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Summary:

Vodafone closed its Wayfinder business just 16 months after spending $30 million to acquire the navigational software firm. It’s a clear sign that if U.S. operators want to continue to monetize navigation, they’re going to have to find ways of doing with without charging customers extra.

Vodafone has shuttered Wayfinder — just 16 months after spending $30 million to acquire the Swedish navigational software firm. The move underscores just how drastically the mobile navigation market has changed in the last year thanks to the emergence of free services from third-party developers. It’s also a sign that U.S. operators won’t be able to continue charging customers extra for navigation for much longer.

Navigation has been a lucrative space for carriers such as Verizon Wireless and Sprint, both of whom continue to offer GPS-based services for $3 a day or $10 a month. Vodafone had acquired Wayfinder in an effort to create a suite of new location-based services and keep pace with third-party developers such as Google and Nokia.

But both Google and Nokia have made their offerings free in the last few months, giving consumers turn-by-turn directions and other goodies for no charge beyond the cost of mobile data. So Vodafone will ditch its effort to develop its own products and look to partner with third parties for location services that it can offer for free. And that’s a clear indication that U.S. carriers looking to monetize their branded navigation services will have to find a way to do it without dinging their customers for additional monthly charges.

Image courtesy Flickr user KhE 龙.

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  1. Stephen Fleece Friday, March 12, 2010

    I’m glad to see that the telecom operator made an acquision for strategic new service. Managable failure is part of good innovation. Telecom ops have been so risk averse, they’ve let a lot of opportunties pass them by. I hope the VF Group executive around the acquisition idea wasn’t crucified for taking a risk and seeing one failure.

  2. Google, Nokia, Apple, all explore ways how to monetize customers through mobile advertising. Navigation for free brings short term competitive advantage in hardware space. However in the long term, massive customer base might prove to be essential resource for securing periodic income from advertisers.

    Does Vodafone give up piece of value chain against Google, Nokia and others? Looks like dump pipe slip way in the smartphone era.

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