Telmap: Mapping the way to success

Many companies offer road-map solutions on mobile computers, but Telmap claims it is unique. CEO Oren Nissim says the company is the only one with solutions that work effectively on narrow-band second generation cellular networks of 9,600 Kbps. These networks are already in use.

In brief, the speed at which the company manages to put the data up on the computer screen is due to the fact that its system creates a separate display for every query by the surfer, rather than executing a zoom in a GIF picture. The systems takes a map database, with information on the location of roads, cash points, fueling stations, etc., and creates a map from this database, which makes the process much faster. Telmap buys the database from geographic information companies. In Israel, the data come from a map company that is a strategic partner of Telmap.

Nissim, who has managed Telmap for the past 18 months, says the Internet makes it possible to move the map business, hitherto based on paper printers, into the digital world. At the same time, however, it’s not enough to transfer the maps from paper to computer, because we need the maps mostly on the roads, not in the office.

This is the market’s biggest headache. When the surfer is mobile, he is limited by the need to transfer information dynamically on narrow-band Internet networks (at least, until third generation cellular technology is put into operation). Nissim asserts that Telmap is without peer in its field.

Navigating systems for vehicle fleet management

Telmap was founded in 1999, when its mapping technology was developed. The company founder, Michael Patzetnikov, was only 17 at the time; he is now 19 and doing his regular army service. The company raised $7 million in 2000 from the Current Science Group at a company value of $14 million, after money. Telmap has 24 employees in Tel Aviv and is recruiting development personnel and project managers.

Telmap is aiming its products at two markets: vehicle fleet management (telematics) and navigation systems. The solutions currently dominating the navigation systems market involve installing a geographic database in the computer and a hookup to a satellite navigation system that enable a vehicle’s location to be plotted on the computer screen. These solutions are not dynamic. They cannot be updated in real time, nor can information, such as the movie being screened at the nearest theater and whether the neighborhood restaurant still exists, be added.

”Real time updating can be done with a hookup to a communications network, instead of reinstalling the software,” Nissim says.

Telmap plans to launch its service with one or two cellular operators in Israel. At the same time, the company is also trying to create a connection with another cellular operator in Britain. Nissim predicts an agreement with an Israeli cellular operator will be signed as early as the third quarter of this year.

For now, Telmap has a number of cooperation agreements, with E-Drive Technology (EDT), which develops vehicle locating and monitoring applications, and Tri-Logical Technologies, which develops ASP vehicle management applications. Telmap is also negotiating with Israeli company Estimotion, which develops location-based cellular applications, and auto manufacturers General Motors NYSE: GM), Volvo, and Saab Automobile. Telmap’s aim is to promote its system as an integral part of the car’s navigation system.

Telmap began selling its systems in 2001 with sales of $500,000 to two customers. Nissim expects sales of $1.5 million this year.

Telmap’s customers include British map company Mapbyte; EDT, with which Telmap is developing a system to track and return stolen cars in South America; and Trilogical, which sells vehicle fleet management systems in Israel that include Telmap’s system.

Nissim says that Telmap has enough money for the next two years and has no need to raise further capital. Concerning overseas expansion to more countries, Nissim said he planned to set up local overseas offices and look for foreign companies that could provide Telmap’s services.

”Globes”: Do you want to cooperate with telephone directory companies?

Nissim: ”We’ve had discussions with telephone directory companies. Now we’re concentrating more on getting the service on the air. In Israel, the mapping company still has the best database, and we’ll go on working with it. In Europe, we’re talking with telephone directory companies and various content providers. We judge every case on its merits.

Published by Israel's Business Arena on April 18, 2002