Dennis B. Mendiola, Chikka founder and “chief imagination officer,” said mobile phone text messages sent in reply to Chikka instant messages — the firm’s main revenue source — would cost only P1.00 during off-peak hours or early morning in the Philippines. “We hope to capture more subscribers in the United States and specific areas in Europe and Japan for the next six months. Currently, we have the 22% to 30% of the OFWs,” he told reporters at the sidelines of the launching. The new version will be accessible starting Aug. 25 and will charge P2.50 for replies during peak hours. Chikka has 16 million average visits yearly with 5.5 unique subscribers every month. About a million access the application online while 4.5 million use mobile phones, Mr. Mendiola said. “The company gets 30% to 50% from the charge to the users while the remaining percentage goes to the telecommunications firm. The average messaging traffic per day is at 3.5 million exchanges,” he said. Mr. Mendiola said Chikka only gets revenues when a user replies to a message sent through Chikka. “We only get a third of the daily traffic for our revenues. There are users who directly send a reply to the mobile phone.” The firm is expecting a 30% surge in messaging traffic for the next six months with the new version. “Within the year, the application will be also available for iPhone, BlackBerry and Android handset users. We are just waiting the go-signal from [the manufacturers],” Mr. Mendiola said. “The idea is for Chikka users to be able to access it on numerous communications platforms. Simply put, as long as you have a computer or mobile phone, you can use Chikka,” he added. He noted that Filipinos abroad prefer to use smartphones “because it is more convenient for sending electronic mail and instant messaging.” “However, due to the emergence of social networking sites, people tend to post their messages on their personal page in Facebook or Twitter. But we think that with this new version, the subscribers will be attracted to use the platform to stay connected,” he said. Mr. Mendiola recalled that when Chikka started in 2000, only 2% of the local population had Internet access, and texting to online instant messaging services was “second nature.” “Today, a digital generation has emerged and 30% of Filipinos have Internet access, taking part in social networks and becoming active in social media.” Chikka claims to have served more than 68 million subscribers registered online and through mobile phones. Chikka Holdings Ltd., the holding firm for Chikka Philippines, was acquired by Smart Communications, Inc. last year. Smart Communications is the mobile subsidiary of the Philippine Long Distance Telephone Co. (PLDT). Mediaquest Holdings, Inc., a unit of the Beneficial Trust Fund of PLDT, has a minority stake in BusinessWorld.
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