Your example about Jollibee/Globe/Smart and all the SIM Swaps, top-ups and incentives — I have a very good friend who kept doing this for many months, changing SIMs repeatedly to avail of the freebies.

That’s the effect of telcos poaching each other’s subscribers by offering freebies. At a certain point, I think most subscribers will eventually go beyond the need to SIM Swap for freebies. It becomes a hassle for SIM Swappers and their friends to keep changing numbers. They will eventually move-on towards maintaining just two or three SIMs.

Further, I think the telcos have progressed towards offering more value to retain their subscribers instead of offering freebies for SIM swaps. Also, telcos have come to accept that Pinoys can, afterall, maintain 2 or 3 SIMs from different telcos. No need to poach, just give existing subscribers another SIM.

by the way, here’s an article I wrote about those shops that were buying used SIMs: http://technobiography.blogspot.com/2004/04/bakal-bote-dyaryo-sim-average-urban.html

Kumusta? You sure know fraud, I learned a few terms from you. Thanks!

I had to review the article as it’s been more than two years (2006) since I wrote it.

*Arbitrage*

I understand what you’re pointing out about arbitrage by Ronald/Garpong.

I imagine Globe can track down arbitrage if Ronald were to repeatedly send/re-send G-Cash to himself (in the guise of Garpong’s cellphone) and gain 14% cellphone load.

The thought (back in 2006) was that the business model described in the article would ride on the AutoloadMax retailer network — thus, there would be some degree of monitoring by Globe over the Autoloadmax retailers.

Since the article was written, there have been many developments in m-commerce models.
Among the latest:
http://technobiography.edongskey.com/m-commerce/get-15-rebate-from-g-cash/

Ruben, what do you think would be the implications of the 15% rebate?
Are there gaps vulnerable to fraud?
To avoid leaking possible fraud vulnerabilities (if any), you could email me directly instead of posting publicly on this blog.

ka edong

I’m looking at it from the G-cash company’s revenue stream. Their revenue stream is from texting when users transact G-Cash.

So how do you increase that revenue stream? By conducting more transactions? Increase transactions by making G-Cash as accessible and as ubiquitous as cellphone load.

The thing is, the 14% load doesn’t cost Globe a thing. (They can afford to provide unlimited text nga, ‘di ba?)

Financially, for Globe to give away 14% is something valuable for a G-Cash retailer, but costs almost nothing for Globe.

Users need cellphone load to use G-Cash.

By increasing usage of G-Cash, Globe increase their SMS revenue from G-Cash transactions.

I posted this on rebelpixel last year:

The business model I’ve seen Globe doing is that they’re earning through:
1.) SMS messages sent for G-Cash transactions
2.) service charges (which I believe is small compared to number 1 above).
3.) (theoretical) revenues from partner merchant fees

This is still accurate as far as I know.

Note that G-Cash transactions go through an access code (2882) and is not included in any of the “unlimited text” promos.