THE INTERNET REVOLUTIONACT 2

suneet@datawind.com

Part 1:

Introduction to DataWind

Will enable internet access for the masses of the world

– 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

DataWind:

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 RdAmritsar, Punjab

Amritsar, IN 23

Other:

26 York St., London London, UK 8

7895 Tranmere Drive, Mississauga, ON

Toronto, CA 13

Hechtseestr. 1683022 Rosenheim

Munich, DE 3

252 Lakshydeep Plaza, 303 2nd Floor, Sant NagarEast 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

Team DataWind – 150 Strong:

Board: – 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.

Leadership Team:

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

Strong R&D Team & Resources:

DataWind’s Breakthrough Internet-Delivery Platform (18 patents issued & approved) reduces network load, and speeds delivery of content by factors of 10X to 30X.

Faster User Experience

INTERNET OR

CORPORATE INTRANET

INTERNET OR

CORPORATE INTRANETPatented 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 core technology:

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/hrx 15 hrs/mo= 600 MB/mo

At Rs.0.30/MB = Rs. 180/mo.

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 & FutureCellular/PCS Networks

INTERNET OR CORPORATE INTRANET

INTERNET OR CORPORATE INTRANET

INTERNET OR CORPORATE INTRANET

Application Servers: Multiple simultaneous client sessions

Scalable Carrier-Class Architecture

20MB = x Rs. 0.30 = Rs. 6

600MB

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

Hardware: Customer Acquisition Tool

Recurring Revenue Streams: Internet Access Fees

• ‘Free Access’ creates opportunity for upsell

Advertising Revenues• Toolbar contextual, search & Email sponsored links

Content Revenues• App store, Ebook store & Music downloads

Acquisition Tool:Free/low-cost Internet

Opportunity: Upsell

Revenue Model Ecosystem:

Sustainable ecosystem of Device, Access & Content;

Part 2:

Not the $35 Tablet Story

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

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

Demand Drivers: Motivated Parents Youtube search: Indian Teacher Funny

http://www.youtube.com/watch?v=sIv17Dtw_Y0

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

Mobile Phone Users

India100 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

Affordability Gap:

What if a computing/internet-access device could be delivered ‘profitably’ for the cost of a mobile phone?

4 BillionPersonGap

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

Versions 2, 3, 4, 5: Coming fast & furious

6 month product life-cycle:Network

Screen Size

TypeProcessor

Battery

Aakash WiFi 7” Resistive366 Mhz Arm 11

2100 mAh

UbiSlate7WiFi + GPRS

7” Resistive700 Mhz Cortex A8

3200 mAh

UbiSlate7+WiFi+ 3G

7”Capacitive

Dual Core Cortex A9

3200 mAh

UbiSlate10WiFi + 3G

10”Capacitive

Dual Core Cortex A9

4000 mAh

Smartphone

GPRS 4.5”Capacitive

700 Mhz Cortex A8

2100 mAh

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

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 = 109.9 INR Average customer price of books per child per grade = 1575 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

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

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

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

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

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:

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”

Analysts Disagree

November 17, 2011: DataWind Demand:322,000 Individual Enduser Pre-bookings3,000,000 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

The Flood Gates Have Opened:

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

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