TeleNav 2014 Annual Report Download - page 12

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Table of Contents
and under the Telenav, Scout and skobbler brands. Our solutions use accurate, updated information to provide end users with a personalized
navigation experience. Our Scout turn by turn navigation mobile applications benefit from Telenav-enhanced OSM-based services. We apply
proprietary algorithms and GPS probe based corrections to significantly improve the routing performance of OSM. Our expertise in this area
affords us the opportunity to cost-effectively compete in the mobile navigation application marketplace and in related tools for third-party
developers with our mapping and navigation SDK and API.
End user billing and support .
End users are generally billed for our services through their wireless carrier, which may offer our services on a standalone basis or bundled
with other voice and data services. The wireless carriers bill subscribers monthly. We and our wireless carrier customers may offer subscribers a
free trial for our service. We believe that the wireless carrier billing makes our services more appealing to consumers as they are not required to
pay a separate monthly charge to a different vendor. For end users who purchase our navigation services through application stores we utilize the
application store billing process. Our wireless carrier customers generally provide first level support to their subscribers if the wireless carrier
provides our services on a white label basis. We provide secondary support for issues that cannot be resolved by our wireless carrier customers.
Client software
Our mobile navigation services provide an intuitive user interface and consistent features and functions regardless of the mobile phone,
mobile phone operating system or wireless network protocol the end user is utilizing. The mobile application market continues to be a market in
which the key differentiation for services is the ease of use of an application and the quality of the content or data that are relied upon by the
application provider. We believe that over time our focus on product design and user interaction, combined with high quality content, will
deliver significant value to users.
Infrastructure and operations
Navigation Services
Our end users rely on our services primarily while on the road. As a result, we strive to ensure the continuous availability of our services
through our high quality hosting platform and operational excellence.
Data center facilities . We have developed our infrastructure with the goal of maximizing the availability of our applications, which are
hosted on a highly scalable and available network located in two secure third party facilities in Santa Clara and Sunnyvale, California.
We have entered into service agreements with Internap Network Services Corporation, CenturyLink, formerly known as Qwest
Communication Corporation, and Equinix, Inc., in connection with our data center facilities in Santa Clara and Sunnyvale, California, as well as
at AWS where we also have disaster recovery capacity. Pursuant to the service agreements, we have leased facility space, power, cooling and
Internet connectivity for a term of one or two years, and such agreements are subject to automatic renewal.
Advertising network services
We have developed our advertising network services infrastructure with the goal of maximizing the performance of our platform. Our
platform is hosted on a highly scalable and available network provided by AWS. Our advertising platform has been designed to place significant
focus on the location of any particular unit of display advertising made available for purchase on real time bidding ad exchanges. This focus on
location provides our product with the speed and capability to more rapidly bid on the inventory that we believe is best suited for our customers'
advertising inventory. Our use of AWS provides significant flexibility with respect to service capability to meet any peaks in demand from our
advertisers.
Research and development
Our research and development organization is responsible for the design, development and testing of our services and products. Our
engineering team has deep expertise and experience in GPS and wireless and connected services and we have a number of personnel with
longstanding experience with location services applications and scaling hosted service models. In addition, through our acquisition of Thinknear
and our own internal efforts, we have developed expertise in real time bidding and advertising targeting capabilities.
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