A testing presentation. This was done during my University studies in 2008. A business idea proposal. All rights reserved. All product and service names mentioned are the trademarks of their respective companies.

2. About Us
EZ-Link Pte Ltd (EZL) is a subsidiary of the Land Transport Authority
It was formed on the 8 January 2002.
Our Core Business
• Sale, distribution and management of ez-link cards
• Clearing and settlement of ez-link card transactions generated in transit and non-
transit (retail/merchant) applications
Our Vision
As we move towards a cashless society, the ez-link card will complement this
progression by being the Multi-Purpose Card that empowers our customers to
experience their lifestyle pursuits and financial services in a safe, secured and
convenient manner.

3. Key Statistics
• Cards Issued - Over 8 million
• Average number of Transactions per day in transit alone – 4 million
• Number of readers in the public transport network - over 22,000
• Average number of top-up transactions per day - 200,000
Commitment
We are committed to continuously improve and work cohesively with
our partners to develop products and services that will meet the
needs and demands of our customers and ensure quality customer
service delivery at all times.

4. OUR VALUES
Customer Care
We aspire to build a continuing relationship with our customers by striving to attain
high levels of service standards through:
• Integrity
We take pride in practicing integrity as the basis of all our dealings by treating our
business partners, customers and potential clients with respect, fairness and honesty.
• People and Teamwork
We respect and support each other across the organization to develop our fullest
potential, to work towards achieving a common goal of providing utmost services to
our customers.

5. PROPOSAL
In 2002, ez-link cards were officially launched and used in the public transport
network. Our proposed idea is to integrate the ez-link purse into mobile phones that
use ISO 15963 contact-less technology by communicating through antennas.
Commuters can enjoy hassle-free boarding and alighting of public buses without having
to tap their ez-link cards on the reader.
This will usher in a new era of convenience for Singapore’s public.

6. MARKET SURVEY
• Mobile phones penetration rate has been steadily increasing from 1997 to 2007.
• As of Dec 2007, there were 5.6 million mobile phone subscribers in Singapore
representing a penetration rate of 122.5%.

7. MARKET SURVEY
Singapore has one of the largest penetration rate and as the mobile phone is
ubiquitous, thus we feel that there is a natural convergence for this contact-less
technology to be present on mobile devices
Surveys were conducted among 500 people:
• Targeted age group of between 19 to 54 years old
• Take public buses everyday and own a mobile phone

8. MARKET SURVEY
Based on the surveys conducted:
About 75% of the mobile
phones users feel that
functionality and price are
the deciding factors when
purchasing a new mobile
phone.

9. MARKET SURVEY
81.5% of the people would
like to own a mobile phone
with ez-link card purse in it.

10. MARKET SURVEY
Majority of the mobile phone users
are willing to fork out between
$100 to $199 for a mobile phone
with ez-link card purse in it.

11. CURRENT SYSTEM – HOW IT WORKS
Current ez-link card
• Uses Proximity Cards System (ISO 14443) which the commuter has to tap onto
the reader
• Maximum fare is deducted upon boarding with difference refunded upon
alighting tap
• Commuters worried about forgetting to tap when alighting.
• Commuters often only realized that the stored value in the ez-link card is
insufficient when tapping
• Constantly topping up of ez-link card

12. NEW SYSTEM – HOW IT WORKS
• Our 2nd generation implementation uses Vicinity Cards (ISO 15693) module
from Infineon Technologies SRF 55VxxP my-d family
• When a mobile phone comes within range of a reader, it wakes up and
transmits its unique ID code
• Reader then authenticates the transponder and sends its unique ID code to a
central computer that stores payment information such as IMEI number and
mobile phone number
• The central computer then gathers these information and send to the mobile
operators which will in turn bill the bus fares together with the monthly mobile
phone bills to the commuters

13. SYSTEM IMPLEMENTATION
• We are using Infineon SRF55VxxP series Vicinity Cards
• For encryption, we will use Renesas Technology (Renesas) AE5 series security
IC to support encryption technology which the Vicinity Cards lacks

14. SYSTEM IMPLEMENTATION
Block diagram for Mobile Phone Sub System

15. SYSTEM IMPLEMENTATION
Block diagram for On-The-Go Bus System

16. SYSTEM IMPLEMENTATION
• For the Microcontroller (MCU),
• Renesas H8SX/1653F and AE-5 2 chip security and encryption
solutions are used
• Currently used in the market as electronic point of sales (ePOS)
• Their encryption and security are of world standards.
• Renesas H8SX/1653F MCU, has the built-in interface circuit to use
with the AE-5 series
• For encryption,
• Renesas Technology AE-5 series security IC to support encryption
technology
• Same as mobile phones
• For the GPS system, we will use existing GPS module

17. SYSTEM IMPLEMENTATION
Conceptual Operation
Operation on Ufone
• Press Push button to ON the Vicinity Card on the Ufone before boarding
.
When the Ufone comes within range of a WBUS, it wakes up and
transmits its unique ID code to the WBUS on the bus.
Operation on WBUS
• WBUS then authenticates the transponder and sends its unique ID code to
the bus control panel console
• Bus driver will copy the information using a SD card to the Bus interchange
central computer that stores payment information such as IMEI number
and mobile phone number when the bus returns to the interchange.
Operation on Central Computer
• The Bus interchange central computer then gathers that information and
uploads data to Server which in turn send to mobile operator to bill the bus
fares together with the monthly mobile phone bills to the commuters.

18. SYSTEM IMPLEMENTATION

19. SYSTEM IMPLEMENTATION
Ufone Function: Works as a normal phone, but
with ez-link card purse integrated in it
1 Before boarding, Press Push
button to ON the Vicinity Card
2 An indication signal is shown on
the top corner of the screen
3 User can board and alight the bus freely,
while the WBUS on the bus-door detects the
presence of the Ufone
4 It works as in when the Ufone comes OK
within range of the WBUS, it wakes
up and transmits its unique ID code
5 Screen will display ‘OK’ after the WBUS
detects the required signal from the Ufone

20. SYSTEM IMPLEMENTATION
WBUS Functions
WBUS will be mounted at the top ceiling
near the Front door and Rear door
respectively.
WBUS acts as a reader to detect signal
coming from the Ufone. The main purpose is
to detect on-board and alight commuters
who have the Ufone..
When WBUS detects the required signal, it will perform 3 functions below:
• Produce a beep sound.
• Update the current transactions of the Ufone to driver control panel.
• Update the status of function of the Ufone to display ‘OK’.
Reader 2 have the same function as Reader 1 except that it is place
at the back door

21. ALGORITHMS OF FARE DEDUCTION
•In Singapore, the distance the bus has traveled determines bus fare
• Automatic fare calculation on bus is possible with the Ufone
•Basically, commuters are to ON the Vicinity Card on the Ufone
•When they board the bus through WBUS 1 (Front door) and alight
through WBUS2 (Back door) this creates a closed loop system
•It works as to provide fare stage information to calculate the fare for the
alighting commuter.

22. ALGORITHMS OF FARE DEDUCTION
.
• When the WBUS 1 or WBUS 2 detects the required signal from the
Ufone, it will update the current transactions of the Ufone to the driver
console.
• All data will be transferred from the driver console to the Bus interchange
central computer using SD card for data processing.
• Fares will be deducted from the computation of number of bus stops that
the passenger has traveled.
• Bus fare rebate will be computed as well

23. ALGORITHMS OF FARE DEDUCTION
.
• The computation takes the 1st and last records to mark as on-board and
alight information respectively.
• The calculation between the 2 transactions will determine the fare for the
alighting commuter.

24. COSTING
• Estimated cost for module to be add to phone (Prices are indicative)
Renesas AE-5 (AE57C) USD 3.50 per module
Infineon SRF55V10P USD 1.20 per module
Antenna USD 0.20 per module
Total USD 4.90
• Estimated cost for reader (Prices are indicative)
H8SX/1653F + AE-5 (AE57C) USD 10 per reader
Analog circuitry + Antenna USD 0.40 per reader
Hardware Case + PCB USD 1.00 per reader
Total USD 11.40
• Misc. Cost
SD Card Member and Licensing USD 2000 (member) per year
USD 1000 (license) per year

25. COSTING
•. Dallab is assigned as main sub-contractor for our project implementation.
• Dallab provides manufacturing of our proposed Ufone and WBUS
• Dallab are to source the components and calculate the manufacturing
cost.
• Dallab will charge both finished product to us after factoring the machine
set-up cost, labor cost and profit margin.
Manufacturing process Flow is
shown on the left

26. COSTING
Cost of manufacturing a Ufone is around $80

27. COSTING
Cost of manufacturing a WBUS is around $20

28. Ufone OVERVIEW

29. MARKETING STRATEGY
• Advertising the advantages of our product on “TV Mobile” on board buses
• Informing the public of the proposed plan of implementation of this system through
TV and radio
• Putting up posters at bus interchanges and bus stops to introduce commuters to our
new idea and its upcoming implementation
• Orientating and educating the public with video broadcast of our product
• Additional publicity from mobile operators to attract consumers in purchasing mobile
phones with our product enhancement
• Implementing current system globally

30. FUTURE EXPANSION OF TECHNOLOGY
• Mobile ticketing in public transport
• Mobile Payment (e.g. Debit, Credit)
• Smart Poster (used to read RFID tags on outdoor billboards)
• Electronic tickets (e.g. airline tickets, concert/event tickets)
• Mobile commerce
• Electronic keys (e.g. car keys, house/office keys, hotel room keys)

31. BENEFITS
• An estimated 42,000 cases of cheating on bus fares daily and an estimated
annual loss of $9 million due to fare evasion. With this proposal, this $9 million loss
will be avoided or reduced
• Costs on card-issuing will be saved
• Number of General Ticketing Machine (GTM) can be reduced, less maintenance
costs in the long run. Head count reduction for Transit Link ticketing office
• USE 1st & PAY LATER – Bus fares will be send to the commuter together with
the monthly mobile phone bills
• Commuter need not worry about forgetting to
tap when alighting
• No more TOP-UP on ez-link cards

32. FINANICAL ANALY$I$
Selling Price of Ufone
$
•Manufactured by OEM manufacturer
•80,000units over 2 years - $6,400,000
•Selling Price - $200 per Ufone,
•80,000 Ufone = $16,000,000
Profit / Breakeven Analysis
Profit = Selling price – Total Product Costs
= S$ 16,000,000 – S$ 14,396,701
= S$ 1,603,299

33. FINANICAL ANALY$I$
Target revenue:
• Total of 1,054,000 mobile phone subscribers in Singapore
• Our source of revenue is based on commuters with mobile phones plans
• 0.4% of total population of mobile subscribers as a target range of
quantity of mobile phones to be manufactured and sold in the initial stage
• Subsequently, with the increase in demand from consumers, we will also
expand and increase our supply
• With the sale of these units, our revenue will cover our costs, resulting in
profits in the first year
As shown in the breakeven analysis, the breakeven chart is used to evaluate the
number of units needed to be produced and sold to in order to cover or
breakeven with the costs incurred.

34. FINANICAL ANALY$I$

35. FINANICAL ANALY$I$
Return On Investment
Year Research costs
Manpower Material Subtotal
2008 230,000 409,651 639,651
2009 180,000 284,200 464,200
2010 180,000 424,200 604,200
Year Marketing Costs
Sales Sales Indirect
Survey Advertising Subtotal
Executive Commission Costs
2008 129,600 240,000 4,000 628,800 116,400 1,118,800
2009 64,800 240,000 0 0 116,400 421,200
2010 64,800 360,000 0 0 116,400 541,200

36. FINANICAL ANALY$I$
Return On Investment
Year Administrative Costs
Customer
Mobile phone
Service Subtotal
processing fee
Executive
2008 90,000 2,000,000 2,090,000
2009 54,000 2,000,000 2,054,000
2010 54,000 2,000,000 2,054,000
Total Cash Outflows (-)
Manufacturing Research Marketing Administration Total Cash
Year
Costs Costs Costs Costs Outflow (-)
2008 3,200,000 639,651 1,118,800 2,090,000 7,048,451
2009 3,200,000 464,200 421,200 2,054,000 6,139,400
2010 4,800,000 604,200 541,200 2,054,000 7,999,400

37. FINANICAL ANALY$I$
Return On Investment
Total Cash Inflows (+) Net Cash Flow
Total Cash Total Cash Total Cash Total Net Cash
Year Selling Price Year
Inflow (+) Inflow (+) Outflow (-) Flow (+/-)
2008 8,000,000 7,048,451 951,549
2008 8,000,000 8,000,000
2009 8,000,000 6,139,400 1,860,600
2009 8,000,000 8,000,000 2010 12,000,000 7,999,400 4,000,600
2010 12,000,000 12,000,000 Total 28,000,000 21,187,251 6,812,749
ROI = (Gains – Investment Cost) / Investment Costs
= (S$ 28,000,000 - S$ 21,187,251) / S$ 21,187,251 = 32.15%
• Total Investment for 3 years = $ 21,187,251.
• Total profit for 3 years = $ 6,812,749.
• ROI = 32.15%, Ufone will profitable within the first year
and in consecutive years.

38. THE END
THANK YOU
SIR!