Nokia buys GPS expertise to snub Qualcomm

THERE'S AN awful lot of analysts puzzled by Nokia's recent decision to pay $8.1 billion for a company which turned over a mere $582 million last year - Navteq. Rumours reaching the INQ, however, say it's a move to snub Qualcomm.

The popular reading of this move so far is that Nokia was forced to pay a high price because both Microsoft and Google were sniffing around Navteq given that location based search is perceived to be the future for the cellular industry.

But our source claims the explanation is much simpler. Navteq is an established specialist in GPS based navigation. On top of that it is a US based company with whom Nokia has an established relationship.

So, with 22 years in the business, Navteq will certainly have made sure that its IPR is safe and sound. Which is where the Qualcomm factor comes in.

Besides being the driving force behind Cdmaone, Qualcomm is renowned for its expertise in GPS. So Nokia had the potential for being locked in a conflict with Qualcomm not just over 3G but also over GPS.

But – as our source implies – if you suddenly acquire native US based GPS technology – courtesy of Navteq, then you're not going to have to worry about paying a large tithe to Qualcomm just to put GPS into your handsets.

With its recent acquisitions of Loudeye, Twango and Enpocket, Nokia is undoubtedly branching out. But that on its own wouldn't explain why it has just bought a company whose products appear mainly inside cars.

No. It seems that Nokia's move has more behind it than first might appear. µ <P>