Lighting as a Service (LaaS)
Do these problems sound familiar?
- Are your electricity costs going up?
- Are maintenance and repairs more complicated?
- Are labor expenses increasing?
- Are your lighting systems OLD technology, less efficient, and shining “yellow” beams?
- Are you seeking ways to reduce your carbon footprint and CO2 emissions?
- Is there pressure to adopt renewables, yet you are unsure about, which technology to choose?
Your problem can be our solution
TellCo Europe offers a total lighting solution for clients in government or private businesses. It’s a Turn-key method to upgrade LED Lighting systems (outdoors & indoors), to transfer maintenance headaches, repairs for lower operating expenses, and share/co-manage project management implementation duties. The client will keep the electricity costs savings AND at the end of the contract, the period keeps the lighting system assets!
Lighting as a Service (LaaS) is a service delivery model, in which light service is charged on a subscription basis rather than via a one-time payment. This business model has become more common in commercial and citywide installations of LED lights, specifically in retrofitting buildings and outdoor facilities, with the aim of reducing installation costs.
TellCo Europe has used a LaaS strategy in selling value-added services, such as internet-connected lighting and energy management.
There are a lot of LaaS benefits, that will be obtained when starting cooperation with TellCo Europe. The Business model and the most important features are outlined in the next diagram. Each benefit will be explained in detail.
Client Benefits for LaaS
The client benefits can be described by comparing LaaS to the normal way clients upgrade the LED lights.
LaaS
- No capital upfront
- Single contract
- De-risks performance
- Savings can cover the service charge
- Single cost: LaaS charge covers design, supply, installation, insurance, maintenance
The current normal process
- Needs financing or capital
- Multiple contracts and negotiation
- Risk of ownership
- Negative upfront cash flow
- Multiple costs: design, supply, installation, insurance, maintenance
The Current Normal Process
Current practice for the retrofit to LED Lights and the challenges for the customer is as followed:
TellCo Europe NEW LaaS Model
It will be much easier for the customer when we use this model and propose it to the client:
TellCo Europe LaaS Economic Example
Below an example of a LED Street light retrofit project of TellCo Europe client’s customer have a choice to pay USD 2,750,000 to purchase the LED streetlight upgrade and organize maintenance or commit to TellCo Europe LaaS solution with the following highlights:
- Service: Provision of upgraded LED street lighting and maintenance
- Term: 5 years
- Charge: USD 734,000 increasing at 3% p.a.
- Cost of LED street lights: USD 2,500,000
- Construction: USD 250,000
- Total cost: USD 2,500,00
- Savings per annum from upgrade: USD 780,000
- Finally, TellCo Europe LaaS concept is not to sell the product, but we Sell the technology and service
LaaS Benefits
No upfront cots
LaaS covers maintenance
Net economic benefit of USD 47,000 in year one increasing over time
LaaS Sample TellCo Case study, Total Savings & CO2
LaaS Sample TellCo Case study & ROI
