Satnav, telcos talk dial-for-directions deal

Navigation device maker Satnav Technologies is in talks with three leading mobile service providers for offering its dial-for-directions service. The company, which has a tie-up with Reliance Communications, would be closing the deals within a month, chief executive officer and managing director Amit Prasad told Financial Chronicle.

“We have been in talks with three of the largest telecom companies in India for our dial-for-directions service. The final paperwork is on and we would be making an announcement by the end of August,” he said.

Satnav had launched the service in April this year. It aims at providing directions to commuters through SMS to reach their destinations. Customers can also call up a helpline number to seek assistance.

Prasad feels the nascent Global Positioning System (GPS) based navigation services market is on the verge of a phase of exponential growth. “FY2010 would mark the turning point for the industry,” Prasad said. “The product has faced challenging situations in the first three years in every market. But it starts doing well in the fourth year, which should be the case in India too.”

Prasad expects the market to be of about 1,30,000 customers for the present year. Last year, the figure was a miniscule 5,000. “It’s the kind of market where one might see the figure multiplying to a million within as short a span as six months or a year,” he claimed

The company is also stepping up its efforts to expand its footprint by tying up with retail shopping chains. It has signed deals with HCL Digilife, Reliance Autozone and Reliance Digital for making available its devices in these stores.

These alliances would allow Satnav products to be displayed in more than 100 stores across 15 centres which include Ahmedabad, Bangalore, Chennai, Delhi, Noida, Ghaziabad, Faridabad, Gurgaon and Hyderabad among others.

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