StageFive Acquires LoFlat, Expands Beyond MVNO Into Location Data
IT DAILY ·
✦ AI Summary
StageFive announced on the 2nd that it will acquire AI location data specialist LoFlat and expand the competitive scope of its MVNO brand PinDirect into location-based services and data businesses.
The acquisition combines a telecommunications subscriber base with indoor positioning and movement route analysis technology, and StageFive plans to enhance safety services for children and seniors while pursuing new businesses using floating population and offline behavior data.
LoFlat will be folded into StageFive as a subsidiary through a comprehensive stock swap, with the stock swap terms and acquisition price undisclosed and its existing business structure remaining intact after the acquisition.
StageFive announced on the 2nd that it will not stop at its MVNO business, but will broaden its reach from rate and telecom service competition for the MVNO brand 'PinDirect' into location-based services and data businesses through its acquisition of AI location data specialist LoFlat. It also outlined a business direction centered on connecting subscriber movement with offline activity.
The acquisition is described as a combination of StageFive, which has a telecommunications subscriber base, and LoFlat, which has indoor positioning and movement route analysis technology. Based on this, StageFive plans to enhance safety services for children and seniors offered by both companies, and also pursue new businesses using floating population and offline behavior data.
StageFive will secure a stake in LoFlat through a comprehensive stock swap, under which LoFlat will become a subsidiary of StageFive. However, the stock swap terms and acquisition price have not been disclosed, and LoFlat's existing business structure will remain in place after the acquisition.
The key point of the acquisition is to expand PinDirect's competitive focus from rates and subscriber acquisition to location-based everyday services. Competition in the MVNO market has traditionally centered on low prices and promotions, and this acquisition is being interpreted as a move away from that price-and-promotion race. The strategy also reflects an effort to secure services that would be difficult for other operators to replicate by combining proprietary technology and data.
The technology to be used for this purpose is LoFlat's location recognition and analysis technology for linking digital data on a person's location, visits, and movement. LoFlat has built maps of more than 600,000 indoor POI nationwide and more than 100 million Wi-Fi APs, and the technology can determine locations even indoors and underground where GPS signals are weak. StageFive says it will use the technology to improve telecom service quality and user experience.
StageFive also plans to advance services for children and older adults. In services for children and seniors, location verification and movement pattern analysis are presented as important elements. The services are expected to evolve beyond simply providing current locations toward reflecting lifestyle patterns such as frequently visited places and travel routes.
Location data is sensitive information that reveals a person's daily life and movement patterns, and key criteria for actual service launches are expected to include user consent, data de-identification, prevention of use beyond the intended purpose, and a privacy protection framework.
StageFive is hoping for business diversification based on the combination of PinDirect telecom services and LoFlat's location data. Through visit and movement route analysis, LoFlat derives user visit frequency and movement patterns and turns them into offline behavior insights. LoFlat's business scope includes location recognition technology supply, location-based marketing, floating population analysis, measurement of floating population around digital out-of-home (DOOH) media, and advertising effectiveness analysis.
LoFlat's data is already being used by telecom operators, card companies, and internet platform companies to improve services, conduct marketing, and make data-driven decisions. Accordingly, StageFive is exploring areas such as kids' services, senior services, commercial district analysis, and advertising effectiveness measurement, while also seeing potential for expansion into new B2B opportunities.
Seo Sang-won, CEO of StageFive, said the purpose of the acquisition is to provide highly complete services to customers and diversify StageFive's business, adding that the company plans to strengthen its competitiveness by launching services based on differentiated benefits and convenience.
Source: IT DAILY · Lee Jae-young
Original: https://www.itdaily.kr/news/articleView.html?idxno=241346
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Source: IT DAILY
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