipset revenue
and worldwide location based services revenue.
How to buy
this report
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