NVT - Source of GPS Software, Data, and Maps Message Board

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Technology Stocks : NVT - Source of GPS Software, Data, and Maps

NVT 112.46

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From: tech101	2/9/2007 12:27:44 PM
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Distribution is the part of NVT business that was down in 2006: messages.finance.yahoo.com Onboard vs distribution revenue (Not rated) 54 minutes ago can any knowledgable person out there provide any more details about what exactly they're referring to with regards to onboard revenue versus distribution and hard disc revenue. I am not quite following the terminology... is this essentially how the data is packaged, ie in a bundle given to a device maker for installation on the device (on board) vs distribution being a more dynamic serving for clients like mapquest which are on a per query basis? If thats the case seems a little counter intuitive no? messages.finance.yahoo.com Re: Onboard vs distribution revenue (Not rated) 9 minutes ago Sure. Part of NavTeq's business is making and/or distributing (selling) updated map CDs and DVDs on behalf of the nav system vendors. This is mainly for in-dash (on-board) nav systems. So on-board revenue relates to maps sold to owners of in-dash nav systems, whether they are delivered as CD/DVDs or loaded onto hard disks. Most of this revenue is still the map that comes with the original equipment, since updates are expensive and a lot of people can't justify the expense. And the updates are a year and a half out of date by the time they delivered anyway. In some cases, the OEMs manufacture the updated discs themselves, but has Navteq distribute them (see the NT web site). Sometimes (e.g., Toyota), the updated discs are only available through dealers. In this case, Navteq gets a license fee, but no revenue for making or distributing the disc (since they aren't in that loop). The area that it's not clear Navteq management is thinking very hard about is the eventual move to totally off-board navigation -- routes plotted (and traffic integrated) by a central service that transmits the route and map snippets to your phone, which is connected to the car's speakers and screen by Bluetooth (or higher bandwidth successor). Such an arrangement would eliminate the need to update databases in the car or to broadcast traffic separately. This is clearly a major future opportunity for Navteq, but they don't appear yet to have figured out the business model.

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