Knowing where you stand

Navteq is a leading global provider of digital maps, traffic and location data and in recent years has been ramping up its presence across the MENA region. The company’s regional GM, Ghassan Freij explains what is driving demand for location-based services and how Navteq is building local capacity in order to support the growth

Ghassan Freij is Navteq’s MENA GM

In the middle of June Navteq announced the expansion of its coverage in the Middle East and Africa with the launch of a full, navigable map for Egypt and a completely updated addressing system in Saudi Arabia. These developments are consistent with the company’s strategic direction over the past five years or so, to continue building significant competence in the local markets in which it operates.

“As an added differentiator, our local presence is critical; this is why we have been actively creating local presence around the globe, since I would say around 2005,” described Ghassan Freij, Navteq’s MENA GM. “This strategy is being implemented around the globe and that is why today we have dozens of local offices today, with the number continuing to rise. It is through this local presence that we are able to not only look after our global customers but also are also better connected to local opportunities,” he added.

Navteq continues to invest in the necessary resources to advance and expand its presence across the Middle East and Africa in a number of ways including the expansion of coverage and advanced content.  In addition to the work in Saudi Arabia, for example, other recent developments include the first Navteq Discover Cities product in the Middle East with the completion of a pedestrian map of Dubai.

Historically the navigation business was driven by the automotive industry, followed by a wave of demand for personal navigation devices. Over the past three years, Freij believes a third wave of demand has gained momentum, driven by smart wireless and mobile devices, which have witnessed a significant increase in processing power over that time.

“The wireless segment has the potential to reach the mass market much more quickly than the previous demand waves for navigation services,” commented Freij. “And in emerging markets, people may not have a car or fixed Internet access but they have a wireless or mobile phone. So that’s a great opportunity.”

Freij does not view the availability of so-called ‘free’ digital mapping and navigation services as a particular threat, believing instead that Navteq’s customers are happy to pay for standardised, reliable and high quality location services.

“Navteq is focussed on the development of advanced, high quality, high value location content including maps, which our partners are willing to pay for,” Freij asserted. “Our approach is essentially to establish very close working relationships with our partners around the globe, understand their requirements, and deliver the kind of content they are asking for.”

Freij believes the market for navigation services is segmenting and differentiating rapidly, with many more products available today, offering consumers more choice, while at the same time raising awareness levels. Thus expectations are rising all the time and Navteq believes a sharp focus on customer requirements is key to the company’s ongoing success.

“We are driven by a very large base of partners around the world. The enterprise and governmental business, for example, is a local one,” Freij explained. “It is relationship-driven so we are making significant inroads into this segment thanks, frankly, to relationships formed on the ground.”

The burgeoning area of mobile advertising also offers tremendous opportunity for the uptake of location relevant applications and through its Media Solutions business unit Navteq is helping deliver smart, location-aware advertising platforms.