August 06, 2008


EGG is an innovative company similar to Chikka, though facing fewer internal obstacles these days. Primarily a CP, this buyout must work out very nicely for them as the industry has been shrinking quite rapidly. It is not so much their fault as the fact that the market went in a different direction. The content required to entertain subscribers these days lies well beyond the traditional CP offerings of RBT's, News updates, Games, etc.

EGG's fate does not interest me as much as the deliberate move by Globe to expand its service offering by encouraging this buyout. Gerry Ablaza stated that: “globes strategy is to drive growth through expansion in adjacent spaces such as mobile content creation and distribution.” I think it is canny that he did not mention that this move by EGG has also opened up a number of possibilities for Globe to generate additional advertising revenue—the direction of the vast majority of mobile companies. With Globe acting as the content provider, developer, and telecommunications company, they are positioned to develop and support multiple platforms for their corporate clients.

I remember reading a few months ago about CURE and Mindshare and all the fantastic services that Smart was looking to offer its corporate consumers. Many months later, not much if anything at all has hit the market…I think that they are finding that it is quite difficult to merge the needs and expertise of content providers and advertising firms with what is best for Smart. There are just too any technologies, proprietary software and corporate clowns trying to protect their own little turf to the detriment of the whole. This move by Globe is the first right step in the industry and I would bank that many will soon follow. TELCO has realized that all of the billions they have spent on infrastructure and hardware, can be paid back much sooner with a little horizontal expansion. Who better to create and develop services for mobile consumers and corporate clients than the telecommunications company themselves?

On a side note, I briefly came across a discussion on WiMax the other evening. I'll need to do some digging around, but if WiMax does find itself implanted in major cities, how will telecommunications companies respond?

WiMax simply put, is WiFi on steroids, where broad areas like cities or countries are connected with high-speed Internet. Its been making some headway these days in the more technologically progressive countries-- even The Fort in Taguig! With Internet connection on demand and my road warrior of a Nokia Communicator linked to Skype, I would rarely need to make a traditional phone call. That is one less ultra Platinum globe and VIP China Mobile consumer to gouge. Think of the paradigm shift.


Anonymous said...

If wi-max becomes popular, won't it make cell phones obsolete? I know several cell phone companys also have investments in wi-max, I do not think they can earn as much as they do with cell phones correct?

You are also talking about The Fort. I think if this will work anywhere, it will be in INdia or America, there is too much politics to get something this big off the ground.

Anonymous said...

I attended the mindshare party last march and know of several moves by smart to increase advertising visibility. I dont think they are entirely asleep. -m

The Jolly Jetsetter said...

I would not say asleep so much as confused.The Philippines is a tricky market. High costs of operations but a low advertising budget (in comparison to other countries). Stringent industry regulations but a relatively simple public whose interaction often leads to the crossing of the aforementioned industry regulations. Progressive and pioneering on mobile technology and services but prehistoric in the speed and effectiveness of the governments attempt to create the underpinnings of a proper legal framework.

Smart, Cure, Mindshare are probably doing the best they can in terms of rolling out useful and revenue generating services. From an outside perspective, I am merely noting that I have yet to see something from this collaboration.

In regard to wi max-- I just recently read that Globe was investing heavily in this hardware. I do wonder if it will be as big a revenue generator as traditional cell sites. My guess is that if they are first to market and have economies of scale, revenue will follow.

I guess that last paragraph sort of answers both your questions on WiMax.

The Jolly Jetsetter said...
This comment has been removed by the author.