Nokia 2010 Annual Report Download - page 54

Our competitors use a wide range of other strategies and tactics. Certain competitors choose to
accept significantly lower profit margins than we are targeting. Certain competitors have chosen to
focus on building products and services based on commercially available components and content, in
some cases available at very low or no cost. Certain competitors have also benefited from favorable
currency exchange rates. For instance, the depreciated level of the Korean won against the euro and
US dollar continues to benefit our Koreabased competitors. Further, certain competitors may benefit
from support from the governments of their home countries and other measures which may have
protectionist objectives.
NAVTEQ
Overview
In July 2008, we acquired NAVTEQ Corporation, a leading provider of comprehensive digital map
information and related locationbased content and services for mobile navigation devices,
automotive navigation systems, Internetbased mapping applications, and government and business
solutions. NAVTEQ enables the continued development of our context and geographical services
through Ovi Maps as we move from simple navigation to a broader range of locationbased services,
such as pedestrian navigation, traffic and public transport information, local services and city guides,
integration with social networks and contextual advertising. In January 2010, we introduced a new
version of Ovi Maps for our smartphones which includes highend navigation at no extra cost to the
user, and we are using NAVTEQ’s comprehensive digital map information and related locationbased
content extensively in this offering. This new version of Ovi Maps includes highend car and
pedestrian navigation features, such as turnbyturn voice guidance, at no extra cost for consumers in
100 markets. Since introducing this offering, Nokia’s Devices & Services has increased its use of data
and its purchases of map licenses from NAVTEQ, boosting NAVTEQ’s core business and revenues. Under
our planned agreement with Microsoft, Nokia and Microsoft would combine complementary assets in
search, with Nokia’s maps offering at the heart of key Microsoft assets like Bing and AdCenter to form
a local search and advertising experience.
NAVTEQ also continues to develop its expertise in digital mapping and navigation, service its external
customer base and invest in the further development of its map data, locationbased services, mobile
advertising capabilities and technology platform.
As of December 31, 2010, NAVTEQ had approximately 5 300 employees in 49 countries. Highlights in
2010 included the following.
• NAVTEQ launched its new advanced mapping collection technology, NAVTEQ True, further
innovating the scale and quality of data collection and processing.
• NAVTEQ launched Natural Guidance, a product to enable guidance in a human manner through
the use of descriptive reference cues.
• NAVTEQ announced successful advertiser trials in Europe with McDonald’s and Best Western
powered by NAVTEQ’s LocationPoint Advertising platform.
• NAVTEQ expanded map coverage to include six more countries, bringing to 84 the number of
countries supported by NAVTEQ Maps.
• NAVTEQ announced the availability of realtime traffic in the UK, bringing to 13 the number of
European cities with access to uninterrupted traffic data.
NAVTEQ’s map database enables its customers to offer dynamic navigation, route planning, location
based services and other geographic informationbased products and services to consumer and
commercial users. NAVTEQ provides its database to mobile device and handset manufacturers,
automobile manufacturers and dealers, navigation systems manufacturers, software developers,
Internet portals, parcel and overnight delivery services companies and governmental and quasi
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