Wednesday, February 23, 2011

Facebook v. TelCos


Facebook is considered a serious threat to telecom companies (telco). According to a research conducted by an independent IT research company Ovum, Facebook is “much more than a social network.” The research also reported that "Facebook is encroaching directly on mobile operator territory and should not be underestimated."

The encroachment is made possible by making Facebook directly available over mobile phones. This step practically turned every corner of the country a wifi hotspot. Accounts are updated as conveniently as one can send text or place a call. Additionally, Facebook has an integration deal with Skype for voice communications.

In the local telecom arena, the National Telecommunication Commission (NTC) already confirmed the significant decline of profit among telecommunication companies in the past months because of Facebook. According to the NTC, the Philippines was coined as the world’s text messaging capital in 2009 because the average Filipino user sent about 30 text messages per day that year or a total of more than 2 billion messages passing through telecom networks. Now, it is implied that the label text messaging capital may no longer hold true for the Philippines.

The statistics may urge telcos to reevaluate their business strategies. The government may draft rules to regulate the situation. In all likeness, I think the playing field is now widely dispersed towards beneficial competition. By the way, I have arranged three birthday blow-outs without spending even a single peso over text or call. ☺

No comments: