We’ve been tracking a few emerging mobile-only social networks. All of these services are downloadable applications that run on your mobile phone.
Mobile social network Loopt’s deal with Sprint, however, has given it the distinction of being one of two with automated location updates and deep integration with a U.S. carrier (Helio is the other). This opens up a lot of possibilities for location based services. The deal gave them a lot of advantages over other networks. They could easily relay location information — what we call the “Holy Grail” — and came pre-installed on phones. But the deal also meant only your Sprint friends could join and you need a GPS enabled phone. However, Loopt’s exclusivity agreement is up and they’re looking to expand the service across more carriers and services (even Android).
As part of expanding their reach, Loopt has released a new version of their program that integrates with your address book (like Zyb) and sends status updates to your non-Sprint friends over SMS or AIM. The messages can also attach a link to a map online, so texting “let’s meet for coffee” can also say where you are. As before, it still has the geotagging, messaging, and privacy features we already reported on. I’m sure they’re learning a lot from services like Twitter and the recent Jaiku acquisition.
Loopt has remained tight lipped about who they’re talking to, but the pitch is pretty clear. Competition is driving down mobile voice revenues which Loopt says they can help offset by driving new profits in data plans people pay for to use the program. Currently they make money through $2.99/month subscription plans or by being bundled in with a phone data plan. Location based services and advertising are also other key revenue sources. Loopt says that 51% of all mobile application revenue already comes from location based services.
But it’s not all smooth sailing ahead. While Loopt owns its section of the network, other mobile networks with lower barriers to entry have gained a lot of traction. Twitter has kept a high profile (with funding) and Mig33 has claimed over 7 million registered users. Loopt could learn a great deal from following the lead of these lower friction services.
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COOL
I think there is an opportunity for Loopt to partner with aa internet yellow pages provider.
It could help two texting friends find a location to meet while providing another revenue stream for Loopt.
Very nice, I wish there would be some free services too
I don’t actually think Helio uses loopt. I am a subscriber of Helio and loopt is not the software we use for our “buddy beacon” application. Boost Mobile, owned by sprint however, does in fact use loopt. for a fee.
That’s right james. Helio runs on a different system. The Sprint reference was for Loopt, not Helio. I rephrased to clarify.
Nick,
Why does techrunch write so much about loopt. My understanding is that the have almost no subscribers on Sprint and the service is a failure. I also hear that paying subscibers on Boost are low. What gives with all this hype…feels like dodgeball all over again. Dont mean to be a hater, but there has got to be other wireless companies doing innovative things that are actually getting real users. I would love to hear about them! Thanks.
Lame compared to Terraserver Mobile!
http://fakesteveballmer.blogspot.com
Lots of privacy issues.
Lawrence is right, loopt has very poor traction.
Recently one of their key guys quit.
Nick, you should have a look over at http://www.storexperience.com.
They are not in social networking, but mobile & local services that are HUGE!
Seems to be early stage for now but if they succeed… !
Cheers,
PH