NAVIGON dropped us a note to say that, as promised, their latest update to MobileNavigator [$89.99 for North America - iTunes link] for iPhone is now available via the iTunes App Store, and it includes Traffic Live as an in-app purchase (currently on sale at an introductory $19.99, $24.99 thereafter). Here’s how it works:

Traffic Live utilizes crowdsourced real-time speed data from over 1.3 million drivers including other NAVIGON app users (who opt. in to participate), commercial fleets such as trucks and taxis, as well as regular drivers with a GPS system. So if for example several vehicles on a road report slow speed, the system recognizes congestion and provides an alternate and faster route.

If you add the Traffic Live service, let us know how it works for you.

NAVIGON North America [$89.99 - iTunes link], just let us know that, fresh off adding text-to-speech for street names, they’ll soon be adding real-time speed information from actual drivers on the road, traffic messages, road sensors and cameras, and historic traffic flow data to reroute iPhone users around problem areas.

Billed as NAVIGON Traffic Live, it will be available in October and sold as an in-app purchase to existing MobileNavigator users. The added functionality will run $24.99, but go for $19.99 special introductory pricing at launch. And as with the main app, there’s no monthly subscription cost.

Will iPhone users be willing to pay more to get more? That remains a question. We’ve asked before for premium apps, and said we’d pay a premium price for them, and this is certainly an example of that kind of App Store model.

However, by aggressively adding new features so rapidly, NAVIGON is setting the pace when it comes to turn-by-turn GPS navigation on the iPhone. Users of up-front, subscription, and even crowd-sourced mapping apps will all benefit from that.