Jul 07 2009
ABI: 26M handset navigation subscribers in 2010
ABI Research expects the number of paying handset-based turn-by-turn navigation users to increase to 26 million by the end of 2010 with the Asia-Pacific region experiencing the strongest growth, wrote the market research company in a new report.
According to practice director Dominique Bonte, “The most significant driver for the uptake of handset navigation is expected to come from the iPhone, following Apple’s decision to finally enable turn-by-turn navigation on its latest 3.0 platform version.”
While application stores are expected to become an important channel for the distribution of navigation software, ABI notices that many carriers and handset manufacturers prefer to pre-install or bundle navigation software with their phones and offer plans based on strategic partnerships with navigation developers. Examples include Verizon/NIM, AT&T/Telenav, Vodafone/Telmap LG/Appello, HTC/ALK Technologies, and Samsung/Route 66. Market leaders Nokia and Vodafone have respectively opted to acquire navigation providers Gate5 and Wayfinder, allowing tighter integration of navigation and LBS services into their portfolios. Both approaches often coexist.
However, several barriers still remain in place. “High monthly subscription fees and data roaming costs will need to be addressed for off-board navigation on handsets to reach high penetration levels,” Bonte believes. “Free ad-funded navigation is one possible way forward with Locationet’s Amaze solution powering Technocom’s SpotOn GPS platform, Huawei’s new GPS phones, and Bouygues’ free navigation offer in France.”
