ABI Research projects the number of paying handset-based turn-by-turn navigation users will increase to 26 million by the end of 2010, with the Asia-Pacific region experiencing the strongest growth.
As a substitute for in-dash or portable navigation units, carrier provided turn-by-turn navigation service has emerged as yet another profitable add-on. AT&T offers the service for $9.99 per month on compatible devices. Verizon Wireless offers VZNavigator for the same price. Sprint has a similar service at comparable pricing.
“The most significant driver for the uptake of handset navigation is expected to come from the iPhone, following Apple’s decision to finally enable turn-by-turn navigation on its latest 3.0 platform version,” according to ABI Practice Director Dominique Bonte. Software from TomTom, Sygic, AT&T and Networks In Motion already is available from the iPhone App Store, with Navigon’s solution expected soon.
However, the report does note some barriers to adoption. “High monthly subscription fees and data roaming costs will need to be addressed for off-board navigation on handsets to reach high penetration levels,” Bonte stated in a press release.
The report cites free ad-funded navigation as one possible way forward, noting Locationet’s Amaze solution powering Technocom’s SpotOn GPS platform, Huawei’s new GPS phones and Bouygues’ free navigation offer in France.