Matrix International

Company Profile
MATRIX IS A LEADING PROVIDER OF INTERNATIONAL TELECOM SOLUTIONS TO
INDIANS TRAVELLING ABROAD. As globetrotting becomes a way of life, it
becomes equally important to seek communication options which provide good
connectivity and convenience for you across the world. Started in 2005, Matrix
Cellular is the leading telecom solution provider for Indian travellers going
abroad. We cater to a wide audience including leisure & business travellers and
students studying abroad.
We provide services all around the world and have our presence across India. Our
services include International SIM, Internet Packs for Smart phones, Laptops,
iPad/Tablets, International Travel Insurance and Forex Cards. With Matrix, you can
save big on your international roaming expenses and can always stay in touch
with your loved ones whenever and wherever you are in the world. Our ever
increasing portfolio of countries focuses on fulfilling customers specific
communication needs, when travelling abroad. International travellers can also
purchase.
Matrix products and services at all major airports in the country such as Delhi,
Mumbai, Mangalore, Bengaluru, Hyderabad, Kolkata and Kochi. Our airport
counters help us address three different markets: an introduction to Matrix for
first time customers walking in to the airport, a reminder for our existing
customer base and a distribution point for Matrix corporate base.
Today, we have evolved with an aim to stand for something distinctive touching
your heart as well as minds. Our brand promise easy and smart is an
important asset and embodies our purpose and what we stand for. Our
commitment to customer service is unparalleled. We leave no stone unturned to
ensure customer delight at every step. With a vision to connect every
international traveller with convenient and cost effective solutions, we have
established ourselves as the undisputed market leader.

Industry Background
Telecomunication Industry
1. Second-largest subscriber base
With a subscriber base of nearly 1002 million by the end of May2015, India
has the second-largest telecom network in the world
2. Third-highest number of internet users
With 267.39 million internet subscriptions at the end of December 2014,
India stood third-highest in terms of total internet users in 2013. It is
expected that India will be the second largest country in terms of internet
subscribers in 2015.
3. Most of the Internet accessed through mobile phones

Mobile based Internet is a key component of Indian Internet usage, with

seven out of eight users accessing internet from their mobile phones.
4. Rising penetration rate
Urban teledensity stood at 148.9 percent and rural teledensity at 48.6
percent as on May 2015, up from 2.29 percent and9.45 percent,
respectively, in May 2014.

Wireless Market Share in terms of Total Subscribers

Growth in Total Subscribers

Source: Telecom Regulatory Authority of India, TechSci Research

Global Roaming Market

The global mobile market is estimated to have revenues of USD1230 billion in
Fiscal 2014. Out of this, mobile roaming revenues amounted to an estimated USD
54 billion. The global mobile revenue is likely to reach a size of USD1630 billion
in Fiscal 2020. In comparison, the global mobile roaming revenue is expected to
grow at a CAGR of 8.7% to reach a size of USD89 billion by Fiscal 2020 (Source:
GSMA, Frost & Sullivan Report).
With the mobile penetration increasing across the globe and declining prices
pushing the volumes up, there is an anticipated positive growth for the overall
global mobile revenues contributed particularly by the emerging regions in Asia
Pacific (Source: Frost & Sullivan Report).
Across the product lines, there is a considerable increase in demand both in
terms of users as well as usage, but the price drops across global markets ensure
that the revenue growth does not shift significantly (Source: Frost & Sullivan
Report).
Within international roaming, voice (being a core offering) could potentially
continue to witness stable growth although some decline in minutes of usage
could also occur. This could be the key source of revenue for mobile operators as
the primary utility is number retention. In comparison, SMS would witness a
flattish de-growth due to even domestic demands for SMS dropping across
countries. The primary shift is owing to IP-based push messaging services as well
as OTT services. Data could potentially be the driver across service providers
owing to the growth in demand for smartphones as well as increased adoption of

OTT services. There could be a healthy uptake of VOIP services as well, which
would potentially drive the data growth (Source: Frost & Sullivan Report).

The key drivers for growth in data services in international roaming globally are
likely to be social networking driven by services, which would primarily include
Facebook, Twitter, Instagram, etc. Other drivers are rich communication services,
which could replace traditional voice and include services such as Skype, Viber
etc.
Further other services which consume greater bandwidth and navigation services
such as Google maps are drivers of data consumption apart from services
involving secure transactions and authentication processes (Source: Frost &
Sullivan Report).

India Outbound international roaming market

Market size
The Indian outbound international roaming market has a total size of 11,850
million as of Fiscal 2014. This is likely to grow at a CAGR of 14% to reach a size of
25,952 million by Fiscal 2020 (Source: Frost & Sullivan Report).
The segment comprises of Telecom Service Providers (TSPs) and Country
Specific SIM Card Providers (CSSPs). Apart from this, customers also have the
option of purchasing a local SIM card in the destination country.
Telecom service providers are those who have mobile, Unified Access Service
License (UASL) or other country specific license holders entitled to offer mobile
voice and data services. By activating the international roaming facility offered
by the home network provider, a subscriber can make / receive voice calls, SMS
and use data services from the destination country to their home country.
The CSSPs are participants entitled to offer prepaid or postpaid SIM card service
of other foreign countries in the home country with a valid Governments No
Objection Certificate (NOC). SIM cards provided by registered CSSPs, allow the
subscriber to use the purchased SIM card in the designated foreign country for
which the card was bought and use it for voice, SMS and data services at a lower
rate when compared to TSPs.
Within international roaming, TSPs had a total market size of 8,500 million in
Fiscal 2014 which is expected to grow at a CAGR of 11 percent to reach a size of
15,858 million by Fiscal 2020. In comparison CSSPs had a size of 3,350 million
in Fiscal 2014 which is expected to grow at a CAGR of 20.2 percent to reach a
size of 10,094 million in Fiscal 2020.

Market segments
The India outbound international roaming market can be categorised into voice,
data and SMS segments.

Voice services
Voice constitutes to the largest proportion of revenues. The voice services is
likely to grow at a CAGR of 1.1 percent from 6,983 million in Fiscal 2014 to
7,465 million in Fiscal 2020. Mobile voice communications is being overtaken at
national and international levels by data access, access to emails using mobile
phones, and the use of a wide range of mobile applications and other OTT
services. Similar to national mobile usage, declining average revenue per user
for voice services is another key trend observed for international roaming as
well. The ARPU drops, coupled with slower growth in volumes owing to the traffic
shifting to data services is likely to result in a relatively lower CAGR of 1.1
percent for voice services in international roaming (Source: Frost & Sullivan
Report).
Data services
Data services is the second largest component of India outbound international
roaming market. Technological change has shifted mobile subscribers from 2G to
3G mobile technologies in most markets. A key part of this change has been the
increasing use of smartphones by subscribers stimulating the use of mobile
broadband and data communications. Adoption of location-based services such
as maps and use of OTT solutions are some of the key factors driving the usage
of the mobile data services. Availability and use of local WiFi hotspots can
negatively impact the growth of the mobile data market to some extent.
However, ease of use and on the go accessibility of mobile data services is
expected to curb the negative effect of WiFi hotspots.
High tariff rates are another key concern for bill shocks, thereby hindering the
usage of data services currently. However competitive pricing strategies in the
near future might incentivize the usage and thereby is expected to boost the
data volume significantly (Source: Frost & Sullivan Report).
Data services are expected to grow (in volume terms) at a CAGR of 73.7 percent
from 56.6 TB in Fiscal 2014 to 1552.5 TB in Fiscal 2020. CSSPs are likely to grow
at a CAGR of 86.0 percent for the same period while TSPs are expected to grow
at a CAGR of 63.2 percent during the same period.

Key drivers in growth of data services in terms of volume are rise in data
penetration with an increasing younger population, potential availability of low
cost and affordable data packs, increasing necessity for on-the-go connectivity,
increasing per capita data usage, accelerating higher speed network
deployments such as 3G and LTE, increasing smart phone penetration and
uptake of OTT applications such as Google Hangout, Skype, Viber and Whatsapp
(Source: Frost & Sullivan Report).
The data services market is expected to grow (in value terms) at a CAGR of 26.8
percent from 4,349 million in Fiscal 2014 to 18,114 million in Fiscal 2020.
SMS services
SMS services are the smallest part of the India outbound international roaming
market. The market is likely to gradually decline over the next few years.

The rise of Over-the-top (OTT) instant messaging services has negatively

affected the use of conventional SMS services and is cannibalizing SMS revenues.
Amid various types of SMS services, P2P segment is the one which is directly hit
by the OTT uptake. Due to the high SMS tariffs, subscribers prefer to
communicate over an instant messenger using their existing data packs or using
a local WiFi hotspot for free/minimal cost instead of spending on a per SMS basis
(Source: Frost & Sullivan Report).
However SMS services, typically used for campaigns, polls, product promotion,
and transactional messages used by various industries like banking, financial
services, retail, healthcare, telecom, and media are still likely to witness traction.

India outbound international roaming subscribers

In terms of subscribers, the number of India outbound international roaming
subscribers is expected to grow at a CAGR of 18.8 percent from 2.8 million in
Fiscal 2014 to 7.7 million in Fiscal 2020. Within this, subscribers for TSPs are
likely to grow at a CAGR of 16.7 percent from 1.6 million in Fiscal 2014 to 4.0
million in Fiscal 2020.
In comparison, subscribers for CSSPs are likely to grow at a CAGR of 21.4 percent
from 1.2 million in Fiscal 2014 to 3.7 million in Fiscal 2020.

SWOT Analysis

 New player are entering into the markets as Trikon, Clay and
uniconnect.
Existing big players like Airtel, Reliance communication, going
international.

Poised to go on MVNO concept as soon as regulations in India (TRAI) permits.

Due to the ever changing and growing middle class ,matrix through its travel partner
caters this market
6,000,000 people fly abroad every year this can be tapped by matrix.

Less employee strength.

Dissatisfied workforce.
Mobile number portability is missing

Partnerships with over 36 country specific international service providers.

Early bird prizes.
Rates which are far cheaper, in some cases nearly 60%, compared to Roaming, and up to
0% in case of data cards.
Strategic business partnership with airlines, travel agencies, universities and corporate

Threats

Opportuni
ty

Weakness

Strenght