XOX Mobile Sdn Bhd, the technology arm of XOX Group is in talks to form a joint venture company with South Korea’s Mobligation, a mobile technology company specializing in the development of mobile portals, mobile browsers, applications and other related forms of technology for smartphones.
The joint venture company is expected to develop and promote mobile portal and browser solutions in Southeast Asia.
According to eMarketer, the Interactive Advertising Bureau Europe (IAB Europe) and HIS Technology, advertising via mobile phones is big business and expected to increase further. Mobile advertising is the key driver of growth around the world, and advertisers will spend $64.25 billion worldwide on mobile in 2015, an increase of nearly 60% over 2014. That figure will reach $158.55 billion by 2018, when mobile ads will account for 22.3% of all advertising spending worldwide.
In 2014 advertisers spent USD15.1billion on display advertising and USD14.7 billion on search advertising, to reach the 1.6 billion global mobile phone users.
The joint venture between XOX Mobile and Mobligation is expected to tap into this ready market with innovative solutions including those that will reward users for their engagement with advertisements.
In Malaysia, it is expected to benefit XOX’s 850,000 mobile subscribers with a mobile browsing system that can offer them tangible rewards from various search advertisement tools.
The partnership agreement was signed and was witnessed by Malaysia’s number 1 shuttler, Dato’ Lee Chong Wei.
XOX Mobile is the 1st MVNO in the country. Parent company XOX Bhd is listed on Bursa Malaysia since 2011. XOX Mobile is principally engaged in the business of providing mobile services by blending a holistic approach with continuous research and development to build diverse genuine value for mobile products, services and content for the young, technology savvy and general Malaysian customer.
Mobiligation, is a Korean-based technology company, specializing in developing mobile portal, mobile browser, application and other related form of technology for smartphone. The company provides differentiated mobile services based on unequaled software technologies, with core business models focusing on searchable advertisements, incentivized advertisements and retargeting advertisements.
Mobligation has developed two search engine applications namely Timber Browser and Kong Browser. In connection to these search engine applications, Mobligation has also developed Nepkin Micro Site that is a content-aggregator, enabling user- specified content to be automatically populated.
XOX Mobile’s subscriber base is expected to be the first cadre of Southeast Asian users to enjoy the benefits of these browsers and micro site.
According to XOX Bhd’s Group Managing Director, Datuk Eddie Chai, XOX Mobile is charting a path to growth through collaborations and partnerships that are focused on benefiting its stakeholders especially users’ of the brands pre-paid and post paid services.
“XOX Mobile is growing in Malaysia by disrupting the norms of service provider-customer dynamics, in the process benefiting users with a more active stake in the brand, and with more options to monetize their usage. Our planned joint venture with Mobilgation is another innovative option to benefit our users and to attract more users to our service,” Datuk Eddie Chai said.
“The proposed joint venture will also be a platform to spread the XOX brand to a wider platform that can reach more of South East Asia 618 million population. IDC forecasts smartphone shipments in Southeast Asia to reach approximately 100 million units in 2015, registering a 21% increase over 2014. This is a market with potential and XOX Mobile has the region specific knowledge and network to give Mobligation’s solutions the reach they deserve,” Mr. Ng Kok Heng, Group CEO of XOX Berhad added.
Mr Nevil Joonmo Kim, Chief Executive Officer of Mobiligation Co., Ltd said that the company decided to partner with XOX Mobile due to the brand’s user base which skews towards tech-savvy youth who are looking for value and innovation, similar to Mobligation’s users in South Korea.
“South Korean youth are keyed towards innovation especially in mobile solutions and have proven to be the engine to Mobligation’s growth. As we look to expand in Southeast Asia we looked for a partner with a similar customer base that is willing to experiement with new solutions and are keen to be rewarded. XOX Mobile and their customer base have the qualities we are looking. That we can ride on their on-ground knowledge and network across this region is a definite plus. The synergies between the companies is strong and we are looking forward to the setting up of the joint venture company,” said Mr Kim.
XOX Mobile also announced a partnership with homegrown retailer of imaging equipment and photo processing, Fotokem, with the introduction of XOX Fotokem Premium Centers.
“The partnership between XOX Mobile and Fotokem will focus on harnessing the strength of both brands. Fotokem is a strong brand name at strategic locations nationwide. The first in Malaysia XOX Fotokem Premium Center will fuel our newly introduced Postpaid Plan,” says Mr. Ng.
The subscribers could also take the advantage of registering the XOX Postpaid Plan at Fotokem. XOX introduced the Postpaid Plan last month, and has more than 15,000 registrations to-date.
“The new Postpaid Plan, unlike what is already offered in the market, comes with a sophisticated program, through XOX’s profit-sharing model. XOX Postpaid Plan is designed with a referral concept, where a satisfied XOX subscriber can recommend the same plan to others. Through this recommendation, the subscriber will enjoy almost cost free usage of XOX Postpaid plan, through the referral incentives that cover the monthly bill for the particular subscriber.” Mr. Ng explained
For more information on XOX mobile please visit www.xox.com.my .