August 2009
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
Regulations in
India
PLE
The Department of Telecom (DoT) recently gave green signal to Internet telephony within the
country, but the guidelines are yet to be notified
An entry fee of INR x mn has been proposed by DoT for the Internet Service Providers (ISPs)
M
wanting to offer VoIP based telephony services on a pan-India basis
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
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
LE
• It uses the more efficient route of Internet to
P
transmit voice after breaking them into numerous
M
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
• --
E
• Still, ILD outgoing calls accounted for Z bn minutes in
L
20-- from wireless phones alone, witnessing a x%
growth between 2007-2009
P
4,000
2,000
X
Y
SAM
• Inspite of the fact that VoIP offers low cost ILD
service, Minutes of Usage (MoU) account to less than
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
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
LE
TRAI’s recommendations for unrestricted Internet Telephony
• Only x licence holders are reporting Internet Telephony
Services (see appendix), as of March 20--
P
100
b
c
d e f
X
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
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