NEWLY acquired Smart subsidiary Connectivity Unlimited Resource Enterprise (CURE) yesterday launched ümobile, the first ad-funded mobile-phone service in Asia. Commercial launch is set on June 1, officials said.

CURE chief marketing officer Ardie Balderrama said the cellular firm, the newest player in the telco market, will compete with other mobile-phone firms by giving out free load credits to subscribers who receive advertisements via their 2G- (second-generation) or 3G-enabled handsets.

“For our subscribers, it will be like earning money by watching commercials on television or viewing print ads in newspapers and magazines, except they will do it through their ümobile phones,” said Balderrama. CURE is a licensed 3G operator in the country.

CURE will partner with corporations that wish to advertise or create mobile-based campaigns for a particular brand. A portion of the revenues generated from a brand’s mobile-marketing campaigns will be given back to the subscribers who can purchase or make transactions for ümobile services or avail themselves of a brand’s product offer, such as freebies, discounts and other rewards.

CURE sales head Noli Romualdez said the company is set to partner with five to 10 companies prior to the commercial launch of ümobile. “We are in advance talks with them. They are all very interested about it. They are in the food business, beauty products, and goods and services businesses, and even financial institutions,” he said.

ümobile will focus on a niche market composed of men and women aged 15 to 35. Forty-five percent of the population belongs to this age segment,  where brand preference and loyalty is built. 

Subscription will be by-invitation and only around 10,000 subscribers are expected every month. Subscribers accepted into the service from June to August will get P100 worth of prepaid load every month for six months. On top of that, every ad message they view on their ümobile phone earns them rewards in the form of free load, text messages, data minutes, etc.

Additional freebies will be given based on their participation in mobile- marketing campaigns by advertisers in the ümobile network.

 “Through ümobile, we offer advertisers the opportunity to tap into their emerging marketing medium where they can directly target the consumers they want to reach. We’ll know if our subscribers go to the gym, what movies they watch, what kind of music they listen to, among other things, and this will allow to cater to the prime prospects of our advertisers,” said Balderrama.

By the end of this year, CURE expects it would register up to 100,000 subscribers.

While other mobile-phone operators have their versions of unlimited voice and text messaging services, CURE’s business model is anchored on bringing together brands and consumers closer via mobile-phone services. “This is how CURE will compete in the mobile telco arena,” added Balderrama.

ümobile will ride on the network of Smart Communications Inc., the cellular unit of Philippine Long Distance Telephone Co. (PLDT). CURE has already forged interconnection agreements with the PLDT group, which means that CURE subscribers can call and send text messages to Smart and Piltel cellular subscribers, PLDT landline users and vice versa.

CURE will pay Smart for the use of the latter’s network. Balderrama did not reveal details of the commercial arrangement between the two networks. “Our coverage within Metro Manila is only 30 cellular sites. Outside of Metro Manila, we will tap on Smart’s network,” he added. 

CURE is confident that it will ink similar interconnection deals with Globe Telecom, Sun Cellular and Bayan Telecommunications Inc. prior to the commercial launch.

Smart recently purchased the entire issued and outstanding capital stocks of PH Communications Holdings Corp. and Francom Holdings, Inc. (FHI) in CURE for the total amount of P419.54 million. PH Communications used to own 96.57 percent of CURE while FHI had 3.43 percent stake in the 3G firm. Both were controlled by an investor group led by businessman Roberto Ongpin.

Smart said it intends to directly invest up to P210 million in CURE, in the form of subscriptions for new shares. The fresh funds will be used for working capital.

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NEWLY acquired Smart subsidiary Connectivity Unlimited Resource Enterprise (CURE) yesterday launched ümobile, the first ad-funded mobile-phone service in Asia. Commercial launch is set on June 1, officials said.

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