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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
2. Executive Summary
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%
Market 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--
Drivers: Challenges:
Burgeoning Broadband Penetration Security Issues Associated with VoIP
Drivers & Availability of 3G Network Inconsistent Internet Services
Challenges Burgeoning PC Penetration Lack of Awareness
Rising Mobile Device Adoption and Low Smartphone & Tablet Penetration
Wireless Subscriber Base
Increase in Disposable Income
Trend1
Trends &
Developments Trend2
Development1
Major Players
Mahanagar Telephone Nigam Ltd. Sify Technologies Ltd. Tata Communications Ltd.
Competition
You Broadband & Cable India
Vonage Holdings Corporation Microsoft Skype
Ltd.
VOIP MARKET IN INDIA 2012.PPT 2
3. •Introduction
•Market Overview
•Scope in India
Vendor Opportunity
•Drivers & Challenges
•Major VoIP Service Providers
Other VoIP Service Providers in India
•Trends & Developments
•Strategic Recommendations
•Appendix
VOIP MARKET IN INDIA 2012.PPT 3
4. 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
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
VOIP MARKET IN INDIA 2012.PPT 4
5. Market for product1 in India will cross z1 mn subscribers by
20-- with a CAGR of z2%
Market Overview – India
• 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
Minutes of Usage – VoIP in India
Quarterly Yearly
Minutes mn (Quarterly) Minutes mn (Yearly)
200 192 1,750
159 161 154 1,500
150 137 1,250
129 133 133 132 132
112
121 115
112 118 120 123 1,000
102 1,613.7 750
100 89
1,002.6 500
347.4 478.0 509.2 250
50 0
Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sept Dec Mar Jun
’06 ’07 ’07 ’07 ’07 ’08 ’08 ’08 ’08 ’09 ’09 ’09 ’09 ’10 ’10 ’10 ’ 10 ’11 ’11
VOIP MARKET IN INDIA 2012.PPT 5
6. Porter’s Five Forces Analysis
Impact
Threat of New Entrants Medium
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Bargaining Power of Suppliers Competitive Rivalry Bargaining Power of Buyers
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Threat of Substitutes
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VOIP MARKET IN INDIA 2012.PPT 6
7. Scope in India - Potential Verticals (-/-)
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8. VoIP service providers can take advantage of aaa adoption trend, HD
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Vendor Opportunity (x/x)
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VOIP MARKET IN INDIA 2012.PPT 8
9. Drivers & Challenges – Summary
Drivers
Burgeoning Broadband Penetration
Challenges
Availability of 3G Network Security Issues Associated with VoIP
Cost Advantage Over Traditional
Inconsistent Internet Services
Calling Services
Burgeoning PC Penetration Lack of Awareness
Rising Mobile Device Adoption and
Wireless Subscriber Base Low Smartphone & Tablet Penetration
Soaring Enterprise Demand
Increase in Disposable Income
VOIP MARKET IN INDIA 2012.PPT 9
10. Major Public Companies - Summary
Net Profit/Loss
3,000
Size of the Bubble represents Market Capitalization in INR bn
2,500
2,000
1,500
1,000
500
0
-500
-1,000
-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
Note: All figures are in INR mn and are based on the latest financials available
VOIP MARKET IN INDIA 2012.PPT 10
11. Public: Domestic Company – Company1 (-/-)
Company Information Offices and Centres – India
Adress line1
Corporate Address Adress line2
City. Country
Tel No. +91- --- - -----
Jaipur
Fax No. ++91- --- - -----
Website www.------.com
Year of Incorporation 19--
Ticker Symbol ------
Stock Exchange Exchange1 Head Office
Products and Services
Category Products/Services
Key People
Category1 Product1, Product2, Product3
Name Designation
Category2 Product1, Product2, Product3 Mr. X Designation1
Mr. Y Designation2
Mr. Z Designation3
VOIP MARKET IN INDIA 2012.PPT 11
12. Public: Domestic Company – Company1 (-/-)
Financial Snapshot Key Ratios
Total Income Net Profit/Loss y-o-y change
Particulars 2011 2010 2009 2008
INR mn INR mn (2011-10)
4 d 4 Profitability Ratios
a c Operating Margin -0.18 18.41% 18.59% 12.44% 11.35%
b 3
3 Net Margin 0.17 16.42% 16.26% 12.02% 8.63%
2 Profit Before Tax Margin 0.39 19.39% 19.01% 14.88% 11.53%
2 Return on Equity -0.61 27.43% 28.05% 28.52% 29.53%
1
Return on Capital Employed -0.49 30.75% 31.24% 26.40% 35.72%
0 0
Return on Working Capital 5.08 40.66% 35.58% 32.79% 59.62%
2008 2009 2010 2011
Return on Assets 0.48 17.95% 17.47% 14.98% 13.36%
Return on Fixed Assets
Financial Summary -36.68 88.11% 124.79% 119.76% 108.85%
Cost Ratios
• The company incurred a net profit of INR xxx mn in FY 2011, Operating costs (% of Sales) 0.20 81.39% 81.19% 87.21% 88.60%
as compared to net profit of INR xxx mn in FY 2010 Administration costs (% of
-0.97 9.35% 10.32% 10.78% 13.50%
Sales)
• The company reported total income of INR zzz mn in FY 2011,
Interest costs (% of Sales) -0.36 0.02% 0.38% 0.26% 0.10%
as compared to total income of INR zzz mn in FY 2010
Liquidity Ratios
• The company earned an operating margin of 18.41 per cent in Current Ratio -3.57% 2.28 2.36 2.11 1.44
FY 2011, a decrease of 0.18 percentage points over FY 2010
Cash Ratio -8.10% 0.82 0.89 0.63 0.42
• The company reported debt to equity ratio of 0.53 in FY 2011, Leverage Ratios
a decrease of 12.75 per cent over FY 2010 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
Key Financial Performance Indicators Interest Coverage Ratio 1742.04% 914.14 49.63 49.66 116.68
Indicators Value (08/02/2012) Efficiency Ratios
Market Capitalization (INR mn) Fixed Asset Turnover -30.05% 5.31 7.59 9.69 12.55
Total Enterprise Value (INR mn) 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
EPS (INR)
Working Capital Turnover 13.22% 2.45 2.16 2.65 6.87
PE Ratio (Absolute) Capital Employed Turnover -3.10% 1.65 1.71 2.31 3.40
Improved Decline
VOIP MARKET IN INDIA 2012.PPT 12
13. Public: Domestic Company – Company1 (-/-)
Key Business Segments Key Geographic Segments
Product1 Product2 Product3 India Outside India
100% 100%
50% 50%
0% 0%
20-- 20-- 20-- 20-- 20-- 20-- 20-- 20--
Key Information
Description Details
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VOIP MARKET IN INDIA 2012.PPT 13
14. Other VoIP Service Providers in India (-/-)
Company Name Corporate Address Contact No. Website
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Note: List is not exhaustive
VOIP MARKET IN INDIA 2012.PPT 14
15. Companies are coming up with feature1-based and
product2 solutions in India and abroad
Key Trends & Development (-/-)
Trends & Developments Description
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VOIP MARKET IN INDIA 2012.PPT 15
16. Strategic Recommendations (-/-)
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Strategic Recommendations1
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VOIP MARKET IN INDIA 2012.PPT 16
17. Appendix
SAMPLE
Ratio Calculations Ratio Calculations
(Operating Current Assets / Current
Operating Margin Current Ratio
Income/Revenues)*100 Liabilities
Net Margin (Net Profit / Revenues) *100 {(Cash & Bank Balance +
Cash Ratio Marketable Securities) / Current
(Income Before Tax / Revenues Liabilities)}
Profit Before Tax Margin
*100
Total Liabilities / Shareholders
Debt to Equity
(Net Income / Shareholders Equity
Return on Equity (ROE)
Equity)*100
{Total Debt / (Shareholders
Debt to Capital Ratio
EBIT / (Total Assets – Current Equity + Total Debt)}
Return on Capital (ROCE)
Liabilities)*100
Interest Coverage Ratio EBIT / Interest Expense
(Net Income / Working Capital)
Return on Working Capital
*100
Fixed Asset Turnover Sales / Fixed Assets
Return on Assets (Net Income / Total Assets)*100
Asset Turnover Sales / Total Assets
Return on Fixed Assets (Net Income / Fixed Assets) *100
(Operating Expenses / Sales) Current Asset Turnover Sales / Current Assets
Operating Costs (% of Sales)
*100
Administration Costs (% of (Administrative Expenses / Sales) Working Capital Turnover Sales / Working Capital
Sales) *100
Interest Costs (% of Sales) (Interest Expenses / Sales) *100 Capital Employed Turnover Sales / Shareholders Equity
VOIP MARKET IN INDIA 2012.PPT 17
18. Thank you for the attention
The 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:
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VOIP MARKET IN INDIA 2012.PPT 18