Nokia Finds The Shortest Route To Navigation Info: Buys Navteq For $8 Billion

from the turn-right-$8-billion-ahead dept

Nokia made a bit of a splash this morning by announcing plans to buy digital mapping/navigation firm Navteq for $8.1 billion. Navteq is definitely the leading player in the space, followed by TeleAtlas -- and the two companies basically dominate the market. Earlier this year, you may recall, navigation device maker TomTom announced plans to buy TeleAtlas, though that deal is not yet completed.

Many people are speculating on what this could mean for Garmin, TomTom's main rival in the navigation device space. Garmin uses Navteq for its maps, but it seems hard to believe that Nokia would simply cut off Garmin. That would take a huge chunk of revenue out of the deal, making it a lot less worthwhile. What's much more interesting is how this shows the strength of Nokia's commitment to really leveraging mobile devices for location-based services and navigation information. People have talked about such things for years, and Nokia's purchase certainly suggests that they're about to make a big push into moving navigation info and location-based services out of a separate device and into mobile phones.

Filed Under: location based services, mobile phones, navigation
Companies: garmin, navteq, nokia, teleatlas, tomtom

GPS Maker Hopes To Harness The Power Of The Community

from the g-p-us dept

The GPS navigation unit market is one that's largely commoditized, with little apparent differentiation to many consumers among products. It's also a highly competitive market, particularly for makers of standalone systems, who must compete against car manufacturers' built-in offerings, and now also against mobile-phone based systems. But TomTom, the world's biggest vendor of standalone GPS units, is hoping to set itself apart from its rivals by harnessing the power of its community of users. It's made a bid for Tele Atlas, a digital mapmaker, and once it owns the company and its maps, it will be able to incorporate all sorts of user-generated information into its maps and navigation units. Users will be able to notify the company of changes to roads and conditions, or to update information on points of interest, such as restaurants that have opened or closed. This sort of "crowdsourcing" has gotten a lot attention over the past few years, though many implementations of it leave a lot to be desired. But TomTom's idea could be a pretty good one. Not only does it help the company improve its products and differentiate from its rivals at a relatively low cost, users also derive a tangible benefit from participation in the way of updated and more accurate maps and info, so they have some incentive to participate.

Filed Under: crowdsourcing, gps, navigation, user generated content
Companies: tele atlas, tomtom