Wednesday, July 25, 2007

M1 looking to Google for new edge?


MobileOne (M1) , the smallest of Singapore's three wireless-phone operators, will extend an alliance with Google on mobile search to counter market- share losses to Singapore Telecommunications (SingTel) and StarHub.


Singapore-based M1 will include a Google toolbox on its mobile-phone web browser that lets users type in their search queries directly. Currently, customers have to click on a link before they can access the services of Mountain View, California-based Google, the world's most popular search engine.


“The way we see globally the market developing is mobile operators linking up with Internet players because they obviously get their revenues through access in click-throughs” for Web advertising, M1 Chief Executive Officer, Neil Montefiore said. “Those revenues can be shared with mobile operators.”M1 needs more earnings sources as its rivals are winning market share by adding services to lure users in a market where the number of handsets exceeds the 4.6 million people. SingTel began offering on-demand movies on its high-speed Internet network July 21, while StarHub plans to enable customers to watch cable television, access the Web and make phone calls using one device.“We are looking at advertising in lots of areas,” Montefiore said in a recent interview. “Location-based, SMS- based, handset-based advertising, we think that will grow.”


The company added 30,000 new subscribers in the second quarter, taking the total number to 1.41 million as of June 30. That gives M1 a 28.4% market share, down from 28.9% three months earlier. MobileOne yesterday said second-quarter net income rose 10% to S$40.6 million. Sales climbed 4% to S$199.8 million.

Whilst being the second longest standing mobile network provider, they are yet to experience the success of StarHub and SingTel who have secured greater island-wide coverage and a larger customer database. Will this latest move by M1 help boost their user network?