Dutch digital map maker TeleAtlas Monday signed a five-year deal with Google that will see its maps included on new Google services, including cellphones based on its Android operating system.

Financial details weren't disclosed, but the agreement is the latest evidence of the increasing demand for global positioning satellite, or GPS, services, particularly for people on the move.

TeleAtlas, recently acquired by Dutch navigation device maker TomTom in a EUR2.9 billion deal, said Monday it signed a five-year licensing agreement with Google, which spans Google's current and future map-based services and navigation offerings across mobile, online and desktop platforms.

Tele Atlas says these include Google Maps and Google Earth, including mobile versions of the services based on its Android open-source operating system. The Internet giant and more than 30 partners announced in November a plan to launch a new breed of handsets based on Android by the second half of this year. Google now says the handsets won't arrive until the fourth quarter.

The new Android-based handsets will compete with Apple's iPhone and devices based on Finnish phone giant Nokia's Symbian operating system. As a measure of the importance of GPS-based services, Nokia agreed to pay $8.1 billion for U.S. digital mapping company Navteq.

Meanwhile, the new 3G Apple iPhone, to launch this month, is expected to have an impressive suite of location-based services.

Google won't want to be left behind in the wireless space given its strong track record of product development in the area to date.

"When Google launches its Android program, Tele Atlas will provide maps for this," said TomTom spokesman Taco Titiular.

TeleAtlas already has an agreement with Google for which details aren't available. The new agreement is non-exclusive, Titiular said.

"Tele Atlas' map quality and the company's innovative approach to business were the key drivers for our decision," said John Hanke, director of Google Earth and Google Maps.

Users of TomTom's automotive navigation devices can send map corrections direct to TomTom, which are then verified and integrated into TeleAtlas' maps. TomTom gets around 10,000 corrections a day from users, according to Titiular.

The latest agreement means Google's community of users can also submit corrections.

"This agreement is important too because it gives us access to input from a significant online community of map users, whose feedback can help us keep our maps fresh and accurate," said TeleAtlas Chief Executive Bill Henry.

At 0940 GMT, TomTom shares were trading down 0.3% to EUR18.40 in a broadly lower AEX market.

Analysts said that the long-term deal with Google is a vote of confidence for Tele Atlas and TomTom.

 Still, the full financial impact of the deal remains to be seen, said SNS analyst Martijn den Drijver. He rates TomTom stock at buy with a EUR29.25 price target.

Source:Dow Jones Newswires