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Business Model for Li-Fi Technology

Cao Jie (Joy)


A0119774U
Chen Zhongze (Frank)
A0119239B

Li Bing
A0119251M

Wang Huaiyu(Gem)
A0118990W

Li Yuanbo (Michael)
A0119085A
Soh Loon Siong
A0098520A

I
II
III

Li-Fi Technology

Pure LiFi Corporate Profile

What is

o Light can be emitted by LED


o Can reflect the wall
o Can dim to be invisible

WIFI

LIFI
[1]

Bandwidth

3 kHz ~ 300 GHz

Speed of data
transmission

Limited by 150Mbps

Security

Interceptable
WIFI

Distance
Energy Consumption

70~250m
High

[2]

Distance

70~250m

[2]

Penetration ability

Yes

Penetration ability

Yes

400 ~ 800 THz


[2]

Up to 10Gbps

[1]
[3]

Limitation of Li-Fi?

No penetration ability
LIFI
Hard to be intercepted
Current
Based on10m
illumination
Expect to extend to
[4]
Current
10m
500m
in future
Expect to extend to
No
500m in future [4]
No

Wi-Fi is close to full capacity


Technology rapidly
improving in recent years
a compound annual growth rate of 82% from 2013 to
2018
[1] https://spie.org/x93593.xml; [2] http://en.wikipedia.org/wiki/IEEE_802.11n-2009; [3] http://en.wikipedia.org/wiki/Li-Fi
[4] http://jwcn.eurasipjournals.com/content/2012/1/91, A review of communication-oriented optical wireless systems

o A leader in Li-Fi technology


o 50 years team experience in communications
o Successful commercialized product

Founder of PureLIFI
Professor Harald Haas

spin-out from the


University of Edinburgh

2008

2011

first demonstrated
Li-Fi to the world

Officially
Established

2012

Jan 2014

pureLiFi -1st
released

Technology Adoption Cycle

Li-Fi in Public
Areas
Step3
Li-Fi for Mobile
Devices
Step2
Li-Fi in National
Defense
Step1

IIRoadmap for applications

Technology Adoption Cycle

Li-Fi in Public
Areas

Li-Fi for Mobile


Devices
Li-Fi in National
Defense

US spending US$2.3 billion for


tactical radios, wireless network and
communications systems

Modern Warfare
Network Centric Warfare

Huge need of large bandwidth

Information Security

US spending US$2.3 billion for


tactical radios, wireless network and
communications systems

Modern Warfare
Network Centric Warfare

US Spend 1% of Defense
Budget on communication system
Information Security
need estimate
of large bandwidth
Hence theHuge
industry
to worth US$ 17.5 Billion

Huge need of large bandwidth

Estimated bandwidth requirements


o 2 Mbps for 720p video per soldier/vehicles
o 1 Division usually consisting between
o 10,000 to 30,000 soldiers
o Translate to about 60,000 Mbps

Data requirements
o Voice Communication
o Location Tracker
o Live Battle Feed
http://www.docstoc.com/docs/116706017/V-Corps-and-3-ID-Network-Centric-Warfare-Case-Study

Huge need of large bandwidth

Speed limit of current bandwidth of Wi-Fi

Need for faster speed as all equipment's, war machine, man on the ground
are wired up to feed commanders first hand information of the
battleground to ensure higher chance of victory
http://www.docstoc.com/docs/116706017/V-Corps-and-3-ID-Network-Centric-Warfare-Case-Study

Modern Warfare
Network Centric Warfare

A robustly networked force improves information sharing

Information sharing enhances the quality of


information and shared situational awareness

Shared situational awareness enables collaboration and selfsynchronization, and enhances sustainability and speed of command
Dramatically increase mission effectiveness

Information Security

Abundant bandwidth facilitates speedy file transmission, total interaction minimized


hence more secured

Lower probability of intercept and detection compared to broadcast


or less directional RF wireless links
For RF wireless link, the adversary needs only a low complexity receiver to
detect its broadcast transmission or the side lobes of directional RF antennas. While
essentially it is impossible for the 3rd party to detect the existence of the Li-Fi link
unless they insert their own receiver into the beam path

Security if further enhance by means of encryption


Review of communication oriented optical wireless systems

R&D investment
Risk Sharing
Lock-in

Unique Product
Key Patent

Produce prototype

Technology Adoption Cycle

Li-Fi in Public
Areas

Li-Fi for Mobile


Devices
Li-Fi facilitates
National Defense

etc.

Huge Market
Potential
File
Transmission

Current technology cant

Technology

fully utilize

Speed(MB/s) Distance

The phones capacity


will10mgrow by
0.1

Bluetooth

Wifi(NFC+S beam)

100m

the phones capacity

Cost(S$) Performance

10

times
inSlow,
the unstable,
next few hard
yearsto manage
2
7

Unstable, limited speed, unsafe

Phone flash- write 4-20


Phone flash- read 10-50
LIFI

1000+

Current 10m
Extend to 500m TBD
in future

Stable, fast, safe

Less power consumption

A SUPER FAST AND SAFE


WIRELESS TRANSMITION
SOLUTION

Power
saving
Much higher speed than
current technology

Stable

Fast

Less interfere from other


electromagnetic wave

safe
More safe during transmission

Technology Adoption Cycle

Li-Fi in Public
Areas

Li-Fi for Mobile


Devices
Li-Fi facilitates
National Defense

Stadium
Hospital
Subway
Library

B2G

Public Sectors

Collaboration

B2B

Customer
selection

Buildings

Commercialization

Commercial Outlets
Hotel and Restaurant
Office Building
Enterprise

B2C

Home

Expansion

Cheaper

Safer
for
human

Faster
Speed

Value Proposition

Faster
Speed

How about 400Mbps and 1Gbps?


400Mbps

Cheaper

Safer
for
human

Value Proposition

1Gbps

0.2 seconds

0.08 seconds

6 seconds

2.4 seconds

24 seconds

9.6 seconds

90 seconds

36 seconds

Efficient

Faster
Speed

LiFi

Cheaper
Low Energy Consumption

Safer
for
human

Value Proposition

Faster
Speed
Harm for human healthy

Cheaper

Safer
for
human

Value Proposition

24 hours of exposure to
radio-frequency
radiation has been
shown to result in
similar effects on a
comet assay as 1,600
chest x-rays.

III

Open collaboration to promote LIFI technology base on four directions

Licensing out

Defense segment

Public segment

Mobile segment

o
o
o
o

Contract service for hardware


maintenance
Set special service team for
value-added service

Product
Design

Co-develop product with government;


Involve third party companies to develop
software;
Separated project team management;

Manufactur
ing

Service

Defense
segment

o
Product
Ads

Product
distribution

No Ads, keep the whole project confidential;

Contract manufacturing
with government
certificated factory
High quality control

B2G- direct sales

Product
Design

o
o

In house design + fast update


Product segmentation management

Contract service

Manufactur
ing

Service

Mobile
segment

Product
Ads

o
o

Online Ads;
Co- Ads with mobile phone companies;

o
o

Contract manufacturing;
High quality control

Product
distribution

o
o
o

B2B- direct sale


CRM management
Supply/ demand management

Product
Design

o
o
o

In house design
Outsource ID design
Collect excellent design from online

Contract service

Manufactur
ing

Service

Public
segment

o
Product
Ads

Product
distribution

o
o
o

Online Ads;
Printing Ads on IT newspaper
and magazines;

o
o

Contract manufacturing;
High quality control

B2B:
o Collaborate with telecom carriers;
o Direct sale to public place owners;
Retail
o Contract regional agent
o Flagship stores
o Online selling

o
Technical
support

Free support to third party developers and


companies;

Licensing
out
Collaborati
on

Licensing
authority

o
o

Strategic collaboration with companies who


identified high potential LIFI business ;
Acquisition if necessary;

Only charge licensing fee to the well


developed LIFI business;
Default free of charge to third party
developers and small business;

Technical support

Third party developers


Chipset

Licensing out

Third party companies


Transmitter
Receiver
Router

Chipset Factory

Other branded
companies

Apple Inc.

Retailers

OEM

Individual customers

Flagship shop

Public place owners

Telecom carriers

Governments

Logistic
Regional distributor

Technology Adoption Cycle

Li-Fi in National Defense


B2G Business
Sell products to governments with a sales force: low volume but high gross margin
Chipset/ Transmitter /Receiver/ Router
Charge for Value added Services: low charge, but high gross margin and long term
Consultation/ Research service on network protection and interception of
opponents network

Technology Adoption Cycle

Li-Fi for Mobile Devices

B2B Business
Sell chipset to mobile phone companies with a key customer management team;
Low gross margin, but high volume;

Technology Adoption Cycle

Li-Fi in Public
Areas

B2G business
Support governments with zero net profit;
Gain profit by defense products and value added services;
B2B business
Sell routers to telecom companies with a sales force;
Sell solutions to the large organization or office buildings
B2C Business
Sell router and receiver to home users
Low gross margin, but high volume

Technology Adoption Cycle

Licensing out to find more opportunities


B2B Business
Manage the licensing out by technical teams;
Fixed licensing fee or profit dividend;

Brand
building

Standard
competition

IP
Protection

MultiProducts

Product
marketing

Brand
building

Standard
competition

o Proactively improve technology


and apply relevant IPs
o Strong IP protection in chipset
and router business;
o Cultivate other LIFI markets with
weak licensing protection;

IP
Protection

MultiProducts

Product
marketing

Brand
building

Standard
competition

Open collaboration to win standard war


o Build relationship with governments,
and try to impact national standard;
o Build alliance with MNCs;
o Win support from SMBs;
o Attract third party developer with
free technical support;
o Strategic collaboration with third
party companies for new LIFI
business;

IP
Protection

MultiProducts

Product
marketing

Brand
building

Standard
competition

Open collaboration to win standard war


o Build relationship with governments,
and try to impact national standard;
o Build alliance with MNCs;
o Win support from SMBs;
o Attract third party developer with
free technical support;
o Strategic collaboration with third
party companies for new LIFI
business;

IP
Protection

MultiProducts

Product
marketing

Brand
building

Standard
competition

IP
Protection

o
o
o
o
o

In-house design
Contract manufacturing
Contract distribution
Contract service
Quality control

MultiProducts

Product
marketing

Brand
building

Standard
competition

MultiProducts

o Focus on hardware + Fast update


o Develop complementary assets
o Leverage third party resources
IP
Protection

Product
marketing

Brand
building

Standard
competition

IP
Protection

MultiProducts

Product
marketing

o Zero profit of public products from


governments to win defense product
orders;
o Low price for short term + higher
price for Updated Products
o Provide very competitive pricing for
long term contract
o Internet marketing

conclusion

Network effect between more


LIFI hot spot and LIFI
featured mobile devices
Li-Fi Hotspots in
Public Areas

Superior
surfing
experience

Network effect between more


LIFI featured mobile devices
and existed LIFI spots
Li-Fi for Mobile
Devices

More LIFI features


on mobile device

More & superior


LIFI Hot Spots

Li-Fi in Public
Areas
Li-Fi for Mobile
Devices
Li-Fi facilitates
National Defense

Co evolutionary Strategy
Virtuous Circle
Licensing

Value
Proposition

Customer
Segmentation

Scope of
Activities

Method of
Value Capture

Strategic
Control

Faster speed

National
defense

Design &
production

Markup &
production

IP protection
Standard
competition

Large
bandwidth
Mobile device

Service

Information
security
Power
saving

Fees of
technical
service

Brand building
Multidifferentiation

Public area

Marketing &
promotion

Licensing
fees

Marketing
strategy

Under water
communication

Vehicle-to-vehicle
communication

RF sensitive area:
airplane, museum,
operation room, etc.

Smart traffic light


control system

Geographic-based
service

Q&A