Vodafone announces the closure of navigation services (Sweden)

www.WirelessFederation.com/news: The free navigation service provided by Google and Nokia has taken a toll on Vodafone which has announced the closure of its navigation business. Wayfinder, a Swedish navigational software firm was bought by Vodafone in December 2008 at a price of $30 million (19.8 million pounds). The closure will result in the loss of 95 jobs across Sweden, Romania and Britain.

After the introduction of free services in the last six months, commercial proposition for navigational services had completely changed and existing customers on the Vodafone offering will be moved over to new services provided by partners such as handset makers.

After the announcement of Google and Nokia’s plans, the business model of providing paid-for turn-by-turn navigation services has come under pressure.

Vodafone entered the navigation business in its drive to grow mobile data revenues as the mobile market became saturated.

Mobile location-based services revenues will reach € 622 million in Europe by 2010

Revenues from mobile location-based services (LBS) in the European market will grow by 34 percent annually to reach € 622 million in 2010, according to a new report from the research firm Berg Insight. Johan Fagerberg, senior analyst at Berg Insight, said that the market is picking up speed through successful launches of mobile personal navigation services and location based billing plans in several European countries. ‘Nokia’s recent acquisition of Gate5 is an evident example of the importance mobile industry players attach to navigation’, said Johan. ‘We expect GPS-enabled handsets with preinstalled navigation software to become available from the leading brands on the European market very soon.’ Berg Insight forecasts that navigation will account for 48 percent of mobile LBS revenues in 2010.

Johan also comments on the popularity of location based billing plans in Germany. ‘Over one third of O2′s customers in Germany have opted for the Genion service, which offers a discount tariff at their home location’, he said. ‘Vodafone and T-Mobile have followed and attracted 1 million and 700,000 customers respectively in a short time’. Through location based tariffs the users can receive discounts on both voice calls and mobile broadband data traffic at home and pay regular charges elsewhere. Berg Insight estimates that 18 million mobile users in Europe will subscribe to location based billing plans by 2010.

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