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GPS handsets to drive mobile navigation downloads

Posted: 13 Oct 2009 ?? ?Print Version ?Bookmark and Share

Keywords:navigation download? handset? GPS?

Market watcher Berg Insight reports that the number of mobile subscribers downloading navigation routes and turn-by-turn navigation instructions using their mobile handsets increased twofold from 1H 08 to 1H 09 to reach 28 million. The company forecasts that until 2015, the subscriber base will grow at a CAGR of 33.7 percent to reach 160 million users worldwide. The growing adoption will be driven primarily by the broader availability of GPS-enabled handsets and bundling of navigation applications with mobile devices and service plans.

In the United States and Japan, where mass market GPS handsets are already available, adoption of mobile navigation services have already surpassed three and four percent of the total mobile subscriber base respectively. More recently, increasing volumes of GPS handsets have also started to pave the way for adoption of mobile navigation services in Europe where PNDs have been the prevailing navigation solution for some years. In other regions of the world, better availability of low-cost GPS cellphones and improving map coverage will enable rapid uptake of navigation services in the coming years.

"Mobile operators and handset vendors are now starting to experience the business opportunity of a growing installed base of GPS handsets and customers trying navigation services," said Andr? Malm, senior analyst, Berg Insight. He adds that since relatively few subscribers need turn-by-turn navigation services on a daily basis, the mobile industry should integrate navigation services with other location-based services to improve the total user experience and ensure that customers continue to subscribe.

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