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Strategic Road Map for a Better

Internet Café Industry

2010 – 2012

I-Café Pilipinas

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Background

Internet Café Industry in the Philippines

An internet café or cybercafé is a place where one can use a computer

with Internet access, most for a fee, usually per hour or minute; sometimes

one can have unmetered access with a pass for a day or month, etc. It may

serve as a regular café as well, with food and drinks being served.

History

The concept and name, Cybercafé, was invented at the beginning of

1994 by Ivan Pope. Commissioned to develop an Internet event for an arts

weekend at the Institute of Contemporary Arts (ICA) in London. Pope wrote

a proposal outlining the concept of a café with Internet access from the

tables. The event was run over the weekend of 12-13 March 1994 during the

'Towards the Aesthetics of the Future' event.

In June 1994, The Binary Cafe, Canada's first Internet café, opened in

Toronto, Ontario.

Here in the Philippines, the first internet cafes was established in the late

1990’s as gaming centers whose computers were connected by a local area

network (LAN) in which offline games such as counter strike were usually

played. It later evolved as internet cafes with the introduction of internet

access through a dial up connection.

Greater advancement and improvements to the industry was achieved

with the introduction of a faster internet connection service commonly

known as DSL (Digital Subscriber Line). More services were added such as

online gaming, video streaming and a much faster internet browsing.

In a report that was prepared by Yahoo and Nielsen, it states that

even if the Philippines has a low computer penetration rate of 14 percent, it

still has a strong internet presence since 70 percent of internet related

access in big cities and municipalities around the country is primarily done

through the internet cafes. A recent survey that was conducted by a gaming

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company stated that there are about 11,000 licensed internet cafes that

could be found in the country but the number could increase if we take into

consideration the vast amount of unlicensed internet cafes operating in

private homes and communities.

Role of the Internet Café to the Community

The internet café owner has to realize the important role to which his

industry plays in the community. We are the front liners in the rapidly

changing world of information communication technology. We serve as the

bridge between the community that could not afford to have their own

computer systems and DSL connection at home to the rapidly changing

world of the internet. We provide a service and have the technology to be

able to change the social and economic conditions in the municipalities and

cities in which we operate.

Services Offered by Internet Cafes

Internet cafes is a service oriented business organization that offers a

variety of services that is related to information communication technology.

Examples of services are:

1. Computer Rental – the bread and butter of any internet café.

Computers are usually rented out to customers by the hour or depending

upon the needs of the customers for the following activities:

Internet Browsing – searching the internet for information

through the use of a web browser

Online gaming - Online games are played over some form of

computer network, now typically on the Internet. One advantage of

online games is the ability to connect to multiplayer games, although

single-player online games are quite common as well.

Offline gaming- these are stand alone games that does not

require the use of an internet connection to be played.

Word processing or desktop publishing

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2. The most common service offered is typing or encoding. This usually

appeals to customers who are too lazy to type, or who have little no access

to a computer. This service also appeals to busy people who don’t have time

to type and edit their material. These customers would simply leave their

work to be typed and pick it up after it is completed.

3. Saving and transferring digital files in compact disk through the use of

a cd burner.

4. Computer Repair Services – most internet café owners are computer

technicians who has the capacity to fix the hardware and software

malfunctions.

5. An internet café can also provide specialized or sophisticated software

to be available for use by its customers. These software may be kind that

the hard to find, or expensive, or utilizes a large amount of memory.

6. Another service that an internet café can offer is photo editing. The

client might have a picture that can be scanned or digitally edited, fixed up,

or restored. While photo editing can be done at home, it takes time to do the

more difficult or complicated jobs, and people would rather pay somebody to

do the job properly rather that bungle it themselves.

7. Video editing is also another service that can be offered by the internet

café, in much the same way as photo editing.

8. Internet cafés can also offer simple programming solutions. They can

offer programs for the home offices or small business, like basic databases

or inventory software.

9. The internet café may also offer workshops or lessons. These lessons

may range from simple familiarization with the computer to more difficult

subjects. One-on-one tutorials by the café staff may also be provided to

clients who require the service.

10. Some internet cafés have amenities that make them more like meeting

places or boardrooms, where they offer videoconferencing, group discussion

tables, and other facilities for meetings and group work.

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Kinds of Internet Cafes

1. Internet Only Cafes – these are internet cafes that cater exclusively to

internet users only. No one line and off line games are installed.

2. Pure Gaming Internet Cafes – These are internet cafes that exclusively

cater to both on line and off line gamers. Their internet browsers are

deliberately disabled to prevent game lag.

3. Combined Internet Cafes – these internet cafes cater to both internet

users and gamers.

4. Internet Kiosks – is a computer terminal that provides information

access via electronic methods. Interactive kiosks sometimes resemble

telephone booths, but can also be used while sitting on a bench or chair.

Interactive kiosks are typically placed in high foot traffic settings such as

hotel lobbies or airports.

Basic Characteristics of the Internet Café Industry

1. It is a capital extensive type of industry – people with very limited

amount of capital at start up should not consider engaging themselves

in this type of activities. Investments have to be made for the

physical facilities, Computer hardware and software, peripherals,

electrical and network setup. A certain amount of capital funds should

be set aside to subsidize the first few months of operations as you are

building your customer base. These would include payment for salaries

of personnel, telephone, DSL charges, rent and electricity bills.

2. It is a highly technical type of industry – most of the internet café

owners engage themselves in the internet café business without the

sufficient technical skills that they need in order to maintain their

computer units. Thus they rely much on the services of computer

technicians once they encounter some problems with their units. The

services of these technicians are often time very expensive. Internet

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café owners must have a sufficient knowledge on maintaining their

computer units in order to minimize these types of cost.

3. It has a rapid rate of obsolescence - Moore’s law, proposed by

Intel founder Gordon Moore in 1965, states that at a price point the

processing speed of computer chips double every 18 months. Moore’s

law only tells us that any computer units that are bought today will be

obsolete within two years. It would be replaced by computer units

much more powerful and efficient at a lesser price than what it is

today. This is certainly true in the online gaming requirements that

keeps on increasing each year thus internet café owners have no other

choice but to upgrade their systems so often just to keep up with the

requirements.

4. It has no central government body to control it – unlike other

industries in which a certain government agency is assigned to

regulate it, internet café operations is still considered to be a backyard

industry thus no central government body is setting the standards and

regulations in which to control the players in the industry. Regulating

the industry is often left to the local government that provides

ordinances and regulations that are sometime detrimental to the

development of the internet café industry.

5. It has a high level of competition – it seems that a lot of people

would like to engage themselves in this business. I don’t really blame

them for in this industry your limitations would only be your own. The

potential in offering services through the use of the internet is

unlimited all you have to do is to find the right information that is

available in the internet. This provides a situation in which there are

too many players catering to a specific market thus cut throat pricing

is a regular feature of this industry.

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I-Café Pilipinas

I-Café Pilipinas is a national network

of internet café owners, operators and

associations in the Philippines. It strives to

become their voice on a national level to

represent their interest on issues pertaining

to efficient operation of their business. It

hopes to represent the ideals, aspirations

and dreams of each internet café owner,

operator and association as they take to the

task in contributing to the development of

their communities by providing affordable

internet access and superior service.

I-Café Pilipinas is a consultative assembly of its members. It hopes to

provide them a venue in which discussions could be held on issues affecting

the efficient and profitable operation of their business. It hopes to

incorporate training programs, linkages with allied business and proper

representation on a national level. It would never represent nor will ever

strive to be a regulating body that would imposes regulations and imposes

fines on its members.

I-Café Pilipinas believes that collaboration is the key in creating the

dynamics to institute changes in the internet café industry. It does not and

will not strive to supersede or to take over any formal internet café

association already existing on the local level. In fact it encourages the

formation of local internet café organizations in places in the country where

there is none. It hopes to work with the officials and members of the local

internet café associations by providing them a national program that could

lead to the total development and acceptance of the internet café as a

partner in nation building.

I-Café Pilipinas keeps the door open for discussion rather than taking

on a combative stand on issues affecting the operations of the internet café.

It hopes to form consultative linkages with government institutions and

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allied industries in the formulation of policies that would greatly affect the

industry.

I-Cafe Pilipinas

“Challenging the I-Cafe Industry in the Philippines to do better”

I-Café Pilipinas believes in the internet industry and its important

role in providing affordable internet access to the Philippine community. It

believes that the internet cafe industry could provide greater opportunities

and can contribute to community development. It believes that through

proper education and training, the internet cafe owners, operators and the

different icafe associations could be a great influence in the daily lives of the

average Filipino through information communication technology.

I-Café Pilipinas believes in the following:

Community Building – the I-cafe owner is an integral part of today’s

community by providing affordable internet access to a majority of

Filipinos who could not afford to have one at home or at work. He is

the bridge that provides the community with access to the wider world

of the internet.

Professionalism – the I-cafe owner should be aware of his great

responsibility in operating an internet cafe in their respective

community. As compared to other industries his business

establishment creates a greater impact to the community in which he

operates in that sometimes could change the lives of the people

around him.

Ethical Use of Technology – “Great Powers means Great

Responsibilities”, the internet cafe owner being in the fore front in the

rapid changing technology should be guided on how to use these

technology that would bring improvements in the lives of the people in

their respective communities.

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Social Entrepreneurship – engaging in business not only for profit.

Internet cafe owners are socially aware to the effects of his business to

his customers and the community.

Our Mission

Our Mission is our purpose that serves as the standard against which we

weigh our actions and decisions:

To uplift the image of the internet cafe as a business that

could contribute to community development

To uplift the quality of life of the internet cafe

owner/operator

To create the dynamics to inculcate values formation and

fair business standards for the internet cafe

owner/operator.

Our Vision

Our vision serves as the framework and guides every aspect of our network

by describing what we need to accomplish in order to continue achieving

sustainable, quality growth.

Internet Cafe Owner/Operator – to provide programs,

trainings and linkages that would improve the manner in

which they are engage in their business

Community – Uplifting the standards of services of each

internet cafe business around the country to ensure of

their continuous consumer satisfaction.

Partners – provide meaningful linkages with customers

and allied companies to ensure the continuous growth and

development of the internet cafe industry.

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Values

Our values serve as a compass for our actions and describe how we behave

in the world.

o Leadership: The courage to shape a better future

o Transparency: What we do, we let other people know

o Collaboration: Leverage collective genius

o Integrity: Be real

o Accountability: If it is to be, it’s up to me

o Passion: Committed in heart and mind

o Camaraderie: Friendship through advocacy

o Professionalism: We do unto others what we expect them to

do to us.

I-Cafe Pilipinas is a social advocacy group the primary purpose of

which is to start the initiative in building a national network of internet cafe

owners around the country. it is aiming to be the voice of every internet cafe

owners/operators on issues that greatly affects the operations of his

business.

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I-Café Pilipinas Strategic Roadmap for the Internet Café Industry

2010 -2012

The challenge is great for the internet café industry to transform itself

from its present condition to be the leader in information communication

technology integration in the community level. There is a need to uplift the

image of the industry from all levels in order to command respect from

government authorities and their client-aficionados.

I. Creating the National Network

I-Café Pilipinas is only a national advocacy network. It primarily

concerns itself in creating networks and formulating programs that aims to

bring improvements in the internet café industry in the Philippines. It relies

on a national based network of its affiliates in order to deliver these

programs on to the different internet café owners and operators around the

country.

Identification and strengthening of the different internet

café associations at the community level. – I-Café Pilipinas

hopes to identify and get in touch with the different internet café

associations that already exist in the different parts of the country

to discuss with them possible collaborations that could lead to the

strengthening of the industry in their respective places.

Encouraging the formation of internet café associations on

places where there is none – I-Café Pilipinas hopes to provide

information and training to internet café owners in a particular area

to encourage them to form an internet café association of their own

so that they would be properly represented.

Formation of Local Chapters – in places wherein the local

internet café associations are not willing to form a collaborative

alliance with I-Café Pilipinas or would not want to form their own

internet café associations the formation of a local I-Café Pilipinas

Chapter of Affiliates would be encourage as long as there is a

clamor among the internet café owners in the area to form one.

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II. Linking the Internet Café operators with the rest of the

ICT community.

I-Café Pilipinas believes that finding solutions to the problems facing

the internet café industry does not only lay with the internet café owners

themselves but it also need the involvement of the rest of the stakeholders

in the ICT industry. Part of the work of I-Café Pilipinas is to network with

the other stakeholders in the ICT industry particularly in the following areas:

Affordable Computer Hardware and peripherals – the

success of an internet café operator depends on the fact that he

must have access to affordable computer packages and

peripherals that would suit his needs and the needs of his

customers.

Affordable Computer Software Systems – I-Café Pilipinas

hopes to bring a resolution to the use of pirated software in the

internet café industry by talking with the software developers on

a program that would bring about an affordable software

package to the internet café operators. In order for the industry

to grow it must not be in constant threat of being shutdown or

being harassed by law enforcers due to the proliferation of

pirated software in the industry. I-Café Pilipinas hopes to

inculcate to the internet café owner that purchasing of genuine

software is not really an expense but of an investment on their

part since they would be able to enjoy other benefits that they

could use as an add on their basic services.

Access to Affordable Capital – One of the primary reason why

an internet café owner could not grow in this industry is that

they are limited to the amount of money that they have invested

in their respective internet cafes. Finding additional and

affordable capital that they could use for additional computer

hardware and improvements are very difficult to come by due to

the fast depreciation of computer units and most of them lack

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the necessary legal documentation so that they could be eligible

to this kind of facilities. I-Café Pilipinas hopes to network with

financial institutions that offers micro lending facilities to provide

affordable capital to the internet café owner. In the long run it is

hoped that I-Café Pilipinas would be able to establish an ICT

cooperative in each of its affiliates.

Better relationship with the national government agencies

and the local government units – I-Café Pilipinas hopes to

strive for a better working relationship with national government

agencies and the local government units in order to come up

with policies and legislations that would aim to provide support

instead of restrictions and greater participation of the internet

café industry in community affairs.

Better Relationship with Educational Institutions – For

years now the internet café and educational institution has been

at odds with each other due to the nature of its operations. I-

Café Pilipinas hopes to hopes to bridge the gap between the two

by making the internet café as a platform for education and safe

internet access to the students.

The Internet Café as a Platform for the Development of

eCommerce and eGovernance in the Philippines. – I-Café

Pilipinas believes in the power of the internet in developing trade

and commerce in a particular area. It also believes in bringing

government services closer to the people through the use of the

World Wide Web. It hopes to develop the internet café as a

platform in which these services could be availed by the

respective communities that could bring economic development

and greater government presence.

III. Continuous development of the Internet Café Owner

through education

I-Café Pilipinas hopes to improve the conditions of the internet café

industry in the Philippines by providing standards in which will improve the

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services rendered to the customers by the internet café operators. It does

not subscribe to the idea of imposing regulations but strives for the

continuous development of the internet café owner through education. I-

Café Pilipinas believes that fear through the imposition of regulations would

not work and is committed in the formation of educational materials that

would inform the internet café owner on how to properly run his business to

earn a decent profit from his operations.

I-Café Pilipinas believes that innovation is the key in improving the

present situation of the internet café industry. It hopes to provide

information to the internet café owner on the latest innovations and trends

in the ICT industry through various ways:

Through regular workshops and seminars to be organized by the

different internet café associations in the different places in the

country

Through postings in our website, forum and blogs

By subscribing to our emagazine that would be made available to

the internet café owner on a regular basis

It hopes to form the I-Café Academy that would be the one in

charge of the training of the internet café owner either online or

by attending one of its official classes.