April/May 2003

A relatively new approach to tracking people and vehicles, using only mobile phones to calculate location, is rapidly entering the commercial mainstream. This spring has seen the launch of several such systems in the UK, and more are expected to follow.

The initial wave of launches includes services from FleetOnline, Justfone and Verilocation. Major telecoms operators such as Alcatel are also known to be working on systems using this technology. In some cases there are no set-up charges, and the service can cost as little as 18p per tracking instance.

Tracking by mobile phone is just one of the possibilities offered by what are known as "location-based services". These often rely on the fact that mobile phone operators have to track the position of each mobile on their network in order to pass calls and messages to and from it. Accuracy is not as high as with GPS satellite-based systems, but suppliers argue that it is adequate for most logistics and field service applications; and on the plus side, no special equipment is required; you can track existing mobile phones.

Some of the new services apply a modest set-up fee; Overview Mapping, for instance, charges £249 for its Verilocation system. Others such as FleetOnline charge no fee. Prices are applied for each tracking instance, and tend to start at around 18p. Verilocation charges 20p, and allows pre-payment through the Worldpay system. FleetOnline claims to have stolen a march on rivals by arranging for payment to be handled automatically through mobile phone bills (all major UK operators have reportedly agreed).

 

Whilst these prices are very low, the advent of always-on GPRS has thrown a new element into the equation, since it allows almost continuous GPS-based tracking for a flat fee. Prices have fallen to around £15 a week, which typically includes a position update every half hour. Using LBS to track vehicles half-hourly works out at about the same cost, but without substantial set-up charge. However, LBS is less accurate, and its cost increases in a straight line the more often you request position updates.