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The product is a search service over the SMS network (not over the Internet).

Using a mobile phone, users send SMS text messages to a short code. Users can make two basic operations:

- Record: user inputs information to the databank and receives a confirmation.

- Query: user performs search queries in the databank and receives responses.

It offers an inexpensive way to post ads, search mobile numbers or anything else users might query.

Labour offerings and the supply and demand of low-end products and services are marginalized from the media.

The poor have no advertising chances in newspapers, yellow pages, nor in the Web, including Press, Radio, Television and Internet.

We play the role of a value-added service provider. To interact with our clients, we sign a revenue share agreement with a SMS gateway service provider, which serves as an intermediary with the mobile operators.

The most important key success factor of this kind of business is doing a intensive advertising campaign. In Ecuador, the main advertisement medium is the Television. It also is the highest figure in the startup budget.

The market introduction of the service shall be intensively disseminated in short time (3 to 6 months) using several different media; above all, using television spots during the highest rating hours.

An initial information acquisition period shall be considered with a promotional price (e.g. US$0.10). During this introduction period, access will be intentionally restricted until the critical mass level (est. in 1%) is reached.

The service mostly benefits the informal sector (43%-52% of the EAP). The 7% unemployed people could also benefit from it.

Summing up, the benefit potential reaches between 50% and 59% of the Economically Active Population (EAP).

The service also benefits, to a lesser grade, the affluent class (8%-16% of the EAP).

People all through classes are willing to pay the target unit price between US$0.15 and US$0.25 accordingly.

No other SMS Premium service offers a similar function to the low-income population.

In addition, the traditional means do not satisfy the advertising necessities of the target population:

- Internet has a very low market penetration (<<10%) in the developing countries target market.

- The classified ads published by the press are too expensive and last too short for the majority.

- The yellow pages do not offer an economically viable solution for the poor.

On the other hand, SMS is the ideal mean to reach the poor considering the 76% mobile phone penetration in Ecuador. Many developing countries have already reached the 100% mark.

It will be the only advertisement mean within the reach of the low-income population; probably it will also be the only one for the middle class. There is no alternative as just no other mean is affordable for them.

Consider following aspects:

- Search engine over a network
- User-generated information
- New media for ads posting
- New price standard for ads posting

All of these aspects are usual in the Internet but not in the mobile phone network. The service applies these mechanisms and business concepts to mobile telephony exploiting the huge popularity the SMS text messaging has between the poor.

The service is highly profitable. With only 10% market penetration in Ecuador, the breakeven point is reached in 4-6 months and the payback period in 9-12 months. The net profit is over US$ 750K per year.

If expanded to other countries, the financial and economic net profit can be multiplied by 10 or 100, it only depends on us/you. The required software replication and system expansion is an inexpensive and known technological process.

We want to "start small" implementing a pilot in Ecuador:

The management and staff will be reduced to their minimum expression (the 2 partners plus 2 assistants).

All other required support services will be outsourced on demand, including software development, IT infrastructure and systems administration.

After the pilot, we'll expand it to other countries using the lessons learned in Ecuador. Working and financial partners are welcome!

Carlos and Luis have introduced the SMS technology in Ecuador working at mobile operators (Ecuador is the world's 2nd in SMS).

Luis has also introduced this kind of services as entrepreneur in other countries, like Bolivia, Peru, Argentina, Chile, Paraguay and Costa Rica.

We verified this technology mainly focuses in entertainment applications, so its wide potential as information medium is wasted.

We know how to revert this fact for benefit to the poor!

Carlos is full-time dedicated to the business. Luis is actually not active in the project, as soon as the service production begins, he will also be dedicated full-time in the service stabilization and expansion.

A preliminary impact analysis reveals a economic NPV of 52 million US dollars in 3 years with a 12% economic discount rate.

Additionally, the economic NPV is 18 times bigger for the low-income class than for the affluent class.

How?

- It disseminates the labour offerings of the population marginalized by the media, reducing the inoccupation time and labor intermediation.

- It publicizes the supply of products and services, growing sales income or distributing the income with more equity.

- It eases the demand of these products and services, making cost and time savings.