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How much are telcos losing on FB & Twitter?

Last Christmas, the trend started with people shifting from sending out text messages on their phone to just using Facebook and Twitter to greet friends and loved ones.

We estimated as much as Php50 million could have been lost to Facebook just on Christmas eve.

This year, people have been using Facebook and Twitter way more than a year ago and it’s not just during Christmas or New Year’s day.

Counter-measures were made to offset that shift with telcos offering unlimited access to Facebook and many other social networking sites (for a daily flat rate between Php20 to Php25).

But the trend still remains — people send less SMS and using social networking sites like FB or Twitter as an alternative. How much the telcos are losing from this shift is unknown but maybe we can do some rough estimates.

Last time I checked, there are around 18 million accounts on Facebook from the Philippines. If we can figure out how much less an average FB user send text messages in favor of FB messages to greet people, that could one way of extrapolating the figure.

So, how much less have you bee texting and using FB or Twitter instead to send out greetings this holiday season?

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Avatar for Abe Olandres

Abe is the founder and Editor-in-Chief of YugaTech with over 20 years of experience in the technology industry. He is one of the pioneers of blogging in the country and considered by many as the Father of Tech Blogging in the Philippines. He is also a technology consultant, a tech columnist with several national publications, resource speaker and mentor/advisor to several start-up companies.

53 Responses

  1. Avatar for thekiller thekiller says:

    @manong
    as always, you are such a certified troll!
    i bet you’ll never change!
    the calendar’s about to change but you can’t make yourself a change, eh?

    come on, 2011’s about to come so you better change or everybody will HATE you! i bet you did not have any relatives that’s why you spend your frustration in trolling over the internet. what a child’s play, huh? guys like you always got a jacked up notion of fair play and that’ll never change because you’re a troll after all. your bashful words interest us not.

    and where the hell did you get your informations, manong? wikipedia?

    don’t you ever make some mess with sir yuga because you’ll be in the dumps after all.

  2. Avatar for nimo23 nimo23 says:

    Not only fb and twitter will make telcos losing an income but VOIP starts making them down.love this post sir abe.

    Thank you.
    How Poor Blogger like me start earning in Adsense?
    http://bennixcomputertips.blogspot.com/2010/12/how-my-poor-blogger-account-starts.html

  3. Avatar for TwIsTeD_Rubz TwIsTeD_Rubz says:

    I’d like to add to the argument that telcos are probably losing from FB and twitter. Birthday greetings alone are proof. Compared to 3 years ago, I got a lot more texts than friendster (yes, friendster) greetings (parang handful lang ata greetings ko from friendster. ). A year ago, it was more or less 1/2 and 1/2 from facebook and through SMS. Now it’s more like 1/5 of the greetings came from SMS and the rest came from facebook. Imagine the loss they have everyday from this shift to sharing greetings through facebook/twitter.

  4. Avatar for Abe Olandres Abe Olandres says:

    @manong – you only send 1 SMS greeting last Christmas? No friends or relatives here?

    Ok, back to topic. I’ve had insider info from CPs that they had significantly lower revenues during Christmas and New Year since last year compared to previous years. And that time, there were only 5M Filipinos in FB.

  5. Avatar for manong manong says:

    Well, how many of those 18M actually own a PC or smartphone? maybe half?

    And how many of that half are facing their PC or smartphone by the time christmas eve arrives? maybe 1/3?

    If that’s the case, telcos ONLY lost 3M (1 peso per txt) in Christmas eve. (You can’t multiply it by 10 or 20 since those “fb friends” are part of that number)

    this topic is irrelevant

    MERRY CHRISTMAS!

  6. Avatar for Doodles Doodles says:

    I used to have a smart postpaid plan at P1,200 a month. Now I shifted to prepaid and the P300 load is more than enough to last the allowable 75 days of Globe. Ok, I have a mobile PLDT that costs an extra P250 a month. Still, wifi, mobile skype and other social networking services help me save enough money which I could then use to buy better phones and other gadgets.

  7. Avatar for Chino Chino says:

    Tama si Raymond, Sila din yun eh

  8. Avatar for smartee smartee says:

    oo nga, sobrang baba ng sms traffic nung 24×25

  9. Avatar for Every Peso Counts Every Peso Counts says:

    @raymond – if you’re an internet subscriber(say for 999 pesos) and you sent an sms (say 1 peso) then that’s 1000 pesos for them. If you don’t send sms then that’s only 999 pesos for them. If you send more sms, that’s even more money for them and when more people do that then that’s even, even, even more money for them.

    I also used facebook to greet everyone I know but then I had to call abroad because I wanted to talk to my relatives there.

  10. Avatar for raymond raymond says:

    How can they lose revenues when Globe, Sun, and Smart are also the internet service providers?

  11. Avatar for NemOry NemOry says:

    tama nga. . .balang araw unti unti nalang talaga gagamit ng text, .peru ang call hindi pa ma aapektohan masyado. .lalo na ngay0n super dmi gumagamit ng internet mpa CP or PC., sa cp dami nkaka free ng internet kagaya q.hehe. .

  12. Avatar for lolipown lolipown says:

    @ewancoo
    This can already be done via the tattoo/smart bro modem.

  13. Avatar for s2upid s2upid says:

    18 million accounts on Facebook from the Philippines

    idealistic
    18 million x 20 pesos per day = ~Php 360,000,000.00 per day

    realistic
    8 million x 20 pesos per day = ~Php 160,000,000.00 per day x 28 days = ~Php 4,480,000,000.00 per month

    not including those still using txt

    still think it’s bad?

  14. Avatar for ewancoo ewancoo says:

    it’s easier to type on keyboard rather on mobile phone. so when you’re already online, why not just greet your friends on fb rather than texting them all. One idea i can think of is, if the telcos can create a desktop application wherein users can read/send messages of their mobile phone through any PC, im sure their income will soar :) it will give convenience to the users, and the users wouldn’t notice that their actually texting (only they do it on the comfort of their PC).

  15. Avatar for Pusang Kulog Pusang Kulog says:

    Stopped using txt messages since I discovered facebook 2 years ago… I only use texting for people who still doesn’t have a facebook account…

  16. Avatar for Toughie Toughie says:

    I was hoping to send text messages, but Globe’s network is too congested to process my registration for their unlimited texting service. Sent messages using FB instead.

  17. Avatar for dhan dhan says:

    I really don’t txt unless I’m outside or important.

    1. fb and twitter sends msg on the dot w/o delay.
    2. it’s free
    3. wifi hotspots are increasing, tap in and msg/post away.
    4. and best of all, there’s no limit to how many you send or expiration :)

  18. Avatar for Jan Jan says:

    I think it really would happen because it’s way more easier and faster. Also because during these seasons it’s really troublesome to send or use SMS.

  19. Avatar for Jhay Jhay says:

    If you can’t beat ’em, join them right? I suppose the telcos’ offering mobile access to FB and Twitter compensates for the much lower volume of SMS sent this past Christmas.

  20. Avatar for Mark Mark says:

    Sent all my greeting through FB.

    It’s because of mainly 2 things.
    1. It’s way cheaper.
    2. It’s much easier.

    It’s also party due to the bad rep that telcos have during this season.

    Telcos should sell IP more rather than focus most sales effort on older GSM technology. Better promos and service for wireless broadband (HSPA) users is what they should do to earn more. (especially with the increase in smart phone users in the Philippines)

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