Verizon Wireless recently announced a new version of its VZ Navigator product, called VZ Navigator VX. As with its predecessor, VZ Navigator VX will cost consumers $9.99 a month for full usage. Given the trends in commoditizing navigation, this raises a few eyebrows, particularly when the app will first be available on three Android devices: the Motorola Droid X, HTC Droid Incredible, and the Samsung Fascinate. Android devices come with many Google apps, including Google’s free navigation app, pre-installed.

This begs the question: Who would want to pay $9.99 for a navigation app when they already have a free app which provides a decent navigation experience? Our own data has always shown that most consumers have never wanted to pay more than $5/mth for navigation, and this was before navigation began to be offered for free.

So what differentiating factors does VZ Navigator VX have that would justify the price? The biggest improvement is its 3-D city models which provide 3-D rendering and more life-like signage. However, these features are currently only available in 6 select US cities, and even when more widely deployed won’t be enough to justify the price. Recent Automotive Consumer Insights research looking at consumer interest in navigation features suggests that 3-D rendering is near the bottom of advanced navigation features that users crave.