Just a few months ago the division between GPS and navigation device makers vs. the suppliers of underlying map data was distinct. Now with TomTom purchasing Tele Atlas and Nokia purchasing NAVTEQ, it’s all a jumble. And it’s getting interesting to speculate about the roles of Microsoft and Google in this mix.

Device makers should have a heavy role in the underlying data, because that’s nearly the whole of any navigation experience. There’s negligible importance of the device design and interface, particularly if the data is poorly presented or old.

As devices move toward the realm of intelligent and interconnected sensors, that update each other in real time regarding road and traffic conditions, they have an important role to play in data quality. It’s easy to assume that inter-device communication can be harnessed to improve the underlying data quality.

TomTom made the first move with a clear focus on device communication for intelligent routing and continuously updated maps. With that goal communicated, I’m assuming it was a mad scramble for NAVTEQ that drove the purchase price so high.

While there are statements that TeleAtlas and NAVTEQ will remain independent and will license their data to other platforms, the inherent competition between platforms and device manufacturers has to have the data-deficient device makers worried about pricing and the data quality that they’ll receive.

While Microsoft would gain a good hold on the device market with the purchase of Garming, the market value is an exorbitant $24B. For the money, they could snap up a smaller innovative company such as Dash Networks with their Internet-connected GPS devices, and then plow more money into their already aggressive data collection efforts. Or maybe they could go after Magellan Navigation, with their good balance of consumer and professional products to further enhance their data collection hardware suite.

Google seems solidly focused on software, although there’s plenty of talk about a Google mobile device. With their ad-centric business model, Google might be better poised to harness the power of social networks to populate their map data. Google’s Ed Parsons is clearly a fan of the OpenStreetMaps movement, and one could see an alliance here similar to Autodesk’s open source software move. Google’s strong support of open street maps would certainly fit into their socially-conscious vibe, and would somewhat alleviate all the privacy clamor regarding their Street View data.

It’s fun to speculate on the next earth-shattering market changes that will take place in the geospatial industry. It’s been some time since we’ve seen this level of mergers and acquisitions. I’m certain it will get stranger and more exciting in the coming months.

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