OTT apps like Skype, Hike, Jio Chat, Facebook Chat, etc use 20-25 kbps for a voice call. At a data cost of 25p/MB, an OTT voice call costs consumer Rs 0.375/min. This is largely in-line with a voice call today in the market ? making it less appealing for a consumer to migrate to low quality VoIP call. However with voice tariffs moving up and with proliferation either of WiFi networks and data tariffs moving down, we believe it would be more appealing for consumers (especially high end ones) to move part of their voice traffic to data.
India is currently the strongest revenue growth market in Asia. This is primarily driven by strong voice growth (c. 7-8% yoy vs. flat to negative for other markets). With improving smartphone penetration, we see risks of data cannibalizing voice and hence impacting overall revenue growth. As India has one of the lowest smartphone penetration the cannibalization risk is relatively low now, but we expect to pick it over time.
