Tele Atlas Selected to Power TomTom’s New Regional All-in-One Portable Navigation Device in Europe
‘s-Hertogenbosch, The Netherlands, August 30, 2006 – Tele Atlas NV, a leading global geographic content provider, announced today it has been selected by TomTom, the world’s leading personal navigation solution provider, as the data provider for the new regional European edition of the TomTom ONE, released today. The agreement follows an announcement earlier this month that the company was also selected by TomTom to power its ONE device in North America.
TomTom ONE is an entry-level all-in-one portable navigation device combining ease of use and portability with TomTom’s patented touch screen technology and award-winning software. Featuring Tele Atlas digital map data in Europe, the device includes highly accurate, turn-by-turn maps that help users easily find addresses and points of interest and the best routes to them. There are nine versions of the European regional edition of the ONE, each containing Tele Atlas maps for a single country or a group of smaller countries.
“TomTom continues to lead innovation in personal navigation (PNAV) technology, and Tele Atlas continues to strengthen its lead in this market, with a majority of all PNAV products sold worldwide now using Tele Atlas data,” said Jack Reinelt, Tele Atlas’ Managing Director and Chief Operating Officer of Europe, Middle East and Africa. “We’re excited to extend our longstanding partnership with TomTom to deliver superior products that feature rich, useful content and the most accurate digital map data in the world.”
About Tele Atlas
Founded in 1984, Tele Atlas delivers the digital maps and dynamic location content that power the world’s most essential geographic solutions. The information is the foundation for a wide range of personal and in-car navigation systems, mobile and Internet map applications that help GPS system users find the places, products and services they need, wherever they are. Tele Atlas also works with business partners who deliver critical applications for emergency, business fleet and infrastructure services. The company employs 2,300 full-time staff and contract cartographers at offices in 20 countries around the world and uses a sophisticated network of drivers, mobile mapping vans and thousands of data sources to regularly update its maps. Tele Atlas is listed on the Frankfurt Stock Exchange (TA6) and on Euronext Amsterdam (TA). For more information, visit www.teleatlas.com.
TomTom NV is a leading provider of personal navigation products and services. TomTom’s products are developed with an emphasis on innovation, quality, ease of use and value. TomTom’s products include all-in-one navigation devices which enable customers to navigate right out of the box; these are the award-winning TomTom GO family, the TomTom ONE and the TomTom RIDER. TomTom also provides navigation software products which integrate with third party devices; the TomTom NAVIGATOR software for PDA’s and smartphones. TomTom PLUS, is the location-based content and services offering for TomTom’s navigation products. TomTom WORK combines industry leading communication and smart navigation technology with leading edge tracking and tracing expertise. TomTom’s products are sold through a network of leading retailers in 20 countries and online. TomTom was founded in 1991 in Amsterdam and has offices in Europe, North America and Asia Pacific. For more information go to: www.tomtom.com.
Q & A to European TomTom ONE regional maps announcement.
When will the new ONE with regional maps be available?
TomTom expects sales will start as of mid September 2006.
What will the suggested retail price be?
$299 ONE with regional maps
$399 ONE with European maps
What royalty does Tele Atlas receive for the regional maps?
We will receive similar royalties as for the previous SKU (Stock Keeping Unit) with regional maps.
TomTom has announced they will launch two new SKU’s. You announce that you will be map supplier for the regional maps. Who supplies the ONE with European maps?
TomTom has decided that Navteq will be the map supplier for the European maps.
What exactly will Navteq be supplying to TomTom?
In addition to the North American and European maps Navteq currently provides for the TomTom Rider, Navteq will supply map data for a new version of the TomTom ONE that ships with Western European data.
Tele Atlas is the supplier for all remaining products, including the ONE with regional (country) maps in Europe, the ONE in North America, the GO 910 in Europe and North America, GO 710 containing European maps, GO 510 in Europe and North America, the Navigator for PDA in Europe and North America, Navigator for Mobile in Europe, and TomTom WORK web fleet application.
Why did TomTom change map suppliers for this product?
TomTom did not change at all. This product is a completely new SKU that did not exist previously. We remain preferred supplier to TomTom and also supply the map for the ONE in North America, the entire GO range and Navigator 6 products.
How much lost revenue does that represent to Tele Atlas?
We do not believe the use of Navteq data in this limited product line will have a material impact on our revenues from TomTom versus our current expectations. We remain the preferred map supplier to TomTom.
Why did TomTom make this decision?
TomTom indicated that on an important component like the map, they felt, for strategic reasons, they needed to have a relationship with both global map suppliers.
Did this have anything to do with price?
To the best of our knowledge, price was not a factor. Our pricing to TomTom remains unchanged.
Are you concerned that other companies will follow this dual supplier strategy?
Use of dual suppliers is a trend that has been underway for an extended period in the automotive and Internet segments. Virtually all European automotive navigation systems and major Internet portals use maps from both global map suppliers. Use of dual suppliers has been less prevalent in the personal navigation segment as companies in this segment valued simplicity of their operations over multiple sourcing of components. As some of these companies have gotten larger dual sourcing makes more sense for them. This can also work to our advantage. We still believe that most personal navigation companies will continue to have a preferred supplier for most components including maps.
Won’t that dual supplier strategy severely affect pricing?
From our view pricing in virtually all digital map segments has been fairly stable over the last year and we are not expecting any major changes in the environment in the short term. That being said it is impossible to know with certainty what future pricing trends will be. One thing is clear; the quality of maps and customer service is as or more important than pricing.
- Contact Information
- Dirk Snauwaert
- Tele Atlas Europe
- Contact via E-mail
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