THE DIGITALFILIPINO STATSREPORT
ABOUT THE WRITER Janette Toral is an IT writer, speaker, consultant, educator and lobbyist. She founded the Philippine Internet Commerce Society last September 1997 and got heavily involved in working for the passage of the country’s Y2K Law and E-Commerce Law. She has written articles for international publications such as Business Online, asia.internet.com, and World Executive Digest. She published her first book in June 2000 titled, “DigitalFilipino: An E-Commerce Guide for the eFilipino”. She’s frequently invited at various IT conferences to talk about information technology, web, outsourcing, and wireless developments in the Philippines. An IT practitioner, she has more than 13 years of combined experience in the areas of research, training, marketing, business planning, technical support, and project management.
The following is our 2002 – 2003 report schedule: • June 2002 – The Filipino Online Shopper • July 2002 – The Filipino Mobile Phone User • August 2002 – The Filipino Internet User • September 2002 – State of Philippine Outsourcing Industry • October 2002 - The Filipino Internet Banker & State of Online Financial Services • November 2002 – State of Philippine I.T. Education • December 2002 - Philippines Going High Tech – Trends in Filipino Ownership of Computing Devices (digital copiers, digital cameras, video cameras, printers, scanners, multifunctional machines, projectors, and personal computers) • January 2003 – State of Philippine Internet Service and Data Center Providers • February 2003 - State of Philippine E-Commerce (Internet and Mobile) • March 2003 - State of Philippine I.T. Manpower • April 2003 - Philippine SMEs’ I.T. Usage and Spending • May 2003 - To be announced
REFERENCES Copyright© 2002 by Janette Toral, DigitalFilipino.com. All rights reserved. This report or any part of it may not be reproduced, stored, transmitted in any form and means without the written permission from the author. All Nokia phone images are copyright of Nokia and were taken from the press section of http://www.nokia.com. Layout, design and illustrations by Antonio Bucu. StatsReport subscribers who would like to ask questions related to this report can email the writer at:
[email protected] or call 0919-2961929 You may also visit: http://www.digitalfilipino.com http://www.digitalfilipino.ph
The following are useful references for this report. Yankee Group (http://www.yankeegroup.com) Computer Industry Almanac (http://www.c-i-a.com) Mobile Portals - "The Sleeping Beauty" Market Waiting to be Awakened? (IDC#HM01H), International Data Corporation (http://www.idc.com)
STATSREPORT
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THE DIGITALFILIPINO STATSREPORT
The Filipino Mobile Phone User - July 2002
WIRELESS PHENOMENON Demographic Profile
NCR – 60% Region XI – 8% Region XII – 1%
In the year 2000, I began recognizing the power that wireless technologies has to offer to people all over the world in making things better and improve the way we do things. It is like the 3rd wave of the Internet but much more. If the uptake of the PC and Internet was slow in the country, the mobile phone reached the stage of pervasive computing sooner as more and more Filipinos use it in their daily lives.
The Filipino Mobile Phone User Habits is a survey we’ve been doing since February 2002. Respondents are from Metro Manila, Davao, Cebu, Bicol, and other parts of the country. The result of our survey does not speak for the entire industry at this time. I gather data through traditional means and will cover more location and depth as it progress. 91% or 483 out 528 of our respondents own a mobile phone. Majority of them with a Nokia phone. The Yankee Group estimates that global handset sales for 2002 can reach up to 435.7 million.
Visayas Region VI – 1% Region VII – 10% Luzon Region II – 1% Region III –2% Region IV – 12% Region V – 5%
Age Group
16 and below 17-20 21-24 25-28 29-32 33-36 37-40 41-45 46-55 56 and up 0
20
40
60
80
100
Percent (%)
16 and below 17-20 21-24 25-28 29-32 33-36 37-40 41-45 46-55 56 and up 10
15
20
Age Group
16 and below 17-20 21-24 25-28 29-32 33-36 37-40 41-45 46-55 10
15
Percent (%)
20
15 10 Percent (%)
20
25
In the year 2001, Smart and Talk ‘N Text had an aggregated total subscriber base of 6,369,000 (3.5 million in the year 2000). Globe, on the other hand registered 4.6 million subscribers (79% growth from 2000) in 2001. The entry of new players, Digitel and Extelcom, this year in the GSM cellular market is more than welcome as this gives more option to Filipinos.
25
25
10
15
20
25
30
A majority of the subscribers are using prepaid cards, carriers are finding ways to make it easier for subscribers to refill their phone cards. Globe allows its subscribers to reload their prepaid card through BPI Express Online (http://www.bpiexpressonline.com) and BPI Express Cash via ATM. Smart does it too with its SmartMoney card.
CLARIFICATION: THE FILIPINO ONLINE SHOPPER II The first issue presented a lot of lessons learned and clarification that needs to be made. Such as: 1. 20% of our total respondents last month were actual online buyers. Their combined purchase totals to US$35,000 last year. So for those who said that e-commerce has not yet taken off, perhaps it did. However, instead of our local dotcom sites benefiting from it, foreign sites did.
Distribution of Online Buyers (20% of total respondents)
Brand Ownership of Mobile Phones
5
5
Percent (%)
Respondents (528)
5
However, the country’s text messaging capital claim can only be sustained if carriers and wireless application developers (WAD) will work together to keep the market alive and kicking. Consistent promotion is key to this end.
Mobile Carriers
5
16 and below 17-20 21-24 25-28 29-32 33-36 37-40 41-45 46-55 56 and up
Percent (%)
It is interesting to see that Smart edges over Globe for ages 24 and below. Prepaid subscription shows great popularity for all ages. However, majority of the people we interviewed in the 37 to 45 age groups has post-paid subscription.
Distribution of Ownership
Monthly Texting Average
0
(91 % or 483 of respondents have mobile phones)
0
0
3310 3210 5110 6210 6150 8210 8250 3330 5210 8310 8850 9210 9110 6250 6110 3350 0
Mobile Phone Ownership
Age Group
It is estimated that there are 12 million Filipino mobile phone users as of this writing. The growth of the wireless market has been tremendous and unexpected for most of its players. For the wireless application development industry, it provided opportunities for wealth creation.
2
Popular Nokia Models
Mindanao
Nokia Models
T
HIS 2nd issue presents an interesting perspective as we try to capture the habits of the Filipino Mobile Phone User.
Alcatel - 2% Bosch - 1% Ericsson - 6% Motorola - 3% Nokia - 82% Panasonic - 1% Philips - 1% Sendo - 1% Siemens - 1% Trium - 1%
THE DIGITALFILIPINO STATSREPORT
Age Group
THE FILIPINO MOBILE PHONE USER HABITS
The Filipino Mobile Phone User - July 2002
Globe - 57% Smart - 41% TouchMobile - 1% Talk N' Text - 1%
Prepaid - 70% Postpaid - 30%
Close to 150-200 million text messages are sent through the country’s mobile networks everyday. On the average, the Filipino Mobile Phone User sends 20 text messages a day and spends P1037 for their prepaid and post-paid subscription per month.
STATSREPORT
21-24 (15%) 24-28 (30%) 29-32 (11%) 33-36 (15%)
37-40 (10%) 41-45 (6%) 46-55 (10%) 56-up (3%)
2. The ranking of shopping websites and popular categories were based on the number of respondents that claimed they’ve bought st such items from them. While doing the 1 report, we realized that we have to validate each shopping category mentioned to us by a respondent and ask which site they bought the products from. This is after noticing that
travel services, which is one of the top five shopping categories, did not had a clear website leader in our survey. In future issues, we’ll be able to clarify how much has one bought from each of the sites mentioned too.
Where do Filipinos Buy Online (2001) Amazon (54%) eBay (11%) MyAyala (11%) Network Solutions (8%) Barnes and Noble (6%) Register.com (6%) US$522.13 average annual purchase per user
What Filipinos Buy Online (2001) • Books • • Computer software • • Domain name • • Travel services • • Web hosting • 3. Not only the smart nouveau rich (SNR) buyers are maturing but the upper middle class as well. Online merchants who want to profit at this time should focus on meeting the needs of this market.
4. It is a fact that there’s no empirical data existing at this time that tells the true Philippine Internet situation. However, by March29 next year, we hope that things will change as we gear up for One Internet Day 2003 (http://www.oneinternetday.com). For the first time, 16 speakers from Regions 1 to 12, CAR, ARMM, NCR, Caraga will be presenting their respective regional Internet situation.
THE DIGITALFILIPINO STATSREPORT
The Filipino Mobile Phone User - July 2002
15
20
10
20 30 40 50 Percent (%) Number of respondents that have used the VAS 0
100
Percent (%)
10
15
20
25
Percent (%)
20
25
APPLICATIONS Softrigger Interactive (http://www.softrigger.com/) GiveMe Unlimited (http://www.givemeunlimited.com/) Fluxion (http://www.fluxion.com.ph/) iAyala (http://www.iayala.com/) Wireless Works (http://www.wirelessworks.ph/) Sequel Solutions (http://www.sequelsolutions.com/) Personalized Greetings (http://www.pgi.ph/) i-Quanxi.com (http://www.i-quanxi.com/) DotEnable (http://www.dotenable.com/) Colibria (http://www.colibria.com/) Philippine and Scandinavian IT Services (http://www.philscan.com/) Systema (http://www.systemacorp.com/)
Frequency
News - Frequency Daily Once a Week Once only 2 X a Month Once a Month 3 X a Week 0 5
5
0
10
15
10
20 30 40 Percent (%)
20
50
60
10
15
20
25
30
35
40
Percent (%)
Quote of the Day
0
5
15 10 Percent (%)
20
Logos & Icons - Frequency
Frequency
Once a Month Once a Week Twice a Month Twice a Year Daily Twice a Week Once Only 8 X a Year 3 X a Month
5
10
15
20
5
0
10
15
20
25
Sports
30
Percent (%)
16 and below 17-20 21-24 25-28 29-32 33-36 37-40 41-45 46-55 56 and up
Jokes 0
0
MESSAGING Mobile-Arts (http://www.mobile-arts.com/) Chikka (http://www.chikka.com/) DFNN (http://www.dfnn.net/) 25by8 (http://www.25by8.com/) stag Philippines (http://www.stagphil.com/)
16 and below 17-20 21-24 25-28 29-32 33-36 37-40 41-45 46-55 56 and up
25
Age Group
15
40
Age Group
5
Logos and Icons
Age Group
0
10
35
16 and below 17-20 21-24 25-28 29-32 33-36 37-40 41-45 46-55 56 and up
16 and below 17-20 21-24 25-28 29-32 33-36 37-40 41-45 46-55 56 and up 5
30
Horoscope
Distribution of Mobile Users using VAS 16 and below 17-20 21-24 25-28 29-32 33-36 37-40 41-45 46-55 56 and up
15 20 25 Percent (%)
Percent (%)
Once a Month Once a Week Twice a Month Twice a Year Daily Twice a Week Once Only 8 X a Year 3 X a Month
71% of our respondents are frequent users of value added services (VAS) such as logos, icons, picture messages, among others.
10
5
10
15 20 25 Percent (%)
30
35
Once a Week Daily 2 X a Month Once a Month 0
25
5
10
15
20
Percent (%)
Percent (%)
STATSREPORT
GAMING imGAME (http://www.imgame.com.ph/)
Age Group
80
5
Age Group
60
Frequency
Age Group
40
16 and below 17-20 21-24 25-28 29-32 33-36 37-40 41-45 46-55 56 and up 0
Ringtones - Frequency
20
30
SMS GATEWAY Xurpas (http://www.xurpas.com/) Wolfpac (http://www.wolfpac.net/) Exceed Solutions (http://www.exceedsi.com/)
News
Percent (%)
0
25
Twice a Month Once a Month 3 X a Week 3 X a year Once only Once a Week Daily 2 X a Week 2 X a Year 4 X a Week 3 X a Month 0
16 and below 17-20 21-24 25-28 29-32 33-36 37-40 41-45 46-55 56 and up 0
16 and below 17-20 21-24 25-28 29-32 33-36 37-40 41-45 46-55 56 and up
20
Frequency
10 Percent (%)
15
Age Group
5
10
Percent (%)
Ringtones
Mobile Users using VAS
3
Age Group
VAS
0
5
0
Frequency
In our Filipino Online Shopper Report, the top VAS rankings caught attention and contention. Although logos and icons top our list, in our revised survey, we began asking how often do they access it? Majority do for one to two times a month. News can be considered as our application leader in terms of being used on a regular basis. Our frequency report per VAS application is very raw at this stage but it will significantly improve as we gather more data.
VAS
Filipinos have become emotionally attached to the mobile phone and has changed its buying patterns altogether. Cellular operators offered more than the traditional voice service that has made the mobile device more than just a phone. SMS growth in the Philippines is driven by content provider applications. It is all about bringing the content within reach of the mobile phone user anytime, anywhere.
Picture Messages - Frequency
16 and below 17-20 21-24 25-28 29-32 33-36 37-40 41-45 46-55 56 and up
Logos & Icons Ringtones Picture Messages News Horoscopes Jokes Quotes Sports Games Banking Celebrity News Location Finder Gig Scheds Biorhythm Shopping Forex Chat Recipes Email Movies Traffic
Logos & Icons Ringtones Picture Messages News Horoscope Quotes Jokes Sports Games Banking Biorhythm Celebrity News Location Finder Gig Scheds Shopping Forex Chat Recipes Movies Email
Age Group
VALUE ADDED SERVICES (VAS)
The current demand for wireless applications spurred a new area of focus for the software development sector. Some of the players in this area are:
Picture Messages
Use of Value-Added Services
Popularity of Value-Added Services
WIRELESS APPLICATION THE DIGITALFILIPINO STATSREPORT DEVELOPERS
The Filipino Mobile Phone User - July 2002
25
30
35
0
5
10
15
20
Percent (%)
25
30
LOCATION-BASED SERVICES Webcast Technologies (http://www.findme.com.ph/) Asian Navigation Tracking Service (http://www.ants.ph/) 7
The Filipino Mobile Phone User - July 2002
As wireless applications are considered to be unique and new, application developers specializing in this field can avail as well of government incentives in pioneering projects. SMS applications are very promising and popular in all ages because of its simplicity and accessibility. As applications become more useful, fun, and productive, achieving market share domination will be competitive. Revenue-sharing agreement between the carriers and WAD must be improved. The current 80%-20% scheme in favor of the carrier may become its major disadvantage in the long run. China carriers, for instance, are following Japan’s model in giving the higher share of the revenue to the WAD. Innovative and revolutionary mobile phone Internet applications are also needed as the Computer Industry Almanac predicts that 48% of Internet users will use wireless technologies to connect to it by 2005. Uptake for mobile portals may happen sooner than we think. 4
Filipinos, young and old, became more appreciative of information technology and has offered earning opportunities for micro and small application developers. Creative and daring entrepreneurs in this marketplace can gain wealth if they play their cards right.
16 and Below Logos & Icons Ringtones Picture Messages Jokes Horoscope Biorhythm News Quotes Celebrity News Banking Location Finder Gig Scheds Shopping Chat
20
21 to 24 Ringtones Logos & Icons Picture Messages Horoscope Sports Quotes News Games Gig Scheds Biorhythm Banking Location Finder Celebrity News Shopping Chat Recipes Movies Email
10 Percent (%)
15
20
5
0
5
0
10 Percent (%)
15
20
• Nokia 3210 most popular mobile phone • 68% - Globe subscribers 32% - Smart • Average of 16 text messages a day • Spends P667 per month on cellular payments • 74% prepaid, 26% postpaid
10 Percent (%)
15
20
0
• Nokia 3210 most popular mobile phone • 71% - Globe subscribers 28% - Smart 2% - TouchMobile • Average of 28 text messages a day • Spends P1299 per month on cellular payments • 79% prepaid, 21 postpaid
29 to 32
5
10 15 Percent (%)
20
25
Nokia 3310 most popular mobile phone 49% - Smart subscribers 47% - Globe 1% - Mobiline 1% - TouchMobile 1% - Talk N’ Text • Average of 21 text messages a day • Spends P990 per month on cellular payments • 90% prepaid, 10% postpaid
Nokia 3310 most popular mobile phone 60% - Smart subscribers 40% - Globe Average of 20 text messages a day.
STATSREPORT
5
10 15 Percent (%)
20
25
• Nokia 3310 most popular mobile phone • 55% - Globe subscribers 43% - Smart 1% - TouchMobile • Average of 25 text messages a day. • Spends P998 per month on cellular payments. • 69% prepaid, 31% postpaid
25
30
• Nokia 3210 most popular mobile phone • 73% - Globe subscribers 27% - Smart • Average of 18 text messages a day • Spends P2459 per month on cellular payments • 67% postpaid, 33% prepaid
0
0
0
10 15 20 Percent (%)
Ringtones Logos & Icons Picture Messages News Sports Banking Quotes Location Finder Shopping Games Celebrity News Jokes Email
Logos & Icons Ringtones Picture Messages News Horoscopes Games Jokes Sports Banking Chat Forex Shopping Location Finder Quotes Info-on-Demand
Logos & Icons Ringtones Picture Messages News Banking Games Quotes Location Finder Sports Celebrity News Horoscope Biorhythm Gigi Scheds Shopping Jokes Email Traffic Forex Recipes Movies
5
46 to 55
37 to 40
• • • •
5
VAS
VAS
VAS
15
• Nokia 3210 most popular mobile phone • 71% - Smart subscribers 24% - Globe 5% - Talk & Text • Average of 21 text messages a day • Spends P640 per month on cellular payments • 100% prepaid
0
0
• • • •
10 Percent (%)
Ringtones Logos & Icons Picture Messages News Games Quotes Sports Banking Celebrity News Shopping Forex Jokes Email Traffic Chat Shopping Location Finder Info-on-Demand
VAS
The mobile phone plays an important role in bridging the digital divide in the Philippines as various Internet applications were made accessible to the mobile phone despite its limitations.
5
0
VAS
The number of mobile phone subscribers is expected to reach 18 million in 2003. The continuous growth trends make carriers and application service providers creative in its service offering and have it accessible to the simplest phone.
CONCLUSION
Ringtones Logos & Icons News Picture Messages Jokes Games Banking Horoscope Quotes Location Finder Biorhythm Gig Scheds Shopping Forex Recipes Chat Stocks
Logos & Icons Ringtones Picture Messages News Jokes Quotes Horoscope Gig Scheds Sports Games Biorhythm Banking Celebrity News Location Finder Shopping Email Movies Recipes Chat Forex
VAS
For this report, we tried to come up with a breakdown of each age group mobile phone usage habits. May it guide you in designing applications and understanding what clicks for each age group.
Multimedia Messaging Service (MMS) offerings has begun from both Globe and Smart. Although this service is limited to a few handsets, it is predicted to change the way we use VAS. We'll cover this in greater detail in future reports as it reach maturity and acceptance in the community.
Ringtones Logos & Icons Picture Messages Horoscope Jokes Quotes News Sports Gig Scheds Celebrity News Games Shopping Biorhythm Recipes
41 to 45
33 to 36
25 to 28
VAS
The growth of wireless applications can be attributed to several factors. Filipinos are known to be very social and friendly therefore making communication offerings an immediate click. A lot of idle time is wasted as well in traffic. During these waiting hours, the mobile phone is used extensively to keep one occupied and in touch. Cellular operators’ aggressiveness in increasing its VAS revenue is driving its strategy to continuously seek for killer applications.
As early as April 2001, infrastructure for GPRS has been put up. However, with the unavailability of handset, GPRS is being rolled out gradually. GPRS service was first offered for free and a limited number of users satisfied with the offering. 3G on the hand won’t happen that soon as spectrum licensing issues, infrastructure cost, affordable handset availability are hampering its implementation.
VAS
• 20 text messages sent per day. • Spends an average of P1037 per month
17 to 20
THE DIGITALFILIPINO STATSREPORT
VAS
GPRS AND MMS MOBILE PHONE USER HABITS BY AGE GROUP
The Filipino Mobile Phone User - July 2002
5
10 15 Percent (%)
20
25
• Nokia 3310 most popular mobile phone • 73% - Globe subscribers 24% - Smart 2% - Talk N’ Text • Average of 17 text messages a day. • Spends P1067 per month on cellular payments. • 67% postpaid, 33% prepaid
5
15 10 Percent (%)
20
25
• Nokia 3210 most popular mobile phone • 58% - Globe subscribers 39% - Smart 3% - Talk N’ Text • Average of 19 text messages a day • Spends P1172 per month on cellular payments • 60% prepaid, 40% postpaid
56 and Up Ringtones Logos & Icons Picture Messages VAS
THE DIGITALFILIPINO STATSREPORT
0
10
20 30 Percent (%)
40
50
• Nokia 8210 most popular mobile phone • 50% - Smart subscribers 50% - Globe • Average of 1 text messages a day. 5