VoIP Market - India - Sample


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VoIP in India is yet to gain acceptance in India, but possesses great future prospects. Low call-rates as compared to conventional telephony and increasing Internet penetration are set to drive growth of the VoIP-based services in India. The market is expected to change the dynamics of the Indian telecom industry once the necessary regulatory changes are in place.

The report provides a brief introduction to VoIP services, talking about its business and revenue models. The report touches upon the regulations on VoIP services in India, TRAI’s recent proposal and talks about DoT’s current stance for opening up the market. The report describes the current market conditions and its future potential. Low call-rates, Internet penetration, and end-user segments have been discussed at length.

The competitive landscape identifies the services provided by the licensed service providers in the country and also talks about the grey market and government’s stance for the same.

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VoIP Market - India - Sample

  1. 1. VoIP Market - India August 2009
  2. 2. Executive Summary Legal VoIP service providers generated revenues worth INR x mn till March 2009 Market ILD outgoing calls accounted for x bn minutes in 2009 from wireless phones alone Internet Telephony MoU account to less than xth of the ILD outgoing calls LE The Department of Telecom (DoT) recently gave green signal to Internet telephony within the country, but the guidelines are yet to be notified Regulations in India MP An entry fee of INR x mn has been proposed by DoT for the Internet Service Providers (ISPs) wanting to offer VoIP based telephony services on a pan-India basis Factors A ISPs that obtain a license for VoIP based services within the country might be asked to share 9% of S their annual service revenues with the government Low-cost call-rates are the biggest driver of VoIP services High speed & good connectivity Internet are a prerequisite affecting Increasing Internet subscriber base offers immense growth potential growth Low spending power of an average Indian make the initial infrastructure unaffordable Developing nature of the country promotes cross border businesses Since 20--, when DoT opened up the Indian market to Internet Telephony, X VoIP licences have been issued; only Y licence holders are reporting Internet Telephony Services Competition The under-development of legal Internet Telephony services in India has led to unlicensed service providers exploiting the large consumer base VoIP MARKET – INDIA.PPT 2
  3. 3. •Introduction •Regulations on VoIP in India •Market Overview •Factors affecting growth •Competition •Appendix VoIP MARKET – INDIA.PPT 3
  4. 4. VoIP uses the Internet to transmit voice, which has its advantages as well as disadvantages Introduction Connectivity through the Internet Cloud • Internet Telephony or VoIP (Voice-over Internet Protocol) is a term for the technologies that use the Computer IP Phone Internet Protocol's packet-switched connections to LE exchange voice • It uses the more efficient route of Internet to MP transmit voice after breaking them into numerous digital packets unlike Public Switched Telephone A Network (PSTN) which use a dedicated line S • This technology allows numerous users to send information over the same line, providing a more efficient utilization of the telecommunications infrastructure Internet Internet Cloud Cloud • -- • -- Mobile Phone Fixed Phone • -- VoIP MARKET – INDIA.PPT 4
  5. 5. VoIP market in India is yet to take-off, although numbers indicate immense growth potential Overview ILD Outgoing Calls MoU (Wireless only)* • Current call-rates in India promote intra-nation In mn calling but act as a barrier to International Long 6,000 Z Distance (ILD) calling x% LE • Still, ILD outgoing calls accounted for Z bn minutes in 4,000 Y 20-- from wireless phones alone, witnessing a x% P X growth between 2007-2009 2,000 xth of the ILD outgoing calls SAM • Inspite of the fact that VoIP offers low cost ILD service, Minutes of Usage (MoU) account to less than • These figures indicate the impact of government 0 2007 VoIP - Minutes of Usage (MoU) In mn 2008 2009 In mn regulation on the VoIP services market in India but Quarterly also exemplify its future prospects once the market is 150 Yearly 600 opened up f j k l g • At the end of March 20--, ISPs reporting the services, e h i 450 generated INR x mn worth revenues from Internet d Telephony 100 c a b Y Z • The reported MoU have 300 Grown x% year-on-year between 2007-2009 X Increased considerably ever since the recommendations by TRAI were published in August, 2008 50 150 Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar ’06 ’06 ’06 ’07 ’07 ’07 ’07 ’08 ’08 ’08 ’08 ’09 * Approximate figures Source: DoT, TRAI, ISPAI VoIP MARKET – INDIA.PPT 5
  6. 6. Factors affecting growth Low call-rates • Low-cost call-rates are the biggest driver of VoIP services • PSTN call-rates expected to be slashed by atleast 50% with advent of unrestricted VoIP services End user segment - Enterprise Internet penetration • Target group ranges from large MNCs to • High speed & good connectivity Internet Factors SMEs are a prerequisite • Developing nature of the country affecting • Increasing Internet subscriber base offers promotes cross border businesses growth immense growth potential End user segment - Consumer • India has more than 400 mn telecom subscribers • Low spending power of an average Indian make the initial infrastructure unaffordable VoIP MARKET – INDIA.PPT 6
  7. 7. VoIP market in India is currently fragmented, but is expected to be organized once the ISPs are allowed unrestricted services Competition Year-wise addition of VoIP Licenses • Since 20--, when DoT opened up the Indian market to Internet 200 Additions h Telephony, x* VoIP licences have been issued 1 Total • The VoIP licences saw a drastic increase in 20-- in the wake of 150 g LE TRAI’s recommendations for unrestricted Internet Telephony f d e • Only x licence holders are reporting Internet Telephony 100 c P b X Services (see appendix), as of March 20-- M • At present all telecom operators (offering wireline and 50 a A wireless services) have the licence to provide “unrestricted” 0 S Internet Telephony in India 2002 2003 2004 2005 2006 2007 2008 2009* • But, even after lapse of approximately e years, these services have not been started by the operators Market Share of major ISPs • -- Internet Telephony is Company 1 • -- provided by ISPs holding x% Company 2 • -- a cumulative of more than three-fourth of the Company 3 market share Company 4 Company 5 k% Giants like Bharti t% Company 6 s% and Reliance have 3% y% Company 7 v% not yet forayed u% into providing Company 8 w% z% VoIP-based services Company 9 * As of 31st January, 2009 Company 10 Source: DoT, TRAI, ISPAI VoIP MARKET – INDIA.PPT 7
  8. 8. Thank you for the attention The VoIP Market report is a part of Research on India’s Telecom Industry Series. For more detailed information or customized research requirements please contact: Natasha Mehta, CFA Gagan Uppal Phone: +65 8448 0449 Phone: +91 98364 71499 E-Mail: natasha.mehta@netscribes.com E-Mail: gagan.uppal@netscribes.com Research on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quick insights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries on About Netscribes Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth objectives. Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction. VoIP MARKET – INDIA.PPT 8