Biz model for visible light comunication

To a greener and brighter world

Bronson Chua Chiueh Woei A0076951WChen Xiaokai HT083531NCharanya Kandhaswamy A0076954NChua Hui Yue Jeremy A0076867JLow Kok Tat HT083262MYang SiShuo A0039765R

Introduction•Spectrum shortage•Introduction to VLC•Technology Status•Our Focus

Value Proposition Customer Selection & Market Segmentation

Value Capture Activities Strategic control

Presentation Outline

Yang Si Shuo

Chen Xiaokai

Bronson Chua ChiuehWoei

Charanya Kandhaswamy

Low KokTat

EM Spectrum & Applications

Source: http://www.kollewin.com/blog/electromagnetic‐spectrum/

Shorter wavelengthHigher frequency

Longer wavelengthLower frequency

Wireless Communication

ImagingShort‐range

Communication

ImagingMedical

Application

Radio Spectrum Allocation in USA

Source: http://en.wikipedia.org/wiki/File:United_States_Frequency_Allocations_Chart_2003_‐_The_Radio_Spectrum.jpga

Wireless Data Demand

Frost & Sullivan: Smartphone share rise from 23.9% in 2009 to 67.1% in 2015 *

* Source: http://www.eweek.com/c/a/Mobile‐and‐Wireless/INSIDE‐MOBILE‐Why‐the‐Demand‐for‐Wireless‐Data‐is‐Growing/

Global Mobile Data Traffic Growth **

2008 156%

2009 140%

2010 159%

2011 (estimate) 131%

2012 (estimate) 113%

** Source: Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 2010–2015, http://www.cisco.com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/ns827/white_paper_c11‐520862.html

Cisco Forecasts 6.3 Exabytes per Month of Mobile Data Traffic by 2015

Spectrum Efficiency Improvement

Source: Amaya, M. A., & Magee, C. L. (n.d.). The Progress in Wireless Data Transport and its Role in the Evolving Internet.

Visible Light Communication

Radio • A transmitter emits

the carrier frequency modulated by the encoded information signals

• a receiver demodulates or decodes it

• Wave Guide (zero exposure) /Airwave

VLC

• Pulsed light instead radio or microwave to transmit data

• Modulated light from various sources• Indoor/outdoor lighting

• Displays• Illuminated signs• LEDs

Visible Light Communication

Alternative to Radio Spectrum‐Visible Light

VCL Applications

Smart lighting

Mobile Connectivity

Vehicle to vehicle communication

Under water communication

Location based service

Indoor wireless communication

Typical Application Example• Wireless communication between hard‐wired Internet

terminal to electronic devices• The LED that illuminates the room could also transmit

date

License ‐free

Frequency above 3THz is NOT regulated by the Radio Regulation Law .

The use of radio frequency below 3THz is regulated by the Radio Regulation Law .

Value Proposition ‐Why Visible Light Communication?

• LEDs are widely used in our life• Office, home, traffic light, street light etc.

• Ideal for ubiquitous data transmitter


Source: Frost & Sullivan , world LED Lighting Market p91

LED Lighting Market: Revenue Forecasts (Asia), 2007‐2017

After VLCBefore VLC

Source: http://eartheasy.com/live_energyeff_lighting.htm

• Reduces electricity bill


• LED can be used both for lighting & Data Transfer

• Less installation Charge (no cables, modem, router)

• Easy to install at home requires minimal changes (LED source, IR Transceiver Chip)

• Data transfer rate 500 M bits/s

• Better data security due to non inference of frequency


Value Proposition –Comparison of VLC with Cable &Wireless

Source: Wikipedia

Market Segment & Revenue share

Market Growth

0

100

200

300

400

500

600

700

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Home Boardband Revenue ($ Million)

Business Boardband Revenue ($ Million)

Growth of Consumer Broadband Market (Singapore)

Source: APAC Board band Market by Frost & Sullivan

LED Lighting Market: Per Cent of Revenues by Applications (World), 2010

• Its predicted that in terms of applications, the residential and commercial markets are expected to grow as is street lighting.

Source: Frost & Sullivan , world LED Lighting Market

Needs of different Market Segment

Factors Home

Business

RF usage permitted RF usage not permitted

General Business User

Hotels/Restaurants

Universities/Polytechnics Hospitals

Petrochemical refinery

Under Water communication

MillitaryVehicles

Speed Medium High Medium High Low Low Low High

Availability Medium High Medium High Low Low Low High

Consistency Medium High Medium High Low Low High High

Reliability Medium High Medium High High High High High

Price Sensitivity High Low Medium High High High High Low

Infrastructure Change Low High Low High High Low Low Low

Security High High Medium High High High High High

Target Customer

Expectations of Pragmatic Customers???

• Look for well established Reference• Look for better customer support • Highly Price Sensitive• High sense of Practicality

How are we going to reach these pragmatic customers????

Visionaries Conservative

Technology Enthusiasts

Pragmatist

Market Penetration

How to penetrate the market???

Dev

elop

ing th

e Ea

rly

marke

t

Dev

elop

ing th

e late

marke

t

Telco

Hotel\Universities\IDA(Private Sectors)

Contract VendorsVLC Company

Cons

ultanc

y

Cons

ultanc

y

Placing order

Delivering order

On Approval for Installation

Installation of VLC Product for HDB flats

End Customer (Service/Consultancy)

Value Capture

•Free evaluation on consultancy for SME businesses such as Hotel, café on applicability of VLC for their business and if agreeable installation service and hardware is charge a fee and upon technical issue a fee will be charged

•Upon gaining approval as a Approve Vendor, each new flat build and the number of needed Hardware (LED + Transceiver) will be charge a fee, additionally a service charge will be rendered if technical support is needed

•Working with local telcos to promote to existing subscribers (existing flat owners) to adopt the use of VLC, upon agreed by subscriber , telcos will request us to provide the product and installation. A fee will be charged

Summary of Revenue capture

Value Capture in Business Model

Dominant Revenue Model

Basic Idea

Sale of service/product Direct sales

Fee for Service Fee for metered service (Installation charge)

Technology Enthusiasts

Visionaries

Pragmatist

Conservative

• Demos• Trails• Technology Press Coverage• Guru endorsements• Collaboration

• Consultancy services to Singapore Government

• Save electricity initiative(PUB)

• Sustainable energy initiatives

• Trade Shows• Technology Conference

• Demos on Successfully implement Projects

• Product Differentiation after installing VLC

• Demos on Technology Sustainability on large Scale implementation

• Large scale Advertisements • Market Share

• Top tier customers• Revenue & profit• Attaining Technology maturity• Full product line services• Strategic partners & Alliance• Business Press coverage• Financial Analyst Endorsement

Scope of Activities‐Marketing

Consultancy to Visionaries:Providing consultant service to Singapore government operations such as IDA Singapore, Sustainable Singapore, Singapore Electricity board on ways to provide cheap, efficient ways of network communication

Scope of Activities‐Operation

Collaboration for better Distribution Channel:Collaboration with home Internet Service provider (SingTel, StarHub )

Government RFP (HDB) Gaining approval as a Approve vendor

Negotiation with contact manufacturer on

continuous improvement on product quality

Installation / technical support

Scope of Activities‐Operation

Continuous improvement on product/ & service

Participate in Standard Setting Organizations (VLCC), IEEE 802.15

Participate in Technology conference M2M evolution

Scope of Activities‐R&D

• How to sustain profit? • Apply Blue Ocean Strategy to create uncontested

market space

Strategic Control for VLC

Create uncontested market space in:

• Underwater communication

• Hospital

• VEHICLE & TRANSPORTATION

• Complementary product for Smart Home

Strategy to Expand VLC Market

http://visiblelightcomm.com/top‐10‐visible‐light‐communications‐applications/

I. Create high entry barrier by well protected IP portfolio

II. Research collaboration with universities to improve the product feature and functionality

III. Create our own brand to more customer base through network effect and mass advertisements

Strategic Control for VLC

http://www.theengineer.co.uk/1007419.article

Thank You