IoT Financial Proposal

Date: December 2020

IoT POC PROPOSAL

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 Table of Contents
1. BUSINESS MODEL ............................................................................................................... 3
FLEET MANAGEMENT SOLUTION OVERVIEW ................................................................................................3
PARTY ROLES AND RESPONSIBILITIES ...........................................................................................................3
REVENUE SHARING MODEL .......................................................................................................................3
2. PROPOSED PRODUCT PACKAGES ....................................................................................... 5
CUSTOMER BILLING ..................................................................................................................................5
SOFTWARE PACKAGES ..............................................................................................................................5
HARDWARE PACKAGES .............................................................................................................................6
3. CUSTOMER JOURNEY ......................................................................................................... 7

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1. BUSINESS MODEL
Adapt IT (ADI), IPXN Ethio (IPXN); hereafter together referred to as the software partner and Ethio
Telecom PLC (Ethio Tel) will provide a fleet management solution to the Ethiopian market through a
collaboration. The collaboration will be structured on a revenue sharing arrangement with each party
receiving a percentage of the total revenue and subsequently managing their own operational costs.

FLEET MANAGEMENT SOLUTION OVERVIEW

The fleet management solution will include:
• Provision of hardware, specifically a geo-location tracking device.
• Provision of access to a cloud-based system with the following over-arching services available to
the clients:
o Know where your vehicles are 24 hours per day
o Keep a log on all kilometers travelled per specified period
o Keep track of the fuel consumption based on the kilometers travelled
o Daily, monthly, and annual reports available in excel format
o Record all stop and park activities for detailed analysis
o Monitor and manage speed at which the vehicles are traveling
o Five-meter position, location tracking accuracy dependent on cell phone provider
o Detailed historical travel information records for tax purposes
o Driver behaviour metrics
o Vehicle, driver, and trip management
o Ability to book vehicles for planned trips
o Keep track of vehicle documents e.g. insurance and inspection documents

PARTY ROLES AND RESPONSIBILITIES

Each party will be allocated roles to serve the client during their journey. It is their responsibility to
ensure these roles are carried out to the satisfaction of the customer. In addition to this, frequent
communication will ensure relevant information is shared to enable each party smoothly play their
part e.g. if the system has a scheduled maintenance, this should be communicated early enough to
everyone and client queries are handled accordingly.

Description Responsible party

Hosting and Hardware (vehicle tracking devices) ADI
Software support and enhancements ADI
Lead generation, marketing campaigns, adverts etc. IPXN and Ethio Tel
Onboarding, customer feedback Ethio Tel
Customer billing and collection Ethio Tel
Internet connectivity Ethio Tel

REVENUE SHARING MODEL

Parties will share the revenues generated from client subscriptions and the hardware sales. Ethio Tel
will also generate revenues from data subscriptions which will be in-built into the package costs. The
data revenues will not be shared as part of this revenue sharing model. All parties will manage costs
as per the allocated roles above with their share of the revenues and retain their profits.

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The proposed revenue allocation is as per the table below:

Party Allocation (% of revenue)

Software partner 90%
Ethio Tel 10%
Total 100%

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2. PROPOSED PRODUCT PACKAGES
CUSTOMER BILLING
First time clients will be billed for the device, the onboarding fee and the first month’s subscription
costs.

Subscriptions will be billed on a monthly pre-payment basis, per each vehicle managed on the system.
Clients can add as many users as are necessary to run their fleet. All active vehicles at the beginning of
the monthly billing cycle will be cumulated and billed according to their package. An active vehicle is
defined as a vehicle whose status in the system is either currently AVAILABLE or SERVICE at the
beginning of the billing cycle. Random spot checks will be conducted for activation of deactivated
vehicles during the month and these will also be included in the next monthly billing cycle.

SOFTWARE PACKAGES
To cater for the different customer needs, we will initially offer two products to the market. These will
consist of:

1. Premium package – Full system access

2. Basic package – Basic system access

The functionality will be segregated using the menu functionality available on the system. Users can
upgrade/downgrade as desired with changes taking effect at the end of their subscription or at the
next monthly billing cycle, whichever comes first. Each client can only subcribe to one package at a
time.

Functionality Premium Basic

Dashboard
Organisation
Vehicles
Fleets
Users
Groups
Reports
Maps
Bookings (Dispatch)
Events
Onboarding fees $5 $5

The costs for each package will be calculated by using the number of active vehicles on the system.
The more vehicles in use, the cheaper the costs for the client. The cost groups are as per the below
table.

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 Number of Vehicles Premium ($) Basic ($)
0-500 8 6.5
501-1000 7.5 6
1001-2000 7 5.5
over 2000 6.5 5

HARDWARE PACKAGES
Initially, we propose to use the Teltonika FMT 100 – 4133 GNSS tracker, with inbuilt accelerometer and
gyroscope, the same brand used in the PoC. The tracking devices will be provided by the software
partner to Ethio Tel for client dispatch. An initial inventory of 2000 devices will be provided to Ethio
Tel who will manage the dispatch of the devices to onboarded clients. Devices will be provided to Ethio
Tel at a cost of $90 each. Ethio Tel is free to add their mark-up to the client.

Clients can choose to either utilise our devices or use their own devices. If they utilise our devices, the
installation costs will be covered by the onboarding fees. Clients that chose to utilise their devices will
incur an addition cost to intergrate their devices to our fleet system and device installation will be done
by their organisation before-hand. The client will also need to provide a sample of their device to us
for testing purposes. This integration cost will be managed on a case-by-case basis depending on the
type of devices they have. A minimum number of 200 simillar devices will be required to onboard such
clients.

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3. CUSTOMER JOURNEY
To sufficiently manage the customer journey, clients will sign up for the services using the software
partner’s platform. This will be hosted on the Ethio Tel website. The platform will allow users to select
their package, upload necessary documentation and make payments. This platform will make the
customer journey more efficient by providing a simple on-boarding process for the customer, and a
simple billing process for Ethio Tel.

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APPENDIX
FMT 100 TRACKER – FEATURES

GNSS
GNSS GPS, GLONASS, GALILEO, BEIDOU, SBAS, QZSS, DGPS, AGPS
Receiver 33 channels
Tracking sensitivity -165 dBM
Accuracy <3m
Hot start <1s
Warm start < 25 s
Cold start < 35 s
CELLULAR
Technology GSM
2G bands Quad-band 850 / 900 / 1800 / 1900 MHz
Data transfer GPRS Multi-Slot Class 12 (up to 240 kbps), GPRS Mobile Station Class B
Data support SMS (text/data)
POWER
Input voltage range 10 - 30 V DC with overvoltage protection
Back-up battery 170 mAh Li-Ion battery 3.7 V (0.63 Wh)
Power consumption At 12V < 4.5 mA (Ultra Deep Sleep)
At 12V < 6 mA (Deep Sleep)
At 12V < 9 mA (Online Sleep)
At 12V < 11 mA (GPS Sleep)
At 12V < 26 mA (nominal)
BLUETOOTH
Specification 4.0 + LE
Supported peripherals Temperature and Humidity sensor, Headset, OBDII dongle, Inateck
(add-ons) Barcode Scanner, Universal BLE sensors support
INTERFACE
GNSS antenna Internal High Gain
Cellular antenna Internal GSM High Gain
USB 2.0 Micro-USB
LED indication 2 status LED lights
SIM Micro-SIM
Memory 128MB internal flash memory

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 PHYSICAL SPECIFICATION
Dimensions 92,5 x 57,6 x 14 mm (L x W x H)
Weight 63 g
OPERATING ENVIRONMENT
Operating temperature -40 °C to +85 °C
(without battery)
Storage temperature -40 °C to +85 °C
(without battery)
Operating humidity 5% to 95% non-condensing
Ingress Protection IP65
Rating
Battery charge 0 °C to +45 °C
temperature
Battery discharge -20 °C to +60 °C
temperature
Battery storage -20 °C to +45 °C for 1 month
temperature -20 °C to +35 °C for 6 months
FEATURES
Sensors Accelerometer and gyroscope
Scenarios Green Driving, Over Speeding detection, jamming detection, GNSS Fuel
Counter, Excessive Idling detection, Unplug detection, Towing detection,
Crash detection, Auto Geofence, Manual Geofence, Trip
Sleep modes GPS Sleep, Online Deep Sleep, Deep Sleep, Ultra Deep Sleep
Configuration and FOTA Web, FOTA, Teltonika Configurator (USB, Bluetooth), FMBT mobile
firmware update application (Configuration)
SMS Configuration, Events, Debug
GPRS commands Configuration, Debug
Time Synchronization GPS, NITZ, NTP
Fuel monitoring OBDII dongle (optional)
Ignition detection Accelerometer, External Power Voltage, Engine RPM (OBDII dongle)
CERTIFICATION & APPROVALS
Regulatory CE/RED, EAC, REACH, RoHS

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