Market Research Report : VoIp market in india 2014 - Sample by Netscribes, Inc.

VoIP Market â&#x20AC;&#x201C; India July 2014

Executive Summary

Market Overview

Drivers & Challenges

 The Indian VoIP market is currently valued at INR x1 mn and is expected to attain a CAGR of x2% to reach INR x3 mn by 20- Mobile VoIP market will evolve to reach the mark of INR x4 tn by 201- - 1 Primarily, factor1 is considered to be the most appropriate for the Indian VoIP market Drivers:

Challenges:

 Burgeoning Broadband Penetration  Rising Mobile Device & Service Adoption, and Availability of 3G Network  Cost Advantage Over Traditional Calling Services  Burgeoning PC Penetration  Soaring Enterprise Demand

 Security Issues Associated with VoIP  Inconsistent Internet Services  Lack of Awareness

Key Players

Competitive Landscape

Bharti Airtel Ltd.

Mahanagar Telephone Nigam Ltd.

Reliance Communications Ltd.

Tata Communications Ltd.

Aircel Cellular Ltd.

Microsoft Corporation India Pvt Ltd.

VOIP MARKET IN INDIA 2014.PPT

•Macro Economic Indicators •Introduction •Market Overview •Drivers and Challenges •Competitive Landscape •Recent Developments •Market Opportunities •Strategic Recommendations •Appendix VOIP MARKET IN INDIA 2014.PPT

Economic Indicators (-/-) GDP at Factor Cost: Quarterly INR tn 15

d1 c1 b1

c4 b4 a4

c3 b3 a3

d2 c2 b2 a2

11 Q1

Q2 2010-11

Q3 2011-12

2012-13

2013-14

Inflation Rate: Monthly %

2.0

1.5

s q

1.0

t r

0.5 0.0 Jun 2013 - Jul 2013

Jul 2013 - Aug 2013

Aug 2013 - Sep 2013

VOIP MARKET IN INDIA 2014.PPT

Sep 2013 - Oct 2013

Oct 2013 - Nov 2013 4

Introduction Voice over Internet Protocol (VoIP) – Overview VoIP or Internet Telephony is a term that refers to the collection of technologies that utilizes the packetswitched connections that are a part of the Internet to exchange voice data It uses the more efficient route of the Internet to transmit voice calls after breaking the data into numerous digital packets unlike Public Switched Telephone Network (PSTN) which uses a dedicated line This technology allows numerous users to send information over the same line, leading to more efficient utilization of the telecommunications infrastructure Due to its effective line capacity and use of the Internet, additional features such as call conferencing and roaming do not involve any extra charges for 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 connecting 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 reside on desktops, laptops, tablets, handhelds, mobile phones or other computer platforms VOIP MARKET IN INDIA 2014.PPT

Key driver in segment1 is expected to be the aspect1 in the coming years Market Overview – India • Market for consumer VoIP comprised around x1 mn subscribers in 20-- and it is expected to grow at a CAGR of x2% till 20- Mobile VoIP 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 around INR x5 bn • VoIP and segment3 are becoming popular as they offer feature1 at a predictable and considerable aspect1 • VoIP 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 VoIP service providers to follow mandate1 for purpose1 in India

Internet Telephony – Usage mn a6

+y% a1

20--

VOIP MARKET IN INDIA 2014.PPT

20--

20-6

Drivers & Challenges â&#x20AC;&#x201C; Summary

Drivers Challenges Burgeoning Broadband Penetration Security Issues Associated with VoIP Rising Mobile Device & Service Adoption, and Availability of 3G Network

Cost Advantage Over Traditional Calling Services

Inconsistent Internet Services Lack of Awareness

Burgeoning PC Penetration Soaring Enterprise Demand

VOIP MARKET IN INDIA 2014.PPT

Porter’s Five Forces Analysis

SAMPLE

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

Impact Medium 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

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

VOIP MARKET IN INDIA 2014.PPT

Impact High 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 Low

Competitive Benchmarking (-/5) Key Ratios of Top 4 Companies – Operational Basis (FY 2013) (1/3)

Operating Margin

SAMPLE Net Margin d1

c1 c2

a1 a2

0 company1

company2

company3

company4

• 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

VOIP MARKET IN INDIA 2014.PPT

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

SAMPLE Offices and Centres – India

Corporate Address Tel No. Fax No. Website Year of Incorporation

Ticker Symbol Stock Exchange

Head Office

Products and Services Category Sectors (EPC)

Products/Services

Key People Name

VOIP MARKET IN INDIA 2014.PPT

Designation

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

SAMPLE

Financial Snapshot

Key Ratios

Total Income

Net Profit/Loss

Particulars

INR bn

INR bn s1

s2 t2

s4 s3 t3 t4

0 2010

2011

2012

2013

Financial Summary

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 • 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

Market Capitalization (INR mn) Total Enterprise Value (INR mn) EPS (INR) PE Ratio (Absolute)

Liquidity Ratios Current Ratio Cash Ratio

Leverage Ratios Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio

Key Financial Performance Indicators Indicators

Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)

Value (17/01/2014)

Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover Improved

VOIP MARKET IN INDIA 2014.PPT

Decline

Public: Domestic Company – Company 1 (3/4)

SAMPLE

Key Business Segments

Key Geographic Segments

Construction and Engineering

India

2010

2011

2012

2013

g1 0%

0% 2013

Overseas

Business Highlights

Description

News • Text text text text text text text text text text text text text text text text text text text text text text text

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

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

VOIP MARKET IN INDIA 2014.PPT

SAMPLE

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

VOIP MARKET IN INDIA 2014.PPT

SAMPLE

Private: Domestic Company – Company 2 (1/5) Company Information

Offices and Centres – India

Corporate Address

Tel No. Fax No. Website Ahmedabad

Year of Incorporation

Head Office Products and Services Category Products

Products/Services

Key People Name

VOIP MARKET IN INDIA 2014.PPT

Designation

SAMPLE

Private: Domestic Company â&#x20AC;&#x201C; Company 2 (2/5) Shareholders of the Company as on 28.09.2012

Name

Ownership Structure

No. of Shares held

Corporate Bodies

Foreign holdings

X X

30% Total

70%

VOIP MARKET IN INDIA 2014.PPT

SAMPLE

Private: Domestic Company – Company 2 (3/5) Financial Snapshot

Key Ratios

Total Income

Particulars

Net Profit/Loss

INR mn

INR mn u4 u2 u1

u3 v3

2010

2011

2012

2013

Financial Summary

2011

2010

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

• The company reported total income of INR - mn in FY 2013, registering an increase of -% over FY 2012

Leverage Ratios

• The company reported debt to equity ratio of - in FY 2013, a decrease of -% over FY 2012

2012

Profitability Ratios

• 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 earned an operating margin of -% in FY 2013, an increase of - percentage points over FY 2012

y-o-y change 2013 (2013-12)

Current Ratio Cash Ratio 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

VOIP MARKET IN INDIA 2014.PPT

Decline

SAMPLE

Private: Domestic Company – Company 2 (4/5) Business Highlights

Description

News • Text text text text text text text text text text text text text text text text text text text text text text text

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

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

VOIP MARKET IN INDIA 2014.PPT

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

SAMPLE

VOIP MARKET IN INDIA 2014.PPT

Recent Developments – VoIP in India (-/-)

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

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

Development3

• text text text text text text text text text text text text text text text text

VOIP MARKET IN INDIA 2014.PPT

VoIP companies can leverage the wide opportunities created by factor1 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

VoIP Revenue Opportunity – Growth INR mn +X1%

20--e

Strategic Recommendations (-/-) â&#x20AC;˘Companies need to focus on specific1 and specific2 early to leverage on specific3

Recommendation1

Recommendation2

VOIP MARKET IN INDIA 2014.PPT

Appendix Ratio

Calculations

Ratio

Calculations

Operating Margin

(Operating Income/Revenues)*100

Current Ratio

Current Assets / Current Liabilities

Net Margin

(Net Profit / Revenues) *100

Cash Ratio

Profit Before Tax Margin

(Income Before Tax / Revenues *100

{(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

Return on Equity (ROE) Return on Capital (ROCE) Return on Working Capital

(Net Income / Shareholders Equity)*100 EBIT / (Total Assets â&#x20AC;&#x201C; Current Liabilities)*100 (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

Current Asset Turnover

Sales / Current Assets

Administration Costs (% of Sales)

(Administrative Expenses / Sales) *100

Working Capital Turnover

Sales / Working Capital

Interest Costs (% of Sales)

(Interest Expenses / Sales) *100

Capital Employed Turnover

Sales / (Shareholders Equity + Total Debt)

VOIP MARKET IN INDIA 2014.PPT

Sources of Information

PRIMARY RESEARCH Interviews Leading Industry Experts

SECONDARY RESEARCH Print Media

Electronic Media

Leading Newspapers

Telecom Associations in India

Magazines and Journals

Online Telecom & IT Magazines

Annual Reports of Companies

Company Websites Premium Databases Open Sources

VOIP MARKET IN INDIA 2014.PPT

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VOIP MARKET IN INDIA 2014.PPT