TeleNav 2011 Annual Report Download - page 22

Table of Contents
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 customers 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 may offer 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 Nokia Maps on its smartphones which also provides turn by turn navigation functions. Microsoft
also provides a free turn by turn navigation solution with its Windows Mobile operating system via their Bing for Mobile application.
Competition from these free offerings may reduce our revenue and harm our business. If our wireless carrier customers 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 fees or pursue other business strategies that may not prove successful.
Our primary competitors include providers of LBS such as Google, Microsoft, Nokia, TCS, through its acquisition of NIM, Telmap and
TomTom Maps; PND providers such as Garmin and TomTom Maps; 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. Some of our competitors’ and our potential competitors’ advantages over us,
either globally or in particular geographic markets, include the following:
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.
Our wireless carrier customers may change the pricing and other terms by which they offer our LBS, which could result in increased end
user turnover, lower revenue and adverse effects on our business.
Certain of our wireless carrier customers sell unlimited data service plans, which include our LBS. As a result, end users do not have to pay
a separate monthly fee to use our services. If our wireless carrier customers were to eliminate our services from their unlimited data service
plans, such as the Sprint Simply Everything plans, we could lose end users as they would be required to pay a separate monthly fee to continue
to use our
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the provision of their services at no or low cost to consumers;
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significantly greater revenue and financial resources;
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stronger brand and consumer recognition regionally or worldwide;
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the capacity to leverage their marketing expenditures across a broader portfolio of mobile and nonmobile products;
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access to core technology and intellectual property, including more extensive patent portfolios;
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access to custom or proprietary content;
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quicker pace of innovation;
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stronger wireless carrier and handset manufacturer relationships;
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greater resources to make and integrate acquisitions;
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lower labor and development costs; and
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broader global distribution and presence.