Market Research Report : VoIp market in india 2014 - Sample

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VoIP Market – India July 2014

description

For the complete report, get in touch with us at : [email protected] Abstract: Netscribes latest market research report titled VoIP Market in India 2014 illuminates the dynamics in the internet telephony market. Voice over Internet Protocol, popularly known as VoIP, initially witnessed adoption among enterprise users with the objective to reduce communication cost, especially for long distance calls and audio conferences. As smaller companies began to look for business from other countries, the need was no longer restricted among big enterprises. Average Internet speed in India rose to 1.3 Mbps from 1 Mbps in 2012. Advancement in the field of broadband internet service and increased adoption of smartphones, tablets, and PCs led to embracement of VoIP services amongst general consumers. Security aspects of the VoIP has been one of the primary reasons why Indian regulatory bodies have not authorized unrestricted VoIP in the past, but Telecom Commission has given the green signal to VoIP under the National Telecom Policy 2012; this provides huge opportunity for the VoIP service providers in India. The Government is however looking to mandate the establishment of local servers with the aim of eliminating security breach or misuse of VoIP services. With Q4 2013 posting a 7% quarter to quarter growth of Internet telephony minutes of usage, the market prospect for VoIP services looks prosperous in the coming years. Coverage Overview of the VoIP service market in India and forecasted market size data in terms of usage over 2012 to 2018 VoIP Evolution in India over 1995 to 2013 Qualitative analysis of the major drivers and challenges affecting the market Analysis of the competitive landscape and detailed profiles of major public and private players Key recent developments associated to VoIP services in India Market opportunities through present scenario in the Indian market Table of Contents: Slide 1: Executive Summary Macroeconomic Indicators Slide 2: GDP at Factor Cost: Quarterly (2010-11 - 2013-14), Inflation Rate: Monthly (Jul 2013 - Dec 2013) Slide 3: Gross Fiscal Deficit: Monthly (Feb 2013 - Jul 2013), Exchange Rate: Half Yearly (Oct 2013 - Mar 2014) Slide 4: Lending Rate: Annual (2008-09 - 2011-12), Trade Balance: Annual (2010-11 - 2013-14), FDI: Annual (2009-10 - 2012-13) Introduction Slide 5-8: VoIP - Overview, Evolution of VoIP in India, Categories of VoIP Telephony Services, VoIP Delivery Setup Framework Market Overview Slide 9-11: Market Overview - Global, Market Overview - India, VoIP Usage by Key Sectors Drivers & Challenges Slide 12: Drivers and Challenges - Summary Slide 12-19: Drivers Slide 20-21: Challenges Competitive Landscape Slide 22: Porters Five Forces Analysis Slide 23-27: Competitive Benchmarking Slide 28-47: Major Public Players Slide 48-71: Major Private Players Recent Developments Slide 72-73: Key Recent Developments - VoIP in India

Transcript of Market Research Report : VoIp market in india 2014 - Sample

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VoIP Market – India

July 2014

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Executive Summary

Market Overview

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

Competitive Landscape

Key Players

Bharti Airtel Ltd. Mahanagar Telephone Nigam Ltd. Reliance Communications Ltd.

Tata Communications Ltd. Aircel Cellular Ltd. Microsoft Corporation India

Pvt Ltd.

Drivers:

Drivers & Challenges

Challenges:

Security Issues Associated with VoIP

Inconsistent Internet Services

Lack of Awareness

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

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•Macro Economic Indicators

•Introduction

•Market Overview

•Drivers and Challenges

•Competitive Landscape

•Recent Developments

•Market Opportunities

•Strategic Recommendations

•Appendix

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Economic Indicators (-/-)

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d1 c1

b1

a1

INR tn

Q4

c4

b4

a4

Q3

c3

b3

Q1

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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

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Sep 2013 - Oct 2013

s

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Introduction

Voice over Internet Protocol (VoIP) – Overview

VoIP or Internet Telephony is a term that refers to the collection of technologies that utilizes the packet-switched 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

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Key driver in segment1 is expected to be the aspect1 in the coming years

• 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

Market Overview – India

Internet Telephony – Usage

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20--

mn

20--

a3

20--

a2

a4

+y% a6

20--

a5

20--

a1

20--

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Drivers & Challenges – Summary

Drivers

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

Challenges

Security Issues Associated with VoIP

Inconsistent Internet Services

Lack of Awareness

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SAMPLE Porter’s Five Forces Analysis

Bargaining Power of Buyers • Text text text text text text text

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Impact High

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Impact Medium

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Impact Medium

Threat of Substitutes • Text text text text text text text

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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 (-/5)

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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

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Improved Decline

Net Profit/Loss Total Income

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

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SAMPLE Key Business Segments Key Geographic Segments

Business Highlights

Description News

Overview

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Extensive Product Portfolio

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0%

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2013

Construction and Engineering

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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

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u4

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INR mn INR mn

v2

2010

u1

v1

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

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

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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 text text text text text text text text text text text text

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Extensive Product Portfolio

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text text text text text text text text text text text text text text

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

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

T O

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Recent Developments – VoIP in India (-/-)

Development1

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Development2

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Development3

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VoIP Revenue Opportunity – Growth

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VoIP companies can leverage the wide opportunities created by factor1

Market Opportunities

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20--e 20--e 20--e 20--e 20--e 20--e

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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

Online Telecom & IT Magazines Magazines and Journals

Telecom Associations in India Leading Newspapers

Electronic Media Print Media

SECONDARY RESEARCH

PRIMARY RESEARCH

Interviews

Leading Industry Experts

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VOIP MARKET IN INDIA 2014.PPT