We quiz VP of consumer and wireless Serge Bussat about the PND market
When people think of location services, most would first think of satnav. How do you see that market right now?
It’s strange, because the personal navigation device (PND) sector has been the fastest growing consumer market ever. Certainly, that’s what the GfK numbers say (sales for Western Europe went from 7.4 million units in 2006 to 11.8 million in 2007 – Ed).
I see signs that it’s in a bit of trouble now. Basically, it grew in an uncontrolled and fast way. There are over 100 companies in it, but none of the big players like Sony, Philips or Samsung. It’s too unstable, and now prices are starting to fall.
So the inevitable question: can the mobile cannibalise the PND market?
No, I don’t think so. I just can’t see the mobile on a cradle in a car. But I do know there are 100 million GPS-enabled phones in Europe and that GPS will be ubiquitous on mobile handsets eventually. The key is to develop applications that do simple things very well and respond to genuine consumer needs.
How is NAVTEQ making that happen?
Well, we have the NAVTEQ Global LBS Challenge, which encourages developers to think hard about how to build LBS into applications over and above satnav. We’ve developed a solution for pedestrians called Discover Cities that’s now available for 40 city locations in America, Europe and Asia-Pacific.
Why are apps so interesting?
Navigation is just the start of the LBS market. There are many ways it can go in terms of social networking and games. We’re ten years behind gaming so there’s much improvement in 3D acceleration to be made – and I’m sure developers will invent apps that no-one’s thought of yet. This brings new revenue opportunities, especially in advertising.
Has NAVTEQ made progress in ads?
It’s early days, but we’re working with Garmin on an ad-supported, real-time traffic service in North America. It delivers data via the RDS radio network conveying location-based advertising and traffic information.
Does being owned by Nokia cause problems for NAVTEQ?
Absolutely not. Nokia’s goal is to differentiate its own phones, we work with other manufacturers to do the same. NAVTEQ is a B2B brand, so we’re not competing with anyone in the consumer space; we create white-label solutions for operators.
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