Wow… this is big. Nokia, a cell phone manufacturer buys Navteq, a map data provider for more than $8 billion in cash. Nokia has just made a huge leap off a cliff hoping that halfway down their homemade paraglider that they are going to pull out of their backpocket lifts them up to new heights.
I guess they think that this will allow them to take over the budding location based services market. Buying Navteq may allow them to take competitors out of the market by simply not providing data to them, or charging them a heafty sum of money for it.
I expected this kind of thing from Google, but not a cell phone company. I guess even Google doesn’t have $8 billion just lying around. Then again, I don’t think Google really wants to be a data company. They want to be a technology company that builds software around the data that other companies and individuals provide.
So, what happens when some other big phone manufacturer decides to buy the other major map data provider Teleatlas and both decide to no longer license data to Google? Oh… I guess no more Google Maps… even on the Apple’s iPhone…
[via All Things Digital]