In a full page ad entitled Globe Responds to the Call of the Countryside Through Phone Financing Program, Globe Telecom announces a partnership with the Rural Bankers Association of the Philippines (RBAP).
Under this program, prepaid phonekits can be obtained as loans from the banks, payable in six months in weekly or monthly installments. Globe is offering free credits upon obtaining the handset and upon every payment. The units are the Motorola C117, Nokia 1100 and Sony Ericsson T920i.
The ad also promotes AMAX (Autoload Max) as a business opportunity, and the use of G-Cash for paying back the loans.
- Globe is trying to win the countryside from Smart which dominates among the “masa” segment.
- The skeptic in me thinks that they are willing to enter this scheme since they will profit from loading credits over and over again.
- The participating banks are in pretty well-developed areas. They have Globe cellsites already. No need for new capital expenditures on infrastructure.
- This is the rural equivalent of their urban “buy on credit card installment” scheme.