Google redefines disruption: "Less than Free"

[ksJoe]

Google has quietly done something that could disrupt both the cell phone OS market, and the GPS market.

"Forever" turn by turn GPS mapping data has been owned by a duopoly that charged high license fees. All players in this market had to pay them. Google has built their own - meaning they no longer pay that high license fee all their competitors pay. Furthermore, their making turn by turn directions available for free on their phones.

As for the cell OS market, they are not charging for theirs. They are paying people to use it, by giving them a split of the add revenue.

They have taken two markets that have historically been very lucrative, and driven the price to "less than free".

link

 

[bepperb]

That was revealed a few weeks ago, and the share prices of tomtom and garmin both took a pretty good hit.

There is one important factor, and that is that you need to have a cellular connection to use the google gps, as opposed to the tomtom/navigon apps for my iphone or a standalone unit. So, obviously you will need to pay your cellular provider more money each month to use this "free" service. Also, many places where I use a gps are also the places where I have no cellular coverage.

Don't get me wrong, it's fantastic news to consumers and a step in the right direction.

 

[Familyguy]

If you've already got a data plan and a phone with GPS you can already use google maps to get turn by turn directions. I agree that it would be amazing if you could simply download the maps for the areas of interest instead of needing a live data connection. I use google maps with my Windows Mobile 6.1 phone all the time. It works great.

 

[PandaBear]

He who owns the map owns the future.

I think TomTom and Garmin would be ok for a while since TomTom own Tele Altas and Garmin has a long term contract with Nokia for the NavTech map.

All the other GPS maker other than phone would probably be in trouble.

 

[Rand]

Originally Posted By: Familyguy
If you've already got a data plan and a phone with GPS you can already use google maps to get turn by turn directions. I agree that it would be amazing if you could simply download the maps for the areas of interest instead of needing a live data connection. I use google maps with my Windows Mobile 6.1 phone all the time. It works great.


verizon historically has this locked down to only a few phones permitted.. the rest have to use "rapemenow" and pay 10$/month for turn by turn.