Smart Deploys Web-based SMS Broadcast Platform

Philippine operator Smart Communications has deployed a service it calls Smart Infocast service in the Municipality of Clarin in Bohol. The web-based SMS broadcast platform is designed to enable the municipality to send weather updates, advisories, and other important information. The Smart Infocast service is expected to be of particular use to farmers; 85 percent of Clarin’s land area is agricultural. Through Infocast, information about agricultural methods and announcements relevant to farming can now be shared with those who need them.  

Amid all the talk about the data revolution and next-generation network development, it should be borne in mind that in many markets, the lowest mobile tech is often the most effective, at least at certain tasks.

In the Philippines, Smart is smart to recognize that the humble SMS, while on the decline in some place, is an excellent way to quickly and inexpensively communicate information to a rural population, many or most of whom may not have smartphones. Deploying the solution in a limited area could serve as a trial balloon of sorts, to see whether Infocast could have wider appeal.

While Infocast is not likely to be a major revenue driver for the operator, we believe that such public-minded services are useful to operators in that they increase goodwill and also raise the profile of the operator. Those among the target populations who are looking for a new MNO or looking to join a mobile network for the first time will be likely to think first of the operator that is offering the service.

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PLDT Expands Disney Offerings

Philippines operator PLDT and its mobile subsidiary Smart Communications have expanded their offering of Disney content to their combined 75 million mobile and broadband subscribers nationwide. This is part of the expanded multi-year, multi-platform partnership of PLDT with The Walt Disney Company Southeast Asia, through its digital entertainment arm Disney Interactive. After initially providing access to Disney’s online games and e-books to Smart, the Disney Interactive portfolio will now be offered at home through PLDT's home digital services unit PLDT Home. Smart will also launch Disney-branded content packages for prepaid, postpaid and broadband plans. We have noted frequently that offering special access to premium entertainment content is an excellent way for telecom operators to acquire and retain business. PLDT has decided to expand its Disney offering from mobile to include home access via broadband, presumably because the initial offering, which took place at the end of January, met with a favorable response from the public in the Philippines. We expect that the multiyear partnership between PLDT and Disney will be a win-win.

The above item appeared in a recent issue of Tarifica's "The Story of The Week", a weekly report that analyzes noteworthy developments in the telecoms industry from around the world. For past issues or to learn more about Tarifica: http://www.tarifica.com/contactus.aspx     and   Follow Tarifica on LinkedIn.

Sandvine to Support Smart’s Bite-Sized Data Plan Store

Smart Communications, the leading MNO by market share in the Philippines, has selected Canada-based Sandvine, an intelligent broadband solutions provider, to support its mobile internet store, PowerApp, which offers bite-sized, application-specific mobile data plans.  PowerApp, developed by Smart’s technology partner, Chikka Philippines, offers email, chat, photo and social packages in 15-minute, 3-hour or per-day increments with unlimited access.

Emerging-market operators such as Smart are increasingly adopting application-specific data pricing as a strategy. It offers a versatile means of tailoring plans according to customers’ usage, allows customers to use apps such as Facebook or YouTube without fear of bill shock and gives them a clear understanding of what they are paying for. Apart from benefiting from an incremental revenue stream, operators can also potentially upsell their customers as data usage grows and continually adapt their offerings to market needs. In emerging markets, where many users may not be able to afford a full-scale data plan, allowing them to access the apps most relevant to their needs not only encourages greater data consumption but puts mobile data within reach of a wider population. It also enables operators to attract users to data at an earlier stage of their mobile-use timeline. The success of this pricing strategy is increasingly evident—one example is Zimbabwean MNO Econet Wireless’ introduction of unlimited Whatsapp bundles, which we reported in the 22 May Tarifica Alert. Another is Facebook’s recent acquisition of Finnish startup Pryte, which enables operators to offer bite-sized data plans; the acquisition is aimed at supporting Facebook’s Internet.org initiative in emerging markets.

However, app-specific data pricing can also be relevant to certain segments of developed markets, such as the youth demographic. Since some users may utilize most of their plan allowances on certain apps only, offering an app-specific data plan may allow operators to better meet the needs of these subscribers. Furthermore, operators could offer app-specific plans or even unlimited data plans with short-term validity to coincide with popular events such as the FIFA World Cup. Operators could also price apps such as YouTube that consume a large amount of data at a different rate from apps such as Twitter that use less data. App-specific pricing also creates the possibility of allowing sponsorship of data for specific apps, which would constitute an additional revenue stream for operators. In the U.S., MVNO FreedomPop has already announced plans to launch app-specific and bite-sized data plans as well as sponsored apps in Q3 2014. These plans, currently in test mode, will be offered alongside FreedomPop’s basic service, which provides users with 500 MB of 4G data per month with no associated monthly fee.

The above item appeared in a recent issue of The Tarifica Alert, a weekly resource that analyzes noteworthy developments in the telecoms industry from around the world. To access all of the latest articles and issues:  http://www.tarifica.com/TarificaAlert.aspx