PluggedIn: Navigation boon for stalled WiMax?

SEOUL May 13 (Reuters) - Chung Jung-hwan, a cab driver in Seoul, spends his driving days surrounded by a semi-circle of devices scrambled around his seat.

A traditional navigation system mounts on a dashboard, his mobile phone rests in a docking station, while a fare metre, a credit card reader, a cab company pager and a wireless toll-fee payment system are all tangled clumsily.

"It would be good to have one powerful device to do it all," he said. Can WiMax technology help him?

Car navigation systems have long become must-haves for motorists, and the growing need for wireless connections to power those devices may be one of few chances for WiMax, which is struggling for adoption, to return to the limelight.

Navigation devices capable of real-time location services, route searching and other Web services in a moving car can pave the way for network operators to snap up location-linked advertising deals and other business opportunities.

WiMax, an emerging mobile technology which blankets entire cities with high-speed wireless Web access, has been offered in limited service areas in countries including the United States and South Korea.

Analysts see WiMax's chances of success in developed markets limited because many of the world's biggest wireless operators have already committed to build their next-generation networks using a rival standard, Long Term Evolution (LTE).

But WiMax, with backing from Intel (INTC.O), Sprint Nextel (S.N) and Samsung (005930.KS), has a clear edge for select target groups such as cars moving in urban areas. As the technology provides a cheaper, more data-centric wireless connection that also works faster to upload data, it could be a key solution.

While most of currently available navigation devices offer map services from stored database, satellite TV and limited traffic information, the new breed of wireless navigation can deliver much more.

New services being rolled out include searches for the cheapest gas station or other local stores, a PC-like Web browsing for Google Maps and other popular sites, and turn-by-turn traffic updates based on information gathered from CCTV and moving cars.

Various entertainment features -- movies, games and even in-vehicle karaoke -- are also set to take off.

Wimax could also work as a terminal for settlement services at toll gates and service stations in the near future.

PLENTY OF WIMAX DEVICES

Some wireless navigation devices have been available for a while, most of them supporting connections when paired with mobile phones or through shorter-range Wi-Fi networks.

Dutch navigation device maker TomTom (TOM2.AS) has been offering "HD Traffic" service in Europe which gathers traffic data from cellphones, and is launching connected navigation systems and services in the United States this year.

More are expected to hit the road in 2009, featuring enhanced connectivity and with improved service platform that can battle a growing threat from GPS-enabled mobile phones.

In March, Samsung unveiled Mondi, a touchscreen device that supports both Wi-Fi and WiMax and will be sold through U.S. WiMax service provider Clearwire (CLWR.O). [ID:nN31451057]

Japanese car electronics maker Clarion (6796.T) is working to make its MiND navigation devices WiMax-capable and Taiwan's dmedia has also unveiled navigation devices supporting WiMax.

Another South Korean firm, Thinkware System (084730.KQ), has partnered with network operator KT (030200.KS) and will begin selling a new WiMax-powered navigation system next month.

KT, which is offering WiMax service in Seoul and nearby areas at monthly fees of 10,000 won-27,000 won ($8-$22), is also in early-stage discussions with Hyundai Motor (005380.KS) to provide WiMax connections in some premium car models through installed navigation.

Research firm iSuppli estimates that in the portable navigation device market, devices with always-on wireless connectivity would account for 10 percent of the total by 2012, up from a mere 0.2 percent currently. ($1=1241.8 Won) (Editing by Marie-France Han and Anshuman Daga)