Fixed Mobile Convergence

Amendments have been entered to the Master Application and Services Agreement with Sprint. Amendments have also been made to the License Agreement with Tele Atlas. These announcements have been made by TeleNav (News - Alert), Inc. While Sprint is TeleNav’s largest customer, maps and points of interest content used in TeleNav's services are supplied by Tele Atlas.

TeleNav is updating its outlook for the quarter ending Sept. 30, 2010, because of these amendments. Guidance for the full fiscal year ending June 30, 2011, has been provided. The Sprint contract has also been extended to Dec. 31, 2012.

In a release, HP Jin (News - Alert), president, CEO and co-founder of TeleNav, said, "We are pleased to extend and expand our relationship with Sprint. It has always been our goal to increase our user base and retain those loyal end users. For the quarter ended June 30, 2010, TeleNav averaged more than 16 million paying end users, and this agreement will enable Sprint (News - Alert) to bundle our popular navigation product on even more phones and under new service plans.”

According to Jin, significant revenue from mobile advertising, mobile commerce and premium services can be generated by TeleNav with a large user base. TeleNav branded navigation services are being rolled out to Sprint's bundle customers. The company is therefore strengthening its direct relationship with the end users.

Douglas Miller, CFO of TeleNav, commented, "Under the terms of our amended contract with Sprint, beginning Sept. 1, 2010, our monthly revenue for bundled navigation services will decline as compared to recent months, 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 and future revenue growth potential from sources such as mobile advertising, mobile commerce, premium services and enterprise LBS.”

Miller added that the company will be provided with enhanced revenue visibility throughout the term of the agreement. This will be possible with the guaranteed minimum revenue arrangement. “The cost of providing bundled services to Sprint's end users will also be managed with the amendment to the license agreement with Tele Atlas (News - Alert). TeleNav continues to look forward to mutually beneficial relationships with each of these valued partners,” concluded Miller.