Market Research Report : Broadband internet in india 2014 - Sample

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


•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 (-/-)

11

12

13

14

15

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

5

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


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

6

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 Subscribers Base – Global

mn

+y%

20--

a6

20--

a5

20--

a4

20--

a3

20--

a2

20--

a1


Government Initiatives – Broadband Internet

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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



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Impact High

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Impact Medium

Bargaining Power of Suppliers • Text text text text text text text


Impact Medium

Threat of Substitutes • Text text text text text text text


Impact Low

Competitive Rivalry • Text text text text text text text text

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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


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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


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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

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2010

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INR bn INR bn

2013

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2012

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2011

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t2

Public: Domestic Company – Company 1 (2/4)


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SAMPLE Key Business Segments Key Geographic Segments

Business Highlights

Description News

Overview



Extensive Product Portfolio


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)


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SAMPLE Public: Domestic Company – Company 1 (4/4)

T O

W S


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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


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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)


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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


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


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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

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Extensive Product Portfolio





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SAMPLE Private: Domestic Company – Company 2 – SWOT Analysis (5/5)

T O

W S



Recent Developments – Broadband Internet in India (-/-)

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Development1


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Development2


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Development3

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Broadband Internet Opportunity – Addressable User Base


Growing number of internet-enabled mobile and consumer devices are creating significant opportunity for broadband

Market Opportunities (-/-)


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• text 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


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Strategic Recommendations (-/-)

•Companies need to focus on specific1 and specific2 early to leverage on specific3

Recommendation1 Recommendation2


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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)


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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


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