Ask Mobile GPS on SprintNextel will feature mobile versions of IAC’s Ask.com, Citysearch, and Evite. IAC plans to eventually add its Match.com, Ticketmaster, and RealEstate.com properties into the mix.  

IAC struck a deal with startup WaveMarket, a provider of global-positioning services, to provide location-based services, a move that underscores growing interest for GPS in handsets.

“Location-based services is a really hot area,’’ said David Gill, director for mobile Media at Telephia. “I think in the next couple of years the market is going to explode and search and GPS markets will converge substantially.’’

Emeryville, California-based WaveMarket’s technology combines mobile local search and GPS-enabled maps and directions for cell phone users. It will enable people to search for shops and restaurants or to simply connect with friends by pinpointing their location. The mobile application is expected to cost $9 per month.

“GPS is extremely powerful and we look to take advantage of it,’’ said Tasso Roumeliotis, founder and CEO of WaveMarket.

WaveMarket is backed by venture capital firms including Draper Fisher Jurvetson and Intel Capital. Qualcomm, a wireless chip maker, owns a stake in the company through its investing arm Qualcomm Ventures. In late 2001, the company raised $8.5 million in its first round of investment funding. WaveMarket has raised $23 million total to date.

“We are very glad to see that finally these location-enabling applications are hitting the mass market,’’ said Andreas Stavropoulos, managing director at Draper Fisher Jurvetson, who also serves on the board at WaveMarket. “We believe that WaveMarket is a leader in that space.’’

According to mobile analysts, local search services and mobile Internet services are increasing areas of growth for web companies. WaveMarket is positioned among a growing number of startups that make technologies that allow carriers and service providers to quickly locate any GPS-enabled handset, whether for emergency or commercial purposes.

Currently, Verizon Wireless offers VZ Navigator to its subscribers who want visual and audible directions to a destination, to locate businesses or get a map of a location.  But mobile Internet analysts say offering strictly navigation services is fairly limiting compared with the Ask Mobile GPS offer, which rolls in a bunch of consumer-friendly brands.

“The GPS component of the deal was interesting,’’ said Mr. Gill. “It’s also a great example of third parties, outside of Google or Yahoo, coming into a space and redefining themselves on mobile on particular applications with their brands.’’

GPS devices now represent 55 percent of all new mobile handhelds sold to consumers, according to researcher Telephia. WaveMarket expects the Ask Mobile GPS friend finder feature to be popular. The service will turn cell phone address books into social networks by allowing users to share their location.

Source: RED HERRING