Smart venture eyes half of HK OFWs

A joint venture between Smart Communications Inc., PLDT Global and leading Hong Kong mobile carrier HK CSL has been raking in revenues of HK$12 million to HK$15 million a month since the service, which cater to the 180,000 overseas Filipino workers (OFWs) in Hong Kong, was launched in July last year.

Called 1528 Smart, the mobile-phone service gives subscribers cheaper text messaging, voice call rates and other services through the facilities of the largest mobile-phone firm in the country.

PLDT Global president Alfredo Panlilio said 1528 Smart has captured 14 percent of the OFW market in Hong Kong despite stiff competition where six major cellular firms currently operate. “The market there is already saturated. It is a very competitive market there,” Panlilio said.

Of the estimated 180,000 OFWs in HK, 1528 Smart has registered 25,000 subscribers. By the end of the year, 1528 Smart is seen to increase its market share to 50 percent.

“There are 25,000 subscribers now whose SIM cards are active, meaning they regularly top up prepaid cards,” Panlilio said.

An estimated 87 percent of some 180,000 OFWs living in Hong Kong, or more than 150,000, own mobile phones, and the majority of these are on prepaid subscription.

PLDT Global is eyeing other countries where it would be allowed to enter into joint-venture arrangements, but with the intention of serving more expatriate Filipinos which total about eight million and an estimated yearly remittance of over $8 billion.

“We’re looking at Canada, Italy, Singapore through the MVNO [Mobile Virtual Network Operator]. It’s under discussion with the different possible service providers,” PLDT chairman Manuel Pangilinan said.

MVNO is a company that provides mobile voice and data services to end users through commercial agreements with licensed mobile network operators.

Pangilinan said PLDT Global continues to study the circumstances of each country and see which approach would best work on that country given the existing regulatory structure.

Pangilinan also said that there are three ways to expand its presence in the region. “One is to invest in a telecom company through equity. Another is like what we did in Hong Kong, where we tied up with another carrier. It is cheaper to just have an aggregator, the credit risk is very minimal since we would not put up our own infrastructure.

Another is to just focus on retail by selling prepaid cards,” he said. Lenie Lectura