TeleNav 2012 Annual Report Download - page 8

Table of Contents
challenge of consumers discovering their products. This new market dynamic requires fresh consumer acquisition strategies, many of which rely
upon viral marketing opportunities.
Challenges facing wireless carriers
. Wireless carriers are under pressure to increase revenue and enhance subscriber loyalty as well as invest in
infrastructure to keep pace with consumer expectations and the demand for low cost, reliable and increasingly faster network service. Against these
pressures, wireless carriers have also lost consumer influence due to the rise of mobile application stores.
Our competitive strengths
We are the leader and one of the early pioneers in personalized mobile navigation. We have a 14-year history of developing and delivering
advanced and personalized mobile navigation solutions. The breadth and depth of our technical and market expertise has enabled us to develop robust
navigation services, attract a large end user base and establish deep relationships with wireless carriers and other members of the location services
value chain, including mobile phone manufacturers and content, applications and technology providers.
Large end user base . As of June 30, 2013, we had a substantial active user base accessing and using our services. Our large 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 distribution partners, as well as third party content. By
delivering our services to millions of end users across the mobile phone, Internet and cars, we can leverage our product development costs and
expertise more effectively and efficiently.
Strong and deep partnerships with key members of the location services value chain . Our mobile navigation services are deployed by leading
wireless carriers in the United States. Our wireless carrier customers continue to make investments that foster our long term relationships because our
mobile navigation services assist them in increasing their average revenue per user, or ARPU, decrease churn and strengthen their subscriber
relationships. 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. These relationships are unique in the industry and provide us with distribution opportunities that bypass the
marketplaces and make our products easily discoverable by end users on their mobile devices. We work with the mobile phone manufacturers and
OS providers to distribute our products through their application stores, such as the Apple App Store and Google Play.
Generally, we provide our basic services to consumers for free and provide consumers the opportunity to purchase premium versions of our
product. We refer to the free to premium distribution as the “freemium” model of distribution. Our free products are designed to be monetized
through delivery of advertising to consumers. Our premium versions are designed to provide unique features that some portion of our free user base
will choose to pay to use. Our success with the freemium model depends upon our ability to generate a substantial active user base and to generate
revenues from advertising and conversion of users from free to premium services.
We also have strong and deep relationships with application developers and map and other content providers. These relationships allow us to
develop and deliver high quality, robust navigation services to our end users.
Our services and products: Scout for Phones and Scout for Browsers
We provide a range of personalized navigation services for people on the go. Our core navigation service is personalized mobile navigation for
consumers. We deliver our solutions through our location based technology, applications and service delivery platform, or SDP, which are tightly
integrated with a broad range of mobile phones, mobile phone operating systems, in-car systems, desktop websites, and wireless network protocols.
Scout is our flagship voice-guided, real-time, turn by turn, personalized navigation service that helps people beat traffic and quickly decide where to
go, how to get there and even suggest things to do. Accessed primarily through mobile phones, but also through cars and websites, our service
delivers personalized features and functions and is available to end users both on a white label basis, such as AT&T Navigator, and under the Telenav
and Scout brands. Our solutions use accurate, updated information to provide end users with a personalized navigation experience.
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