THE DIGITALFILIPINO STATSREPORT

ABOUT THE WRITER

Janette Toral is an IT writer, speaker, consultant, educator and lobbyist. She founded the Philippine STATSREPORT
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.
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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 STATSREPORT
E-Commerce Guide for the eFilipino”.
She’s frequently invited at various IT conferences to talk about information technology, web, Having access to the latest Internet, e­
outsourcing, and wireless developments in the Philippines. commerce, outsourcing, wireless, and
An IT practitioner, she has more than 13 years of combined experience in the areas of research, information technology research is not easy
training, marketing, business planning, technical support, and project management. to keep up to. Tasking an entity to do such
service on a customized level is expensive
as well.
The following is our 2002 – 2003 report schedule:
DigitalFilipino.com is the country’s premiere
• June 2002 – The Filipino Online Shopper e-commerce research site on the Internet
• July 2002 – The Filipino Mobile Phone User since September 1999. Beginning June 2002,
• August 2002 – The Filipino Internet User we came up with a monthly StatsReport
• September 2002 – State of Philippine Outsourcing Industry service, a printed report giving analysis on
• October 2002 - The Filipino Internet Banker & State of Online Financial Services local and international statistical
• November 2002 – State of Philippine I.T. Education developments in the field of information
• December 2002 - Philippines Going High Tech – Trends in Filipino Ownership of Computing technology, Internet, e-commerce,
Devices (digital copiers, digital cameras, video cameras, printers, scanners, multifunctional outsourcing, and wireless markets.
machines, projectors, and personal computers) Subscribers are invited to participate in our
• January 2003 – State of Philippine Internet Service and Data Center Providers monthly briefing whenever a report is
released. This is to provide direct interaction
• February 2003 - State of Philippine E-Commerce (Internet and Mobile)
and get feedback on additional information
• March 2003 - State of Philippine I.T. Manpower needed.
• April 2003 - Philippine SMEs’ I.T. Usage and Spending
• May 2003 - To be announced We do our own research and person-to-person
surveys. Its up-to-date status is included in
every monthly report. Our data gathering is
REFERENCES through survey interviews as personal
Copyright© 2002 by Janette Toral, interaction is important to us. Every
The following are useful references for this respondent also gets a token, book or report,
DigitalFilipino.com. report. when they fill up our forms. We will cover all
All rights reserved. This report or regions in the country as we progress.
any part of it may not be reproduced, Yankee Group
stored, transmitted in any form and means (http://www.yankeegroup.com) The fee for this service is only eight thousand
without the written permission pesos (P8,000) per year (for the first 120
Computer Industry Almanac subscribers, P15,000 thereafter). It includes
from the author.
(http://www.c-i-a.com) 12 reports with the option of participating
All Nokia phone images are copyright of in our monthly briefing. We designed our
Nokia and were taken from the press section package to be small and medium businesses
Mobile Portals - "The Sleeping Beauty" Market
of http://www.nokia.com. friendly for we want this market to grow.
Waiting to be Awakened? (IDC#HM01H),
Layout, design and illustrations International Data Corporation The DigitalFilipino StatsReport is released
by Antonio Bucu. (http://www.idc.com) every 26th of the month.
StatsReport subscribers who would like to To subscribe, please email
ask questions related to this report Janette@digitalfilipino.com
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THE DIGITALFILIPINO STATSREPORT The Filipino Mobile Phone User - July 2002 The Filipino Mobile Phone User - July 2002 THE DIGITALFILIPINO STATSREPORT

WIRELESS PHENOMENON 16 and below

Monthly Texting Average

THE FILIPINO MOBILE PHONE USER HABITS 17-20

21-24

T
25-28

Age Group
HIS 2nd issue presents an interesting 29-32
perspective as we try to capture the Demographic Profile NCR – 60%
Popular Nokia Models 33-36
Mindanao 37-40
habits of the Filipino Mobile Phone User. 3310
Region XI – 8% 41-45
3210 46-55
Region XII – 1%
In the year 2000, I began recognizing the Visayas
5110 56 and up
6210
power that wireless technologies has to offer Region VI – 1% 6150 0 5 10 15 20 25 30
to people all over the world in making things Region VII – 10% 8210 Percent (%)

Nokia Models
better and improve the way we do things. It 8250
Luzon
3330
is like the 3rd wave of the Internet but much Region II – 1% 5210
However, the country’s text messaging capital
more. If the uptake of the PC and Internet Region III –2% 8310 claim can only be sustained if carriers and
8850 wireless application developers (WAD) will work
was slow in the country, the mobile phone Region IV – 12%
9210
reached the stage of pervasive computing Region V – 5%
9110 together to keep the market alive and kicking.
sooner as more and more Filipinos use it in 6250 Consistent promotion is key to this end.
6110
their daily lives. 3350
0 5 10 15 20 25
A majority of the subscribers are using
Mobile Phone Ownership
It is estimated that there are 12 million (91 % or 483 of respondents Percent (%) prepaid cards, carriers are finding ways to
have mobile phones) make it easier for subscribers to refill their
Filipino mobile phone users as of this writing.
16 and below
The growth of the wireless market has been 17-20
phone cards. Globe allows its subscribers to
In the year 2001, Smart and Talk ‘N Text had
tremendous and unexpected for most of its 21-24 reload their prepaid card through BPI Express
25-28 an aggregated total subscriber base of
players. For the wireless application Online (http://www.bpiexpressonline.com)
Age Group

29-32 6,369,000 (3.5 million in the year 2000).

development industry, it provided
opportunities for wealth creation.
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
33-36 and BPI Express Cash via ATM. Smart does it
Globe, on the other hand registered 4.6
37-40 too with its SmartMoney card.
41-45 million subscribers (79% growth from 2000)
46-55 in 2001. The entry of new players, Digitel
56 and up
and Extelcom, this year in the GSM cellular
0 20 40 60
Percent (%)
80 100 market is more than welcome as this gives CLARIFICATION: THE FILIPINO ONLINE SHOPPER II
more option to Filipinos.
The first issue presented a lot of lessons travel services, which is one of the top five 4. It is a fact that there’s no empirical data
learned and clarification that needs to be shopping categories, did not had a clear existing at this time that tells the true
It is interesting to see that Smart edges over
made. Such as: website leader in our survey. In future issues, Philippine Internet situation. However, by
Distribution of Ownership Globe for ages 24 and below. Prepaid
we’ll be able to clarify how much has one March29 next year, we hope that things will
subscription shows great popularity for all
16 and below 1. 20% of our total respondents last month bought from each of the sites mentioned too. change as we gear up for One Internet Day
17-20 ages. However, majority of the people we
were actual online buyers. Their combined 2003 (http://www.oneinternetday.com). For
21-24 interviewed in the 37 to 45 age groups has
25-28 purchase totals to US$35,000 last year. So Where do Filipinos Buy Online the first time, 16 speakers from Regions 1 to
post-paid subscription.
Age Group

a mobile phone. Majority of them with a 29-32 for those who said that e-commerce has not (2001) 12, CAR, ARMM, NCR, Caraga will be
33-36
Nokia phone. The Yankee Group estimates yet taken off, perhaps it did. However, Amazon (54%) presenting their respective regional Internet
37-40 Mobile Carriers instead of our local dotcom sites benefiting eBay (11%) situation.
that global handset sales for 2002 can reach 41-45
MyAyala (11%)
up to 435.7 million. 46-55 from it, foreign sites did. Network Solutions (8%)
56 and up
Barnes and Noble (6%)
0 5 10 15 20 25 Register.com (6%)
Distribution of Online Buyers US$522.13 average annual purchase per user
Percent (%)
Respondents (528) (20% of total respondents)
16 and below 21-24 (15%) 37-40 (10%)
17-20 24-28 (30%) 41-45 (6%) What Filipinos Buy Online (2001)
21-24 Globe - 57% Prepaid - 70% 29-32 (11%) 46-55 (10%)
25-28 Smart - 41% Postpaid - 30% 33-36 (15%) 56-up (3%) • Books •
Age Group

29-32 Brand Ownership of Mobile Phones TouchMobile - 1% • Computer software •

33-36 Talk N' Text - 1%
Alcatel - 2% • Domain name •
37-40 Bosch - 1%
41-45 2. The ranking of shopping websites and • Travel services •
Ericsson - 6%
46-55 Motorola - 3% popular categories were based on the number • Web hosting •
0 Nokia - 82% Close to 150-200 million text messages are of respondents that claimed they’ve bought
5 10 15 20 25 st
Percent (%)
Panasonic - 1% sent through the country’s mobile networks such items from them. While doing the 1 3. Not only the smart nouveau rich (SNR)
Philips - 1%
Sendo - 1%
everyday. On the average, the Filipino Mobile report, we realized that we have to validate buyers are maturing but the upper middle
Siemens - 1% Phone User sends 20 text messages a day and each shopping category mentioned to us by class as well. Online merchants who want to
Trium - 1% spends P1037 for their prepaid and post-paid a respondent and ask which site they bought profit at this time should focus on meeting
subscription per month. the products from. This is after noticing that the needs of this market.

2 STATSREPORT
THE DIGITALFILIPINO STATSREPORT The Filipino Mobile Phone User - July 2002 The Filipino Mobile Phone User - July 2002 WIRELESS APPLICATION
THE DIGITALFILIPINO STATSREPORT
DEVELOPERS
The current demand for wireless applications
Use of Value-Added Services Picture Messages
VALUE ADDED Popularity of Value-Added Services
Logos & Icons
Logos & Icons 16 and below Picture Messages - Frequency
spurred a new area of focus for the software
development sector. Some of the players in
17-20
SERVICES Ringtones
Picture Messages
Ringtones
Picture Messages
21-24
25-28
Twice a Month
Once a Month
this area are:

Age Group
News 3 X a Week
(VAS) News
Horoscopes
29-32
33-36 3 X a year
SMS GATEWAY

Frequency
Horoscope
Jokes 37-40 Once only Xurpas
Quotes
Quotes 41-45 Once a Week (http://www.xurpas.com/)

VAS
Jokes Daily
Filipinos have become emotionally attached Sports
Sports 46-55 Wolfpac
56 and up 2 X a Week
Games

VAS
to the mobile phone and has changed its Games 2 X a Year (http://www.wolfpac.net/)
Banking
buying patterns altogether. Cellular operators Banking
Celebrity News
0 5 10 15 20 25 30 4 X a Week Exceed Solutions
Biorhythm Percent (%) 3 X a Month
offered more than the traditional voice Location Finder (http://www.exceedsi.com/)
Celebrity News
service that has made the mobile device more Location Finder
Gig Scheds 0 5 10 15 20 25 30 35 40
Percent (%)
than just a phone. SMS growth in the Gig Scheds
Biorhythm
News APPLICATIONS
Shopping
Philippines is driven by content provider Shopping Softrigger Interactive
Forex 16 and below
applications. It is all about bringing the Forex
(http://www.softrigger.com/)
Chat
Chat 17-20 News - Frequency
content within reach of the mobile phone Recipes 21-24 GiveMe Unlimited
Recipes
user anytime, anywhere. Email 25-28 Daily
(http://www.givemeunlimited.com/)

Age Group
Movies 29-32 Once a Week

Frequency
Movies
Email
Traffic 33-36 Once only Fluxion
In our Filipino Online Shopper Report, the 0 5 10 15 20
37-40 2 X a Month (http://www.fluxion.com.ph/)
top VAS rankings caught attention and 0 10 20 30 40 50 41-45 Once a Month
Percent (%)
Percent (%) 46-55 3 X a Week
iAyala
contention. Although logos and icons top Number of respondents that have used the VAS 56 and up (http://www.iayala.com/)
0 10 20 30 40 50 60
our list, in our revised survey, we began Ringtones Percent (%) Wireless Works
0 5 10 15 20
asking how often do they access it? Majority Percent (%) (http://www.wirelessworks.ph/)
16 and below
do for one to two times a month. News can 17-20 Sequel Solutions
be considered as our application leader in 21-24 (http://www.sequelsolutions.com/)
terms of being used on a regular basis. Our 25-28 Horoscope
Personalized Greetings
Age Group

29-32
frequency report per VAS application is very 33-36
16 and below (http://www.pgi.ph/)
raw at this stage but it will significantly 17-20
37-40
21-24
i-Quanxi.com
improve as we gather more data. 41-45
46-55
25-28 (http://www.i-quanxi.com/)

Age Group
29-32 DotEnable
56 and up
33-36
Mobile Users using VAS 0 5 10 15 20 25 37-40 (http://www.dotenable.com/)
16 and below Percent (%) 41-45 Colibria
46-55 (http://www.colibria.com/)
17-20
56 and up
21-24 Philippine and Scandinavian IT Services
25-28
Ringtones - Frequency
0 5 10 15 20 25 30 35 40
(http://www.philscan.com/)
Age Group

29-32 Once a Month Percent (%)

33-36 Once a Week Systema
37-40 Twice a Month (http://www.systemacorp.com/)
41-45 Twice a Year
Frequency

46-55 Daily Quote of the Day

56 and up Twice a Week MESSAGING
16 and below
0 20 40 60 80 100 Once Only
17-20
Mobile-Arts
8 X a Year
Percent (%)
3 X a Month 21-24 (http://www.mobile-arts.com/)
25-28 Chikka

Age Group
0 5 10 15 20 25 29-32
71% of our respondents are frequent users of value Percent (%) (http://www.chikka.com/)
33-36
added services (VAS) such as logos, icons, picture DFNN
37-40
messages, among others.
Logos & Icons - Frequency 41-45 (http://www.dfnn.net/)
46-55
25by8
Distribution of Mobile Users Once a Month 56 and up
using VAS Logos and Icons Once a Week Sports (http://www.25by8.com/)
0 5 10 15 20 25 30
16 and below
Twice a Month
Percent (%)
stag Philippines
16 and below Twice a Year 16 and below
(http://www.stagphil.com/)
Frequency

17-20 17-20 Daily 17-20

21-24 21-24 Twice a Week 21-24
25-28 25-28
25-28 Once Only GAMING
Age Group

Age Group
Jokes
Age Group

29-32 29-32 8 X a Year 29-32

33-36 33-36 3 X a Month 33-36 imGAME
Once a Week
37-40 37-40 (http://www.imgame.com.ph/)
Frequency

37-40 Daily
41-45 0 5 10 15 20 25 30 35 41-45
41-45 2 X a Month
46-55 Percent (%) 46-55
46-55 Once a Month
56 and up 56 and up 56 and up LOCATION-BASED SERVICES
0 5 10 15 20 25 0 5 10 15 20 25 30 35
0 5 10 15 20 25 30 Webcast Technologies
0 5 10 15 20 25
Percent (%) Percent (%)
Percent (%)
Percent (%) (http://www.findme.com.ph/)
Asian Navigation Tracking Service
(http://www.ants.ph/) 7
3 STATSREPORT
THE DIGITALFILIPINO STATSREPORT The Filipino Mobile Phone User - July 2002 The Filipino Mobile Phone User - July 2002 THE DIGITALFILIPINO STATSREPORT

GPRS AND MMS 17 to 20 25 to 28 33 to 36 41 to 45

MOBILE PHONE USER
Ringtones Ringtones
HABITS BY AGE GROUP As early as April 2001, infrastructure for GPRS Logos & Icons Ringtones
Logos & Icons Logos & Icons Logos & Icons
has been put up. However, with the Picture Messages
Ringtones
News Picture Messages
• 20 text messages sent per day. unavailability of handset, GPRS is being Horoscope
Picture Messages
News Picture Messages News
• Spends an average of P1037 per month rolled out gradually. GPRS service was first Jokes Games
Jokes Jokes

VAS

VAS
offered for free and a limited number of users Quotes Quotes

VAS
VAS
Quotes Games
News Sports
satisfied with the offering. 3G on the hand Horoscope Banking
The growth of wireless applications can be Sports Horoscope Banking
won’t happen that soon as spectrum licensing Gig Scheds
Gig Scheds Celebrity News
attributed to several factors. Filipinos are issues, infrastructure cost, affordable handset Celebrity News
Sports Quotes
Games Location Finder Shopping
known to be very social and friendly therefore availability are hampering its Games Forex
Biorhythm Biorhythm
making communication offerings an implementation. Shopping
Banking Gig Scheds Jokes
immediate click. A lot of idle time is wasted Biorhythm
Celebrity News Shopping Email
Recipes Traffic
as well in traffic. During these waiting hours, Multimedia Messaging Service (MMS) Location Finder Forex
Recipes Chat
the mobile phone is used extensively to keep offerings has begun from both Globe and 0 5 10 15 20 Shopping
Shopping
Percent (%) Email Chat
one occupied and in touch. Cellular operators’ Smart. Although this service is limited to a Stocks Location Finder
Movies
aggressiveness in increasing its VAS revenue few handsets, it is predicted to change the • Nokia 3210 most popular mobile phone Recipes Info-on-Demand
0 5 10 15 20
is driving its strategy to continuously seek way we use VAS. We'll cover this in greater • 71% - Smart subscribers Chat Percent (%) 0 5 10 15 20 25 30
for killer applications. detail in future reports as it reach maturity 24% - Globe Forex Percent (%)
5% - Talk & Text • Nokia 3210 most popular mobile phone • Nokia 3210 most popular mobile phone
and acceptance in the community. 0 5 10 15 20
• 71% - Globe subscribers
For this report, we tried to come up with a • Average of 21 text messages a day Percent (%) • 73% - Globe subscribers
breakdown of each age group mobile phone • Spends P640 per month on cellular 28% - Smart 27% - Smart
CONCLUSION • Nokia 3210 most popular mobile phone 2% - TouchMobile
usage habits. May it guide you in designing payments • Average of 18 text messages a day
• 100% prepaid • 68% - Globe subscribers • Average of 28 text messages a day
applications and understanding what clicks • Spends P2459 per month on cellular
The mobile phone plays an important role in 32% - Smart • Spends P1299 per month on cellular
for each age group. payments
bridging the digital divide in the Philippines • Average of 16 text messages a day payments • 67% postpaid, 33% prepaid
as various Internet applications were made 21 to 24 • Spends P667 per month on cellular • 79% prepaid, 21 postpaid
The number of mobile phone subscribers is accessible to the mobile phone despite its payments
expected to reach 18 million in 2003. The limitations.
Ringtones
• 74% prepaid, 26% postpaid 46 to 55
Logos & Icons
continuous growth trends make carriers and Picture Messages 37 to 40 Ringtones
application service providers creative in its Filipinos, young and old, became more Horoscope Logos & Icons
service offering and have it accessible to the appreciative of information technology and Sports 29 to 32 Logos & Icons Picture Messages
Ringtones
VAS
simplest phone. Quotes News
has offered earning opportunities for micro Logos & Icons Picture Messages

VAS
News Sports
and small application developers. Games
Ringtones News Banking
As wireless applications are considered to Gig Scheds
Picture Messages Horoscopes Quotes
be unique and new, application developers News

VAS
Games Location Finder
Creative and daring entrepreneurs in this Biorhythm
Banking
specializing in this field can avail as well of Banking Jokes Shopping
marketplace can gain wealth if they play their

VAS
Games Sports Games
government incentives in pioneering Location Finder
cards right. Celebrity News
Quotes Banking Celebrity News
projects. Location Finder Chat Jokes
Shopping
Sports Forex Email
Chat
SMS applications are very promising and 16 and Below Recipes
Celebrity News Shopping
5 10 15 20 25
Horoscope 0
popular in all ages because of its simplicity Movies Location Finder
Logos & Icons Biorhythm Percent (%)
Email Quotes
and accessibility. As applications become Ringtones Gigi Scheds Info-on-Demand • Nokia 3210 most popular mobile phone
more useful, fun, and productive, achieving Picture Messages 0 5 10 15 20 25 Shopping
• 58% - Globe subscribers
Percent (%) 0 5 10 15 20 25
market share domination will be competitive. Jokes Jokes
Horoscope Email
Percent (%) 39% - Smart
Revenue-sharing agreement between the • Nokia 3310 most popular mobile phone • Nokia 3310 most popular mobile phone 3% - Talk N’ Text
VAS

Biorhythm Traffic
carriers and WAD must be improved. The News • 49% - Smart subscribers Forex • 73% - Globe subscribers • Average of 19 text messages a day
current 80%-20% scheme in favor of the Quotes • 47% - Globe Recipes 24% - Smart • Spends P1172 per month on cellular
carrier may become its major disadvantage Celebrity News • 1% - Mobiline Movies
2% - Talk N’ Text payments
in the long run. China carriers, for instance, Banking 1% - TouchMobile 0 5 10 15 20 25 • Average of 17 text messages a day. • 60% prepaid, 40% postpaid
Location Finder
are following Japan’s model in giving the 1% - Talk N’ Text Percent (%)
• Spends P1067 per month on cellular
Gig Scheds
higher share of the revenue to the WAD. • Average of 21 text messages a day payments.
Shopping • Nokia 3310 most popular mobile phone 56 and Up
Chat • Spends P990 per month on cellular • 67% postpaid, 33% prepaid
• 55% - Globe subscribers
Innovative and revolutionary mobile phone payments Ringtones

VAS
0 5 10 15 20 43% - Smart Logos & Icons
Internet applications are also needed as the • 90% prepaid, 10% postpaid
Percent (%) 1% - TouchMobile Picture Messages
Computer Industry Almanac predicts that • Nokia 3310 most popular mobile phone • Average of 25 text messages a day. 10 20 30 40 50
0
48% of Internet users will use wireless • 60% - Smart subscribers • Spends P998 per month on cellular Percent (%)
technologies to connect to it by 2005. • 40% - Globe payments. • Nokia 8210 most popular mobile phone
Uptake for mobile portals may happen sooner • Average of 20 text messages a day. • 69% prepaid, 31% postpaid • 50% - Smart subscribers
than we think. 50% - Globe
• Average of 1 text messages a day.
4 STATSREPORT
5