Great writeup by DNO on Raging Bull:
RADIOSAT (now AutoSAT) DD #5
I had originally planned #5 to be more detail about the patent protection.
However, a bit of time has passed since then and new questions and
information have surfaced, so I will provide #5 as a supplemental to get
back on track and we will discuss the patents next time.
I think it will be best to go after the following areas in this discussion:
* What REALLY is the product?
* PROTOTYPE as seen at the open house
* ANSWERS to specific RB questions
* MARKETS
Before I get going, I want to lay down the disclaimer. Everything written
in this (and all of my) documents are statements to the best of my
knowledge. AutoSAT is in early development. This means that while the
general idea of the product is consistent, written specifics may vary
depending on ongoing market response, development challenges, and vague
communications. I have done my best to understand what is presented today,
ask questions and write. The only thing for sure is that we need to
continue to talk to the marketing and development boys right up to the time
the product is released.
WHAT REALLY IS THE PRODUCT?
We have all thought of the AutoSAT product as an inexpensive, satellite
broadcast digital entertainment device that has interactive communications
and navigation capabilities. In the spirit of AutoSAT, this remains true,
however today's approach to this is a little different. After being exposed
to the presentation, prototype and discussions at the open house, I can see
that goals have been narrowed, at least from the marketing perspective of
which we have all been exposed to. I have taken some time to think a lot
about this direction. I can say that I am pleased with where the company is
going.
First lets put our arms around the product. In one of my earlier DD's I
wrote extensively about the capabilities of the Windows CE based AutoPC. We
discussed the CUE™ FM wireless network capability, the automotive
diagnostics and the GPS navigation. Each of these capabilities are added by
buying "modules" of hardware and software that are incorporated with the
AutoPC.
The information that we have been exposed to has implied that the RadioSAT
product would be a standalone product that would incorporate all these
groovy capabilities. Rather, the AutoSAT product is not unlike the other
modules. In its first configuration, AutoSAT will be a module of hardware
and software that you incorporate with your AutoPC stereo/computer. Just
like you buy a modem with software for your computer to communicate, AutoSAT
would be like a satellite modem with software to make it work.
Another important piece that completes the product is the pipeline of
broadcast content. Your modem and software would do you no good unless
there was an available network (like the Interent) and content to acquire
(web pages, information, streaming media, etc). The broadcast
infrastructure for AutoSAT exists today. There are satellites in space,
network uplink antennas, Internet network, mobile transceivers and AutoPC.
The AutoSAT product will use these existing pieces together to make up the
product. Many of RB's members have asked if we own the satellite or have
FCC licenses. NO and we don't need to. AOL doesn't need to own the phone
lines or have broadcast licenses to connect you to the Internet. It is the
same for Interactive Radio Corp. They pay (through advertising and
subscription revenue) the satellite companies and uplink providers to send
broadcast media through existing, licensed means.
Some have been concerned with competitors such as CD Radio or other Digital
Audio Broadcast (DAB) companies. Don't waste you time, these are not
competitors. As it turns out, the AutoSAT capability does not include music
broadcasting. Don't panic, here is how they see it: With a platform such
as AutoPC, it already has the ability to receive AM/FM/DAB.
To summarize:
RadioSAT is a module made up of a hardware transceiver and software to run
on the AutoPC platform. This package will include a subscription pipeline
necessary to link the AutoPC to broadcasters and individuals via the
existing Internet and satellite links.
Item
Manufacturer/Provider
AutoPC CLARION (and others)
AutoSAT Transceiver IRC
AutoPC Software IRC
Satellite Link SATELLITE COM
PROVIDERS
Internet/Satellite Com Bundling IRC or others
In terms of the AutoPC platform today it has the basic functionality
required/desired by AutoSAT. The basic functionality includes a Windows CE
computer with voice recognition and FM/AM/DAB music and news as well as a
CD/CD ROM player for music or programming.
Upgrades available today allow some of the features of the AutoSAT system,
however communications are based on FM and cellular networks which are slow
and do not have uniform coverage across North America.
Upgrades Today
Navigation GPS Add-on to AutoPC
Networking FM Networking Requires CUE™ add-on
to AutoPC
Cellular Requires USB
cellular telephone/data interface
AutoTracking FM/Cellular Requires GPS option
Emergency Cellular Requires GPS option
Car Diagnostics CarPort Module Add-on to AutoPC (available
soon)
AutoSAT has all of the above features of a well equipped AutoPC, however
they are integrated into a single system. The FM and cellular networking
available today is inferior to satellite networking. The Interactive
feature improves improve the range of offerings significantly.
*Tomorrows AutoSAT
Navigation GPS Included in AutoSAT
system
Networking Satellite Included in AutoSAT
system
AutoTracking Satellite Included in AutoSAT
system
Emergency Satellite Included in AutoSAT
system
Radio Shopping Satellite Included in AutoSAT
system
Buy/Sell stocks Satellite Included in
AutoSAT system
Travel Services Satellite Included in
AutoSAT system
Gaming Satellite Included in AutoSAT
system
Polls/Voting Satellite Included in AutoSAT
system
Car Diagnostics CarPort Module Add-on to AutoPC
As you have noticed, there are a number of interactive items included in
AutoSAT that are not available today in the FM networked AutoPC. The AutoPC
has a feature called the "green button". This feature is protected by one
of the IRC's patents. Any response from the mobile radio, such as required
by shopping, purchasing stocks, travel reservations, polls, or even buying a
lottery ticket is covered by the patent. So, as I understand things right
now, if a competitor wanted to include a green button, rather the ability to
interact with any broadcast, even through FM/cellular network methods, they
would need to license this capability from IRC. I asked this question
specifically of Mr. Noreen (who authored the patents) and he confirmed this.
This is really significant.
What is IRC actually developing? IRC is not developing another AutoPC to
mount this technology in. This is a good move, however I'm not sure that
they ever intended to. Let the big radio/computer manufacturers do this.
IRC will develop the transceiver, software and establish the
Internet/satellite pipeline. They will partner with a company that can
manufacture the transceiver. IRC does not currently have these resources,
and to get into it themselves (or acquire them) would be both risky and
costly.
Will they license this technology to others? Why not? If Clarion came to
them and said, WOW we want what you've got! IRC would gladly license them
to use their patents, provide them a license to produce their transceivers,
and sell their software under the Clarion get-up and logo. Clarion has a
sales and distribution system in place. They could move these things. Just
as licensing these patents and technologies to the auto makers, it makes
great business sense.
Now that I've brought up the automakers, let's go on to the next point.
Many on RB have been worried that we've missed our opportunity to get
satellite entertainment, GPS and emergency services into new cars. Firstly,
FM and satellite entertainment is available today. Emergency services via
cellular are available today. GPS is available today. However, going back
up to our table above we bring much more to the table. Interaction,
complete North American coverage, integrated GPS, broadcast and uplink
transceiver. All of this in a Windows CE computer, where you can install
additional modules and programs… can CD Radio do this? Nope.
What if 3COM said, Damn… everyone has a modem, we've missed the boat! They
wouldn't, because as technology improves, people upgrade. PC-makers will
use the best, most cost effective modems available at the time. Well the
same is true for old AM car radios… they became AM/FM, then AM/FM/8-tracks,
then AM/FM/Cassette, now AM/FM/CD, next AM/FM/CD/DAB, then to us
AM/FM/CD/DAB/Windows CE Computer/AutoSAT. The technology is new, the
technology is advanced. The mobile computing and interactive methods will
eventually be wanted, and remember, it is ours.
The PROTOTYPE
The prototype demonstration was made up of existing, off the shelf and
custom components:
* Clarion AutoPC with Microsoft Windows CE operating system
* Dual mode transceiver: GPS and L-band receiver/L-band transmitter, (not
sure of the manufacturer)
* Windows CE software
* Internet PC software
* Satellite uplink/downlink services provided by others
* Passenger mini-van
First, during the presentations, we saw a screen that showed data from Gary
Noreen's van. This van had a satellite transceiver attached (tie-wrapped)
to the luggage rack that was about 8x12x3/4 inches. It had a Clarion AutoPC
installed in the dash. Back at the presentation, we saw that the van was
sending position and speed information (also some other stuff I forgot) up
to the satellite, to the satellite network center, through the internet, and
to the Burnaby office building. Updates were made every few minutes.
Later, they brought up a map of North America that we saw a star near the
Pacific Northwest. As we zoomed in, we could see the van's location
precisely where it sat in the parking lot. While this seemed to be working
as advertised, it was still very crude. As well is expected for an early
prototype.
Back in the van, the AutoPC unit performed tasks that it already is capable
of, as far as voice recognition, responding to commands and playing music.
In addition, it ran some dummy software that demonstrated some of the user
interface functions specific to AutoSAT. We did not see any content coming
down to the unit in terms of information broadcasts. The Bsquare fellows
did some quick programming to show some of the features short of really
making them work. I'm sure that they scrambled to get what they had going
for the open house. Even so, it was successful in demonstrating the basic
functionality of an AutoSAT equipped AutoPC.
SOME ANSWERS to RB QUESTIONS
Will IRC be at the CES in Vegas during January?
As I understand it from Gary Noreen, they will be at the show. They are not
going to have a booth at the exibition hall, but will have a hospitality
room to bring potential clients and partners to so they can entertain them
and demonstrate the AutoSAT system. They do not feel that the prototype
system is ready for prime time, and I would agree, but it allows them to
seek out attendees and demonstrate the system in a controlled environment.
This is not a question of showing our hand. Our technology is patented.
They just felt it was too early to demonstrate to the masses.
What about the Motorola unit/specification?
The Motorola Application Communication Specification (ACP) defines a
protocol (or language) that two or more devices communicate. The
specification must be established before a number of company's products can
speak a common language, and thus integrate to a common system. The current
automobile communications is limited to emergency roadside assistance and
vehicle tracking. Remember this is only defining the language, nothing
more. Current implementations require FM networking or cellular ground
based) networks. These means do not provide blanket coverage and are very
slow due to fundamentally low bandwidth transmissions.
To characterize the current systems, it is like having a digital cell phone
in one hand and a handheld GPS in the other, where then you could get emails
and call to tell people where you are. The AutoSAT system does so much
more, think of it as having a digital satellite pager/phone, a handheld GPS,
CNN, the Travel Channel, ESPN, CNBC, Home Shopping Network, local traffic
station, your bookee, and travel agent all available to you at once so you
can get information or purchase a thing, stock, hotel reservation, etc.
Can we supply our technology and satellite time to everyone, or do we have
to come up with our own unit and work on our own to get contracts signed
with a car company?
We can supply our technology and satellite pipeline to anyone. We are only
going to develop a smaller, inexpensive version of the transceiver module
and partner with one or more producers to build them. We will develop
software and establish the pipeline that anyone can use, or they can even
create their own. IRC will look at any and all opportunities, and choose to
pursue those that make sense. Don't expect to see an Omicron or IRC labeled
unit at Circuit City, it will likely be someone else's name on the IRC
developed module.
MARKETS
Keep in mind that primarily, IRC is focusing on the consumer automobile
market. You and I make up the biggest market, as we all have cars and a
wallet. However, there are other areas that could benefit from the IRC
technology:
* Marine: Pleasure crafts and Commercial Shipping
* Road and Rail Transportation
* Emergency Vehicles
* Commercial and Private aviation
* Portable radios
* Military Vehicles
After the automobile market, I really think IRC should look hard at the
pleasure boat industry. Boating safety is important, there are many times
when pleasure boaters have problems, run out of fuel or have medical
emergencies with no good way to contact others or the Coast Guard. Pleasure
boaters also generally have money, and would not hesitate to incorporate
RadioSAT with their other high-priced toys. The configuration is also
common to the AutoSAT, making it easy to move into this market as well.
Well, that is all I have to say right now, so I'm going to wrap this up. I
do want to get back to the patents some time soon. All of you need to
understand the significance of the "green button". If you want to download
them from patents.ibm.com they are only $3 per file, and you get
the whole thing.
As always, I welcome any feedback, especially from ya'all at IRC who may
want to fill in any holes. You can post them or email them to me.
DNO
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