At Apple's WWDC Jobs said there is a proliferation of LBSes on the mobile. Having a GPS inside the phone provides location as a parameter for all applications. I do not think there is a class of services called LBS. Classes of applications on the mobile generally fall into four categories
1. Sync and Search which are data intensive
2. Mapping which is graphics intensive
3. Social/Sharing which is network intensive
4. Monitoring which is sensor intensive.
Of course there is the voice and other standard media player type phone functions that we already have.
All these categories will benefit from location. But the point is there is no one application called LBS. Also, more services will be delivered to the phone over its wifi network than over its cellular. The phones add on functionalities at a far rapid pace. The carriers simply won't be able to keep up.