Light Reading
Nokia Growth Partners has set up a $100 million Connected Car fund to integrate its mapping and location services into more cars.

Nokia Pumps $100M into Connected Cars

Sarah Reedy
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
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.
SarahReedy
50%
50%
SarahReedy,
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. 
SarahReedy
50%
50%
SarahReedy,
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. 
SarahReedy
50%
50%
SarahReedy,
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. 
Flash Poll
From The Founder
Is your network built on 'The Old IP,' or are you part of 'The New IP' revolution?
LRTV Huawei Video Resource Center
Innovating Access Technology With G.fast

10|1|14   |   3.42   |   (0) comments


Exploring the potential of G.fast technology from the point of view of the Broadband Forum, Huawei – and an end-user.
LRTV Documentaries
A Cultural Shift for an OTT World

9|26|14   |   01:41   |   (3) comments


Telcos need to embrace a new approach to partnerships if they are to generate extra revenues quickly and give customers what they want.
LRTV Documentaries
New Skills Needed as Telecom, IT Collide

9|26|14   |   4:07   |   (1) comment


As telecom and IT collide, new technologies are emerging, new skills are needed and new opportunities for women are arising.
UBB Forum News
Do IP Networks Need An Overhaul?

9|25|14   |   02:01   |   (0) comments


As traffic levels ramp, do IP networks need new technologies and topologies?
LRTV Documentaries
Sprint Wields Its Influence in the Valley

9|25|14   |   3:09   |   (11) comments


Anne-Louise Kardas, Sprint's connection to startups in the Valley, explains how telcos can be innovative and find new opportunities with partners.
LRTV Documentaries
SDN, NFV & The Future of XO's Network

9|25|14   |   3:47   |   (1) comment


XO Communications COO Don MacNeil explains how cloud, SDN and NFV are altering its network requirements as well as changing data centers of the future.
UBB Forum News
The OTT Conundrum

9|24|14   |   01:39   |   (0) comments


What is holding back prosperous partnerships between telcos and the OTT players?
LRTV Documentaries
Putting Broadband to Work

9|24|14   |   01:26   |   (0) comments


High-speed broadband network rollout is key to telco strategies, but it's what happens after the network is built that counts.
Light Reedy
Light Reading's Women in Telecom Recap

9|24|14   |   0:55   |   (4) comments


Our first Women in Telecom breakfast was a huge success, and we hope you'll join us in London for the next event on November 6.
UBB Forum News
Monetizing Ultra-Broadband

9|24|14   |   01:43   |   (2) comments


Ultra-broadband networks need to be built, with fiber-to-the-premises the ultimate goal, but they need to be monetized, too.
LRTV Huawei Video Resource Center
Sales Director of INIT on Plug & Play Switch Devices

9|19|14   |   3:21   |   (0) comments


INIT Italy uses both the Huawei S5700 and S7700 series switches for the campus LAN environment. Sales Director Andrea Curti says their company chose these Huawei devices over others because of their performance, flexible scalability and plug-and-play features.
LRTV Huawei Video Resource Center
Saudi Arabia Upgrades Vocational Training System

9|19|14   |   3:31   |   (0) comments


The Technical and Vocational Training Corporation (TVTC) has 100,000 students, 150 government-owned institutions and oversees 1000 private institutes. The CIO of TVTC explains that Huawei devices have allowed them to manage multiple datacenters using just one software program, scientifically tracking the progress of students and teachers, saving them millions.
Upcoming Live Events
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
Half of the world's population will be connected to the Internet by 2017, but not just by smartphones and desktops.
Hot Topics
Facebook Pokes Around LTE Direct
Sarah Reedy, Senior Editor, 9/25/2014
Is Redbox Instant Shutting Down?
Mari Silbey, Independent Technology Editor, 9/30/2014
Comcast Turns Off Streampix
Mari Silbey, Independent Technology Editor, 9/26/2014
SoftBank Eyes a DreamWorks Buy – Report
Sarah Reedy, Senior Editor, 9/29/2014
Telecom Sector 'Its Own Worst Enemy' – Kroes
Ray Le Maistre, Editor-in-chief, 10/2/2014
Like Us on Facebook
Twitter Feed