Transcript A businessman*s perspective: IT and the RP

IT and the RP:
The Road to Freedom
Michael Ngo Dee
Philippine Internet Usage projections… 10
years ago.
YEAR
Users
Population
% Pop.
Usage Source
2000
2,000,000
78,181,900
2.6 %
ITU
2005
7,820,000
84,174,092
9.3 %
C.I.Almanac
2008
14,000,000
96,061,683
14.6 %
Yahoo!
2009
24,000,000
97,976,603
24.5 %
Nielsen
2010
29,700,000
99,900,177
29.7 %
ITU
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)
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March ‘95, Republic Act 7925: Telecom De-regulation
Environment: No VCs, No Angels, Investment Banking + Loans
1997: 85,000 internet users (100M/month market)
ISPs: Skyinet, Try-isys, Netasia, Far Eastern, Mozcom, Pacific, Evcom,
Tridel... Over 100 providers to chose from! Abundant Internet Cafes
Innovation: Prepaid Cards, Unlimited Internet
Economies of scale = Metro Pacific buys PLDT
Competition = ISP buyouts, ABS buys Skyinternet, PLDT acquires Airborne
Access, Government Corruption, Hackers
Consolidation: PLDT 999
Winners: PLDT and Globe
Call Centers (2001-2004)
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1997: T1 and E1 connections became available in the US: Global communications became
cheaper
Death of the pager and email data processing
Outsourcing destinations: India and Philippines (other destinations: Guam, Singapore, Hong
Kong)
First Investors braved the US market (sales + business development): Ambergris Solutions, ETelecare, Teleperformance, Sykes
Earnings: 6M/month for 100 seats +/- = 60M/ month/1,000 seats
Innovation: Outbound Sales, Inbound Services, Telemarketing, Employee Retention
Economies of Scale: Talent acquisition (sound management, infrastructure and
capitalization)
Competition: Off shore firms from the US started coming to the Ph.
Consolidation: Telus buys Ambergris, Aegis buys People Support (2009), IBM, HP arrives
Winners: Investors, Team Philippines
Mobile Value Added Services (20002007): 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 (20012007): 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, welleducated 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)
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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
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Cloud Computing: Access Anywhere
IPV6: Easier Networking
HTML5: Easier Development/Design
Mobile Devices: Access Point
Social Media (social graph): Internet Identity