TeleNav 2011 Annual Report Download - page 8

Table of Contents
Our competitive strengths
We are one of the early pioneers in LBS and have a 12-year history of developing and delivering advanced mobile navigation and other
LBS solutions. The breadth and depth of our technical and market expertise has enabled us to develop robust LBS, attract a large end user base
and establish deep relationships with wireless carriers and other members of the LBS value chain, including mobile phone manufacturers and
content, applications and technology providers.
Large and growing end user base . In the three months ended June 30, 2011, we had a monthly average of 24.6 million paying end users.
Our large and growing end user base, and our experience supporting a broad range of mobile phones, mobile phone operating systems and
wireless network protocols, enables us to realize economies of scale and deliver incremental value to existing and future end users and our
wireless carrier and other customers, such as third party content and advertising providers. By delivering our services to millions of end users,
we can leverage our product development costs and expertise more effectively and efficiently. The potential returns to third party content and
advertising providers are higher across a larger end user base, which makes them more inclined to partner with us.
Strong and deep partnerships with key members of the LBS value chain . Our LBS are deployed by 14 wireless carriers in 29 countries,
including leading wireless carriers in the United States. Our wireless carrier customers continue to make investments that foster our long term
relationships because our LBS assist them in increasing their data average revenue per user, or ARPU, and strengthen their subscriber
relationships. We work closely with our wireless carrier customers during their product development and testing cycles and undergo a
comprehensive certification process. Our back-end systems are tightly integrated with those of our wireless carrier customers, which enables the
seamless delivery of our services from product launch to billing. We also collaborate closely with mobile phone manufacturer and wireless
carrier customers so that our services work in many countries and on a wide range of mobile phones and wireless network protocols.
We also have strong and deep relationships with key players across the LBS value chain, including application developers, map and other
content providers and voice recognition platform providers. These relationships allow us to develop and deliver high quality, robust LBS to our
end users.
Leveraged distribution channels to expand user base and promote distribution capability. Our hosted delivery model enables our wireless
carrier customers the option to brand and market a customized version of our LBS and leverage our infrastructure, partnerships and expertise.
Our offerings enhance subscriber loyalty and can increase revenue for our wireless carrier customers while helping us to drive adoption of our
LBS without incurring significant sales and marketing costs. Traditionally, we have relied on the substantial resources of our wireless carrier
customers for our marketing and sales efforts. We also use our wireless carrier customers’ infrastructure to assist in validation and provisioning
of and to bill for our services. Our wireless carrier customers may offer our services on a standalone basis or bundled with other voice and data
services. We also offer our services under our own TeleNav brand and have been increasing the use of our brand more recently. We believe
whether under our own brand or the carriers brand, the provision of our services to end users results in an alignment of mutual interests with our
carrier customers to attract and retain subscribers. In addition, with the continuing industry shift to more open platform distribution of
applications, TeleNav’s expansion of its own brand may provide for better positioning and name recognition for capturing new end users in the
future.
Our services and products
We provide a range of LBS for consumers, enterprises, automobile manufacturers and OEM customers. Our core LBS include mobile
navigation for consumers and MRM for enterprises. We are also extending our core LBS to new device platforms, such as tablet devices, as well
as developing new LBS for mobile phones, including location based mobile advertising, commerce and social networking.
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