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April 21, 2009
Digicel announced its new mobile portal, 360, an effort to catch up with rivals Tigo and Claro and offer its subscribers a compelling mobile content store (see Exhibit). The website will be accessible from mobile phones and PCs and features ringtones, wallpapers, games and some social features, such as chats and forums. Currently, the website is available only in El Salvador, but I expect this effort to be replicated across all Digicel markets in Central America. Before the announcement, Digicel was focused mostly on acquiring new prepaid users by promoting voice services, so I applaud the initiative to boost data services.
Marketing material promoting 360

Source: Digicel
I believe that this is a step in the right direction for Digicel. First, as our El Salvador Q1 2009 Mobile Forecasts show, the operator will close 2009 with a 17.4% market share, which means Digicel has a large base of subscribers in a market that is now 100% penetrated. Thus, with few new subscribers left to win, the game now for mobile operators is to make current users spend more. Second, the portal takes a revolutionary approach by using Web 2.0 tools to help subscribers interact with each other. This certainly is something we have seen in other markets such as Argentina and Brazil, and it will be interesting to see if 360 does, in fact, increase data usage among subscribers. An SN-friendly platform could spur mobile surfing, picture downloading and increase brand loyalty, ultimately reducing churn. Until now, Digicel lagged Tigo and Claro in terms of promoting data services apart from SMS. If 360 delivers what it promises, Digicel will take over the leadership in terms of originality.
Digicel may have it done right with the concept. Now, bring the content on and let subscribers judge — and buy.
— Jose Magana, Analyst
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