:Nokia Paves Way for GPS Phones: Company Acquires GPS Software Maker gate5; Strikes Trimble Deal
Oct 25, 2006


Mobile communications company Nokia (Espoo, Finland) is taking decisive steps to participate in the GPS handheld market, acquiring a mapping software company and striking a licensing deal with a GPS manufacturer.

Nokia is acquiring gate5 AG, a Berlin, Germany-based supplier of mapping, routing, and navigation software and services, with plans to add location-based applications to its cell phones.

"Maps and navigation are natural elements to be offered in mobile devices but this area hasn't developed as fast as expected by the market," said Anssi Vanjoki, Nokia's general manager of multimedia.

In a related step, on October 2 Nokia and Trimble Navigation of Sunnyvale, California, struck a cooperative licensing agreement that gives Nokia the ability to use Trimble's patented GNSS technology in its handsets.

As part of the deal, Trimble can use Nokia's location patents in its products and services.

The licensing agreement is exclusive to Nokia for the wireless consumer product and service domain and includes sublicensing rights. In return, Trimble receives a non-exclusive license to Nokia's location-based patents for use in Trimble's commercial products and services. Financial terms of the agreement were not disclosed. Nokia said only that the deal "will not be material to either company's revenue or income."

Leap Forward. According to Nokia, its acquisition of gate5 is an important step in developing its new product category of multimedia computers, which, Nokia states in a press release, "represent the next leap forward in personal computing." The multimedia computer combines the functionality of a PC and portable single-purpose devices in a connected mobile device. Because multimedia computers have a programmable operating system, people can download and install software applications.

"The personal navigation device market is in a rapid growth phase with the global market size expected to reach 15 million units in 2006 compared with 8 million units in 2005," Vanjoki said. "By integrating the maps and navigation capabilities into our devices, Nokia will participate in this growth."

Kai Öistämö, general manager of Nokia's mobile phones, agreed. "We strongly believe that location-based capabilities and services will be an important element of future mobile communications devices."

On the Trimble deal, Öistämö said, "By licensing our solutions and these patents to other players, we believe this deal with Trimble will benefit the entire wireless industry by accelerating the adoption of location technologies. From Nokia's perspective, the sublicensing rights under Trimble's industry-leading location patent portfolio will nicely augment our industry-leading WCDMA/UMTS and GSM patent portfolios."

Multimedia Computers. Nokia will most likely integrate navigation and mapping capabilities into its N-Series range of smart phones, termed "multimedia computers" by the company, which run on the Symbian operating system.

In September, Nokia announced one such product — the N95 with GPS functionality. The N95's Maps application includes maps for more than 100 countries and 15 million points of interest. Also on the unit are a 5-megapixel camera and support for high-speed mobile networks, making it easier to watch and record videos, listen to songs, take high-quality photos, browse the Internet, or catch up on e-mail. The Nokia N95 is expected to start shipping in volume during the first quarter of 2007 at an estimated unsubsidized retail price of €550.

The gate5 purchase is expected to be completed in the fourth quarter of this year.