market research report : voip market in india 2012

VoIP Market in India

February 2012

Executive Summary

Drivers:

Market

Drivers &

Challenges

�Mobile VoIP market will evolve to reach the mark of INR x1 tr by 20-- - --

�Market for speciality1 VoIP in India will cross x2 mn subscribers by 20- with a CAGR of x3%

�Also service1 market size will total INR x4 bn by 20--, with contribution of service2 of around INR x5 bn

�Global VoIP market is expected to generate a revenue of INR x6~ tr annually by 20--

Challenges:

� Security Issues Associated with VoIP

� Inconsistent Internet Services

� Lack of Awareness

� Low Smartphone & Tablet Penetration

�Burgeoning Broadband Penetration

�Availability of 3G Network

�Burgeoning PC Penetration

�Rising Mobile Device Adoption and

2VOIP MARKET IN INDIA 2012.PPT

Trends & Developments

Competition

� Trend1

� Trend2

�Development1

Major Players

Mahanagar Telephone Nigam Ltd. Sify Technologies Ltd. Tata Communications Ltd.

Vonage Holdings CorporationYou Broadband & Cable India

Ltd.Microsoft Skype

� Low Smartphone & Tablet Penetration�Rising Mobile Device Adoption and

Wireless Subscriber Base

� Increase in Disposable Income

•Introduction

•Market Overview

•Scope in India

�Vendor Opportunity

•Drivers & Challenges


•Drivers & Challenges

•Major VoIP Service Providers

�Other VoIP Service Providers in India

•Trends & Developments

•Strategic Recommendations

•Appendix

Introduction

Voice over Internet Protocol (VoIP) Overview

VoIP or Internet Telephony is a term denote the collection of technologies that utilizes the packet-switched connections of Internet to exchange voice data

It uses the more efficient route of Internet to transmit voice after breaking them into numerous digital packets unlike Public Switched Telephone Network (PSTN) which use a dedicated line

This technology allows numerous users to send information over the same line, providing a more efficient utilization of the telecommunications infrastructure


efficient utilization of the telecommunications infrastructure

Due to its effective line capacity and use of the Internet, additional features like call conferencing and roaming do not cost extra to the consumer

• VoIP telephones and multimedia PCs convert analog voice signals into digital data streams

• Telephone signals are routed over IP networks instead of over circuit-switched networks

• A call path usually consists of contacting a target PC on the Internet or to connect to a standard telephone set via a gateway between

the Internet and the PSTN

• Original VoIP signaling standard was ISH H.323 but now most networks use Session Initiation Protocol (SIP) as a signaling standard

• IP Telephones can be categorized in two segments, Hard and Soft phones� Hard phones are hardware-based and a VoIP enabled telephone set is used for communication

� Soft phones are software-based and resides on desktops, laptops, tablets, handhelds, mobile phones or other computer platforms

Market for product1 in India will cross z1 mn subscribers by

20-- with a CAGR of z2%

• Market for consumer VoIP was a1 subscribers in 20-- and it is expected to grow at a CAGR of a2% till 20--

� Product2 market will evolve to reach the mark of INR a3 tr by 20-- - --

• Also product3 market size will total INR a4 bn by 20--, with contribution of product4 of around INR a5 bn

� Key driver in product5 will be management of product6 in India by 20-- - --

• VoIP and product7 are becoming popular as they offer newer technologies at a predictable and considerable monthly cost

• VoIP in India is yet to gain wide-scale acceptance, but its future prospects are high and significant adoption is predicted in the next z3 years with introduction of tech1 and tech2 in India

Market Overview – India


Minutes of Usage – VoIP in India

YearlyQuarterly

192

161159

137120118

132132133133

112115121129

112102

89

0

250

500

750

1,000

1,250

1,500

1,750

50

100

150

200

Minutes mn (Yearly)Minutes mn (Quarterly)

Jun

’11

Mar

’11

1,613.7

154

Dec

’ 10

Sept

’10

Jun

’10

Mar

’10

1,002.6

123

Dec

’09

Sep

’09

Jun

’09

Mar

’09

509.2

Dec

’08

Sep

’08

Jun

’08

Mar

’08

478.0

Dec

’07

Sep

’07

Jun

’07

Mar

’07

347.4

Dec

’06

Porter’s Five Forces Analysis

Competitive Rivalry

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Threat of New Entrants


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Impact

High

Impact

Medium

Bargaining Power of Suppliers


Bargaining Power of Buyers


Impact

Medium

Impact

Medium

6

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VOIP MARKET IN INDIA 2012.PPT

Threat of Substitutes





Impact

High

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Scope in India - Potential Verticals (-/-)

Vertical1

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7

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Vertical2

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Vertical3


VoIP service providers can take advantage of aaa adoption trend, HD

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Vendor Opportunity (x/x)

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Drivers & Challenges – Summary

Drivers

Burgeoning Broadband Penetration

Availability of 3G Network

Cost Advantage Over Traditional

Calling Services

Challenges

Security Issues Associated with VoIP

Inconsistent Internet Services


Burgeoning PC Penetration

Rising Mobile Device Adoption and

Wireless Subscriber Base

Soaring Enterprise Demand

Increase in Disposable Income

Lack of Awareness

Low Smartphone & Tablet Penetration

Major Public Companies - Summary

1,000

1,500

2,000

2,500

3,000

Net Profit/Loss

Size of the Bubble represents Market Capitalization in INR bn


Note: All figures are in INR mn and are based on the latest financials available

-1,000

-500

0

500

-2,000 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 22,000 24,000 26,000

Total income

xxx yyy zzz

Public: Domestic Company – Company1 (-/-)

Company Information Offices and Centres – India

Corporate Address

Adress line1

Adress line2

City. Country

Tel No. +91- --- - -----

Fax No. ++91- --- - -----

Website www.------.com

Year of Incorporation 19--

Ticker Symbol ------

Jaipur

Head Office

11

Key People

Products and Services

Stock Exchange Exchange1

Category Products/Services

Category1 Product1, Product2, Product3

Category2 Product1, Product2, Product3

Name Designation

Mr. X Designation1

Mr. Y Designation2

Mr. Z Designation3

Head Office



Financial Snapshot Key Ratios

Financial Summary

• The company incurred a net profit of INR xxx mn in FY 2011,

Particulars y-o-y change

(2011-10)2011 2010 2009 2008

Profitability Ratios

Operating Margin -0.18 18.41% 18.59% 12.44% 11.35%

Net Margin 0.17 16.42% 16.26% 12.02% 8.63%

Profit Before Tax Margin 0.39 19.39% 19.01% 14.88% 11.53%

Return on Equity -0.61 27.43% 28.05% 28.52% 29.53%

Return on Capital Employed -0.49 30.75% 31.24% 26.40% 35.72%

Return on Working Capital 5.08 40.66% 35.58% 32.79% 59.62%

Return on Assets 0.48 17.95% 17.47% 14.98% 13.36%

Return on Fixed Assets -36.68 88.11% 124.79% 119.76% 108.85%

Cost Ratios

Operating costs (% of Sales) 0.20 81.39% 81.19% 87.21% 88.60%

Net Profit/LossTotal Income

0

INR mn

4

3

2

1

0

INR mn

4

3

2

2011

d

2010

c

2009

b

2008

a

12

Improved Decline


• The company incurred a net profit of INR xxx mn in FY 2011, as compared to net profit of INR xxx mn in FY 2010

• The company reported total income of INR zzz mn in FY 2011, as compared to total income of INR zzz mn in FY 2010

• The company earned an operating margin of 18.41 per cent in FY 2011, a decrease of 0.18 percentage points over FY 2010

• The company reported debt to equity ratio of 0.53 in FY 2011, a decrease of 12.75 per cent over FY 2010

Key Financial Performance Indicators

Indicators Value (08/02/2012)

Market Capitalization (INR mn)

Total Enterprise Value (INR mn)

EPS (INR)

PE Ratio (Absolute)

Operating costs (% of Sales) 0.20 81.39% 81.19% 87.21% 88.60%

Administration costs (% of

Sales)-0.97 9.35% 10.32% 10.78% 13.50%

Interest costs (% of Sales) -0.36 0.02% 0.38% 0.26% 0.10%

Liquidity Ratios

Current Ratio -3.57% 2.28 2.36 2.11 1.44

Cash Ratio -8.10% 0.82 0.89 0.63 0.42

Leverage Ratios

Debt to Equity Ratio -12.75% 0.53 0.61 0.90 1.21

Debt to Capital Ratio -100.00% 0.00 0.03 0.11 0.08

Interest Coverage Ratio 1742.04% 914.14 49.63 49.66 116.68

Efficiency Ratios

Fixed Asset Turnover -30.05% 5.31 7.59 9.69 12.55

Asset Turnover 1.79% 1.08 1.06 1.21 1.54

Current Asset Turnover 10.14% 1.37 1.25 1.39 2.10

Working Capital Turnover 13.22% 2.45 2.16 2.65 6.87

Capital Employed Turnover -3.10% 1.65 1.71 2.31 3.40


Key Business Segments Key Geographic Segments

0%

50%

100%

20-- 20-- 20--20--

0%

50%

100%

20-- 20--20--20--

Product1 Product2 Product3 India Outside India

13

Key Information

Description Details

Overview

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Extended Product

Portfolio

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Other VoIP Service Providers in India (-/-)

Company Name Corporate Address Contact No. Website

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bbbbbbbbbbbbbbbbbbbbb+91-80-12345678 www.---------.in






+91-80-12345678 www.---------.in



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Note: List is not exhaustiveNote: List is not exhaustive

Companies are coming up with feature1-based and

product2 solutions in India and abroad

Key Trends & Development (-/-)

Trends & Developments Description

Trend1

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Trend2




Trend3




Strategic Recommendations (-/-)



Strategic Recommendations1

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Strategic Recommendations2

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Appendix

Ratio Calculations

Operating Margin(Operating Income/Revenues)*100

Net Margin (Net Profit / Revenues) *100

Profit Before Tax Margin(Income Before Tax / Revenues *100

Return on Equity (ROE) (Net Income / Shareholders Equity)*100

EBIT / (Total Assets – Current

Ratio Calculations

Current RatioCurrent Assets / Current

Liabilities

Cash Ratio

{(Cash & Bank Balance +

Marketable Securities) / Current

Liabilities)}

Debt to Equity Total Liabilities / Shareholders

Equity

Debt to Capital Ratio{Total Debt / (Shareholders

Equity + Total Debt)}

SAMPLE

17

Return on Capital (ROCE) EBIT / (Total Assets – Current Liabilities)*100

Return on Working Capital(Net Income / Working Capital) *100

Return on Assets (Net Income / Total Assets)*100

Return on Fixed Assets (Net Income / Fixed Assets) *100

Operating Costs (% of Sales)(Operating Expenses / Sales) *100

Administration Costs (% of Sales)

(Administrative Expenses / Sales) *100

Interest Costs (% of Sales) (Interest Expenses / Sales) *100

Equity + Total Debt)}

Interest Coverage Ratio EBIT / Interest Expense

Fixed Asset Turnover Sales / Fixed Assets

Asset Turnover Sales / Total Assets

Current Asset Turnover Sales / Current Assets

Working Capital Turnover Sales / Working Capital

Capital Employed Turnover Sales / Shareholders Equity


Thank you for the attentionThe VoIP Market in India report is a part of Research on India’s Telecommunications Series. For more detailed information or customized research requirements please contact:

Kalyan BangaPhone: +91 33 4064 6215

E-Mail: [email protected]


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market research report : voip market in india 2012

Technology

market overview india

speciality1 voip

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indiaminutes of usage

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