TeleNav 2010 Annual Report Download - page 21

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results and financial condition could be harmed. Furthermore, our failure to otherwise maintain our relationship
with AT&T would substantially harm our business.
We operate in a highly competitive market, including competitors that offer their services for free, which could
make it difficult for us to acquire and retain wireless carrier partners and end users.
The market for development, distribution and sale of LBS is highly competitive. Many of our competitors
have greater name recognition, larger customer bases and significantly greater financial, technical, marketing,
public relations, sales, distribution and other resources than we do. Competitors could begin offering LBS that
have at least equivalent functionality to ours for free. For example, Google offers free voice guided, turn by turn
navigation as part of its Google Maps product for mobile devices based on the Android 1.6 and higher operating
system platform and Nokia provides a download for its latest version of Ovi Maps on its smartphones which also
provides turn by turn navigation functions. Microsoft also provides a free turn by turn navigation solution with its
current Windows Mobile operating system. Competition from these free offerings may reduce our revenue and
harm our business. If our wireless carrier partners can offer these LBS to their subscribers for free, they may
elect to cease their relationships with us, alter or reduce the manner or extent to which they market or offer our
services or require us to substantially reduce our subscription fees or pursue other business strategies that may
not prove successful.
Our primary competitors include providers of LBS such as Google, Microsoft, Navigon, Nokia, TCS,
through its acquisition of NIM, Telmap and TomTom; PND providers such as Garmin and TomTom; integrated
navigation mobile phone providers such as Garmin and Nokia; providers of Internet and mobile based maps and
directions such as AOL/Mapquest, Google, Microsoft and Yahoo!; and wireless carriers and communication
solutions providers developing their own LBS, such as TCS through its acquisition of NIM. Some of our
competitors’ and our potential competitors’ advantages over us, either globally or in particular geographic
markets, include the following:
• the provision of their services at no or low cost to consumers;
• significantly greater revenue and financial resources;
• stronger brand and consumer recognition regionally or worldwide;
• the capacity to leverage their marketing expenditures across a broader portfolio of mobile and
nonmobile products;
• access to core technology and intellectual property, including more extensive patent portfolios;
• access to custom or proprietary content;
• quicker pace of innovation;
• stronger wireless carrier and handset manufacturer relationships;
• greater resources to make and integrate acquisitions;
• lower labor and development costs; and
• broader global distribution and presence.
Our competitors’ and potential competitors’ advantages over us could make it more difficult for us to sell
our LBS, and could result in increased pricing pressures, reduced profit margins, increased sales and marketing
expenses and failure to increase, or the loss of, market share or expected market share, any of which would likely
cause harm to our business, operating results and financial condition.
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