TeleNav extends location services deal with Sprint

Location-based solutions provider TeleNav amended its bundled services deal with Sprint, a move the company said will reduce its full-year revenue but offer the benefit of a minimum guaranteed revenue. Per terms of the revamped agreement, TeleNav now holds preferred supplier status for Sprint's GPS services until the end of 2012--Sprint's branded navigation services will transition to the TeleNav branded navigation services over time, with bundle opportunities expanded to include the operator's prepaid subscriber base. TeleNav said it will now receive a guaranteed annual fixed fee from Sprint for navigation applications bundled with other carrier services--the annual fee will fluctuate from year to year over the contract period, with a limit on the maximum number of subscribers covered.

"Under the terms of our amended contract with Sprint, beginning September 1, 2010 our monthly revenue for bundled navigation services will decline as compared to recent months," TeleNav CEO HP Jin said in a statement. "But we will benefit from a minimum guaranteed revenue stream with our largest customer as well as the ability to further increase our user base."

Last week, TeleNav introduced a drive-time search and navigation mobile advertising platform enabling marketers to reach consumers on the go. According to TeleNav, the mobile ad platform delivers relevant, targeted promotions based on the location and context of the consumer's search query, also supplying marketers with action-based metrics like "Drive-to-Rate"--which captures the number of users who view an ad and then drive to the business located spotlighted in the promotion--as well as more traditional benchmarks like impressions, click-thru rates and calls.

For more on the revised TeleNav/Sprint deal:
- read this release

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