RightMesh ICO Review: Beautiful Ideas, Great Team, But...

RightMesh want to provide peer-to-peer internet coverage, and they have the people to implement it. But will the competition let them?

1.ICO Overview

RightMesh sits within the Networking industry. By Networking we don’t mean turning up to some evening event, being offered one free plastic cup of cheap wine, in order to expand your professional connections.

We mean Networking as in Mobile Networks, Data Networks, Fibre Networks - which all have one thing in common, to share data & enable internet access.

RightMesh has a big ambition: to enable 4bn people in the world to obtain internet access for the first time in an affordable, easy access way.

2.ICO Proposition

  • Ticker: RMESHToken
  • Type: ERC20
  • Token Price: 1 RMESH = $1ICO
  • Soft Cap: noneICO
  • Hard Cap: $30m
  • Total Tokens: 129m
  • Tokens for sale: 38.8m

Investor Proposal

  • Registered company owned by a well-established parent company;RightMesh AG was established in Switzerland in early 2018 to take over the RightMesh project. RightMesh AG is a subsidiary of Left (Left of the Dot Media Inc).
  • Left is a 110+ person technology company, formed in 2010, with headquarters in Canada. Its other subsidiaries include: Left Technologies Pvt Ltd in Bangladesh +Left Travel Inc, a  profitable AI data-driven travel company
  • Unsold tokens Stored in the RightMesh treasury
  • Private Round CompletedA Private Round was held in June in which $18m was raised. Bonus tokens locked for six months.
  • ICO Run RateAccording to their community manager on Telegram, their ICO hard cap is to deliver them a run rate of two years, until full monetization.

RightMesh token:

  • Incentivizes and rewards for any node providing connectivity
  • Rewards for managing & sustaining the network
  • Pays for access to and usage of the network
  • Incentivizing users to consume/share content

Startup Proposal

RightMesh want to enable 4bn people in the world, currently with no internet access, to have internet access using Ethereum and Mesh Technology. RightMesh want to do this by piggybacking off local companies or people in the community who have high-speed Wi-Fi internet connections. 

RightMesh want the people in the local community and their devices to help spread and broadcast this Wi-Fi access. RightMesh will add people with their local smart devices, solely to route the data traffic generated from spreading this Wi-Fi access.

Then anyone in the local community, without internet access, can use their device to access this RightMesh data network.
So, like its competitor Opengarden, the idea was to utilize your spare internet capacity and enable it to be resold back into the community.

Everyone in this ecosystem earns. The partner providing the initial high-speed Wi-Fi earns tokens (as if being paid like a network provider). The people reselling the internet access via their phones earn tokens (like an ISP). The people routing the traffic day in, day out, on their phones earn tokens (a bit like miners).

And then there are the users. They can buy and sell anything on RightMesh using the token: spare phone storage, apps currently on their phone from App Publishers, Battery life. So it’s like consumers becoming Virtual Mobile App Stores. 
Messaging is encrypted, and wrapped around all of this is a developer forum/ SDK, so App Developers/Companies can build apps to work on the RightMesh network.

The beauty here is that this is a network that still works when it’s offline. You can still view video adverts or play games, still transact, still share data, still create records on the Ethereum Blockchain. 

RightMesh is a self-healing, self-regulating data network. The more people who use it, the bigger the mesh, the greater the coverage. Below is a visual example of the RightMesh coverage based on of 5% penetration in San Francisco (left) versus Dhaka, Bangladesh (right).

3.Feasibility of idea/business model in current market

This idea is audacious, potentially life changing to many people, with some really cool crowd economy elements to it like reselling your spare phone storage but it has some major challenges ahead:

Reselling spare data

Might sound great but think about this. When you become a customer of a Telco or Mobile Network in order to take their ADSL/WIFI, you sign a contract, filled with Terms and Conditions. I don’t that think anywhere in that agreement does it allow you to act as a reseller and re-sell their product. 

Any Telco or Mobile Operator who doesn’t have this restriction in their contracts already will simply update their Terms the minute they suspect you’re reselling their bandwidth (whether you think you paid for it or not).

Now in case you don’t know, the mobile data market is going to be worth $600 billion by 2020, according to Pyramid Research. Telcos and Mobile operators have already spent billions on buying 2.5G, 3G, 4G and now 5G licenses.

Do you seriously think these players are going to allow anyone to under-price them, bypass them and re-sell their product?

So that is the biggest fundamental flaw with RightMesh. 

Now, maybe RightMesh are prepared to take on the world’s biggest Telco and Mobile players but I doubt they have pockets deep enough to spend their way out of that legal maze.

The last question around this is - once they contractually stop you from reselling your spare internet capacity, how do they police this? Do they create a risk rating system based on too many IMEIs pulling data from one account? This is an interesting question because how exactly is a Telco or Mobile Operator going to prove you’re reselling?

Reselling spare storage

Again, this sounds crowd economy cool but what’s the impact on your phone battery, if all your storage is being used by someone else?

Paying twice for data / internetIf you have a phone with data access and you’re on the RightMesh network, sending data, you’re going to be paying twice for doing that. Why?

You’re already paying your existing internet provider for access, then RightMesh’s internet reseller will charge you a local price, because you’re also using their network.

So it seems to me, the only people who really benefit from a RightMesh network are people who currently have no internet access. 

No device / No RightMesh

I hate to point out the obvious but if the 4bn people without internet don’t buy a smart device, then RightMesh have no business. Now, these are the poorest people in the world, so can they all afford a cheap Chinese Android knockoff at $30? I doubt it.

Becoming a Virtual Mobile App Store

RightMesh state that consumers with apps already on their phone, can offer these (free or in exchange for token payments) to other consumers. The benefit to that is that this app download doesn’t need to happen over a mobile network, which in places like India is not cost effective. RightMesh think this is limiting the growth of apps in India.

Now, like contracts with Internet Providers, when you download an app, it contains Terms and Conditions that you must abide by. Having developed major app stores, I’m pretty sure there is a standard clause in most apps about not re-selling their product.

Then there are the App Stores themselves. Think about Apple, who, according to Forbes, in 2017 generated $26.5 billion from their App Store ($11.5 billion of which was pure revenue to Apple). Does anyone seriously think Apple are going to just sit back and watch you re-sell their Apps? There’s the second huge lawsuit (after the Telcos and Mobile Operators) coming RightMesh’s way.

Un-uniform Data Pricing

If the Internet Providers and Internet Resellers on RightMesh can set their own prices you’re going to have disparity in data pricing right across the network. Just imagine it: you’re sat in a cafe, checking your Facebook as normal & it cost you $0.30 on RightMesh. You then drive across town, get home and find the same activity now costs $1. Do you think, from a customer experience side, that this is feasible? Sustainable?

Blockchain feels tacked on

Blockchain is hardly mentioned in RightMesh’s White Paper, only as a stamped record of advertising having been consumed. It feels like RightMesh have just tacked Blockchain onto the proposition, for the sake of doing an ICO.There’s no detail on the White Paper on any consensus voting mechanism or other Smart contract features.

Internet browsing not available for five years

RightMesh are only going to able to offer consumers text services and very low capacity app services to start with. Full Internet browsing isn’t on their roadmap until somewhere between 2019 - 2023. That’s a very long time away and I am struggling to see this scaling without it.

Dependent on the very network they claim to replace

I hate to point out the elephant in the room but RightMesh are dependent right now on Telcos and Mobile Operators to build out their mesh network. The very players they want to disrupt are a fundamental resource!

So in conclusion there are two major fundamental weaknesses to this audacious idea: 

  1. If the 4bn offline people in emerging markets can’t afford smartphones, RightMesh is stuffed; 
  2. If the Telcos & Mobile operators can prove you’re reselling that bandwidth, they will find a way to block or suspend your account and then. RightMesh is stuffed.

Feasibility of the Business Model

RightMesh have a multi-layered business model for all parties ( listed below) and it is worth noting that the RightMesh network still functions (and thus their business model) when traditional mobile networks go down, i.e., when users are offline.

So transactions can still be processed, tokens can still be earned, advertising can still be displayed, content still ingested.
Business Model Ecosystem Players:‘’

Key Network Suppliers: Partners in the local community, with dedicated hardware for high-speed internet, earn tokens by providing their internet access to local Internet Resellers.

Internet Resellers: earn tokens by devoting their devices solely by passing on high-speed internet connection to local users’ devices.

Internet Routers: earn tokens by devoting their devices to routing the local internet traffic across the mesh in the most effective way.

Client Devices: could be consumers or passive devices, who can earn tokens by re-sharing apps, content, files, advertising, services or data. Client devices also typically consume data.

Partners: companies, advertisers, app publishers, service providers, who earn income by selling P2P on the RightMesh network who earn tokens by supplying something but could also pay with tokens to offer something.

So how do RightMesh themselves earn money? Interestingly, this isn’t clear from the White Paper but we are guessing from selling tokens.

4.ICO Team

This 40-strong team is made up of accredited experts in their fields. It’s probably the best team we’ve ever reviewed for an ICO, in terms of skill sets, experience and gender balance.

Backing this team and their project is a solid corporate parent company called Left (Left of the Dot Media Inc). Left is a 110+ person technology company, formed in 2010, with headquarters in Canada.

Left is a “Best Workplace” award winner while being the first back-to-back recipient of the BC Tech Association Tech Impact Award for Community Engagement, recognizing the best company in BC for balancing “Work, Life, and Play”. So clearly, a happy, focused team.

5.SWOT

Strengths:

  • It works offline, even when the core network is down
  • Every device in its ecosystem can earn tokensIt can be used by any Android or IOS device from launch
  • It enables spreading the cost of data to drive prices down, so it’s disruptive
  • Reselling spare storage on your phone
  • Reselling spare data on your phone - highly disruptiveIncredible team / solid corporate parent
  • Their story of how they evolved the idea.

Weaknesses:

  • You won’t be able to surf the net on it until 2023
  • You might end up paying twice to send data
  • They need to find a decentralized network to replace Wi-Fi & Wi-Fi Direct
  • Dependent on existing Telcos and Mobile Operators
  • Dependent on 4bn people buying a smartphone

Opportunities:

  • It could be a connection path for the 4bn people in emerging markets currently not online
  • If they can find a decentralized replacement to Wi-Fi/Wi-Fi Direct it could become the vehicle to dismantle the internet provider industry (Telcos and Mobile Operators).

Threats:

  • The minute Network Operators see their data being resold without their permission they will try to stop/block this.
  • Telcos rolling out their own mesh solutions given the energy savings.

6.Conclusion

There are so many incredible ideas in this ICO, incredible ambitions, but the current weaknesses are major, not small. RightMesh need to urgently find another way to access the Internet without using Telcos and Mobile Networks. They need to think about how they are going to scale with 4bn people if those 4bn people don’t have a smartphone.

Then there’s the fact Internet Browsing might not be available until 2023.

This is a project that could pay off big time for anyone investing but it also has some whopping risks.

7.Score 0 – 5

  • Idea/Business Model - 4
  • Scope/Potential - 5
  • Team/Advisers 5
  • Token Economy - 5
  • Marketing - 5
  • Community/Communication - 4