Pokemon Go has been nothing but world changing. There are applications from businesses that go viral now and then, but nothing has had an impact on sheer numbers like that of Pokemon Go.
Pokemon Go took 13 Hours to reach the top of the highest grossing apps. The Impact of the app was so much that $9 Billion was added to Nintendo’s market cap. On average users spend more time on Pokemon Go than any other application in the world, including Facebook. Are alarm bells ringing in Facebook?
It’s clear that Pokemon Go is widely used by millions of users all over the world and it is getting crazy. There are even lawsuits like this that have been filed because of the Pokemon Go craze. What other impact does Pokemon Go Singapore have?
What about Telecom operators like our very own Singtel, M1 and the likes? Now you might start wondering what Pokemon Go has to do with telecom operators and many of you might have found the answer, the usage of the Internet on the phone. Pokemon Go does involve catching pokemons using your GPS and Maps, which can be heavy duty.
So does this mean there’s a lot of data consumption and that increases the Telecom Operator’s share price because revenues are increasing?
We checked a couple of reports on data used after playing Pokemon Go and the numbers are not alarming at all. The first report had the consumption pegged at 10 MB for a continuous one-hour use and the other report showed that the consumption was 25 MB for an eight-hour period, obviously intermittent usage.
These numbers definitely aren’t glaring. If you are an absolute addict, then you may have some cause to worry.
According to the report from Procera Networks the network usage is nothing alarming to warrant an increase in data usage rapidly, but according to them, Pokemon hasn’t started pushing out ads or monetising in any way. When that happens they claim the network usage is going to increase exponentially to a point that operators have to build larger capacities.
If and when Pokemon start dishing out ads within the application then you will see a massive consumption in data even from your side. This happens because, every time an Ad is delivered, the server requests the contextually right ad and pushes it to your phone and in the case of location based ads, then it will be more because of the use of location.
We wanted to check for ourselves the impact of Pokemon Go on the share price of companies. We took three of Singapore’s popular telecom companies and checked their share price on the day before Pokemon Go’s launch and the day after the launch. Now, we know that share prices are affected by a hundred things and cannot be attributed to just one reason, but if the reason is big enough then there might be an impact. So let’s check out some numbers.
M1’s share price on August 5th was 2.75 and it opened on August 8th at 2.75 and reached a high of 2.78 before settling back at 2.75. No increase at all.
Singtel’s price movement has been interesting because on August 5th it was 4.07 and and on August 8th it was 4.20. A marked increase and it has gradually increased over the days and it ended on 4.28 on August 16.
Starhub’s share price on on August 5th was 3.93 and it dropped to 3.88 on August 8th and then rose to 3.95 on August 10th.
As you can see, the price movements have not been consistent across telecom operators and it is safe to say that the use of Pokemon Go hasn’t impacted them yet. In my opinion, when Pokemon Go decides to monetise their application and reports start coming out about the impact of that, then due to market sentiment their prices will increase. Only time will tell.
Meanwhile in the US, T-Mobile has decided to give free data for a year for those who want to play Pokemon Go. This is a smart move because, new subscribers will choose T-mobile and existing customers may shift. It’s also good for PR.