Light Reading

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.
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
Last week I dropped in on "Hotlanta," Georgia to moderate Light Reading's inaugural DroneComm conference – a unique colloquium investigating the potential for drone communications to disrupt the world's telecom ecosystem. As you will see, it was a day of exploration and epiphany...
LRTV Documentaries
Cable Eyeing SDN for Headend, Home Uses

5|26|15   |   05:57   |   (1) comment


CableLabs is looking at virtualizing CMTS and CCAP devices in the headend, as well as in-home devices, says CableLabs' Karthik Sundaresan.
LRTV Documentaries
Verizon's Emmons: SDN Key to Cost-Effective Scaling

5|22|15   |   03:53   |   (0) comments


For Verizon and other network operators to ramp up available bandwidth cost effectively, they need to move to SDN and agree on how to do that.
LRTV Documentaries
Lack of Universal SDN a Challenge

5|21|15   |   04:51   |   (3) comments


Heavy Reading Analyst Sterling Perrin talks about how uncertainty about SDN standards and approaches may be slowing deployment.
LRTV Custom TV
Steve Vogelsang Interview: Carrier SDN

5|20|15   |   05:02   |   (0) comments


Sterling Perrin speaks to Steve Vogelsang, Alcatel-Lucent CTO for IP Routing & Transport business, about the new Carrier SDN-enabling Network Services Platform and the operator challenges it solves.
LRTV Custom TV
Carrier SDN: On-Demand Networks for an On-Demand World

5|20|15   |   20:52   |   (0) comments


Steve Vogelsang, Alcatel-Lucent CTO for IP Routing & Transport business, talks about requirements and benefits of Carrier SDN during the keynote address at the Light Reading Carrier SDN event May 2015.
LRTV Documentaries
The Security Challenge of SDN

5|19|15   |   02:52   |   (0) comments


CenturyLink VP James Feger discusses concerns that virtualization could create new vulnerabilities unless network operators build in safeguards.
LRTV Custom TV
NFV Elasticity – Highly Available VNF Scale-Out Architectures for the Mobile Edge

5|18|15   |   5:50   |   (0) comments


Peter Marek and Paul Stevens from Advantech Networks and Communications Group talk about their NFV Elasticity initiative and the company's latest platforms for deploying virtual network functions at the edge of the network. Packetarium XL and the new Versatile Server Module: 'designed to reach parts of the network that other servers cannot reach.'
LRTV Huawei Video Resource Center
Bay Area Spark Meetup 2015

5|14|15   |   3:54   |   (0) comments


Developed in 2009, Apache Spark is a powerful open source processing engine built around speed, ease of use and sophisticated analytics. This spring, Huawei hosted a meetup for Spark developers and data scientists in Santa Clara, California. Light Reading spoke with organizers and attendees about Huawei's code contributions and long-term commitment to Spark.
LRTV Custom TV
The Transport SDN Buzz

5|12|15   |   06:01   |   (1) comment


Sterling Perrin, senior analyst at Heavy Reading, speaks with Peter Ashwood-Smith of Huawei and Guru Parulkar of ON.Lab about the evolution of transport SDN and the integration of technologies.
LRTV Custom TV
Next-Generation CCAP: Cisco cBR-8 Evolved CCAP

5|5|15   |   04:49   |   (0) comments


John Chapman, Cisco's CTO of Cable Access Business Unit and Cisco Fellow, explained the innovation design of Cisco's cBR-8, the industry's first Evolved CCAP, including DOCSIS 3.1 design from ground-up, distributed CCAP with Remote PHY and path to virtualization. Cisco's cBR-8 Evolved CCAP is the platform that will last through the transitions.
LRTV Custom TV
Meeting the Demands of Bandwidth & Service Group Growth

5|1|15   |   5:35   |   (0) comments


Jorge Salinger, Comcast's Vice President of Access Architecture, explains how DOCSIS 3.1 and multi-service CCAP can meet the demands of the bandwidth and service group growth.
LRTV Custom TV
DOCSIS 3.1: Transforming Cable From Hardware-Defined Network to Software-Defined Network

4|29|15   |   03:48   |   (0) comments


John Chapman, Cisco's CTO of Cable Access Business Unit and Cisco Fellow, explains how DOCSIS 3.1 can transform cable HFC network to a more agile software-defined network.
Upcoming Live Events
June 8, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 10, 2015, Chicago, IL
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 6, 2015, The Westin Peachtree Plaza, Atlanta, GA
October 6, 2015, Westin Peachtree Plaza, Atlanta, GA
All Upcoming Live Events
Infographics
Procera has gathered facts, stats and customer experience feedback from a survey of 540 users from across the globe.
Hot Topics
10 Alternate Uses for Tablets
Eryn Leavens, Copy Desk Editor, 5/22/2015
Bidding War for TWC Looks Likelier
Alan Breznick, Cable/Video Practice Leader, 5/22/2015
Charter Seals Deals for TWC, Bright House
Mari Silbey, Senior Editor, Cable/Video, 5/26/2015
Eurobites: Alcatel-Lucent Trials 400G in Czech Republic
Paul Rainford, Assistant Editor, Europe, 5/26/2015
Comcast Targets 6 New Gigabit Markets
Mari Silbey, Senior Editor, Cable/Video, 5/21/2015
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
On May 29th 10 AM ET, Steve Saunders, founder and CEO of Light Reading, will be drilling into the "pains and gains" of NFV with Saar Gillai, SVP & GM for NFV at Hewlett-Packard Co. (NYSE: HPQ) (HP). He has defined a four-step NFV model describing a sequence of technology innovation. It's a must-read doc for any network architect looking to get to grips with their NFV migration strategy. Join us for the interview, and the chance to ask Saar your NFV questions directly!
With 200 customers in 60 countries, Stockholm-based Net Insight has carved out a solid leadership position in one of the hottest vertical markets going in comms right now: helping service providers and broadcasters deliver video and other multimedia traffic over IP networks. How has Net Insight managed to achieve this success in the face of immense competition from the industry giants?
My ongoing interview tour of the leading minds of the telecom industry recently took me to Richardson, Texas, where I met with Rod Naphan, CTO and SVP, Solutions, ...
Cats with Phones