Voip Market India Sample 091118011943 Phpapp02

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VoIP Market - India

August 2009


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2VoIP MARKET INDIA.PPT

SAMPLE

Executive Summary

Market

Regulations in

India

Factors

affecting

growth

Competition

Legal VoIP service providers generated revenues worth INR x mn till March 2009

ILD outgoing calls accounted for x bn minutes in 2009 from wireless phones alone

Internet Telephony MoU account to less than xth of the ILD outgoing calls

The Department of Telecom (DoT) recently gave green signal to Internet telephony within the

country, but the guidelines are yet to be notified

An entry fee of INR x mn has been proposed by DoT for the Internet Service Providers (ISPs)

wanting to offer VoIP based telephony services on a pan-India basis

ISPs that obtain a license for VoIP based services within the country might be asked to share 9% of

their annual service revenues with the government

Low-cost call-rates are the biggest driver of VoIP services

High speed & good connectivity Internet are a prerequisite

Increasing Internet subscriber base offers immense growth potential

Low spending power of an average Indian make the initial infrastructure unaffordable

Developing nature of the country promotes cross border businesses

Since 20--, when DoT opened up the Indian market to Internet Telephony, X VoIP licences have

been issued; only Y licence holders are reporting Internet Telephony Services

The under-development of legal Internet Telephony services in India has led to unlicensed service

providers exploiting the large consumer base


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IntroductionRegulations on VoIP in India

Market Overview

Factors affecting growth

Competition

Appendix


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SAMPLE

VoIP uses the Internet to transmit voice, which has its

advantages as well as disadvantages

Internet Telephony or VoIP (Voice-over Internet

Protocol) is a term for the technologies that use the

Internet Protocol's packet-switched connections to

exchange voice

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 moreefficient utilization of the telecommunications

infrastructure

--

--

--

Introduction Connectivity through the Internet Cloud

Internet

Cloud

Internet

Cloud

Computer IP Phone

Fixed PhoneMobile Phone


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SA

MPLE

Current call-rates in India promote intra-nation

calling but act as a barrier to International Long

Distance (ILD) calling

Still, ILD outgoing calls accounted for Z bn minutes in

20-- from wireless phones alone, witnessing a x%

growth between 2007-2009

Inspite of the fact that VoIP offers low cost ILD

service, Minutes of Usage (MoU) account to less than

xth of the ILD outgoing calls

These figures indicate the impact of governmentregulation on the VoIP services market in India but

also exemplify its future prospects once the market is

opened up

At the end of March 20--, ISPs reporting the services,

generated INR x mn worth revenues from Internet

Telephony

The reported MoU have

Grown x% year-on-year between 2007-2009

Increased considerably ever since the recommendations

by TRAI were published in August, 2008

Overview

* Approximate figures

Source: DoT, TRAI, ISPAI

VoIP market in India is yet to take-off, although numbers

indicate immense growth potential

VoIP - Minutes of Usage (MoU)

150

300

450

600

50

100

150

Mar

08

i

Jun

08

j

Sep

08

k

Dec

08

l

Z

Mar

09

Quarterly

Yearly

In mn

a

Jun

06

b

Sep

06

c

Dec

06

d

X

Mar

07

e

Jun

07

f

Sep

07

g

Dec

07

h

Y

In mn

0

2,000

4,000

6,000

X

2007

Y

In mn

2008

Z

2009

x%

ILD Outgoing Calls MoU (Wireless only)*


6/86VoIP MARKET INDIA.PPT

High speed & good connectivity Internet

are a prerequisite Increasing Internet subscriber base offers

immense growth potential

India has more than 400 mn telecom

subscribers

Low spending power of an average

Indian make the initial infrastructure

unaffordable

Target group ranges from large MNCs to

SMEs Developing nature of the country

promotes cross border businesses

Low call-rates

Internet penetration

End user segment - Consumer

End user segment - Enterprise

Factors

affectinggrowth

Low-cost call-rates are the biggest driver

of VoIP services

PSTN call-rates expected to be slashed by

atleast 50% with advent of unrestricted

VoIP services

Factors affecting growth



SA

MPLE

Giants like Bharti

and Reliance have

not yet forayed

into providing

VoIP-based services

Since 20--, when DoT opened up the Indian market to Internet

Telephony, x* VoIP licences have been issued

The VoIP licences saw a drastic increase in 20-- in the wake of

TRAIs recommendations for unrestricted Internet Telephony

Only x licence holders are reporting Internet Telephony

Services (see appendix), as of March 20--

At present all telecom operators (offering wireline and

wireless services) have the licence to provide unrestricted

Internet Telephony in India

But, even after lapse of approximately e years, these services

have not been started by the operators

--

--

--

Competition

* As of 31st January, 2009

Source: DoT, TRAI, ISPAI

VoIP market in India is currently fragmented, but is expected to

be organized once the ISPs are allowed unrestricted services

Year-wise addition of VoIP Licenses

Company 3

w%

Company 4

u%

Company 5

3%

Company 6

v% Company 7

t%

Company 8

s%

Company 9

k%

Company 10

x%

Company 1

y%

Company 2

z%

Market Share of major ISPs

0

50

100

150

200

a

2002

b

2003

c

2004

d

2005

e

2006

f

2007

g

2008

1

X

h

2009*

Additions

Total

Internet Telephony is

provided by ISPs holding

a cumulative of more

than three-fourth of the

market share



Thank you for the attention

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