Employees located in Herzliya will be incorporated into other projects at Intel Israel. What cellular operators who have been using Telmap’s white label solution will do for future navigation services, is still unclear
Intel announced this morning (Sunday) to employees of Israeli startup Telmap – developer of internationally used location-based navigational services – that it will soon be closing its doors. Employees of Telmap will be transferred to one of Intel’s several other development centers within Israel, and integrated into other projects the chip manufacturing giant is currently working on.
Telmap was acquired by Intel in October 2011 in a deal estimated to be worth between $200M-$300M. Telmap employed 150 people at its development center in Herzliya, Israel and dozens of other employees stationed at various branches throughout Europe and the US. Geektime has learned that satellite employees will be laid off while the Israeli team will be incorporated into other projects of Intel, some continuing to provide support for existing operations of Telmap as part of Intel.
M8 app development halted, future source of GPS service for cellular operators, unknown?
Telmap, which was founded in 2000, released two navigation products whose future is now uncertain following the decision of the chip giant: The free navigation app known as M8, which was launched in mid-February of this year and which relies on advertising as a revenue channel – and a white label navigation solution sold to cellular operators worldwide for personalized rebranding. While future development and updates to the free navigation app of the company will cease, the big question is what will happen to the white label version employed by several large mobile operators as part of their overall service package offering.
In Israel for example, the three largest mobile operators, Orange, Cellcom and Pelephone, all use Telmap’s white label services. Geektime reached out to these companies and all where either unavailable or refused to comment.
Geektime reached out to Intel for comment and received the following response: “We are now in a period of evaluation and adjustment of our business priorities. Consequently, we decided to terminate the operations of Telmap and to withdraw our direct marketing and navigation solutions offered to clients based on White Labeling.”