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For the complete report, get in touch with us at: info@netscribes.com Abstract: Netscribes latest market research report titled Broadband Internet in India 2014 illuminates the dynamics in the domestic broadband market. India houses a huge population and a significant portion of that population use internet for entertainment and productivity. Entertainment usage largely consists of social networking, web media access such as music and videos, online games, downloading via file sharing sites, and peer-to-peer (P2P) and communication. On the other hand productivity usage includes data mining, cloud computing services, Voice-over-IP (VoIP), video conferencing, enterprise mobility to name few. With growing heavy and feature rich web-based activities, dial-up and equivalent internet services are becoming obsolete and the need for broadband internet is rising immensely. Consumption of mobile devices such as smartphones and Tablets, and Internet-of-things is enhancing Internet usage in India and creating wider opportunity for Broadband services. Broadband internet in India is at the threshold to witness significant adoption not only in urban areas but also in sub-urban and rural areas. Coverage Overview of the broadband Internetmarket in Indiaand forecasted market size data in terms of subscriber baseover 2013 to 2018 Market share of broadband Internet adoption by technology, service provider, and state in Indiain 2013 Qualitative analysis of the major drivers and challenges affecting the market Analysis of the competitive landscape and detailed profiles of major public and private players Key recent developments associated to broadbandInternet services in India Market opportunities through present scenario in the Indian market Table of Contents:
Citation preview
Broadband Internet – India
August 2014
2 BROADBAND INTERNET IN INDIA 2014.PPT
Executive Summary
Drivers:
Market Overview
Drivers & Challenges
Competitive Landscape
Broadband internet market size in India in terms of volume or subscriber base was x1 mn in month1 20-- and x2 mn in month2 20--
Globally broadband internet market size in terms of volume was around x3 bn in 20--, with a x4% Y-o-Y growth from nearly x5 bn total subscribers in 20--
Average internet speed in India was around x6 Mbps as of month3 20-- which was significantly lower than other countries such as country1, country2, and country3 amongst others
Challenges:
Key Players
Bharti Airtel Ltd. Idea Cellular Ltd. Reliance Communications Ltd.
Bharat Sanchar Nigam Ltd. Tata Teleservices Ltd. Vodafone India Ltd.
Weak Broadband Coverage and Infrastructure in Rural Areas
Service Inconsistency
Lack of Regional Language Support
Affordability of Next Generation Mobile Networks
Burgeoning PC Penetration and Wireless Subscriber Base
Increase in Disposable Income
Soaring Demand in Enterprises
Increasing Demand for Rich Web Contents and Social Networking
Affordability of Broadband Services
Changing Demographics and Consumer Behaviour
3 BROADBAND INTERNET IN INDIA 2014.PPT
•Macro Economic Indicators
•Introduction
•Market Overview
•Government Initiatives
•Drivers and Challenges
•Competitive Landscape
•Recent Developments
•Market Opportunities
•Consumer Insights
•Strategic Recommendations
•Appendix
4
Economic Indicators (-/-)
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12
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14
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d1 c1
b1
a1
INR tn
Q4
c4
b4
a4
Q3
c3
b3
Q1
a2 b2
a3
Q2
d2 c2
2013-14 2012-13 2011-12 2010-11
GDP at Factor Cost: Quarterly
Inflation Rate: Monthly
0.0
0.5
1.0
1.5
2.0
%
Aug 2013 - Sep 2013
r
Jul 2013 - Aug 2013
q
Jun 2013 - Jul 2013
p
Oct 2013 - Nov 2013
t
Sep 2013 - Oct 2013
s
BROADBAND INTERNET IN INDIA 2014.PPT
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Introduction
Broadband Internet – Overview
Broadband is the general expression for high bandwidth internet connection capable of more than 256 Kbps of speed
Broadband was first launched in UK in 2000 providing a complete different experience to Internet, coming from dial-up internet connections that typically operated on 56 Kbps modems
Broadband internet speed in other countries such as UK, US, China, Korea and others, are a lot higher than the defined lower limit, going all the way up to 14 Mbps on the average
Broadband internet has opened new avenues for entertainment, education, productivity and communication
BROADBAND INTERNET IN INDIA 2014.PPT
Major Internet Access Technologies
Technology Description
Internet via Phone Line Internet access via 56 Kbps modems connected to fixed phone using public switched telephone network (PSTN)
Internet via LAN (Local Area Network) Internet served via Ethernet cable using LAN by individual ISPs in the area
Internet Over Cable TV Line Cable TV service providers providing Internet via the same line
Wireless Internet served via wireless frequency channels by various ISPs
Mobile Internet Mobile data access via cellular networks using 2G, 3G and 4G technology
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Country1 and Country2 are in the leading position in both fixed and wireless broadband adoption globally
• Market for broadband Internet comprised around x1 mn subscribers in 20-- and it is expected to grow at a CAGR of x2% till 20--
Segment3 broadband Internet market will evolve to reach the mark of INR x3 tn by 20-- - 20--
• Also segment1 market size is expected to be worth INR x4 bn by 20--, with contribution of segment2 of ~INR x5 bn
• Broadband Internet and segment3 are becoming popular as they offer feature1 at a predictable and considerable aspect1
• Broadband Internet in India is yet to gain wide-scale acceptance, but its future prospects are high and significant adoption is predicted over the next 5 years with the introduction of technology1 and technology2 in India
• Government of India has mandated for all the broadband Internet service providers to follow mandate1 for purpose1 in India
Market Overview (-/-)
BROADBAND INTERNET IN INDIA 2014.PPT
Broadband Subscribers Base – Global
mn
+y%
20--
a6
20--
a5
20--
a4
20--
a3
20--
a2
20--
a1
7 BROADBAND INTERNET IN INDIA 2014.PPT
Government Initiatives – Broadband Internet
• Text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
• Text text text text text text text text text text text text text text text text text text text text text text text text textText text text text text text text text text text text text text text text text text text text text text text text text text
• Text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
• Text text text text text text text text text text text text text text text text text text text text text text text text textText text text text text text text text text text text text text text text text text text text text text text text Text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
• Text text text text text text text text text text text text text text text text text text text text text text text text textText text text text text text text text text text text text text text text text text text text text text text text
Past Initiatives
National Broadband Plan
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Drivers & Challenges – Summary
Drivers
Burgeoning PC Penetration and Wireless Subscriber Base
Increase in Disposable Income
Soaring Demand in Enterprises
Increasing Demand for Rich Web Contents and Social Networking
Affordability of Broadband Services
Changing Demographics and Consumer Behaviour
Challenges
Weak Broadband Coverage and Infrastructure in Rural Areas
Service Inconsistency
Lack of Regional Language Support
Affordability of Next Generation Mobile Networks
BROADBAND INTERNET IN INDIA 2014.PPT
9 BROADBAND INTERNET IN INDIA 2014.PPT
SAMPLE Porter’s Five Forces Analysis
Bargaining Power of Buyers • Text text text text text text text
text text text text text text text text text text text text text text text text text text
Impact High
Threat of New Entrants • Text text text text text text text
text text text text text text text text text text text text text text text text text text
Impact Medium
Bargaining Power of Suppliers • Text text text text text text text
text text text text text text text text text text text text text text text text text text
Impact Medium
Threat of Substitutes • Text text text text text text text
text text text text text text text text text text text text text text text text text text
Impact Low
Competitive Rivalry • Text text text text text text text text
text text text text text text text text text text text text text text text text text text text text text text text text text
Impact Medium
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SAMPLE Key Ratios of Top 4 Companies – Operational Basis (FY 2013) (1/3)
Competitive Benchmarking (-/-)
0
%
company4
d2
d1
company3
c2
c1
company2
b2
b1
company1
a2
a1
Net Margin Operating Margin
• Company1 recorded operating margin of -%, higher than that of company2, company3 and company4 which recorded operating margin of -%, - and -% respectively
• Thermax however recorded the highest net margin of -% higher than that of Ion Exchange, SPML and Va Tech Wabag which recorded net margins of -%, -% and -% respectively
BROADBAND INTERNET IN INDIA 2014.PPT
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SAMPLE Public: Domestic Company – Company 1 (1/4)
Key People
Products and Services
Company Information Offices and Centres – India
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Ticker Symbol
Stock Exchange
Category Products/Services
Sectors (EPC)
Name Designation
Head Office
BROADBAND INTERNET IN INDIA 2014.PPT
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SAMPLE Financial Snapshot Key Ratios
Financial Summary
• The company incurred a net loss of INR - bn in FY 2013, as compared to net profit of INR - bn in FY 2012
• The company reported total income of INR - bn in FY 2013, registering a decrease of -% over FY 2012
• The company earned an operating margin of -% in FY 2013, a decrease of - percentage points over FY 2012
• The company reported debt to equity ratio of - in FY 2013, an increase of -% over FY 2012
Key Financial Performance Indicators
Indicators Value (17/01/2014) Market Capitalization (INR mn)
Total Enterprise Value (INR mn)
EPS (INR)
PE Ratio (Absolute)
Particulars y-o-y change
(2013-12) 2013 2012 2011 2010
Profitability Ratios Operating Margin
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed
Return on Working Capital
Return on Assets
Return on Fixed Assets
Cost Ratios Operating costs (% of Sales)
Administration costs (% of Sales)
Interest costs (% of Sales)
Liquidity Ratios Current Ratio
Cash Ratio
Leverage Ratios Debt to Equity Ratio
Debt to Capital Ratio
Interest Coverage Ratio
Efficiency Ratios Fixed Asset Turnover
Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover
Improved Decline
Net Profit/Loss Total Income
0
2010
s1
t1
INR bn INR bn
2013
t4
s4
2012
s3
t3
2011
s2
t2
Public: Domestic Company – Company 1 (2/4)
BROADBAND INTERNET IN INDIA 2014.PPT
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SAMPLE Key Business Segments Key Geographic Segments
Business Highlights
Description News
Overview
• Text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
• Text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
Extensive Product Portfolio
• Text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
0%
g1
2013
Construction and Engineering
0%
2013
f4
e4
2012
f3
e3
2011
f2
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2010
f1
e1
Overseas India
Public: Domestic Company – Company 1 (3/4)
BROADBAND INTERNET IN INDIA 2014.PPT
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SAMPLE Public: Domestic Company – Company 1 (4/4)
T O
W S
BROADBAND INTERNET IN INDIA 2014.PPT
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SAMPLE Private: Domestic Company – Company 2 (1/5)
Key People
Products and Services
Company Information Offices and Centres – India
Category Products/Services
Products
Name Designation
Ahmedabad
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Head Office
BROADBAND INTERNET IN INDIA 2014.PPT
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SAMPLE Shareholders of the Company as on 28.09.2012 Ownership Structure
Name No. of Shares held
X
X
Total
30%
70%
Corporate Bodies Foreign holdings
Private: Domestic Company – Company 2 (2/5)
BROADBAND INTERNET IN INDIA 2014.PPT
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SAMPLE Financial Snapshot Key Ratios
Improved Decline
Financial Summary
• The company earned a net profit of INR - mn in FY 2013, as
compared to net loss of INR - mn in FY 2012
• The company reported total income of INR - mn in FY 2013,
registering an increase of -% over FY 2012
• The company earned an operating margin of -% in FY 2013, an
increase of - percentage points over FY 2012
• The company reported debt to equity ratio of - in FY 2013, a
decrease of -% over FY 2012
Net Profit/Loss Total Income
0 v3
u3
2011 2013
v4
u4
2012
INR mn INR mn
v2
2010
u1
v1
u2
Private: Domestic Company – Company 2 (3/5)
Particulars y-o-y change
(2013-12) 2013 2012 2011 2010
Profitability Ratios Operating Margin
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed
Return on Working Capital
Return on Assets
Return on Fixed Assets
Cost Ratios Operating costs (% of Sales)
Administration costs (% of Sales)
Interest costs (% of Sales)
Liquidity Ratios Current Ratio
Cash Ratio
Leverage Ratios Debt to Equity Ratio
Debt to Capital Ratio
Interest Coverage Ratio
Efficiency Ratios Fixed Asset Turnover
Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover
BROADBAND INTERNET IN INDIA 2014.PPT
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SAMPLE Business Highlights
Description News
Overview
• Text text text text text text text text text text text text text text text text text text text text text text text
text text text text text text text text text text text text text text
• Text text text text text text text text text text text text text text text text text text text text text text text
text text text text text text text text text text text text text text
Extensive Product Portfolio
• Text text text text text text text text text text text text text text text text text text text text text text text
text text text text text text text text text text text text text text
Private: Domestic Company – Company 2 (4/5)
BROADBAND INTERNET IN INDIA 2014.PPT
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SAMPLE Private: Domestic Company – Company 2 – SWOT Analysis (5/5)
T O
W S
BROADBAND INTERNET IN INDIA 2014.PPT
20 BROADBAND INTERNET IN INDIA 2014.PPT
Recent Developments – Broadband Internet in India (-/-)
• text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
• text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
Development1
• text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
• text text text text text text text text text text text text text text text text
• text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
• Text text text text text text text text text text text text text text text text text text text text text text text text text text text text
Development2
• text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
• text text text text text text text text text text text text text text text text
• text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
• Text text text text text text text text text text text text text text text text text text text text text
Development3
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Broadband Internet Opportunity – Addressable User Base
BROADBAND INTERNET IN INDIA 2014.PPT
Growing number of internet-enabled mobile and consumer devices are creating significant opportunity for broadband
Market Opportunities (-/-)
• text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
• text text text text text text text text text text text text text text text text text text text text text text text text text
• text text text text text text text text text text text text text text text text text text text text text text text text text text text text text text
• text text text text text text text text text text text text text text text text text text text text text text text text text
20--e 20--e 20--e 20--e
+X1%
20--e
INR mn
20--e
22
Consumer Insights – Mobile Internet Usage Survey (-/-)
Present Broadband Speed
Survey on Broadband Usage & Preference – Introduction & Methodology
Sample Size x1
Sample Sources Social Media Websites and
Technology Forums
Survey Duration May 2014 to Jun 2014
Quantitative Representation Used
Percentage
Response Options:
1) R1
2) R2
3) R3
4) R4
Q: What broadband speed do you use?
• Survey on broadband usage & preference was conducted on multiple social media sites
• Overall survey has been kept close ended to capture common areas of user interest
• The survey has been conducted amongst a small group of people belonging to home users, gamers, technology & other professionals
0
20
40
60
80
R3 R2 R1 R4
BROADBAND INTERNET IN INDIA 2014.PPT
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Strategic Recommendations (-/-)
•Companies need to focus on specific1 and specific2 early to leverage on specific3
Recommendation1 Recommendation2
BROADBAND INTERNET IN INDIA 2014.PPT
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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
Return on Capital (ROCE) EBIT / (Total Assets – Current Liabilities)*100
Return on Working Capital (EBIT / Working Capital) *100
Return on Assets (EBIT / Total Assets)*100
Return on Fixed Assets (EBIT / 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
Ratio Calculations
Current Ratio Current 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)}
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 + Total Debt)
BROADBAND INTERNET IN INDIA 2014.PPT
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Sources of Information
Open Sources
Premium Databases
Company Websites Annual Reports of Companies
Telecommunication & Technology Magazines Magazines and Journals
Regulatory Websites Leading Newspapers
Electronic Media Print Media
SECONDARY RESEARCH
PRIMARY RESEARCH
Interviews
Leading Industry Experts
BROADBAND INTERNET IN INDIA 2014.PPT
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Thank you for the attention Broadband Internet – India 2014 report is a part of Netscribes’ Technology Series. For more detailed information or customized research requirements please contact:
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BROADBAND INTERNET IN INDIA 2014.PPT
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