Broadcast Technology Use Leads to Cost & Product AdvantagesBoston, MA - October 18, 2005 - Road traffic and navigation suppliers are now consolidating around unified broadcast platforms for the delivery of road traffic information (RTI) services to consumers. This will result in lower costs and a wider range of dynamic navigation products and multi-featured devices that can incorporate RTI, according to a new report from Strategy Analytics, "Navigation Market Status 2005." T-Mobile Traffic in Europe, as well as XM and Sirius in the US, are market leaders in the promotion of dynamic navigation products based on broadcast technologies. If RTI is integrated in portable devices and automotive systems, consumer demand for navigation will be boosted.
A wide range of traffic information players, encompassing public bodies and private sector companies across Europe and the US, are consolidating around FM based technology for road traffic information and product development. In addition, satellite broadcasters, XM and Sirius, with 7.2 Million Q3-05 subscribers, are now both offering a dynamic navigation service. The integration of FM on cellular handsets is also expected to reach 30 percent of global shipments by 2010.
According to Joanne Blight, Director, Automotive Practice, Strategy Analytics, however, "Although the integration and promotion of RTI using FM and satellite broadcast technology will certainly boost navigation demand, there are serious business model challenges. Over the next 2-3 years, enhanced RTI interlinked with navigation will be a one-off cost borne via the navigation system or device price. But longer term, service based and pay-as-you-go pricing will emerge in consumer markets as wireless operators move into the navigation and location based services space."