The Philippines is a natural duopoly Retail (FMCG): SM Hypermarket vs Puregold Telco: PLDT vs Globe Telecoms Media: ABS vs GMA Food Conglomerates: SMC vs Asia Brewery Finance: BDO vs BPI (Metrobank, RCBC) FMCG: P&G vs Unilever
ISP (95-2003) 1)March ‘95, Republic Act 7925: Telecom De-regulation 2)Environment: No VCs, No Angels, Investment Banking + Loans 3)1997: 85,000 internet users (100M/month market) 4)ISPs: Skyinet, Try-isys, Netasia, Far Eastern, Mozcom, Pacific, Evcom, Tridel... Over 100 providers to chose from! Abundant Internet Cafes 5)Innovation: Prepaid Cards, Unlimited Internet 6)Economies of scale = Metro Pacific buys PLDT 7)Competition = ISP buyouts, ABS buys Skyinternet, PLDT acquires Airborne Access, Government Corruption, Hackers 8)Consolidation: PLDT 999 9)Winners: PLDT and Globe
Call Centers (2001-2004) 1)1997: T1 and E1 connections became available in the US: Global communications became cheaper 2)Death of the pager and email data processing 3)Outsourcing destinations: India and Philippines (other destinations: Guam, Singapore, Hong Kong) 4)First Investors braved the US market (sales + business development): Ambergris Solutions, E- Telecare, Teleperformance, Sykes 5)Earnings: 6M/month for 100 seats +/- = 60M/ month/1,000 seats 6)Innovation: Outbound Sales, Inbound Services, Telemarketing, Employee Retention 7)Economies of Scale: Talent acquisition (sound management, infrastructure and capitalization) 8)Competition: Off shore firms from the US started coming to the Ph. 9)Consolidation: Telus buys Ambergris, Aegis buys People Support (2009), IBM, HP arrives 10)Winners: Investors, Team Philippines
Mobile Value Added Services (2000- 2007): The Rise 1)2000: The SMS explosion 2)2001: 100,000 SMS per day… by 2002: 2M SMS per day 3)SMART and Globe introduce the 2.50 special SMS and allowed VAS providers to earn 30% margin 4)VAS providers: Information Gateway, Chikka, Entertainment Gateway, Megamobile, Xurpass… again over 150 to chose from! 5)Innovation: Licensing + Rights Management, Autoload, Pasaload, Loan a load, SMS-Web-SMS, Short Codes, j2me apps, app download 6)The development of the first Ph VCs: International Expansion
Mobile Value Added Services (2001- 2007): The Decline 7)Market Size: 15-20 php per download. 1 ordinary song = 30,000 downloads, hit song: 300,000 downloads, 10 songs + 1 hit = 9,000,000 per day. 8)Regulation and Consolidation: NTC-Memorandum Circular (MC) 04-07-2009 9)PLDT acquires Chikka: $20M, PLDT acquires Wolfpack: undisclosed +/- $1M~$1.5M Globe acquires EG: $20M 10)Iphone: The mobile platform 11)Winners: PLDT and Globe
BPOs (2007-Present) Team Philippines: Excellent English Communication Skills, well- educated market, low cost labor vs US Direct Corporate Hires: Finance and IT (JP Morgan, Citibank, Thompson Reuters, Dell, HP, Oracle, Netsuite, IBM) Outsourced Hires: Architectural, Medical and Legal Outsourced Development: (Proudcloud, Orange and Bronze, Stratpoint, Dynamic Objx, etc.)
E-Commerce (2000-Present) Thousands of e-commerce sites: P2P: Sulit.com, Ayosdito.com, multiply.com B2B: Bayantrade B2C: Zalora, Lazada, Rocket Internet (2012), myayala.com Jobs: Jobstreet.com, JobsDB.com Hotel Rentals: Agoda.com Food: Citydelivery, Quickdelivery Group Buying: Groupon (Beeconomic), Ensogo, Cashcashpinoy, Deal Grocer, Deal Dozen… over 50 to chose from!
2010-Future Cloud Computing: Access Anywhere IPV6: Easier Networking HTML5: Easier Development/Design Mobile Devices: Access Point Social Media (social graph): Internet Identity