SharedFi Supermarket business casesynerdevelopment.com/wavemax/documents/SharedFi...Location Based Services(LBS) are transforming the mobile industry. With GPS-enabled smartphones,

WAVEMAX CORPORATION, 4807 SPICEWOOD SPRINGS RD B2-106, AUSTIN TX 78759 USA

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SharedFi Supermarket business case

January 24, 2014


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INDEX

I. THE NEED

II. DRIVERS

III. THE SOLUTION

IV. PROPOSAL

V. ABOUT WAVEMAX


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I. THE NEED

Supermarkets and retail stores have realized the value of in-store WiFi for providing

comprehensive in-store coverage and secured guest Internet access for customers

to check product details, read reviews, and availability in the aisle.

Supermarkets are looking for a complete and cost-effective way to empower existing

WiFi Infrastructure to allows them to better know, serve, and engage their customers

with an impact on increased revenue, and have this infrastructure become an

additional revenue generator as advertising medium as well for third parties.


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III. DRIVERS

a) Mobile Data Offload

Global mobile data traffic is growing at 66% CAGR between 2012 and 2017, to

11.2 Exabytes.

Figure 2. Mobile Video Will Generate Over 66 Percent of Mobile Data Traffic by 2017

This recent exponential growth in data traffic demand is also due to significant

smartphone penetration everywhere. A smartphone is a high-end mobile phone that

combines the functions of a personal digital assistant (PDA) – a small computer - and a

mobile phone.


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Figure 3. Smartphones Lead Traffic Growth

Smartphones currently represent 18 percent of total global handsets in use today, but

they represent over 92 percent of total global handset traffic, and the number of

smartphones is growing at 81% CAGR through 2017. In 2012, the typical smartphone

generated 50 times more mobile data traffic (342 MB per month) than the typical basic-

feature cell phone (which generated only 6.8 MB per month of mobile data traffic).

The average smartphone usage almost doubled in 2012, and it will generate 2.7 GB of

traffic per month in 2017, an 8-fold increase over the 2012 average. Aggregate

smartphone traffic in 2017 will be 19 times greater than it is today.

In addition to smartphones, tablets are growing at 117% CAGR through 2017. In 2012,

the number of mobile-connected tablets increased 2.5-fold to 36 million, and each tablet

generated 2.4 times more traffic than the average smartphone. In 2012, mobile data

traffic per tablet was 820 MB per month, compared to 342 MB per month per

smartphone. The average mobile data traffic demand per tablet in 2017 will be 5.2 GB.


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All this exponential growth in mobile data traffic is creating a big challenge for mobile

operators as they try to manage the tidal wave of mobile data set to flood their

networks. This tremendous growth in traffic is stressing the Mobile Networks both the

3G (Cellular Networks using CDMA or GSM) and the emerging 4G (Cellular Networks

using LTE) deployments.

A video clip consumes more than 1000 times the bandwidth of a voice call. And it will

take significant time and investment for the operators to be ready for the increasing

demand.

Mobile Networks have traditionally been designed following a grid model. At the center

of each cell is a base station that irradiates power and share bandwidth to those

subscribers within a cell.

Spectrum Utilization

Traditional grid


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This model has worked fine for voice. But for mobile data including internet

access, video, and smartphones hungry applications are eating all the spectrum and

bandwidth the mobile operator have available.

Spectrum is a scarce resource. Regulatory limitations make the problem even

worst and there is actually a deficit of spectrum for these demanding users and

applications.

At the end, it is the subscribers that pay the high toll. And this is witnessed in the

high prices for data that mobile carriers are imposing into their subscribers.

Wi-Fi uses free spectrum and it is fundamental to reduce this cost.

Wi-Fi is a term used to define any of the wireless technology in the IEEE802.11

specification. Wi-Fi networks are extensively used at homes, business, and in public

venues through the so called Hot Spots in airports, cafes, universities, stadiums, and

some supermarkets.

The WiFi standard is evolving to address important features such as roaming,

handover and SIM authentication, which are also key incentives for customers to use it.

The technology is already mature and has significant scale as it is being

embedded and certified in almost every smartphone available in the market, factors that

position Wi-Fi as a feasible and attractive option to mobile data offload.


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Globally, 33 percent of total mobile data traffic was offloaded onto the fixed

network through Wi-Fi in 2012. In 2012, 429 petabytes of mobile data traffic were

offloaded onto the fixed network each month compared to 14.3 petabytes in 2010.

Without offload, mobile data traffic would have grown 96 percent rather than 70 percent

in 2012.

As a percentage of total mobile data traffic from all mobile-connected devices,

mobile offload will increase from 33 percent (429 Petabytes/month) in 2012 to 46

percent (9.6 Exabytes/month) in 2017.

Figure 5. 46 Percent of Total Mobile Data Traffic will be Offloaded in 2017


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b) Location Based Services and Advertising

Location Based Services(LBS) are transforming the mobile industry. With GPS-enabled

smartphones, location data has begun to permeate the entire mobile space. It's

powering advertisements, and many other services

Location-based advertising (LBA) is a new form of advertising that integrates mobile

advertising with Location Based Services. The technology is used to pinpoint consumer

location and provide location-specific advertisements on their mobile devices.

In a recent report from BI Intelligence it is reported that location-enabled mobile ads are

most successful when the user is closer to the product or services that is advertised.

Google highlights the "local mobile consumer," in its ad sales material, and touts

statistics that show a third of mobile searches have local intent, and that 94% of

smartphone users have searched for local information.

.


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According to Pyramid Research Location Based Advertising will reach $6.2 billion in

revenues, equivalent to 35% of total mobile advertising revenue, and more than 60% of

total location based service revenue.

c) Social Media

Social media refers to interaction among people in which they create, share, and/or

exchange information and ideas in virtual communities and networks. Social media

depend on mobile and web-based technologies to create highly interactive platforms

through which individuals and communities share, co-create, discuss, and modify user-

generated content. They introduce substantial and pervasive changes to communication

between organizations, communities, and individuals.

Social media used in combination with mobile devices are called mobile social

media. This is a group of mobile marketing applications that allow the creation and

exchange of user-generated content. Due to the fact that mobile social media run on

mobile devices, they differ from traditional social media by incorporating new factors

such as the current location of the user (location-sensitivity) or the time delay between

sending and receiving messages(time-sensitivity).

While traditional social media offer a variety of opportunities for companies in a wide

range of business sectors, mobile social media makes use of the location- and time-

sensitivity aspects of it in order to engage into marketing research, communication,

sales promotions/discounts, and relationship development/loyalty programs.

• Marketing research: Mobile social media applications offer data about offline

consumer movements at a level of detail heretofore limited to online companies. Any

firm can now know the exact time at which a customer entered one of its outlets, as well

as comments made during the visit.

• Communication: Mobile social media communication from company-to-consumer

in which a company may establish a connection to a consumer based on its location.

• Sales promotions and discounts: While in the past customers had to use printed

coupons, mobile social media allows companies to tailor promotions to specific users at

specific times.


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• Relationship development and loyalty programs: In order to increase long-term

relationships with customers, companies are able to create loyalty programs that allow

customers who check-in regularly at a location to earn discounts or perks.

When it comes to today’s campaigns, everybody from the newest participants in the

industry to those that have become experts over many years know that elements over

Facebook, Twitter, YouTube, and other networks are vital to success, and now this is

transitioning into mobile social media marketing, as well.

Marketers are discovering that a growing number of their Facebook “likes”, for

example, are coming from smartphone and tablet users, every day. People are using

those devices to check their profiles on a very regular basis. In fact, among smartphone

and tablet users, more than 50 percent who have Facebook accounts will check them

on a regular basis over those devices.

While Facebook still reigns supreme when it comes to mobile social media

marketing, Google+ is rapidly carving its own position into a growing section of the

market. Almost half of all users of social media also have an account with Google+, and

the number that are using their accounts over smartphones and tablets is increasing, as

well.

Even conservative estimates predict huge growth: BIA/Kelsey recently came out with

a study that offers one view - forecasting $11 billion of social ad spend in 2017, up from

$4.7 billion last year. Social media advertising is a young and growing market and, so

far, it only represents 1% to 10% of ad budgets for a wide majority of advertisers.

There's significant opportunity for that share to grow.

Increased mobile usage will be a huge growth driver: Both Twitter and Facebook

have passed the 50% mobile usage mark and, given the continued growth of mobile

devices, it will only rise.


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IV The Solution

WaveMAX solution is extremely well positioned to capitalize on the intersection

of mobile data offload, location based services and social media, supporting different

business models and one in particular for supermarkets.

WaveMAX uniquely solves the mobile data offload problem with a strong value

proposition using location based services and social media marketing for the

supermarket and its customers.

WaveMAX solution is cloud based, highly scalable and global, supporting the viral spread we are witnessing since SharedFi services were launched.

WaveMAX solution uses our patent pending technology in the mobile application,

the mobile network, and the cloud.

SharedFi™

SharedFi™ allows for the secure sharing of open or locked WiFi Access Points, the automatic authentication and authorization of mobile users for internet access using social media logins while offering mobile data offload and location based services integrated with social media.

SharedFi WiFi enabled Access Points are sourced by business and venues to attract and engage customers including all kinds of retail and commercial chains with locations with existing WiFi APs.

SharedFi™ allows these businesses to register and share their WiFi AP with tiered services ranging from free to premium managed services and social media.

Internet access and Mobile data offload is free to end users of SharedFi™ as long as they agree to terms and conditions including that they will be receiving advertisements from these venues when they check-in at their WiFi and when they elect to follow them.

Revenues are derived from monthly recurring charges to venues implementing SharedFi™ Basic and Premium services:


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SharedFi™ Basic

SharedFi™ Basic includes forwarding the end user to a landing page or web site (URL) that the venue manager configure, a welcome message at check in, the configuration of accessibility dates and times, and accessing to reports and statistics of usage.


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SharedFi™ Premium

Venues with SharedFi™ Premium will be able in addition to provide the following services in addition to the Basic ones:

Location Based Advertising (LBA) –

Ability to forward users to the venue or third party mobile application

Display promotions, offers, coupons and discounts at check-in


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Send Push Notifications to users that have elected to follow them

Social media campaigns based on Facebook or Google+ Profile


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SharedFi™ Premium Managed

SharedFi™ Premium Managed includes the Premium services plus the implementation of the WiFi Access Point infrastructure, including the hardware, installation and configuration, as well as the internet that will be provided through a partner carrier, and the network managed for the via internet over the cloud.


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Our Technology

Solution Components and underlying uniqueness

Any standard based WiFi AP

Smartphone – Download the SharedFi™ app

Cloud based services :

AAA – Authorization and Authentication with Social media Logins

LBA – Location Based Advertising with Geofence capabilities

Billing and Charging Advertisers – Paypal and Merchant Account

NM- Network Management

SharedFi Management Console


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AAA

An Authentication Authorization and Accounting (AAA) server provides complete

Subscriber management system using social media logins. The implementation is

compatible with Radius. The solution is highly scalable and robust.

Billing

WaveMAX billing system includes an automated invoicing and payment system

using paypal or Merchant account for debit/credit card processing .

NMS

Network management task include network configuration network visualization and monitoring, and performance management all over the cloud. For SharedFi Premium managed services all the WiFi APs on the network are

visible and can be managed individually including activation, configuration, security

parameters and accessibility rules.

In this way, WaveMAX is able to manage each managed WiFi Access Points with predefined policies, with the ability to update such policies for maximum network efficiency and end user satisfaction.

WaveMAX solution go beyond traditional network management software to deal with the changing nature of wireless networks dynamically, automatically, and according to predefined roaming rules.

WaveMAX solution is able to actively monitor WiFi APs in real-time to ensure that the WiFi wireless connection is optimized for maximum throughput and end user satisfaction. The result is a wireless network with the performance, scalability, and


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reliability of a carrier-class network with intelligent provisioning, and dynamic bandwidth allocation to maximize throughput and network efficiency.

WaveMAX optimize the WiFi network, while enjoying improved network

performance and better subscriber experiences.

Live Monitoring will let us see exactly who is connected to the wireless network, and how the network is performing, and we may share all this information with the supermarket via web services,

Integrated Reporting will inform how the network is being used and help to suggest our customers a plan for growth.

SharedFi Managament Console

With our web based console store managers, marketing executives and product

manufactures may configure offers and deals , import social media IDs , report and

graph usage statistics.


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IV. Proposal

Value Proposition

Our proposal is to empower current existing in-store WiFi infrastructure and if it is the

case the implementation of a complete turn-key and outsourced managed SharedFi

network that will allow the Supermarket to offer free WiFi with coverage in all the floor

and internet access to all customers visiting the store.

This managed network will allow the Supermarket to know the histogram of presence

of customers per zone, and dwelling time in the store, even when users with

smartphones or tablets do not connect to the WiFi or have the SharedFi application.

And when the customers get connected to the WiFi the Supermarket will have all the

demographics and social profile of these customers and its contacts.

This per se is extremely useful and valuable information for marketing purposes.

Supermarket managers will also have the ability to display offers and deals to these

customers either for their own brand and for other products it commercialize. These

campaigns may be configured via web using the SharedFi Management Console. And

these offers and deals will be presented with a Facebook like button that will allow for

Facebook public postings at no cost. It also includes a follow up button and when the

customer elect to follow up any product he will receive push notifications of offer-deals

for this product even when he is out of the store In this case the customer will have the

option to save this offer-deal to be used in his next visit to the Store.

All this value is offered with no upfront investment and completely outsourced for an

extremely cost/effective monthly fee per store that no other competitor will be able to

match. But not only that, we are also offering a way to cover for this monthly fee and

even capitalize on this network to actually convert it into an additional revenue

generator.

The proposed solution can not only serve the Supermarket customers and cost-

effectively support its marketing objectives with increased and measurable revenues but

be self-sustained and bring additional revenue as an advertising media per se.


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Network Diagram


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WiFi Infrastructure

SharedFi may work in any existing WiFi Infraestructure. If non is available we may offer

a complete turn-key WiFi managed network for a very competitive monthly fee.

Internet Backhaul

For internet access we may use existing access or provide it independently through one

of our partners.

Customer login and interaction

Customers with mobile devices will login to the WiFi Network with the SharedFi client

application and using their Facebook or google+ credentials. This will allow us to obtain

all the customer profiles and their social contacts as part of our Terms and Conditions of

usage.

Once associated to the WiFi that customer will be presented to a splash page for a few

seconds. This splash page will be used for advertising from an anchor sponsor like a

credit card company.

Immediately after, the customer will be directed to a view with three tabs:

One tab is a deal-wall where the Supermarket and the Providers of the products sold

there may display a list of Deals and Offers. When a deal/offer is clicked by the

customer he will be taken to a detail view of such deal-offer including a fine print, a

barcode, a Facebook like button, a link to their website, and a follow up button.

A second tab will have all product/companies the customer is following.

A third tab will have all Offer-Deals saved and received via Push Notifications

Dimensioning

An estimated 5 to 7 WiFi APs will cover the entire floor at each store location . Two

internet links for an aggregated 50Mbps of download is considered enough to serve 50-

100 simultaneous connected users. For SLA compliance and take care of peaks we

may limit the maximum of concurrent connected users and or limit certain

protocols/applications.


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Business Models and Revenue Sharing

We support different business models including a monthly fee and/or sharing the

revenue derived from splash screen advertising to an anchor sponsor, and the

collocation of Deal-Wall advertising. In this case this advertising will be limited to

Supermarket approved products and services and the supermarket managers will have

access to SharedFi billing system to these advertisement and to periodic audits.

Pilot Project

A Pilot Project may be implemented in store with the following objectives:

1) Demonstrate functionality and capabilities of the SharedFi value proposition

2) Demonstrate functionality and capabilities of Cloud Based Management

3) Demonstrate functionality and capabilities for Android smartphones and tablets

4) Demonstrate functionality and capabilities to all kinds of WiFi Devices

5) Measure customer adoption

6) Report Downloads, Presence, Dwelling Time, Impressions, Clicks

7) Prove marketing capabilities in Deal- Wall with some Offer-Deal

8) Demonstrate Push Notification Campaign

9) Survey potential advertisers to corroborate revenue potential.

10) Prepare SLA, procedures and agreements for nationwide implementation


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VI. About WaveMAX

WaveMAX is a company incorporated in Delaware and sponsored by the

TechBA program in Austin, Texas .

WaveMAX has received professional investment in exchange of its Series A1

shares from Technology Impact Partners in Austin, TX, and Guadalajara Investor

Network , and Innovateur Capital in Mexico.

WaveMAX headquarters are in Austin, Texas and it has incorporated a wholly

owned subsidiary in Mexico: WaveMAX de México SAPI de CV.

The objective of WaveMAX is to be a leading Next Generation WiFi Service

Provider with an edge on technology.

WaveMAX has designed and developed SharedFi™, a complete solution for

mobile data offloading location based services and social media supported by our

innovative business models.

WaveMAX is well positioned to successfully enter the global market and is

currently implementing its solution across different customers in Mexico and the

USA.

Our competitive advantage is protected by our patent pending technology with

four patents and eighty claims.

Our Management team has a proven record of expertise in engineering, sales,

marketing of telecommunications products and services in a multicultural and

international environment, and we have a world class Board of Directors as detailed

in section 3. Our corporate lawyers are Andrews and Kurth LLC.


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Officers and Key Employees

a. U.S. Office

Eduardo Velasco, CEO

Mr. Velasco holds an Electronic Systems Engineer degree from Instituto Tecnológico y de Estudios Superiores de Monterrey, México; a Master Degree in Industrial Technology from California State University, Fresno; and postgraduate courses in artificial intelligence at Stanford University. Mr. Velasco has 20 years of entrepreneurial experience in telecommunications and software development. After working as research associate at the University of California San Francisco (1988), Mr. Velasco founded and directed the following companies in México: InteRed, one of the top 10 LAN-WAN system integrators (1991-99); CableRed a leading metropolitan an regional fiber optic company (1994-2003); Synerware a software development company (2000- 2011), and Syner IP (2005- to date) a growing VoIP technology company.

Among his achievements are the sale and implementation of more than $20M USD worth of LAN-WAN projects to large companies and banks while CEO at InteRed; the


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integration of a $17M USD submarine fiber optic network for PEMEX awarded to CableRed in partnership with AT&T Submarine and Oceaneering; the development of a Nissan Dealer integral system implemented in agencies across México while in Synerware and the successful sale of the company; and the development of VoIP technology and services with Syner IP with currently more than 15,000 DIDs in the USA.

Syner IP received the 2nd place award at The National Seed Capital Forum of México. The company was selected by the Ministry of Economy and the US-Mexico National Science Foundation to participate in the TechBA program in Austin, Texas.

WaveMAX Corporation is a spin-off from Syner IP Telecom LLC.

Curt Fisher- VP Business Development

Mr. Fisher brings strong and valuable USA and international business development,

sales and marketing experience to our team. Mr Fisher has been 3Com VP of Sales in Europe,

VP of Business Development in Solomio, VP of Global Business Partners at Lucent, VP of

Global Business Partners AT&T, and President North America for ITS Telecom.

Estuardo Robles - VP of Marketing

Mr. Robles holds a BA of Business Administration, Marketing and International Business

from the University of Texas, Austin and an MBA from the Universidad Católica de Chile. Mr

Robles was VP of sales of startups AppGeyser reaching thousands of apps for mobile

advertising, and CoFounder of the Americas IT Forum.

Mariajosé Pérez- Finance.

Mrs. Pérez holds a BSc in Business Administration and Marketing from ITESM Mexico.

Mrs Pérez has been in charge of finance and administration for Syner IP de México , and Syner

IP Telecom LLC since 2005.


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b. Mexico Office

Victor Huerta – Director de Estrategia Digital

Mr. Huerta has a BA in Global Business from the University of Southern California, and

he is currently our leader in social media strategies.

Francisco Becerril – Director de Proyectos

Mr. Becerril graduated from ITESM Monterrey in Electronic Engineering and

Communications. Mr Becerril has more than 20 years of experience undertaking large and

demanding information systems deployments with IBM, and his own companies in structure

cabling and data networks.

Luis G. Flores – Business Development

Mr. Flores has a BA from Universidad Iberoamericana and he is currently undertaking

the prestigious “Diplomado de Premio Nacional de Tecnología”. Mr. Flores is coordinating the

development of WaveMAX subsidiary in México

Documents

SharedFi Supermarket business casesynerdevelopment.com/wavemax/documents/SharedFi...Location Based Services(LBS) are transforming the mobile industry. With GPS-enabled smartphones,