Use of EGNOS Services for Mass Market: Innovative Applications targeted to SMEs

Seventh Framework Programme of the European Community for Research, Technological Development and Demonstration Activities (2007 to 2013) 'Cooperation' Specific Programme Theme: Transport (including Aeronautics) Sub-theme: Support to the European Global Navigation Satellite System (Galileo) and EGNOS Activity: 7.4.1. EXPLOITING THE FULL POTENTIAL Area: 7.4.1.1. Mass Market Applications DESCRIPTION OF TOPIC GALILEO.2008.1.1.1 (a) Use of EGNOS Services for Mass Market: Innovative Applications targeted to SMEs 1/10

Table of Contents I. INTRODUCTION... 3 I.1. CONTEXT... 3 I.2. SPECIAL CONDITIONS... 3 I.3. LIST OF ACRONYMS... 4 II. TOPIC DESCRIPTION... 5 II.1. GENERAL OBJECTIVES... 5 II.2. TASKS TO BE PERFORMED... 6 II.2.1. GENERAL... 6 II.2.2. MANAGEMENT... 6 II.2.3. ACTIVITIES... 7 II.3. DELIVERABLES... 8 II.4. SCHEDULE AND MILESTONES... 9 II.5. GSA SUPPORT... 9 III. ADDITIONAL OR COMPLEMENTARY INSTRUCTIONS FOR DRAFTING PART B OF THE PROPOSAL...10 Caveat: Final availability of budget for this Call is subject to Commission Decision to delegate the management of the Call to GSA. Whilst this is considered a technical formality, potential applicants are informed that, in the absence of such a Decision, the GSA will not be in a position to give any grant. Therefore, the potential applicants are kindly requested to take this into account in the assessment of their investment in any preparatory work. The GSA expects to get notified of the Commission Decision early next year. As soon as this is the case, a notice of information will be published on the Cordis website. 2/10

I. INTRODUCTION I.1. Context The objectives for the 2 nd call, of the activity "exploiting the full potential", part of the sub-theme: Support to the European Global Navigation Satellite System (Galileo), are: [1] Stimulate adoption of EGNOS and EDAS; [2] Prepare markets for Galileo introduction; [3] Stimulate EU GNSS industry competitiveness. The 1 st call for this activity focused on several application areas with a high potential. In this 2 nd call the scope is wider and covers a more diverse range of applications. The approach taken is broadly similar. However, the requirements have been updated. This topic is targeted mainly to SMEs, universities and research institutes. SME participation is an EU priority and a priority in FP7. FP7 aims to secure the appropriate involvement of SMEs through concrete measures and specific actions for their benefit. One of the FP7 targets is to allocate at least 15% of the EC funding in the 10 themes of the Cooperation Programme directly to SME participants. In the context of GNSS applications, small projects carried out by SMEs have attracted significant interest. In FP6, 32 small scale projects have been carried out by SMEs and research institutes. The call led to a high proportion of newcomers (over 60% of the SME participants had not been involved in Galileo-related projects before) and was highly appreciated by the participants (95% of the involved SMEs and research institutes were very satisfied). Similarly, the SME topic in the 1 st call in FP7 on Galileo attracted many high quality proposals, 9 of which were funded. We expect to fund a large number of projects of a size broadly similar to comparable projects in the 1st call. I.2. Special conditions This topic is targeted mainly to SMEs, universities and research institutes. This means that the consortium coordinator shall be in all cases an SME, university or research institute, while the other participants should be SMEs, universities or research institutes. In case some participants are not SMEs, universities or research institutes this exception should be justified by showing that: [1] The work performed by that participant is important to the overall success of the proposed research project. [2] It is very difficult to find SMEs, universities or research institutes that can carry out this work. An example could be the case of a mobile LBS application where in some cases the involvement of a mobile operator, few of which are SMEs, is considered beneficial to the project. These special conditions are in addition to any other conditions that apply to Cooperative Projects in FP7. 3/10

Participants are encouraged to contact GSA during the preparation stage. GSA will provide feedback on whether the consortium is deemed eligible according to the special conditions and whether the concept is considered in scope. Feedback sessions will be organised on a best effort basis, either conference call, live meeting or e-mail, depending on the number and type of requests received. Also note that this feedback is only indicative and should not be taken as any kind of commitment or endorsement and will have no impact on the evaluation. The final decision on eligibility and consistency with scope will be taken by independent experts during the evaluation process. I.3. List of Acronyms CAP Common Agricultural Policy COTS Commercial Off The Shelf DSRC Dedicated Short Range Communications E112 European single emergency call number 112 EC European Commission EDAS EGNOS Data Access System EGNOS European Geostationary Navigation Overlay Service FP6, FP7 6 th, 7 th Research Framework Programmes GKMF Galileo Knowledge Management Facility GNSS Global Navigation Satellite System GSA European GNSS Supervisory Authority LBS Location Based Services PDA Personal Digital Assistant PND Personal Navigation Device PPU Pay Per Use Insurance SME Small or Medium Enterprise 1 SPOC Single Point Of Contact VAS Valued Added Services 1 Please note that the new European SME definition (Commission Recommendation 2003/361/EC) is the legal basis for this topic in order to define an eligible SME. The new European definition of an SME came into force on 1 January 2005 raising the financial ceiling above which a company is no longer classified as SME. To qualify as an SME, a company has to meet four requirements: 1. be an organisation or enterprise engaged in economic activity; 2. have fewer than 250 employees, calculated as annual working units (AWU); 3. have an annual turnover of 50 million or less, or have a balance sheet not exceeding 43 million; and 4. be autonomous in terms of managerial independence and the ownership of its equity. This requirement entails several conditions. Full details of the EU definition can be found at: http://europa.eu.int/comm/enterprise/enterprise_policy/sme_definition/index_en.htm 4/10

II. TOPIC DESCRIPTION II.1. General Objectives The objective of the proposed project should be to develop an innovative application that contributes to the adoption of EGNOS or EDAS or contributes to the introduction of Galileo. More specifically: [1] The application shall fit the scope as described below. [2] The project should result in the development of an application or a part of an application that can be integrated rapidly in an existing application. GNSS should be used as the primary positioning technology in the application and positioning should be a key enabler of the application. [3] The consortium should have a clear intention to commercialise the project results as demonstrated by a realistic business plan. [4] This application should be innovative. The project should conduct research that goes beyond the current state of the art or apply available technology in an innovative way. The latter could mean the application of technologies such as EGNOS or EDAS to new markets for these technologies, to new applications within existing markets or in support of new business models. [5] The project should contribute to the adoption of Galileo, EGNOS or EDAS e.g., early Galileo signals are used, EGNOS or EDAS technologies are applied in new ways, the application facilitates wide adoption of EGNOS, the application leads to an increased understanding of the market or user requirements in fields that are particularly relevant for Galileo, the project contributes to the identification and resolution of obstacles for the adoption of Galileo and EGNOS. The scope of this topic is not limited to any specific segments or user groups. GNSS applications in the following (and other) areas may be considered: Vehicle applications with high public utility such as road pricing, congestion management, road safety and pollution control; Vehicle Value Added Services such as Pay Per Use insurance (PPU), traffic information, weather information, entertainment, etc.; Agriculture applications such as: CAP reporting, yield management, vehicle guidance, seeding; High precision applications such as surveying, construction, oil and gas. Health and safety applications such as patient localisation, emergency distress call, support to elderly and disabled, family locator, person tracking etc.; GNSS-based mobile LBS applications with high public utility or a high degree of innovation such as tourism and travel information, safety applications, location-based advertising, multimodal personal navigation, location based gaming, etc.; Logistics: tracking (e.g. tracking of vehicles, containers, livestock, dangerous goods), multimodal transport, vehicle telematics (e.g. remote vehicle diagnostics, fleet management); 5/10

"Outdoor" GNSS applications catering to various segments: runners, hikers, climbers, fishermen, hunters, golfers, campers, cyclists, mountain bikers, etc.; Developments in this context can relate to: Client software running on a standard (COTS) or special purpose end-user device; Development of new user devices (software and hardware); Server software running on a central back-office system that works in conjunction with existing or newly developed clients; Integration of (geospatial) content databases into a GNSS application; Algorithms implemented in software or hardware that enhance GNSS performance or usability for a specific application, especially concerning the use of Galileo, EGNOS and EDAS; New business models, integrating various technological components with a clear go-tomarket approach; Any other development that fulfils the requirements mentioned in this document. II.2. Tasks to be performed II.2.1. General Project tasks and workplan should be consistent with the objectives and scope of this topic and result in achieving the deliverables, milestones and stated project goals. II.2.2. Management This task consists in performing the overall management for the entire project. It includes as a minimum the following items: Technical coordination of the project; Contractual management; Organisation and coordination of internal communication flow; Documentation management; Tracking of the project status; Review and verification of deliverables, quality control; Organisation of progress meetings and reviews (notification, agenda, chairing and reporting); Coordination between the different tasks as necessary. The consortium shall appoint one person to be the single point of contact towards the GSA 2. 2 GSA may be represented by external experts. 6/10

II.2.3. Activities [1] The project shall analyse user requirements 3 and assess the technical feasibility of the application versus these requirements. [2] The project shall result in the development of an application delivering end-to-end functionality using new and/or existing equipment and systems. [3] The application should be trialled and user feedback should be gathered. The scale of the trial should be large enough to gather significant results. [4] The project should evaluate and demonstrate the commercial feasibility and the business potential of the concept proposed. This should result in a rough business and exploitation plan. [5] The project should consider the value added by EGNOS/EDAS and implement it in the project's technical platform if relevant. 4 [6] The project may analyse the potential valued added by an operational Galileo constellation. In addition the project should consider the potential value add of available early Galileo signals and implement this into the application when relevant and feasible. [7] The project may identify and propose solutions to obstacles for the adoption of Galileo and EGNOS in the market that the application is addressing. [8] Specific aspects such as legal, regulatory, standardisation, privacy and data security aspects may be analysed. [9] The project may carry out demonstrations to potential user communities of the application. [10] The project shall support and facilitate the coordination between the tasks performed in the frame of this project and the tasks performed in other projects. To this end, the project shall participate in up to 2 workshops organised by other projects. The project shall also support ad-hoc meetings and reporting with the GSA. The total amount of effort for this task should not exceed 4 person-weeks. [11] The project shall disseminate relevant project outcomes to the general public, GNSS community and relevant user communities. 3 User requirements can include but are not limited to relevant GNSS related requirements like time to first fix, integrity and accuracy. 4 Limitations of EDAS valid at the time will have to be taken into account, see www.egnos-edas.com for more information. 7/10

II.3. Deliverables The project shall provide at least the following outputs during its lifetime. These deliverables should be grouped so that only one set is conveyed every 3 months. [1] Detailed project plan including team set-up; [2] Quarterly progress reports. These reports include a short management summary based on a template to be supplied by the GSA; [3] Technical feasibility study including user requirements, application definition (including service management and operations and addressing the role of EGNOS and Galileo) and equipment / SW design documents; [4] Initial commercial feasibility study including market potential assessment (when relevant) and expected economics (relevant cost and revenues); [5] A tangible result from the application development when relevant e.g., prototype of end-user terminal; [6] Presentation/slide show, report, poster and animated audiovisual presentation on project outcomes that can be disseminated to the general public. These deliverables should be provided in electronic format. Furthermore a project website should be established and gather all public project outcomes. ; [7] Report on market trial including technical and user-experience; [8] Rough business and exploitation plan. Building upon the previous deliverables and project outcome, the plan constitutes an assessment of the business potential of the application and how this potential can be captured. Such a plan should contain the following elements: a. Concept or product description; b. Assessment of market potential; c. Competition analysis, product positioning and marketing strategy; d. Business model (e.g. make vs. buy, sources of revenues, pricing strategy) and exploitation economics (e.g. break-even analysis); e. Organisation and team; f. High-level implementation plan; g. Rough projected financials (i.e. profit and loss) including assumptions; h. Identification and discussion of main risks. [9] Analysis of specific aspects (optional): a. Value added by EGNOS/EDAS; b. Value added by Galileo; c. Report on the identification and proposes solutions to obstacles for the adoption of Galileo and EGNOS; d. Regulatory and legal aspects of the application; e. Data security and privacy aspects; f. Standardisation aspects. 8/10

[10] Dissemination plan containing an overview of all events, conferences and exhibitions that will be attended as well as workshops and presentations that will be organised. For each of these the consortium should indicate the relevance of the event, activity of the consortium at the event, target audience and the objectives to be achieved. [11] Final report on all project activities including R&D and exploitation activities; activities related to dissemination, knowledge contribution, FP7 coordination and user fora. The report should include an executive summary. II.4. Schedule and milestones The total duration of the project shall be less than 24 months. The project shall be split in several phases and several milestones shall be identified. As a minimum, the following milestones shall be foreseen: Kick-off meeting: this shall cover at least deliverable 1; Interim review: this may cover deliverables 3-10; Final review: this may cover deliverables 11. II.5. GSA support The GSA will make expert resources available to the project, which can provide assistance in the following areas: Technical support in e.g. review of project deliverables, provision of Galileo and EGNOS documentation; Support in technology transfer and the development of the business plan; Support in networking with other SMEs and participants in other projects of the Galileo Calls; Access to GNSS documentation via GSA's GKMF. The GKMF is the Galileo Knowledge Management Facility that is hosted by the GSA. It contains documents and results from the research activities on Galileo, and allows users to search and retrieve public information on GNSS. The GKMF may also serves as documentation management system and dissemination tool for the projects funded under the Galileo FP7. 9/10

III. ADDITIONAL OR COMPLEMENTARY INSTRUCTIONS FOR DRAFTING PART B OF THE PROPOSAL The overall length of proposal should be less than 50 pages excluding annexes. Regardless of any page limits, consortia are encouraged to write in a concise and factual style. Annexes may provide additional information but are not necessarily considered in the evaluation. The assessment of market potential, competing technologies and a high level business plan should be part of the proposal (see below) and is critical for the evaluation. Section 1 - maximum length of 20 pages, plus the tables, for the whole section. Section 1.1 S/T objectives refers to the project objectives and should be included in sufficient level of detail. These project objectives should be measurable and verifiable e.g., objective: develop application prototype delivering specified functionality, verification: trial. The table of compliance refers to compliance with the scope and objectives of this topic. These (high level) topic objectives should not be confused with the specific and measurable project objectives. Note that this section is critical for the evaluation Section 1.2 - describe both state-of-the art R&D as well as actual commercial or precommercial activities. Describe what is unique or innovative about this project. If relevant, also describe how Galileo and EGNOS are expected to provide benefits beyond current GNSS and other positioning technologies. Section 1.3 - in addition, indicate flexibility in the work plan e.g. depending on the outcome of the trial, earlier steps may be revisited or later steps may be tackled in different ways. Section 2: maximum length of 15 pages for the whole section Section 2.1 - additionally describe how the organisational structure allows for flexibility and fast and efficient decision making. Section 2.3 in particular describe how the consortium will address the full value chain with particular emphasis on access to end users. Section 3: maximum length of 15 pages for the whole section Section 3.1 - focus should be on impact towards the topic's primary and possibly secondary objectives (see above). Section 3.2 - the focus should be on the impact resulting from (commercial) exploitation of the research. Briefly describe how each consortium member is intending to exploit project results commercially. Section 3.2 - Include a preliminary business plan that includes: - brief concept description including possible business model, technical architecture, assessment of the current state of technology and the innovation proposed; - preliminary assessment of market potential; - preliminary analysis of competing offers and technologies; - preliminary high-level business model and economics 5. Note that this section is critical for the evaluation Section 4 - maximum length of 1 page. 5 Economics in this section refers to a simple break-even analysis or profitability analysis on individual product level e.g., expected retail price minus manufacturing costs = profit level 10/10