The first generation of LBSs went into operation at the beginning of the new millennium. At that time, market analysts saw them as killer applications for the emerging 3G networks and predicted tremendous growth rates and revenues for network operators and service providers offering these services. However, very soon it turned out that LBSs were not that “next big thing” after the success story of GSM and the unexpected hype of the rudimentary SMS. Rather, LBSs were and still are often understood as a niche market for “techies” who use them to find nearby restaurants or ATMs.

So, what are the reasons for the moderate success of the first generation LBS? The following list presents a number of reasons compiled for this book for literature as well as from talks with operators and LBS providers: ...