So by being aware of your phone’s geolocation and knowing where it is pointing to (Layar requires a built in compass to work) it can provide you data about what is just around you.

Challenges:

- The need for a built in compass. Total universe now is Android phones and iPhone 3GS.

- In addition the business model requires scale. This is yet another app that is fully relying on a very powerful network effect. I.e. that you get many users fast. With small user base there will be few companies and content providers knocking on the door.

It should be possible to charge end-users directly for some information. Travel guides etc. This might be the most viable route to take in the short to mid-term. On the iPhone the in-app purchases should be a powerful vehicle for this.

If you are in Holland (launched) or Germany where they launch soon you have the chance to see a bit of the imminent future.

Good work Sprxmobile!

LBS has been one of the long lasting hyped functionalities in mobile services. One of the classic cases is the location aware advertising model. I am walking down a street, approach a Starbucks and voila I get an MMS with a voucher for a half-price latte. Only thing is, I need to be signed up to or have downloaded an app that tracks me in realtime. But the big challenge is the targeting. Just because I am approaching a Starbucks does not mean I am in the mood for coffee. I might be on my way to the health clinic next door to Starbucks for an appointment with a cognitive therapy expert to kick my caffeine addiction.

But location awareness has a strong value added in many cases. Lately I have spent much time thinking about LBS in the context of dating and matching. The reason being the recent launch of Souldate (that I am a shareholder of, to be clear and transparent).

In the dating scenario locaion awareness makes a lot of sense. Even without precise realtime location a la GPS. Just a quick positioning at sign-in of the service that is then used to rank all matches in order of geographic proximity without revelaing the location of any member adds value. As a user you know that the people at the top of the list match your criteria and vice versa, they are also the ones nearest to you. Since dating services are all about getting people to meet in real life, I know that the top results are the ones that most likley are easiest and quickest to meet up with.

Makes sense? Let me know what you think. Take the poll!