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the internet revolution act 2

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Presentation on theme: "the internet revolution act 2"— Presentation transcript:

1 the internet revolution act 2

2 Introduction to DataWind
Part 1: Introduction to DataWind

3 Will enable internet access for the masses of the world
DataWind: Manufactures, Markets, and Sells UbiSlate (Aakash) tablets, PocketSurfer handhelds & UbiSurfer netbooks on a powerful Web Delivery Platform 18 Patents issued covering 240 claims Unique patents enable FREE wireless internet access World’s lowest cost computing devices Will enable internet access for the masses of the world

4 Team DataWind – 150 Strong:
Category Address Location Team UK: 8 Chase Rd., Unit 1, London NW10 QD London, UK 18 Canada: 555 Rene Levesque West, Montreal, QC H2Z 1B1 Montreal, CA 62 India: 195 Ajit Nagar Sultanwind Rd Amritsar, Punjab Amritsar, IN 23 Other: 26 York St., London 8 7895 Tranmere Drive, Mississauga, ON Toronto, CA 13 Hechtseestr. 16 83022 Rosenheim Munich, DE 3 252 Lakshydeep Plaza, 303 2nd Floor, Sant Nagar East of Kailash, New Delhi New Delhi, IN 7 16/F,CITIC City Plaza,Shennan Road Central,Shenzhen Shenzhen, China 5 Staff: Mumbai, Bangalore, Kolkata, Chennai Misc/IN 11

5 Leadership Team: Board: President & CEO: Suneet Singh Tuli Management:
Andrew Beeson (Co-Chairman) Lord Bearsted L.S. Tuli Management: Chairman & CTO: Raja Tuli CEO: Suneet S. Tuli CFO: Stephen Clarke COO India Ops: Kuljeet Singh COO Americas: Timmy Monico VP UK Operations: Alia Khan VP Int’l Sales: Derek Kopke Chief Engineer: Marian Iordan President & CEO: Suneet Singh Tuli Our CEO & co-founder is Suneet S. Tuli who oversees business strategy with emphasis on distribution for various international markets. Prior to this Suneet set-up international distribution for Docuport. Before that, Suneet served as the COO for WideCom which markets wide-format office equipment employing over 200 people, with full responsibility for sales, marketing and operations. Chairman, CTO & Visionary: Raja Singh Tuli Our Chief Technology Officer and co-founder is Raja S. Tuli. Raja has conceptualized our products and developed the core technologies. Raja is considered an expert in the imaging industries, with 48 patents approved to date, and an additional 73 pending.

6 Strong R&D Team & Resources:
Software Developers App Designers Database Engineers Systems Administrators Embedded Software Developers Visual Designers Kernel Software Engineers RF Design Engineers Related Entity: Nanotech Engineers (Class 1000/100 cleanroom facilities): Thinfilm deposition (Sputtering, Evaporation, Plasma Assisted), Etching (Liquid, Plasma), Lithography Java, Web Services Developers C++ Developers ASIC Designer Server Architecture Developers Mechanical Designers Industrial Designers Hardware Designers Manufacturing Engineers

7 DataWind’s core technology:
Faster User Experience INTERNET OR CORPORATE INTRANET Patented Technology Parallel Processing Environment Lower Cost Device Desktop-Like Web Experience 10x to 30x Reduction In Mobile-Network Data Consumption Lower Data Costs 6x to 10x Lower Processing Power & Memory In Client Device DataWind’s Breakthrough Internet-Delivery Platform (18 patents issued & approved) reduces network load, and speeds delivery of content by factors of 10X to 30X.

8 Mobile Network Congestion & Costs
Business Week article highlighted the crippling effect of higher data- consuming devices on AT&T’s network in the US: 40 MB/hr x hrs/mo = MB/mo At Rs.0.30/MB = Rs. 180/mo.

9 DataWind’s Breakthrough Web Delivery Platform
Datawind’s technology provides a richer, faster user experience while consuming much less data: 1.5MB/hr (vs. 40MB/hr) Data cost of 1,000 web-pages: Advertising revenue = Rs.24 CPM (cost per thousand impressions) Result: FREE MOBILE INTERNET Router: Load Balancing Authentication Server: Firewall Internal/External Security Database Server: Back office: Client account information, billing, bookmarks & cookies cache. Modem Pool (For Circuit Switched) or Internet (For Packet Based) Existing & Future Cellular/PCS Networks INTERNET OR CORPORATE INTRANET Application Servers: Multiple simultaneous client sessions Scalable Carrier-Class Architecture 20MB = x Rs. 0.30 = Rs. 6 600MB

10 Revenue Model Ecosystem:
Sustainable ecosystem of Device, Access & Content; Acquisition Tool: Free/low-cost Internet Opportunity: Upsell Hardware: Customer Acquisition Tool Recurring Revenue Streams: Internet Access Fees ‘Free Access’ creates opportunity for upsell Advertising Revenues Toolbar contextual, search & sponsored links Content Revenues App store, Ebook store & Music downloads

11 Part 2: Not the $35 Tablet Story

12 The Story’s About: Fighting poverty with passion
Empowering through education: The pre-requisite to drive development, reduce poverty, improve health, gender equality, peace, and stability. Breaking the barriers of affordability and accessibility for Devices Networks Content Building sustainable ecosystems Thriving businesses vs. Charity

13 Sustainable Ecosystems
Sustainability requires Demand Drivers And, economically viable solutions to fulfill that demand Viable solutions need to meet the “triple bottom line” of sustainability – economic, environmental and social

14 Demand Drivers: Motivated Parents
Youtube search: Indian Teacher Funny

15 Barriers: Affordability & Accessibility
Is affordability a barrier? United States: A computer costs less than 1 week of salary Monthly internet access costs less than 1 day salary India: A computer costs more than 6 months of salary Monthly internet access costs 2 week salary Internet Users India 100 million internet users (Once per month) 48 million real internet users (Every other day) 4% of the population uses internet – 96% doesnt 900 million mobile phone connections Mobile Phone Users

16 Affordability Gap: 4 Billion Person Gap What if a computing/internet-access device could be delivered ‘profitably’ for the cost of a mobile phone?

17 DataWind’s Device Affordability Solution:
Patented technology shifts burden of processing power & memory to backend servers, allowing richer experience despite lower-cost processors & memory Vertical integration of manufacturing processes squeezes margins from modular components Business model ecosystem shifts margin burden from hardware to recurring residuals AAKASH TABLET: Designed, Developed & Manufactured by DataWind

18 Versions 2, 3, 4, 5: Coming fast & furious
6 month product life-cycle: Network Screen Size Type Processor Battery Aakash WiFi 7” Resistive 366 Mhz Arm 11 2100 mAh UbiSlate7 WiFi + GPRS 700 Mhz Cortex A8 3200 mAh UbiSlate7+ WiFi+ 3G Capacitive Dual Core Cortex A9 UbiSlate10 WiFi + 3G 10” 4000 mAh Smartphone GPRS 4.5”

19 Device Sustainability
Margins & market size motivate DataWind Manufacturer & channel maintain margins:- better than mobile phones Existing mobile phone channels provide broad distribution Value motivates Consumer Internet: Content, Communication & Commerce: The world’s fastest mobile internet device on the developing world’s congested 2G networks – and it’s a phone! Ebook Reader: Offset device cost against cost of printing paper and distribution – and save trees! Video Player: Compelling teaching tool – requires no learning curve! Domestic production motivates Governments Creates local employment Generates tax revenue Creates opportunities for local innovation

20 Is $35/$50/$60 affordable? Priced in the range of a mobile phone
6 billion have been able to afford them Further justified against cost of book printing & distribution In the US: Average cost of books in grade school = $10,800 over a period of 12 yrs In India: Average no of books per child per grade = 14.3 Average customer price per book = INR Average customer price of books per child per grade = INR Printing/Distribution cost = 35.3% = 556 INR Life of tablet in hands of child = 3 years Total savings on printing & dist over life of tablet= 1668 INR = $33

21 Network Affordability & Accessibility Solution
The network already exists 6 billion mobile phone connections on 2G networks DataWind’s breakthrough web delivery platform delivers a rich, desktop-like experience on existing networks Lower data costs Launch at Rs.98 / $2/mo. The vision is to deliver basic mobile internet access for FREE

22 Network Access Sustainability
Zero capital investment motivates operators 2G Networks already exist Minimal bandwidth consumption Stepping stone for 3G and higher-value services Increased revenues motivates operators Potential for generating revenue without charging for access Advertising based revenue models eliminate customer acquisition costs

23 Content affordability & accessibility
Open source platforms make content development easier App-store concept allows accessibility Advertising based business models drive content/application costs lower DataWind’s efforts: Student application contest: Source of innovative ideas Encourage entrepreneurial journey NGO ‘idea’ contest with NASSCOM Marry NGO ideas with app developers Donate devices for field trials

24 Content Sustainability
Mass reach motivates developers & publishers The next billion internet users are coming! Revenue opportunities motivates developers & publishers Proven advertising based monetization models allow broad deployment and significant revenue potential

25 What’s different this time
“Some critics have noted that this is not the first time such a device has been promised for India, recalling the hoopla that greeted earlier devices like the Simputer and the $100 laptop (OLPC) project. What is different this time around?” Affordability Connectivity Profitable business model and ecosystem (not a charity) Its inspired the consumer’s imagination Flood gates have opened:

26 Analysts Disagree November 17, 2011: Industry Analyst:
“….tablets to be sold in a year would be in the range of 250,000 to 500,000 units. The low price is attractive only for students and the youth, who are aspiring to buy new products”

27 20x Analyst Estimates of Indian Tablet market
The Flood Gates Have Opened: November 17, 2011: DataWind Demand: 322,000 Individual Enduser Pre-bookings 3,000,000 Corporate/Institutional/Bulk - EOI __________________________________ 5,000,000 Units – 2012 DataWind Forecast for India 20x Analyst Estimates of Indian Tablet market 50% of Indian PC Market

28 Government’s Role: Make it part of the educational curriculum
Open-fair tendering process Promote: Domestic production Content & connectivity E-governance; mobile-health; financial-inclusion; Promote citizen participatory platforms

29 World Bank’s Support: For DataWind (& others): Provide guidance & support We need your domain expertise in the international development space to achieve the deepest impact For Governments: Educate & inform governments around the world Help reduce hurdles to sustainable ecosystem – allow openness & competition Promote open, fair & transparent tendering processes – eliminate favoritism

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