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For the complete report, get in touch with us at : [email protected] Voice over Internet Protocol or VoIP is economically viable alternative to traditional telephony. It enables calls enhanced with various features which make it attractive at affordable cost. Enterprises and small & medium enterprises are rapidly embracing the solution in India and around the world. Mobile VoIP services on various mobile platform and software-based IP telephony are capturing general consumers’ attention as well. With rising number of mobile devices and falling call charges of VoIP products and services, adoption of the same in India is expected to grow tremendously in the coming years. The report begins with ‘Introduction’ section covering overview regarding VoIP which provides basic idea of what is IP telephony, benefits of the technology and some key technical information. It also covers evolution of internet and VoIP in India. The ‘Market Overview’ section elaborates global & domestic market state of VoIP. It is accompanied by a plethora of statistical information regarding VoIP in global scenario as well as in India such as global & domestic VoIP market size, revenue generated from VoIP services and other related information. The section also elaborates VoIP telephony services categories, service delivery setup, business model and Porter’s Five Forces analysis for the market. It is followed by ‘Scope in India’ section which elaborates on salient features of VoIP recommendations as proposed to DoT, prevailing mandate by DoT, proposed revenue model for Phone-to-Phone through VoIP services, various scope areas and product verticals for VoIP in India. Specific product verticals have been highlighted with information regarding each of their market state and opportunity areas for VoIP. The section continues with Vendor Opportunity stressing on specific prospective areas for VoIP solutions. It also projects the state-wise broadband penetration scenario in India as in 2011. The report continues with ‘Drivers & Challenges’ section elaborating the major furtherance & impediments for VoIP products and services in India. Both the ‘drivers’ and ’challenges’ are equally stressed upon to provide clear idea regarding the probable obstacles and rewards in the line of business and help vendors take necessary measures. In the ‘Major VoIP Service Provider’ section the key VoIP companies are profiled. It provides information such as corporate & business highlights covering operational & recent information regarding each company’s contact information, location, key product and service offerings and key contacts. It also provides financial performance for a period of time including revenue and profit, key ratios, financial summary and key financial performance indicators. Key business segment and key geographic segment for each player are provided as well to provide further clear idea regarding the companies. Next the develo
Citation preview
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
3VOIP MARKET IN INDIA 2012.PPT
•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
4VOIP MARKET IN INDIA 2012.PPT
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
5VOIP MARKET IN INDIA 2012.PPT
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
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Bargaining Power of Suppliers
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Bargaining Power of Buyers
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Impact
Medium
Impact
Medium
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VOIP MARKET IN INDIA 2012.PPT
Threat of Substitutes
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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 MARKET IN INDIA 2012.PPT
VoIP service providers can take advantage of aaa adoption trend, HD
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Vendor Opportunity (x/x)
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8VOIP MARKET IN INDIA 2012.PPT
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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
9VOIP MARKET IN INDIA 2012.PPT
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
10VOIP MARKET IN INDIA 2012.PPT
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
VOIP MARKET IN INDIA 2012.PPT
Public: Domestic Company – Company1 (-/-)
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
VOIP MARKET IN INDIA 2012.PPT
• 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
Public: Domestic Company – Company1 (-/-)
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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VOIP MARKET IN INDIA 2012.PPT
Other VoIP Service Providers in India (-/-)
Company Name Corporate Address Contact No. Website
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Companyaaaaaaaaaaaaaaaaaaaaa
bbbbbbbbbbbbbbbbbbbbb+91-80-12345678 www.---------.in
Companyaaaaaaaaaaaaaaaaaaaaa
bbbbbbbbbbbbbbbbbbbbb+91-80-12345678 www.---------.in
Companyaaaaaaaaaaaaaaaaaaaaa
+91-80-12345678 www.---------.in
14VOIP MARKET IN INDIA 2012.PPT
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Companyaaaaaaaaaaaaaaaaaaaaa
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Companyaaaaaaaaaaaaaaaaaaaaa
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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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15VOIP MARKET IN INDIA 2012.PPT
Trend2
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Trend3
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Strategic Recommendations (-/-)
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Strategic Recommendations1
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Strategic Recommendations2
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VOIP MARKET IN INDIA 2012.PPT
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
VOIP MARKET IN INDIA 2012.PPT
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]
18VOIP MARKET IN INDIA 2012.PPT
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