| Location based services is value-added services which telecom operators believe it a new profit growth point and differentiated services in the context of 3G. As the market environment and users' needs come to mature, many bodies of the industry chain, including mobile terminal providers, content providers, begin to involve in the industry chain. How to increasing competition in the future to occupy the dominant position of the industry chain is the problem telecom operators are facing.In this paper, we start with the concept, classification and related positioning technique of LBS, then study on the development of LBS based on the reorganization of three major telecom operators in China, carry out corresponding recommendations of LBS for different telecom operators; then study development status of foreign operators, contribute their successful experience to four factors as regulations, technology, content and competition, also stress the importance of user privacy management.In this paper, we focus on the income distribution mechanism and incentive mechanism of operators and partners. It is the innovative part of this paper. First, by building LBS industry chain structure, we analyze existing problem and future trends; then take China Mobile as an example, we analyze LBS income source and income pattern, at last we build a dual task model based on principal-agent theory in order to analyze business cost optimization and operational quality optimization, then we use tools as Matlab to do numerical experiments. Operators can design income distribution system by control partners'efforts, control the change of fixed fee and incentive fee. Operators and partners can take steps to improve overall performance based on the results.In this paper, we aim to study the status and profitability of LBS, provide some theoretical guidance for operators to develop income distribution policies and business development strategy. |
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