& cplSiteName &

Nokia Pumps $100M into Connected Cars

Sarah Thomas
5/5/2014
50%
50%

Nokia is investing $100 million to find more ways to integrate its HERE mapping and location services into more connected vehicles.

HERE is one of the divisions that remains, in addition to infrastructure and patents, now that Nokia Corp. (NYSE: NOK) has sold off its devices business to Microsoft Corp. (Nasdaq: MSFT). It's long been a small, but profitable venture for the vendor, generating 8% of the standalone Nokia's revenues. (See Nokia Ushers In New Era, Retires NSN Name and Microsoft Officially Closes Nokia Buy.)

Now Nokia says it's looking to do more with the location division, hence the launch of an $100 million Connected Car fund to be managed by Nokia Growth Partners (NGP) and used to invest in innovative connected car companies that would help bolster its HERE business. Nokia is specifically targeting growth in the US, India, China, and Europe.

This is the fourth fund that NGP has managed on behalf of Nokia over the past decade, and it brings Nokia's total invested with its venture capital arm to $700 million.

Why this matters
Nokia's mapping and location services have built a good track record with vehicles over the past 25 years, powering around 80% of car navigation systems through partners like Amazon, Microsoft, and Yahoo. But, the connected car space is also becoming more hotly contested of late, so Nokia will find itself up against others like Apple Inc. (Nasdaq: AAPL), which recently introduced CarPlay, its updated operating system for the in-car interaction.(See Apple CarPlay Puts Siri in the Driver's Seat.)

Being free from its devices business, however, may end up helping HERE as it allows Nokia to build for other platforms like Android and iOS, as well as pursue partnerships it might not have considered when it was tethered to its own devices.

Related posts

— Sarah Reedy, Senior Editor, Light Reading

(9)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
nasimson
50%
50%
nasimson,
User Rank: Light Sabre
5/6/2014 | 10:26:23 AM
the next big thing.
Connected cars, in car wifi, car navigation, driving related apps, in car entertainment, driver less cars etc are the next big thing. Nokia has all the potential to crack this. But they had all the potential to crack smart phone market as well.
nasimson
50%
50%
nasimson,
User Rank: Light Sabre
5/6/2014 | 10:25:58 AM
the next big thing.
Connected cars, in car wifi, car navigation, driving related apps, in car entertainment, driver less cars etc are the next big thing. Nokia has all the potential to crack this. But they had all the potential to crack smart phone market as well.
MordyK
50%
50%
MordyK,
User Rank: Light Sabre
5/5/2014 | 3:32:24 PM
Re: HERE and now
It was a mobile app. Your point was precisely what we discussed in many calls and emails and it frustrated the product managers to no end, but at the time atleast Nokia didn't commit any assets to the API platform and the API's are getting their first upgrade since 2010 to support LTE.
Sarah Thomas
50%
50%
Sarah Thomas,
User Rank: Blogger
5/5/2014 | 3:16:40 PM
Re: HERE and now
Interesting. Was your work specifically related to in-car nav or mobile apps? Having a good relationship with developers will be huge for Nokia if it wants to acheive widespread adoption. Seems like a lot of companies are still struggling to realize this.
Ariella
50%
50%
Ariella,
User Rank: Light Sabre
5/5/2014 | 3:11:31 PM
Re: HERE and now
@Sarah You're saying that tehre is a glimmer of hope for Nokia's future in this direction, I take it.  Cars will deliver them from the devastation of their phone business. 
MordyK
50%
50%
MordyK,
User Rank: Light Sabre
5/5/2014 | 3:10:30 PM
Re: HERE and now
After recently working on a project with Here's platform, I would suggest that they spend some of that money on their API platform which is extremely difficult to work with in comparison to their competitors. 
Sarah Thomas
50%
50%
Sarah Thomas,
User Rank: Blogger
5/5/2014 | 2:46:49 PM
Re: HERE and now
It's maps definitely have a good reputation, and I think its existing customer line up is a good indication of its success. Plus, many of them have connected car aspirations, which will line up with Nokia's new push.
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
5/5/2014 | 2:21:57 PM
Re: HERE and now
Nokia is one of the few companies that generates its own GPS maps -- sending out cars for mapping, and so forth. That's an enormous investment that hopefully will pay off through complementary investments in connected cars. 
Sarah Thomas
50%
50%
Sarah Thomas,
User Rank: Blogger
5/5/2014 | 12:25:20 PM
HERE and now
Good move on Nokia's part to show it's serious about making its new standalone business work. HERE is obviously a lot smaller than its main revenue driver Networks, but it's a really important business for Nokia. There's a lot of competition, but I think not having devices will actually help it in this case as it looks for partners and companies to invest in. 
From The Founder
Download our complete guide to de-risking NFV deployment in 2016, including:
  • An eight-step strategy to deploying NFV safely, based on input from the companies that have already started virtualizing their production networks.
  • Interviews with leading executives at Colt, AT&T, Deutsche Telekom, Cisco, Nokia, ZTE, Ericsson and Heavy Reading.
  • Flash Poll
    Live Streaming Video
    Prepping for the Future: Upskill U Explained
    During this short kick-off video, Doug Webster, Vice President of Service Provider Marketing, Cisco, and Light Reading’s CEO & Founder Steve Saunders give an overview of Upskill U.
    LRTV Interviews
    Demand Surges for On-Demand Ads

    5|5|16   |     |   (0) comments


    Ed Knudson, VP, Product and Strategy at Canoe Ventures, discusses the rising appeal of VoD ads and the challenges on inserting ads dynamically in live TV programming.
    LRTV Custom TV
    Exclusive: Video Interview With Sckipio CEO David Baum

    5|5|16   |     |   (0) comments


    At his headquarters in Tel Aviv, G.fast visionary David Baum, CEO of Sckipio, provided an exclusive interview to Light Reading and showed how innovations in rate and reach, vector densities, fast reconnecting times and SFP-based residential gateways are expanding the potential of G.fast.
    Telecom Innovators Video Showcase
    Atrinet's NetACE – Migration to NFV & SDN With NetOps-Driven LSO

    5|4|16   |     |   (0) comments


    At Atrinet's headquarters, Ray Le Maistre sits down with Roy Silon to get an in-depth look into the company's focus and the secret recipe for their success.
    LRTV Huawei Video Resource Center
    Amsterdam ArenA, Powered by Huawei

    5|4|16   |     |   (0) comments


    Huawei's ICT solutions power the state-of-the-art Amsterdam ArenA, turning it into a smart stadium.
    LRTV Interviews
    Testing When There's No 'There' There

    5|4|16   |     |   (1) comment


    The benefits of SDN/NFV are well known, but the transition comes with some challenges, prominent among them is: how do you test a network that has been abstracted and has the potential to be endlessly reconfigurable? Light Reading was at NFV World Congress in Santa Clara, Calif., where we bumped into Mats Nordlund, CEO and co-founder of Netrounds, a Swedish ...
    LRTV Interviews
    Ditching the Slash & the Orchestration Wars

    5|3|16   |     |   (2) comments


    SDN and NFV have been inextricably bound with each other for so long that on a conceptual level, smooshing them together into one catch-all phrase – SDNFV – is now justifiable, according to Dan Pitt, executive director of the Open Networking Foundation (ONF). Light Reading spoke to Pitt at the NFV World Congress, where he explained that the next ...
    LRTV Custom TV
    ZTE TV Connect Highlights

    5|3|16   |     |   (0) comments


    ZTE gives us a tour of its booth and new products at TV Connect in London.
    LRTV Custom TV
    Deluxe's Unified Delivery Solution

    5|3|16   |     |   (0) comments


    Join Alan Breznick of Light Reading and visit the Deluxe booth at NAB! Here you'll find Deluxe's Unified Delivery Solution, OTT video, virtual reality, HDR, 4K and much more!
    LRTV Interviews
    Verizon Puts Gray Boxes in the Shade

    5|2|16   |   04:33   |   (1) comment


    When it comes to the white box trend, "gray" boxes, which have a slight proprietary twist, don't give service providers and end users the advantages they're seeking, according to Verizon's Vice President of Product and New Business Innovation Shawn Hakl.
    LRTV Custom TV
    Dealing With a Disrupted Video Market

    5|2|16   |     |   (0) comments


    Ericsson's Simon Frost discusses how traditional pay-TV providers can cope with the big changes wrought by the rise of OTT video and IP technology.
    LRTV Custom TV
    The VNF Responsibility of Red Hat

    5|2|16   |     |   (0) comments


    At MWC, Caroline Chappell of Heavy Reading visits the Red Hat booth and sits down with Chris Wright to talk about the responsibility the VNF needs to take on in order to ensure the operators get the carrier-grade performance they expect for their network.
    LRTV Interviews
    AT&T Expert on the Key Pillars of UC

    4|29|16   |   03:58   |   (0) comments


    Vishy Gopalakrishnan, AVP of product marketing at AT&T, talks about the three developments that are making unified communications and collaboration secure and reliable for enterprise users.
    Upcoming Live Events
    May 23, 2016, Austin, TX
    May 23, 2016, Austin Convention Center
    May 24-25, 2016, Austin Convention Center, Austin, TX
    September 13-14, 2016, The Curtis Hotel, Denver, CO
    December 6-8, 2016,
    June 16-18, 2017, Austin Convention Center, Austin, TX
    All Upcoming Live Events
    Infographics
    A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
    Hot Topics
    WiCipedia: Woman Cards & Bitch Switches
    Sarah Thomas, Director, Women in Comms, 4/29/2016
    Sprint CEO: Our Spectrum Is for 5G
    Dan Jones, Mobile Editor, 5/3/2016
    Amazon & Other 'Big 4' Cloud Providers Crushing Competitors
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 4/29/2016
    Rovi Reels in TiVo for $1.1B
    Mari Silbey, Senior Editor, Cable/Video, 4/29/2016
    Showdown at the OpenStack Corral
    Carol Wilson, Editor-at-large, 5/3/2016
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    In this latest installment of the CEO Chat series, Craig Labovitz, co-founder and CEO of Deepfield, sits down with Light Reading's Steve Saunders in Light Reading's New York City office to discuss how Deepfield fits in with the big data trend and more.
    Grant van Rooyen, president and CEO of Cologix, sits down with Steve Saunders, founder and CEO of Light Reading, in the vendor's New Jersey facility to offer an inside look at the company's success story and discuss the importance of security in the telecom industry.
    Animals with Phones
    Sloth Mail Click Here
    Sloth mail -- somehow even slower than snail mail.
    Live Digital Audio

    Of all the tech companies in the Valley, Intel has made the most aggressive commitment to building a diverse and inclusive workplace culture. It's doing so by taking concrete, measurable steps, making a large financial investment and through a commitment to complete transparency about its progress. In this radio show, WiC Director Sarah Thomas will be joined by Shlomit Weiss, Intel's Vice President, Data Center Group, and General Manager of Networking Engineering, who will share with us why Intel is tackling this huge challenge, how and to what effect. She will also discuss her unique experiences leading development of Client SOC development in the past and today leading development of all of the chipmaker's silicon hardware for networking IPs and discrete devices and managing a team of 600 engineers across Israel, Europe and the US.