2009/11/13

Maps Central to Mobile Plans of Internet Firms

Maps Central to Mobile Plans of Internet Firms 11-09-2009 20:57

Internet companies like Naver believe their digital map services to be the key in their mobile Web offerings. / Korea Times

By Kim Tong-hyung
Staff Reporter

The South Korean technology industry has been waiting for the mobile Internet explosion for years.

However, with the competitive pricing pressure on mobile telephony operators finally forcing them to budge and lower their data rates, there seems to be real hope that the average wireless user will begin to use his handset to surf the Web at last.

The stronger mobile Web will benefit the telecommunications companies, who could get more significant returns on their massive third-generation (3G) investment, and electronics makers, who may see bigger shipments of ``smart'' phones, which allow Web browsing and multimedia features on top of voice and provide larger margins than conventional handsets.

The rise of the mobile Internet is also critical for Internet companies, who are seeking to leverage their desktop-based business models to the quickly expanding market of the wireless.

Web sites such as Daum (www.daum.net), NHN, the operator of the search leader, Naver (www.naver.com) and SK Communications, which owns Nate (www.nate.com) and the popular social networking service, Cyworld (www.cyworld.com), are now racing to reprogram their existing Web services for mobile devices.

And the clear emphasis seems to be on their digital map services, as location-based applications may emerge as the killer content for smart phones.

Daum has been struggling to compete with Naver in traffic, with the latter enjoying a 70-percent-plus share in search queries, but in the arena of digital maps, the No.2 Web portal is considered to have the top game.

Daum spent a massive amount of money to introduce its digital map services, which include ``Sky View,'' a detailed photographic map of the country, and ``Road View,'' a ground-level image service.

The crystal-clear views of landscapes, roads, streets and buildings are impressive, even allowing a diner an up-close view of the sushi restaurant he reserved for diner, and Daum is hoping that its digital maps will become even more useful when wireless users can access them on their Web-enabled handsets.

Daum officials say the company is nearing the completion of the mobile version of their map services, optimized for Apple's iPhone and other popular smart phone models. Device makers are expecting location-based services to become a crucial application on smart phones, and Daum is hoping that its leadership in maps will give them a spurt ahead of rivals in mobile competition.

Daum soon plans to introduce ``i-Buddy,'' a handset-based social networking service that allows users to track the location of friends on Daum's map.

Apparently, Naver has no intention of surrendering its No.1 spot to its rival just because the competition is moving to smaller screens.

In comparison to Daum's ambitious splurge on its Web map services, Naver had maintained a more cautious approach in upgrading its own map services, citing the lack of a clear business model.

However, with the focus moving increasingly toward the mobile Web, Naver has now started to strengthen its map investment.

Naver recently released a traffic information application embedded upon its map services, allowing users to find the quickest road route and public transportation connection to a given location, and is also planning to achieve nationwide coverage of its digital photomap that provides images at the 50 centimeters per pixel level.

Naver is also planning to connect its map services with the content of Wingbus, a travel and leisure Web site, allowing users to search for popular tourism attractions and restaurants.

``Maps will be the essential application for the mobile Internet, as navigation features and other location-based services become critical when people are accessing the Web while on the move,'' said an industry official.

``Business models are still an issue, as fee-based services are unlikely to get off and it remains to be seen whether maps and other location-based services could draw a sufficient amount of advertisement money. Still, Internet companies can't afford to be laid back in maps, when they could influence the outcome of the traffic competition in the mobile Web.''

thkim@koreatimes.co.kr
http://www.koreatimes.co.kr/www/news/tech/2009/11/129_55181.html

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