The myTV service offerred by Smart is a cool idea, it generates the usual buzz and excitement associated with innovative technology stuff. I just don't think the hype will necessarily translate to a higher consumer take-up, with all due respect to my friend Estela.
Remember the hype surrounding the launch of 3G services? It went nowhere, considering the bulk of handsets sold remain non-3G. Even when pricing schemes were revised to be more mass market-friendly. The handset turnover is becoming faster, I think, as phone companies routinely come up with new models every year. However, the country still has a huge market for used or "second hand" units, mostly older models that are equipped with only the most basic functions of voice and text, and unless these consumers upgrade, 3G services will remain a novelty.
As for myTV, the market is even smaller. Mostly those who are always on the go. I mean, if I want to watch TV, I'd tune in to a television set, not my cellphone.
For this service to pick up, Smart may want to subsidize handset cost again and target the pre-paid segment. It doesn't make sense to focus on the small premium market for myTV, revenues generated may not be able to recover investment costs. To make this service a major contributor to overall revenues, I think myTV compatible handset prices will have to fall and the company has to come up with really attractive pricing schemes to convince existing users to upgrade, considering that revenue growth in the core segments (voice and data/text) may stagnate as the market matures.
Making the handsets more attractive means outsourcing production of unbranded compatible phones to Taiwan (or South Korea) to reduce costs, rather than wait for Nokia and Ericsson to come up with their models, which, because of branding and marketing costs, are obviously more expensive. Taiwanese companies are in fact, responsible for producting Apple's highly popular iPhones and they specialize in producing tech gadgets for big name companies in the US and Europe. Smart has done this before when it came up with its own Smartphone brand (and went out just as fast).
What's really interesting is that the Philippine market is way ahead, even of some developed countries when it comes to mobile services. We'be beem texting hither and dither since 1997 (it started as a free, value-added service by Globe). And it's only been recently that teens in the US have taken to texting! Those greeting-card messages complete with graphics are sooo 1999, I can't believe I still receive them from abroad.
On-the-air pre-paid loading, anyone? You can even send money (even remittances from abroad) through text! Cashless shopping and dining (paying via text!) however, didn't fare well and consumers simply ignored it. Recently, we navigated the streets of Hong Kong through the street map my teammate Ayris downloaded into her cellphone (which included the entire map of Guangdong province). Really practical and useful.
But watching TV? It remains to be seen.
Remember the hype surrounding the launch of 3G services? It went nowhere, considering the bulk of handsets sold remain non-3G. Even when pricing schemes were revised to be more mass market-friendly. The handset turnover is becoming faster, I think, as phone companies routinely come up with new models every year. However, the country still has a huge market for used or "second hand" units, mostly older models that are equipped with only the most basic functions of voice and text, and unless these consumers upgrade, 3G services will remain a novelty.
As for myTV, the market is even smaller. Mostly those who are always on the go. I mean, if I want to watch TV, I'd tune in to a television set, not my cellphone.
For this service to pick up, Smart may want to subsidize handset cost again and target the pre-paid segment. It doesn't make sense to focus on the small premium market for myTV, revenues generated may not be able to recover investment costs. To make this service a major contributor to overall revenues, I think myTV compatible handset prices will have to fall and the company has to come up with really attractive pricing schemes to convince existing users to upgrade, considering that revenue growth in the core segments (voice and data/text) may stagnate as the market matures.
Making the handsets more attractive means outsourcing production of unbranded compatible phones to Taiwan (or South Korea) to reduce costs, rather than wait for Nokia and Ericsson to come up with their models, which, because of branding and marketing costs, are obviously more expensive. Taiwanese companies are in fact, responsible for producting Apple's highly popular iPhones and they specialize in producing tech gadgets for big name companies in the US and Europe. Smart has done this before when it came up with its own Smartphone brand (and went out just as fast).
What's really interesting is that the Philippine market is way ahead, even of some developed countries when it comes to mobile services. We'be beem texting hither and dither since 1997 (it started as a free, value-added service by Globe). And it's only been recently that teens in the US have taken to texting! Those greeting-card messages complete with graphics are sooo 1999, I can't believe I still receive them from abroad.
On-the-air pre-paid loading, anyone? You can even send money (even remittances from abroad) through text! Cashless shopping and dining (paying via text!) however, didn't fare well and consumers simply ignored it. Recently, we navigated the streets of Hong Kong through the street map my teammate Ayris downloaded into her cellphone (which included the entire map of Guangdong province). Really practical and useful.
But watching TV? It remains to be seen.
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