Data Business: The India      PerspectiveRethinking the present in terms of              future        3rd October 2012
India: A country going Digital•   121 million internet users     –   10% Population penetration     –   38% Y-o-Y growth• ...
Data Revenues- Growth (Rs. Crores)            Potential                                              CAGR 33%             ...
India Telcos: Revenue Break Up – Voice &                Non-Voice                  Pyramid Research – Ernst & Young Analys...
India: Internet Connections by type (in                     Millions)Even while Mobile Broadband takes a Lion’ s share, PC...
The case for dongles• 55 million PCs in India (2012)    – BCG expects number of PCs in India      to reach 216 million by ...
Geographic distribution of users            While our Primary focus remains to be Metros,Tier A/B citiesInternet connectio...
The Potential in Rural Broadband• Geographic distribution of users is traditionally skewed  toward Tier I/II cities• Next ...
Geographic distribution of users• For penetrating Tier C and D towns, Telcos will need to rethink  last mile distribution ...
The Potential in Rural Broadband• Geographic distribution of users is traditionally skewed toward Tier I/II  cities• Next ...
Age distribution of Internet Users     Source- State of The Internet with focus on India (June 2011). Avendus estimates
Age distribution of Internet Users• Current positioning of Internet services based on  teens and early twenties, new profe...
Addressable market through FY 2017                         Total Mobile subscriptions growing                             ...
Consumer Segmentation – FY 2012Values provided are the INR Crore values for the respective segmentsValues in brackets refl...
Consumer segmentation – FY 2014Values provided are the INR Crore values for the respective segmentsValues in brackets refl...
Data Device market
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Data business - The Indian Context

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Data is the next big revenue driver for Indian Telcos. This presentation provides the perspective on business, consumers, demographics, segmentation and broadband data.

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Data business - The Indian Context

  1. 1. Data Business: The India PerspectiveRethinking the present in terms of future 3rd October 2012
  2. 2. India: A country going Digital• 121 million internet users – 10% Population penetration – 38% Y-o-Y growth• 39 million 3G subscriptions – 4% penetration – 841% Y-o-Y growth• Mobile Internet usage has surpassed Desktop Internet usage in India during April-May 2012• 28% of travel gets booked online; 117 million transactions on IRCTC alone• 47% of classifieds business is online• 7% of bank users access their accounts online• 25% of the IT returns filed online in 2010-11 Source: Kliener, Perkins, Claufield, Byers D10 Conference Internet world stats, Comscore
  3. 3. Data Revenues- Growth (Rs. Crores) Potential CAGR 33% CAGR 50% CAGR 41% Source: CNBC TV18, Network 18 LIME4 report
  4. 4. India Telcos: Revenue Break Up – Voice & Non-Voice Pyramid Research – Ernst & Young Analysis F-Forecast
  5. 5. India: Internet Connections by type (in Millions)Even while Mobile Broadband takes a Lion’ s share, PC broadband doubles up in the next 3 years Numbers represent the number of connections and not the number of Internet users Source: TRAI – Telecom Industry quarterly performance reports. Avendus Estimates
  6. 6. The case for dongles• 55 million PCs in India (2012) – BCG expects number of PCs in India to reach 216 million by 2015 – 4X increase expected in 4 years• PC broadband to reach 15.6% households by 2015 – 15 million broadband connections – 10 million DSL connections – 4 million CDMA dongles• PC Broadband to be driven by dongles and 4G broadband• Dongles business to grow by 100% in next 3 years Source: Avendus Estimates
  7. 7. Geographic distribution of users While our Primary focus remains to be Metros,Tier A/B citiesInternet connections and data quantum growth is expected from Tier C and D towns Source: IAMAI/ Cube Report 2011
  8. 8. The Potential in Rural Broadband• Geographic distribution of users is traditionally skewed toward Tier I/II cities• Next 100 million users will be driven by Tier III/IV towns – Already 30-40% of e-tailing industry sales is happening through Tier II/III towns• National Broadband plan 2010, envisages Internet in every village by 2014 – USO to fund roll outs – ITC e-choupal is building connectivity infrastructure across 40K villages across 10 states – Nokia Lifetools, provides weather updates through SMS to 17 million subscribers – eFarm creates a mobile enabled supply chain connecting farmers to the markets
  9. 9. Geographic distribution of users• For penetrating Tier C and D towns, Telcos will need to rethink last mile distribution issues.• Associating with Rural bodies such as IFFCO, e-Choupal, Taluks and agent system could be useful for making an entry at the low tier geographies – Would help keep the costs of entry down low• Association with Commodity exchanges and other relevant functional features which can be device bundled key to pick up of the same.
  10. 10. The Potential in Rural Broadband• Geographic distribution of users is traditionally skewed toward Tier I/II cities• Next 100 million users will be driven by Tier III/IV towns – Already 30-40% of e-tailing industry sales is happening through Tier II/III towns• National Broadband plan 2010, envisages Internet in every village by 2014 – USO to fund roll outs – ITC e-choupal is building connectivity infrastructure across 40K villages across 10 states – Nokia Lifetools, provides weather updates through SMS to 17 million subscribers – eFarm creates a mobile enabled supply chain connecting farmers to the markets
  11. 11. Age distribution of Internet Users Source- State of The Internet with focus on India (June 2011). Avendus estimates
  12. 12. Age distribution of Internet Users• Current positioning of Internet services based on teens and early twenties, new professionals is very relevant for the current.• But Telcos need to look at making the device and the positioning relevant to the 25-54 age groups as well.• Again the choice of devices and services that can be customized and bundled will be important differentiator.
  13. 13. Addressable market through FY 2017 Total Mobile subscriptions growing at 10% CAGR Internet Users growing at 39% CAGR Dial-up expected to de-grow at 3%, Wireline to grow at 14% CAGR Wireless Internet will lead internet growth Dongles to hit 50 mn by FY’17 Mobile data to drive growth in Internet All Values in Millions 13 Census, TRAI, Pyramid Research
  14. 14. Consumer Segmentation – FY 2012Values provided are the INR Crore values for the respective segmentsValues in brackets reflect the % of subscribers in that segment Source: DARE consumer survey
  15. 15. Consumer segmentation – FY 2014Values provided are the INR Crore values for the respective segmentsValues in brackets reflect the % of subscribers in that segment Source: DARE consumer survey
  16. 16. Data Device market
  17. 17. http://ronnie05.wordpress.com

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