Mobile Internet Market – India

February 2014

Executive Summary
Market Overview
 Mobile internet subscriber base stood at x1 mn in India, as of month1 20- As of 20--, x2% of the total internet usage originated from mobile devices Drivers: Challenges:  Inferior or Inconsistent Services  Low Smartphone & Tablet Penetration in Rural Areas  Affordability of Next Generation Mobile Networks

Drivers & Challenges

 Colossal Wireless Subscriber Base  Soaring Adoption of Mobile Devices and Reduction in their Prices  Increase in Disposable Income and Economic Advancement  Growing Demand for Content-Rich Applications & Services  Reduction in Data Tariff  Abolition of Data Cap  Flexible Data Packs

Market Trends

Major Players

Competitive Landscape

Bharti Airtel Ltd. Bharat Sanchar Nigam Ltd.

Idea Cellular Ltd. Tata Teleservices Ltd.

Reliance Communications Ltd. Vodafone India Ltd.
2

MOBILE INTERNET MARKET IN INDIA 2014.PPT

• Macroeconomic Indicators • Introduction • Market Overview • Drivers & Challenges • Market Trends • Competitive Landscape • Market Opportunities • Strategic Recommendations • Consumer Insights • Appendix
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Economic Indicators (-/-)
GDP at Factor Cost: Quarterly INR tn
15 14 d1 c1 13 b1 12 a1 11

d2 c2 b2 a2 Q2 2010-11 2011-12 2012-13

c3 b3 a3

c4 b4 a4

Q1

Q3 2013-14

Q4

Inflation Rate: Monthly %
2.0 1.5 1.0 0.5 0.0

p s q r t

Jun 2013 - Jul 2013

Jul 2013 - Aug 2013

Aug 2013 - Sep 2013

Sep 2013 - Oct 2013

Oct 2013 - Nov 2013 4

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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  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 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
 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 increasing need for on-the-go internet-based services

Internet Access Technologies
Technology Internet via Phone Line Internet via LAN (Local Area Network) Internet Over Cable TV Line Wireless Mobile Internet Description
Internet access via 56 Kbps modems connected to fixed phone connections using public switched telephone network (PSTN) Internet access via Ethernet cables using LAN by individual ISPs in the area Cable TV service providers providing Internet access via the same line Internet access via wireless frequency channels by various ISPs Internet access via cellular networks using 2G, 3G and 4G technology
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Popularity of tech2 is largely restricted to area3, but is expected to gain traction in area4 with factor8
Market Overview – India (-/-) Mobile Internet Access – Market Size
INR bn

+a9%

• Mobile Internet market is expected grow at a CAGR of around a41% owning to increased use of service1 and service2
 Service providers are offering service3 at better factor1 and in smaller factor2 leading to increased adoption of mobile broadband services  Services4, however, remain popular in area1 largely due to factor3 in the area2

SAMPLE
MOBILE INTERNET MARKET IN INDIA 2014.PPT

• Tech1 subscriber base in India was around a42 mn in 201- and is expected to double by 201• At present, mobile operators make around a43% of their total revenue from data services

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 mn X2% Total Wireless Data Subscribers

• TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText • TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText • TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText
MOBILE INTERNET MARKET IN INDIA 2014.PPT

SAMPLE

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Drivers & Challenges – Summary

Drivers
Colossal Wireless Subscriber Base Soaring Adoption of Mobile Devices and Reduction in their Prices Increase in Disposable Income and Economic Advancement Growing Demand for Content-Rich Applications & Services Changing Demographics and Consumer Behaviour

Challenges
Inferior or Inconsistent Services Low Smartphone & Tablet Penetration in Rural Areas Affordability of Next Generation Mobile Networks

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Market Trends (-/-)
Trend1

x1

• TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText

x2

• TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText

• TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText • TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText TextText

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Competitive Benchmarking (2/5)
Key Ratios of Top 4 Companies – Operational Basis (FY 2013) (1/3)

SAMPLE
Net Margin c1 c2 d1 d2 Thermax Va Tech Wabag

% b1 a1 a2 0 Ion Exchange

Operating Margin

b2 SPML

• Va Tech Wabag recorded operating margin of -%, higher than that of Ion Exchange, Thermax and SPML 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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Public: Domestic Company – Company 1 (1/4)
Company Information Corporate Address Tel No. Fax No. Website Year of Incorporation Ticker Symbol Stock Exchange

SAMPLE
Offices and Centres – India

Head Office

Products and Services Category Sectors (EPC) Products/Services Key People Name Designation

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Public: Domestic Company – Company 1 (2/4)
Financial Snapshot
Total Income INR bn s1 t1 0 2010 2011 2012 2013 s2 t2 s4 s3 t3 t4 Net Profit/Loss INR bn

Key Ratios

SAMPLE
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

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

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

Key Financial Performance Indicators Indicators
Market Capitalization (INR mn) Total Enterprise Value (INR mn) EPS (INR) PE Ratio (Absolute)

Value (17/01/2014)

Efficiency Ratios
Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover
Improved Decline

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Public: Domestic Company – Company 1 (3/4)
Key Business Segments Construction and Engineering

SAMPLE
Key Geographic Segments India Overseas e1 f1 2010 e2 f2 2011 e3 f3 2012 e4 f4 2013 0%

g1 0% 2013 Business Highlights

Description

News • Operates as a civil engineering construction company in India • Involved in x1, x2, x3, x4, x5 • Engages in oil exploration and realty development businesses • Has initiated talks with investors to sell up to x6 • Intends to amalgamate its x7 • Creditors have approved a x8 • It is the only Indian Construction Company to have been accredited with ISO 9001 certification for all
fields of Civil Engineering Works, including design

Overview

Certifications

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

SAMPLE
W T

S O

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Private: Domestic Company – Company 2 (1/5)
Company Information Offices and Centres – India

SAMPLE
Ahmedabad Head Office

Corporate Address

Tel No. Fax No. Website Year of Incorporation

Products and Services Category Water and Wastewater Management Products/Services Key People Name Designation

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Private: Domestic Company – Company 2 (2/5)
Shareholders of the Company as on 28.09.2012 Ownership Structure

SAMPLE
Corporate Bodies Foreign holdings
30%

Name Doshion Private Ltd. Veolia Water Solutions & Technologies Total

No. of Shares held

70%

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Private: Domestic Company – Company 2 (3/5)
Financial Snapshot
Total Income INR mn u4 u2 u1 v1 0 2010 2011 v2 u3 v3 2012 2013 v4 Net Profit/Loss INR mn

Key Ratios

SAMPLE
Particulars y-o-y change 2013 (2013-12) 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)

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

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
Improved Decline

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

SAMPLE

Description Overview

News • Company 2 aims at executing small, medium & large size EPC Projects for Water & Waste Water
Management facilities in Municipal, Infrastructural and Industrial projects

• It is a joint venture between t1 and t2 • It has five manufacturing bases in India, four in Ahmedabad and the fifth in Gandhidham Network • It is based out of t3 • Has a strong network of experts spread across t4 nad t5 Awards • Bagged the award for t6 • Was conferred with the t7

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

SAMPLE
W T

S O

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Enterprise mobility is witnessing major growth in India leading to enhanced scope for mobile broadband players
Opportunities in the Enterprise segment
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• Text text text text text text text text text text text text text text text text text texttext 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 texttext text text text text text text text text text text text text text text text text text text text text

Enterprise Mobility – Market Size
INR bn X1%

Mobile Workforce – India (Growth and Size)
mn Y1%

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SWOT Analysis of Mobile Internet Market
Strengths • 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 Weaknesses • 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

SWOT Analysis

Opportunities • 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

Threats • 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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Strategic Recommendations (-/-)
• Companies need to focus on specific1 and specific2 early to leverage on specific3

Recommendation1

Recommendation2

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Consumer Insights – Mobile Internet Usage Survey (-/-)
Mobile Internet Usage and Preferences – Introduction & Methodology
• Survey on mobile internet usage & preferences was conducted across multiple social media websites • The survey has been kept mostly close ended with specific open-ended responses to capture common areas of user interest • The survey has been conducted among a small group of people comprising home users, gamers, information technology professionals & other segments of the workforce Sample Size Sample Sources Survey Duration Quantitative Representation Used x1 Social Media Websites and Technology Forums Jan 2014 to Feb 2014 Percentage

Data Service Selection Criteria
Q: What are the criteria considered when selecting a mobile data service? Response Options: 1) R1 2) R2 3) R3 4) R4
R1
80 60 40 20 0

R2

R3

R4

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Appendix
Ratio
Operating Margin Net Margin Profit Before Tax Margin Return on Equity (ROE) Return on Capital (ROCE) Return on Working Capital Return on Assets Return on Fixed Assets Operating Costs (% of Sales) Administration Costs (% of Sales) Interest Costs (% of Sales)

Calculations
(Operating Income/Revenues)*100 (Net Profit / Revenues) *100 (Income Before Tax / Revenues *100 (Net Income / Shareholders Equity)*100 EBIT / (Total Assets – Current Liabilities)*100 (EBIT / Working Capital) *100 (EBIT / Total Assets)*100 (EBIT / Fixed Assets) *100 (Operating Expenses / Sales) *100 (Administrative Expenses / Sales) *100 (Interest Expenses / Sales) *100

Ratio
Current Ratio Cash Ratio Debt to Equity Debt to Capital Ratio Interest Coverage Ratio Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover

Calculations
Current Assets / Current Liabilities {(Cash & Bank Balance + Marketable Securities) / Current Liabilities)} Total Liabilities / Shareholders Equity {Total Debt / (Shareholders Equity + Total Debt)} EBIT / Interest Expense Sales / Fixed Assets Sales / Total Assets Sales / Current Assets Sales / Working Capital Sales / (Shareholders Equity + Total Debt)

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Sources of Information

PRIMARY RESEARCH
Interviews Leading Industry Experts

SECONDARY RESEARCH

Print Media Leading Newspapers Magazines and Journals Annual Reports of Companies

Electronic Media Water Associations in India Online Water Sector Magazines Company Websites Premium Databases Open Sources

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The Mobile Internet Market – India 2014 report is a part of Netscribes’ Telecommunication Series.
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