Uncommon Wisdom

Oct 1 2007   3:00PM GMT

Nokia considering GPS acquisition

Tom Nolle Tom Nolle Profile: Tom Nolle

Nokia is in discussions to purchase Navteq, a leading company in GPS and mapping software for navigation. The move is certainly linked to the increased interest in building GPS navigation capabilities into high-end phones, and this is we think an important indicator that the mobile operators and handset vendors are increasingly aware that entertainment will not drive increased ARPU outside the youth generation. We also heard last week in Europe that operators there were already concerned about the demands that youth-generated video content placed on 3G networks, and (contrary to the US view) were looking at WiFi as a desirable way of unloading some bandwidth from 3G to reduce capital costs and free up bandwidth for truly mobile applications. Navigation is an interesting application because it can be linked to location search services and to retail advertising as well, and would give the operators an advantage versus over-the-top players like Google.

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