October 1, 2007

Nokia Maps

Erick Schonfeld

25 comments »

Nokia is buying digital mapmaker Navteq for $8 billion. (See WSJ coverage here).  Navteq powers many in-car navigation services, but it is also one of the providers of mapping data used in Google Maps. Every mobile device should include mapping services. It’s a natural fit. But will Nokia try to charge extra for this or will every future Nokia phone come with free maps?

You can already get Navteq-powered Google Maps on many phones today like the iPhone or the Blackberry. It’s becoming a killer app for phones. Nokia could try to charge Google a whole lot more for the Navteq maps, but that might just drive Google deeper into the arms of its other map vendor, Tele Atlas.

The smart move for Nokia would be to negotiate with Google to share in any future map-based advertising revenues in return for distributing the mobile version of Google Maps with every new Nokia phone. (The cell phone carriers would have to be brought into the negotiations and given a cut as well, but it could be done). That way, consumers would get free maps and a reason to stick with Nokia. And Nokia won’t have to try to beat Google at its own game. Google has a much better chance of figuring out mobile advertising than Nokia, and its mapping software already has a huge following among both consumers and developers.

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  1. Sramana Mitra

    Hi Erick,

    I have been covering Navteq for a while. Here is my analysis:
    http://sramanamitra.com/2007/1.....comes-key/

    This is an excellent move on Nokia’s part. Note, there is no other indepdendent GIS data vendor in the market.

    Regards, Sramana

  2. Giridhar

    The price is more then youtube price (1 billion dollar given by google). But Navteq is not popular as much as youtube!

  3. whoopie

    this nut isn’t as tough to crack as people think. microsoft and google are already driving around your ‘hood taking pictures of everything. its a short hop to generating maps from the routes themselves. there are also wiki-style user-generated maps that to date are not of much use, but ten years out from now i suspect this market will be britannica (navteq) vs wikipedia (user maps) all over again

  4. AhmedF

    Don’t forget that Tomtom is in the process of buying out Tele-Atlas - both of the big mapping data providers are being snapped up.

    @Giridhar - I have no clue how you can compare an end-user video-watching website to a data-selling GIS company.

  5. MGZ

    Giridhar, are you serious? The big difference is Navteq is hugely profitable, and has amazing growth potential on that revenue stream…

  6. Peter

    Seems like Nokia is taking their ovi service announcement very seriously; especially the Nokia Maps part.

  7. mathew johnson

    Cool map! My family is originally from Karlstad - well Hammaro, but it’s about the same thing these days.

  8. SG

    At google’s developer 2007, rumor had it that the big G is interested in sending up their own satellites for data/imaging - It was also hinted during the google maps fireside chat (Q/A with the GMaps developers)

    Another opportunity for Google may be to JV with a country, say India, and send up an imaging satellite together

  9. joost

    This means that the 2 leading global map providers (and major suppliers of Google Maps and many others) are now owned by device manufacturers Nokia and TomTom (who are evidently moving beyond devices). It will be very interesting to see how this will play out the coming years.

  10. Santosh

    Erick wrote:
    “The smart move for Nokia would be to negotiate with Google to share in any future map-based advertising revenues in return for distributing the mobile version of Google Maps with every new Nokia phone.”

    See http://maps.nokia.com for the free version for Nokia Phones.

  11. Steve Ballmer

    Hmmm, Nokia looks like a good buy!

    http://fakesteveballmer.blogspot.com

  12. Rons Dixon

    Nokia is about to paint their masterpiece. Strategically a great investment, now it’s about execution.

    Simple says it best.

  13. Joris

    Cool map, though Nokia is actually Finnish. (Ericsson is Swedish.)

  14. Don Jones

    This is also a great way for Nokia to get inside track information on how people use maps - currently as well as in the future related to roll-outs of new features. I view this as an intelligence asset for them as well.

  15. john

    proud owner of nokia n95. Nokia already have free nokia maps in their phones (you can download each country and install it). google maps is joke if you compare these things (gmaps run over gprs - you dont want to see your phone bill when traveling by gps in this case), nokia maps have everything already in (impressive selection of restos etc). I think there wont be market for separate gps receivers.

  16. Ryan

    I think you are missing a key piece of the story — Nokia Maps (maps.nokia.com) is included on every n-series device already and they have publicly said they are going to include it on all new phones. Its a great app and offers a lot more than google maps in many areas including full voice-based navigation.

  17. Kyosti

    I agree with Joris. Maybe the map should be centered on Nokia, Finland (where Nokia got its start) or Espoo, Finland (Nokia’s HQ).

  18. phenom

    8 billion…freakin lot of money.
    http://vidsonly.blogspot.com

  19. Peter

    “At google’s developer 2007, rumor had it that the big G is interested in sending up their own satellites for data/imaging - It was also hinted during the google maps fireside chat (Q/A with the GMaps developers)

    Another opportunity for Google may be to JV with a country, say India, and send up an imaging satellite together”

    Interesting, although as far as i know there is currently no way to make a navigable map out of a satellite or aerial images cause all the street attributes are missing for example. I remember some new news about Google giving away devices for free in india to collect map data.

  20. Jayeb

    LOL the swedes, long live the swedes! …Meanwhile in Sweden: http://www.youtube.com/watch?v=pw3e64sosEg

  21. Bob

    Sramana, you are not 100% correct. There is an other independent data supplier: AND Automotive Navigation Data. As far as I know they already deliver their maps to Microsoft and Google. But also to Nokia, all not navigable countries are delivered by this company.

    They mainly deliver low level data, but last week they announced to start delivering street level data for Europe. They just released the Benelux and Germany will follow also this year.

  22. Rocky

    A couple of weeks ago (before the Nokia announcement) there was a radio show in DC about digital maps. One of the guests was Cliff Fox of Navteq.

    19/Peter is correct - satellite images aren’t enough for navigation. The interview refers to more than 200 different attributes that are recorded, including turn restrictions, medians, HOV restrictions, truck restrictions.

    More here:
    http://blog.agrawals.org/2007/.....ital-maps/