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TeleNav Blasts PND, In-Car Manufacturershttp://lbs.gpsworld.com/gpslbs/LB...&searchString=Car%20navigatorTeleNav´s survey says personal navigation device and in-car manufacturers offer units with data that often steers users wrong. It claims that handset-based navigation is better because it´s easier and less expensive to update. Aug 9, 2007 By:Kevin Dennehy GPS World TeleNav Blasts PND, In-Car Manufacturers Firing a salvo at personal navigation device and in-car unit manufacturers, Sunnyvale, California-based TeleNav recently released the results of a privately funded survey which indicates consumers are getting wrong directions from PNDs. TeleNav, which markets its GPS Navigator product to wireless manufacturers and carriers, even said in-car and standalone navigation systems are a "dead end" for consumers because of outdated maps, lack of new features, and infrequent and troublesome updates. "We are hearing more analysts and customers saying they prefer a handset over a PND—mainly for convenience. A handset is always with you," says Sal Dhanani, TeleNav co-founder and senior director of marketing. "There is a definite shift going to happen to take away some of the market share from the PND [companies]." According to the TeleNav poll, which was conducted through online pollster Zoomerang, nearly 50 percent of 500 random respondents with PNDs stated that their navigation systems have provided them with incorrect directions or outdated maps. "It all leads to the fact that PNDs have limited storage. It is a big advantage when users can receive fresh data," Dhanani says. "Through this survey and other market research, we have found that consumers are well-educated and compare the features of navigation units—points of interest and so on." Dhanani says a lot of the growth of mobile phones will depend on how the wireless carriers react. "If mobile phones have more of the PND function, it will mean extra dollars for them through upgraded phones and data plans," he says. There will be more navigation-focused advertising from the carriers in the fourth quarter of this year, Dhanani says. "While [the carriers] are not thinking the PND companies are their competition, you will see more advertising," he says. "Their customers prefer the convenience of updated maps and POIs. They want to know where the nearest cheap gas is located." Although several industry analysts—such as Gartner's Thilo Koslowski—also believe that the handset will overtake PNDs as the navigation market leader, Tele Atlas honcho Alain de Taeye said it is "silly" to say one market will soon be larger than the other. TeleNav also cites an In-Stat report that predicts mapping and navigation mobile phone subscribers could exceed 70 million worldwide by 2012. In addition, they say a recent study by the Consumer Electronics Association shows that 33 percent of future GPS buyers are interested in owning a cell phone that has navigation capabilities. Dhanani says that PNDs and in-car systems are unable to offer one-touch traffic rerouting and location-based social networking. "The social networking application allows users to select a landmark and write a blog about it right then and there. We recently launched our first social networking application that has high usage," he says. "Even if the user does not have TeleNav, they can click on a link on a webpage to use it. It's another big differentiator over Garmin and TomTom." Some analysts believe the market for handset mapping and navigation may not be as large as others indicate—as evidenced by Apple's decision not to put GPS in its highly touted iPhone. Dhanani doesn't believe that is the case. "I am fairly confident that a future version of iPhone, maybe in the next 18 months, will have GPS. You have to have it to be in the game," he says. TeleNav, which uses both Navteq and Tele Atlas for digital maps, was skeptical of the recent TomTom purchase of Tele Atlas. H.P. Jin, TeleNav chief executive, told Business Week that the deal created a conflict of interest because Tele Atlas had deals with TomTom's competitors. According to the article, he went as far as saying that if his company were big enough, it would buy Navteq. "In the short term, we see the deal as a conflict of interest. We have talked to Tele Atlas, who told us pricing will be fair," Dhanani says. TeleNav, which has a strong enterprise business from its early days with Nextel, now focuses on the consumer market with its relationship with more than a dozen wireless carriers. "We always have been a very strong consumer company from day one. We did start with a business twist," Dhanani says. Traffic Information Market Grows While PND and handset application providers battle over customers, one market segment appears to be growing. Real-time traffic information, offered by such companies as Inrix and Navteq's Traffic.com, may be the main reason consumers decide on a product. Inrix recently announced its real-time traffic information is available on more than 75 models of portable and automotive navigation devices, mobile phones and smartphones in the United States. "The lines are kind of blurring for PNDs, embedded devices and handsets. We see them as growth markets," says Scott Sedlik, Inrix vice president of marketing. "We see a lot of exciting market trends in North America, but we are also looking at international opportunities. The decision by Navteq to buy Traffic.com sent a shock wave through the industry." The web portals are finding ways to incorporate traffic information into their mapping offerings, which will help spur the market, Sedlik says. "One of the big market drivers is a display of traffic on a map, which expands the accessibility to traffic [platforms] to all of the portals," he says. "Microsoft, Google and Yahoo all are trying to have their own [traffic] business models. You are also going to see, over the next year or so, more use of traffic information in routing, with more complex displays and tighter integration." Sedlik says the U.S. PND market has a higher penetration than it does in Europe, which makes the latter the first target for growth. "TomTom's deal with Vodaphone in England is important. Traffic will be a differentiator in Europe," he says. Sedlik also says that traffic pricing has changed since BMW's decision to integrate the price of traffic service with a navigation system. "There are no separate subscriptions [with the BMW unit]. The user's perception is that it comes with the car," he says. About the Author Kevin Dennehy About Kevin Dennehy email: kdennehy@questex.com See more articles by Kevin Dennehy |