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Mobile internet has transformed the way we look for and manage data. Thanks to smartphones, feature phones, tablets and mobile broadband modems, today we can use data services for emailing, surfing, sharing, apps, file transfer and streaming on the go. The mobile internet market thus grows concurrently to telecom industry and maybe even faster. The latest research report from Netscribes delves deep into the industry with its latest report named ‘Mobile Internet Market in India 2012, which is a part of the Telecommunication Series of reports by the knowledge consulting solutions company.
Netscribes launches report on the Mobile Internet Market in India 2012 as a part of Netscribes’ Telecommunication Series; immense potential and growth factors of the industry identified.
The introduction of the report consists of a brief overview of mobile internet market which provides basic idea of the technology, the evolution and the study of the mobile internet delivery technologies.
The ‘Mobile Internet Market Overview’ section emphasizes on global and domestic market sizes and potential of mobile data services. Global overview features various qualitative and statistical information including mobile broadband subscription, region-wise split of the same, top countries in terms of mobile internet adoption and other data. India overview segment is accompanied by information such as wireless data subscriber base, market valuation, quarterly subscriber base, service provider-wise subscriber base and other similar information.
The ‘Drivers and Challenges’ section elaborates the major boosts and impediments for mobile internet adoption in India. The drivers and challenges are highlighted to provide a clear understanding of probable roadblocks and rewards in the mobile internet industry. The Netscribes’ report provides vendors actionable data that helps them strategize better.
The ‘Mobile Internet Players’ section of the report profiles companies in the mobile internet domain. It reveals information such as corporate and business highlights covering operational. Recent information such as updated contact lists, location, key product and service offerings are provided. The report also lists 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 insight regarding the players and the mobile internet market.
2. Executive Summary
Mobile internet subscriber base stood at x1 mn in India, as of month1 20‐‐
Mobile Internet As of 20‐‐, x2% of the total internet usage originated from mobile devices
Market Although 4G services have already been introduced in the country, mobile broadband market
will be driven by 3G services in the coming years
Drivers:
L
Colossal Wireless Subscriber Base
E Challenges:
Inferior or Inconsistent Services
P
Drivers & Soaring Adoption of Mobile Devices and Low Smartphone & Tablet Penetration
Challenges Reduction in their Prices in Rural Areas
M
Increase in Disposable Income and Affordability of Next Generation
Economic Advancement Mobile Networks
S A
Growing Demand for Content‐Rich
Applications & Services
Reduction in Data Tariff
Market Trends Abolition of Data Cap
Flexible Data Packs
Major Players
Mobile Internet Bharti Airtel Ltd. Idea Cellular Ltd. Reliance Communications Ltd.
Player Profiles
Bharat Sanchar Nigam Ltd. Tata Teleservices Ltd. Vodafone India Ltd.
MOBILE INTERNET MARKET IN INDIA 2012.PPT 2
3. • Introduction
• Mobile Internet Market
Overview
• Drivers & Challenges
• Market Trends
• Mobile Internet Players
• Market Opportunities
• Strategic Recommendations
• Consumer Insights
• Appendix
MOBILE INTERNET MARKET IN INDIA 2012.PPT 3
4. Introduction
Mobile Internet – Overview
• Mobile internet provides access to an abundance of circumstantially appropriate information available on the World
Wide Web through a number of mobile devices functioning across multiple wireless networks
The concept incorporates data‐optimized telecom networks and takes advantage of pre‐establish web resources as an execution
platform
L E
Presentation schema of the readily‐available web content adapts to multi‐device communications enabled by wireless data gateways
• Variety of purposes such as smartphones, featurephones, tablets or USB modems can take advantage of mobile data
P
services for web surfing, emails, media streaming, file download and upload, and mobile applications, among others
• Numerous Web‐based technologies have emerged in recent times for delivery of mobile internet services efficiently
M
They include modern web‐based software and web 2.0 community‐generated applications
• With the growing usage of mobile devices prompted by the busy modern‐day lifestyles of consumers, there is an
Internet Access Technologies
Technology
A
increasing need for on‐the‐go internet‐based services
S Description
Internet access via 56 Kbps modems connected to fixed phone connections using public
Internet via Phone Line switched telephone network (PSTN)
Internet via LAN (Local Area Network) Internet access via Ethernet cables using LAN by individual ISPs in the area
Internet Over Cable TV Line Cable TV service providers providing Internet access via the same line
Wireless Internet access via wireless frequency channels by various ISPs
Mobile Internet Internet access via cellular networks using 2G, 3G and 4G technology
MOBILE INTERNET MARKET IN INDIA 2012.PPT 4
5. Mobile broadband adoption in the region1 has been the
highest despite only z1% penetration
Market Overview – Global (2/3)
Mobile Broadband Subscriptions by Region
• Active mobile broadband subscriptions
in developed countries as a percentage
of total global consumption is steadily
rising
• Penetration per 100 people was y1%
for developed countries and y2% for
L E
X1 X2
developing nations in 20‐‐
P 20‐‐ 20‐‐
mn subscription
AM 20‐‐ 20‐‐
S
500 • The region1 has been leading
400 in terms of active mobile
broadband subscription over
300 the past y3 years
• Penetration per 100 people in
200
region2 and region3 were y4%
100 and y5% respectively, while
the same was y6% in the
0 region4
MOBILE INTERNET MARKET IN INDIA 2012.PPT 5
6. Quarterly addition of wireless data subscribers has been
falling in recent times due to factor1 within the sector
Market Overview – India (‐/‐)
Quarterly Mobile Internet Subscriber Base – Market Size and Growth
Quarterly Addition Total Wireless Data Subscribers
mn
500 +10.1%
400
300
200
100
0
‐100
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7. Drivers & Challenges – Summary
Drivers Challenges
Colossal Wireless Subscriber Base Inferior or Inconsistent Services
Soaring Adoption of Mobile Devices Low Smartphone & Tablet Penetration
and Reduction in their Prices in Rural Areas
Increase in Disposable Income and Affordability of Next Generation
Economic Advancement Mobile Networks
Growing Demand for Content‐Rich
Applications & Services
Changing Demographics and
Consumer Behaviour
MOBILE INTERNET MARKET IN INDIA 2012.PPT 7
8. Market Trends (‐/‐)
Trend1
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9. Public: Foreign Company – Company 1 (‐/‐)
Company Information Offices and Centres – India
Corporate Address
Tel No.
Fax No.
Website
E
Year of Incorporation
Ticker Symbol
Stock Exchange
P L India Head Office
M
Products and Services
Category
Set‐Top Box Products
Products/Services
• S1 S A Key People
Name Designation
Person 1 D1
Person 2 D2
Person 3 D3
MOBILE INTERNET MARKET IN INDIA 2012.PPT 9
10. Public: Foreign Company – Company 1 (‐/‐)
Financial Snapshot Key Ratios
Total Income Net Profit/Loss y‐o‐y change
Revenue Profit Particulars 2011 2010 2009 2008
(2012‐11)
INR mn INR bn
s Profitability Ratios
Operating Margin ‐1.10 14.68% 15.78% 16.93% 19.72%
r Net Margin ‐0.91 13.23% 14.14% 15.55% 18.61%
p q Profit Before Tax Margin ‐0.83 15.25% 16.08% 17.46% 20.62%
Return on Equity 7.60 60.51% 52.91% 34.43% 47.18%
Return on Capital Employed 8.09 67.13% 59.05% 37.48% 49.96%
0 0
Return on Working Capital 75.43 150.07% 74.64% 44.18% 58.13%
E
20‐‐ 20‐‐ 20‐‐ 20‐‐
Return on Assets 3.58 24.34% 20.77% 18.93% 24.74%
L
Return on Fixed Assets
Financial Summary 28.31 319.77% 291.46% 227.97% 346.05%
Cost Ratios
P
• The company incurred a net profit of INR ‐ bn in FY 20‐‐, as Operating costs (% of Sales) 1.06 85.23% 84.17% 82.96% 80.08%
compared to net profit of INR ‐ bn in FY 20‐‐ Administration costs (% of
0.49 10.10% 9.61% 9.11% 7.41%
Sales)
• The company reported total income of INR ‐ bn in FY 20‐‐, as
M
Interest costs (% of Sales) 0.01 0.01% 0.00% 0.00% 0.01%
compared to INR ‐ bn in FY 20‐‐
Liquidity Ratios
A
• The company earned an operating margin of ‐ per cent in FY 20‐‐, an Current Ratio ‐12.79% 1.27 1.46 1.95 1.90
increase of ‐ percentage points over FY 20‐‐
Cash Ratio
S
‐8.37% 0.60 0.65 1.21 1.18
• The company reported debt to equity ratio of ‐ in FY 20‐‐, a decrease Leverage Ratios
of ‐ per cent over FY 20‐‐ Debt to Equity Ratio ‐4.03% 1.49 1.55 0.82 0.91
Key Financial Performance Indicators Debt to Capital Ratio NA NA NA NA NA
Interest Coverage Ratio ‐82.25% 2219.40 12502.34 11161.05 2901.67
Indicators Value (28/06/2012) Efficiency Ratios
Market Capitalization (INR bn) A Fixed Asset Turnover 16.94% 24.03 20.55 14.57 18.41
Total Enterprise Value (INR mn) B Asset Turnover 24.95% 1.83 1.46 1.21 1.32
Current Asset Turnover 45.65% 2.41 1.65 1.38 1.46
EPS (INR) C
Working Capital Turnover 114.30% 11.28 5.26 2.82 3.09
PE Ratio (Absolute) D Capital Employed Turnover 21.89% 4.55 3.73 2.20 2.51
Improved Decline
MOBILE INTERNET MARKET IN INDIA 2012.PPT 10
11. Public: Foreign Company – Company 1 (‐/‐)
Key Business Segments Key Geographic Segments
k1 k2 k3 k4 k5 k6 k7 k8
E
L
20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐
Key Information
P
Description Details
AM
Overview S
• C2 designs, manufactures, and markets mobile communication and media devices,
personal computers, and portable digital music players
• It also sells software, services, peripherals, networking solutions, and third‐party digital
content and applications worldwide
• C3 operates in India via its subsidiary, C4
MOBILE INTERNET MARKET IN INDIA 2012.PPT 11
12. Private: Domestic Company – Company 2 (‐/‐)
Company Information Offices and Centres – India
India Head Office
Tel No.
E
L
Fax No.
Website
P
M
Year of
Incorporation
India Office
Products and Services
Category
S A
Products/Services
Key People
Name Designation
Set‐Top Box Products •S1
Person 1 D1
Person 2 D2
Person 3 D3
MOBILE INTERNET MARKET IN INDIA 2012.PPT 12
13. Private: Domestic Company – Company 2 (‐/‐)
Financial Snapshot Key Ratios
y‐o‐y change
Particulars 2011 2010 2009 2008
Total Income Total Income Profit (2012‐11)
INR mn Profit / Loss INR mn Profitability Ratios
W Operating Margin ‐1.10 14.68% 15.78% 16.93% 19.72%
Net Margin ‐0.91 13.23% 14.14% 15.55% 18.61%
V Profit Before Tax Margin ‐0.83 15.25% 16.08% 17.46% 20.62%
Return on Equity 7.60 60.51% 52.91% 34.43% 47.18%
Return on Capital Employed 8.09 67.13% 59.05% 37.48% 49.96%
Return on Working Capital 75.43 150.07% 74.64% 44.18% 58.13%
E
U Return on Assets 3.58 24.34% 20.77% 18.93% 24.74%
L
T Return on Fixed Assets 28.31 319.77% 291.46% 227.97% 346.05%
0 0 Cost Ratios
P
20‐‐ 20‐‐ 20‐‐ 20‐‐ Operating costs (% of Sales) 1.06 85.23% 84.17% 82.96% 80.08%
Administration costs (% of
0.49 10.10% 9.61% 9.11% 7.41%
Financial Summary Sales)
M
Interest costs (% of Sales) 0.01 0.01% 0.00% 0.00% 0.01%
• Company incurred a net profit of INR ‐ bn in FY 20‐‐, as Liquidity Ratios
A
compared to net profit of INR ‐ bn in FY 20‐‐ Current Ratio ‐12.79% 1.27 1.46 1.95 1.90
S
Cash Ratio ‐8.37% 0.60 0.65 1.21 1.18
• It reported total Income of INR ‐ bn in FY 20‐‐, as Leverage Ratios
compared to INR ‐ bn in FY 20‐‐ Debt to Equity Ratio ‐4.03% 1.49 1.55 0.82 0.91
Debt to Capital Ratio NA NA NA NA NA
• The company earned an operating margin of ‐ per cent in
Interest Coverage Ratio ‐82.25% 2219.40 12502.34 11161.05 2901.67
FY 20‐‐, a decrease of ‐ percentage points over FY 20‐‐
Efficiency Ratios
• The company reported debt to equity ratio of ‐ in FY 20‐‐, Fixed Asset Turnover 16.94% 24.03 20.55 14.57 18.41
an increase of ‐ per cent over FY 20‐‐ Asset Turnover 24.95% 1.83 1.46 1.21 1.32
Current Asset Turnover 45.65% 2.41 1.65 1.38 1.46
Working Capital Turnover 114.30% 11.28 5.26 2.82 3.09
Capital Employed Turnover 21.89% 4.55 3.73 2.20 2.51
Improved Decline
MOBILE INTERNET MARKET IN INDIA 2012.PPT 13
14. Private: Domestic Company – Company 2 (‐/‐)
Key Recent Developments
Description Details
• O1 is a leading player in technologies including real‐time bidding, data marketplaces, big
Overview data, algorithms and targetting in o2
• Its engine is manned by over ‐ people across o3, o4, o5, o6, o7
• The company works closely with top publishers across the global platform including o8
and o9
E
• It constitutes an exclusive reseller of o10’s premium inventory in India, Thailand,
L
Extended Product
Indonesia and Phillipines
Portfolio
P
• It also has partnership with technology vendors namely o11, o12, o13, o14
• Its list of investors include names such as Nexua Venture Partners, Helion Venture
M
Partners, Norwest Venture Partners and Draper Fisher Juvertson,
S A
MOBILE INTERNET MARKET IN INDIA 2012.PPT 14
16. Strategic Recommendations (‐/‐)
•Companies need to focus on specific1 and specific2 early to leverage on specific3
Recommendation1 Recommendation2
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17. Consumer Insights – Mobile Internet Usage Survey (‐/‐)
Mobile Internet Usage and Preferences – Introduction & Methodology
• Survey on mobile internet usage & preferences was Sample Size x1
conducted across multiple social media websites
• The survey has been kept mostly close ended with Social Media Websites and
specific open‐ended responses to capture common Sample Sources
Technology Forums
areas of user interest
• The survey has been conducted among a small group of Survey Duration Oct 2012 to Nov 2012
people comprising home users, gamers, information
technology professionals & other segments of the Quantitative
Percentage
workforce Representation Used
Data Service Selection Criteria
L E
Q: What are the criteria considered when selecting a
mobile data service?
80
R1
PR2 R3 R4
Response Options:
1) R1
60
AM
S
40
2) R2
20
3) R3
4) R4 0
MOBILE INTERNET MARKET IN INDIA 2012.PPT 17
18. Appendix
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
Capital Employed Turnover Sales / Shareholders Equity
Interest Costs (% of Sales) (Interest Expenses / Sales) *100
MOBILE INTERNET MARKET IN INDIA 2012.PPT 18
19. Sources of Information
Secondary Research Primary Research
Print Medium Interviews
Leading Newspapers Leading Industry Vendors
Telecom and Technology Journals / Magazines Industry Stakeholders
Business Magazines Industry Experts
Electronic Medium General Consumers
Company Websites Online Social Media
Government Websites / Resources
Online Telecom Magazines
Online Technology and Gadget Journals / Articles
Premium Databases
MOBILE INTERNET MARKET IN INDIA 2012.PPT 19
20. Thank you for the attention
The Mobile Internet Market – India 2012 report is a part of Netscribes’ Telecom Series.
For more detailed information or customized research requirements please contact:
Phone: +91 33 4027 6214 / 6215
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MOBILE INTERNET MARKET IN INDIA 2012.PPT 20