Activity Description: Smart Communications has transformed the cell phone market in the Philippines by enabling electronic sales of airtime via short message service (SMS) and by reducing the unit size of such sales to as little as US$0.03. This innovation has enabled millions of low-income Filipinos to access communications services - 98% of Smart's subscribers are l ow-income, pre-paid customers. Its distribution system, using SMS technology, allows merchants to re-sell minutes, taking a commission on every sale, in essence creating a business opportunity for 450,000 entrepreneurs.


Updates (8/22/2006):
SMART Communications has had significant developments since DTE last checked in for our case study. In terms of numbers, SMART has grown its subscriber base to 22.5 million customers, and it has experienced 20% growth in revenue over the last two years.The company has begun segmenting its BOP target audience to offer specialized services such as "bucket pricing" (prepaid unlimited SMS messaging) in the form of the new 25/8 service. The company is also designing an electronic remittance service for specific goods. Finally, SMART is teaming up with Motorla to provide wireless internet throughtout the Philippines in the form of kiosks (which SMART is offering to its 800,000 affiliated retailers) or mobile internet cafes. To learn more, listen to DTE's 7/7/2006 interview with SMART Communications representative Ramon Isberto.