Things to consider in Case No. 2:

- computer shop for an internet cafe to service customers who wish to rent computers either for surfing the internet, word processing, printing of documents and other related computer tasks including gaming facilities

- 120 square meters of space- mini-mall in a city where the surrounding areas of the mini-mall are full of residential

occupants. Prospects for putting up a cafe are relatively good.- determine what are needed to put up the cafe besides having a commercial space- Information coming from the different internet service provider (ISP) telecommunication

companies shows promising incentives if their services are considered.- You group should be able to determine which among the available providers should be

tap and explain why you have chosen them among the list of providers.- your group should justify the setting up of the internet cafe and the service provider

chosen to provide internet service. You have to clearly show how profitable this business will be and when and how they could get their return on their investment.

- more on the technological side of it focusing on the TECHNOLOGY you wish to deploy and use including the program to handle the INTERNET CAFE operations. Secondary will be the COSTS and PROFIT that can be derived in the process of setting up the café

- consider how you will be able to OPERATIONALIZE this concept or idea that your group has in mind. You will be later asked to SETUP an internet cafe where you will actually make it operational and compute for ACTUAL expenses versus projected profit.

- you group to look for a good site --- apply for government permits ---- pay necessary taxes --- look for supplier for your computer units --- layout your cafe ---- subcontract the networking of the computers --- and compute for the ROI that can be produced once it becomes operational.

Internet Cafe, often called Cyber Cafe, is a place that offers customers hi-speed internet access, other computer services and variety of PC games. It deals with internet time that a customer buys and it can be sold per hour or minute and sometimes longer. Internet Cafe is the most popular in the world of business people, travelers and tourists, but it also finds good and frequent customers in teenagers and adults who spend a lot of time playing computer games. This place is simply a must for webmail, instant messaging and the best way to keep in touch both in private and professional field. Internet Café is a place where food and drinks are also usually served.

Internet Cafe Equipment – Necessary and Additional

Setting up of Internet (Cyber) Cafe and the cost of it depends on a number of client computers and services you plan to offer to your customers. To start Internet Cafe business, you will need: internet connection (ADSL, Cable etc.), client computers, server computer that controls the clients and networking hardware. In the most cases networking hardware is not very expensive, however everything depends on a type of network. If you plan to have wired network type, switch or router, and networking cables will be necessary. If you plan wireless network you will need to have wireless access point or router and wireless network cards for your client computers. Of course, if required, you can make a combination of wired and wireless network. For Internet Cafes that offers only Internet access office programs there is no need to buy very expensive computers. However, if you attempt to offer computer gaming, it is largely recommended to buy high-end graphic cards and processors.

Controlling Computers

Beside required hardware for successful Internet Cafe business, it is fully recommended to use Internet Cafe management software. Internet Cafe software is a server / client based application, used to manage customer accounts, security setup, charge POS items and get the latest statistics, logs and detailed reports. With Internet Cafe software, client computers are fully protected and no one cannot use for free the services offered by your Cafe. Client computers are protected with the log-in page that requires pre-paid account to start work, or it demands to wait for a person to open the client computer from server computer. When customers pre-paid account expires or customer finishes the job, client computer is automatically protected again with the login page and waits for the next customer.

How to start an Internet Cafe business

Internet Cafe is truly one of the most profitable business in the Philippines today. Imagine, it converts every minute of your life into money.

THE PLACE

First things first, the place.

Ideal locations for an Internet Cafe are near the church, school, market place or inside the community.

There should have a 'high foot volume'. If you will be renting a place, make sure that it has no water leak on the ceiling because

computers are sensitive to this. Also, it must be well ventilated if you will not be using air con. It should have an access to broadband connections like DSL and Wireless broadband

BROADBAND CONNECTION

For 5 computers or less, SMARTBRO can still be used. That's 384kbps to 512kbps of speed. For cafe with more than 5, you should consider 1mbps or more.

Ask your neighbors or other subscribers in the area if the broadband service is good or bad before applying.

TABLES AND CHAIRS

Ok, table varies. You really need to consider the dimension of your shop when deciding the design of your tables. Smaller place means thinner tables or compress. You can put your CPUs at the top by placing a long flywood. Ask your carpenter about it.

Check your neighbor Internet Cafes. This will give you an idea what it works and not. Do you need to put drawers for keyboards? Our recommendation is no. Because it will only worn out easily.

You can put dividers or use your CPUs to serve as dividers. Make sure it has at least 3 sockets in every outlet of every cubicle. 1 for CPU, 1 for Monitor

and 1 for speaker, or for standby. As for the chairs, it will depend to the class of your shop. Usually, monoblock chairs are

being used.

THE COMPUTERS

This is the most difficult part of putting up an Internet Cafe. One mistake, your investment is gone. Never trust your future to salesmen.

Only listen to those people who are dedicated in setting up an Internet Cafe because they know what are the parts that works and those parts that will only give you a bigger investment but produce same results/profit. Remember: Bigger investment means longer to recover.

Go for Internet Cafe packages instead of building up and experimenting on your own. These packages are tried and tested.

Consider icafebusiness.com

Why Internet Cafe is still a good business In the Philippines(Yahoo-Nielsen Study on Urban Philippines Internet users)

28% of Filipinos in National Urban Philippines have accessed the Internet in the past month. 5% access the Internet everyday.

Filipino internet users are likely to be below 29 years old, single and are better educated. Internet use is not restricted just to the big cities like Metro Manila. Other cities are

experiencing internet growth. For example, 35% of Filipinos in Cagayan de Oro have accessed the internet in the past month.

Filipino Internet users are more likely to be opinion leaders and early adopters compared to traditional media consumers. They are likely to be individualistic, trend conscious, willing to pay for quality products and are tech-enthusiasts.

Internet usage is particularly higher amongst the younger segments. 50% of those below 20 years old have accessed the internet in the past month

Internet Cafes are an important internet access point. 71% have accessed the internet from internet cafes in the past 3 months. 47% of all internet time are spent in internet cafes. Internet cafes are also a dominant access point for user from the lower socio-economic classes.

Email, Instant messaging and Search are the most common online activities for Filipino internet users. Yahoo! is the dominant web-based email, instant messaging and search service in the Philippines.

Social networking is a key online activity. 51% claimed to have visited a social networking site in the past month. 1 in 3 Filipino internet users have a blog.

Online Activities

Used email (63%) Used instant messengers (63%) Used search (58%) Played games online (53%) Visited a social networking site (51%) Read blogs (42%) Down-/uploaded digital photos on photo sharing sites (33%) Worked on personal blog (32%) Listened to internet radio (28%) Down-/uploaded music files online (25%) Reads news online on internal portals or other news sites (24%) Internet SMS (23%) Conducted online banking transactions (3%) Purchased products online (3%)

The potential in setting up an Internet cafe business in the Philippines is huge. Access is low at only 9%. This means that only 7.8 million of the 87 million Filipinos have internet access. The other 91% or 79.2 million is a big market!

ADVICES IN SETTING UP INTERNET CAFE

Advice 1 – Give discounts for selling more login tickets in your Internet café

Make your special pricing plans for your members. Give discounted prices to your regular members and they will always come back to your Internet Cafe for your services. Attract new members with discounted pre-paid login accounts. Sell more pre-paid time for lower price (Example: sell 3 hours ticket with 10% discount, 5 hour ticket with 25% discount etc.)

Advice 2 – Protect and keep fresh client computers for your next user

Don’t allow file saving anywhere on client computer hard disk. For this it is advised to use Internet Cafe software to block ‘Save’ command completely or just allow ‘Save’ in one hard drive partition and make all other partitions invisible for the customer. After client computer is once used, Internet Cafe software has the ability to close all previously opened programs or automatically restarts the client computer. In this way it always keeps it fresh for your next customer

Advice 3 – Extra-charging for special and additional services

Some people come to Internet Cafes to use external hardware offered there, since they are not well equipped at home or simply do not have these electronic privileges (example: to print and

scan documents, burn cd and dvd, for faxing service etc.). If you have an Internet Cafe in a place attractive for tourists or a holiday resort, it is fully recommended to allow transferring data from digital camera to cd or flash drive and charge additionally for these services.

Advice 4 – Share PC game license on your computers to reduce expenses

All companies, Internet Cafes, even home users are obliged by EULA (end user license agreements) to use only the licensed games or programs on their computers. This is not so big problem if you have small Internet Cafe with few client computers. But if your case is `bigger` Internet, so you need to buy 50 licenses in the same game, this is will be a huge expense for your business. Here comes License Key Management option that helps saving your money on purchasing license. License Key management service checks the network if there is a license key that is not used and transfer it to the client computer. In this way you can offer the same game to all your client computers in Internet Cafe only with few licensed copies.

Advice 5 – Allow multi-player games to increase your membership

Multi-playing is really popular and fashionable these days. Multi-player games can be played over the internet or in local networks. Teenagers and younger children mostly have computers at home and have ability to play these games over the net. But, it is much more interesting to play multi-player games with the friends at the same location. Allow multi-player games and customers will come to your cafe in groups.

Advice 6 – Make your own city network of Internet Cafes

Internet Cafe software provides you the ability to network all Internet Cafes via the Internet and share member account database. With this option, member accounts, created in any networked Internet Café, can be used in all other Internet Cafes. Open few Internet Cafes in different city areas and sell pre-paid tickets everywhere (in Internet cafe, newsagents`, hotel receptions etc.). In this way your Internet Cafe business will become very popular and citizens will be happy customers because of the possibility to use the same login ticket whenever and especially wherever they want.

Advice 7 – Sell various items to increase your profit

Internet access and computer gaming are the basic services that can be sold in Internet cafes. Beside basic services add items common in coffee and small computer shops. While surfing the web or playing games people would like to drink a coffee or have a juice. Customers will also appreciate full service like ordering drinks without leaving their seats. Have DVDs and flash drives in your sale, so your customer can save downloaded files in your Internet cafe. Internet Cafe software with it’s own integrated Point Of Sale system is here to make your sale easy both for you and your customers.

Top 10 Internet Service Providers (ISP) in the Philippines

1. Smart Broadband Inc.

It is a wholly-owned subsidiary of Smart Communications, Inc.. It offers an wireless internet broadband service, Smart Broadband (SmartBro), with 1.73 million total subscribers at the end of the fourth quarter of 2012. While Smart Communications, Inc. is a wholly-owned subsidiary of Philippine Long Distance Telephone Company (PLDT).

2. Globe Telecom

It provides mobile, fixed line and broadband internet services. Under fixed line and broadband services, it offers Globe Tattoo internet service which has 1.7 million total subscribers in 2012.

3. Philippine Long Distance Telephone Company (PLDT)

Philippine Long Distance Telephone Company (PLDT) is the undisputed largest telecommunications company in the Philippines. It offers PLDT myDSL internet service which has 829,000 total subscribers in 2012

4. Sun Cellular [Digitel Mobile Philippines, Inc. (DMPI)]

Established on September 2001, Digitel Mobile Philippines, Inc. (DMPI), commercially known as Sun Cellular is a wholly-owned subsidiary of Digitel, and is one of the Philippines' leading mobile telecommunications companies. It offers Suncellular Broadband internet service which has 650,000 total subscribers in 2012.

5. Bayan Telecommunications, Inc. (BayanTel)

Formerly known as International Communications Corporation and was incorporated in April 18, 1961. It's the operating arm of Bayan Telecommunications Holdings Corporation (BTHC). It offers Bayan DSL internet service which has 132,000 total subscribers in 2012.

6. Meridian Telekoms Inc.

The pioneer of broadband wireless data services in the Philippines. Established in 1996, Meridian Telekoms is primarily engaged in providing wireless broadband and data services to small-and-medium-scale businesses nationwide. Meridian was actually the first internet telecom firm in the Philippines to focus primarily on highspeed data and internet services using the broadband technology. In 2004, Smart Communications, Inc. acquired 100% of this company.

7. Sky Cable

Established in 1990, Sky Cable provides cable tv service, voice/telephony and broadband internet services called Sky Broadband. Overall, it has over 700,000 total subscribers in 2012 and that

includes broadband internet subscribers. No specific data has been published yet on Sky Cable's website regarding the total number of broadband internet subscribers.

8. Eastern Telecom Philippines Inc.

It is the first and only local major telecommunication company to be ISO-certified, testifying to the quality systems and processes that the entire organization employs to ensure service excellence and customer satisfaction. It offers data, voice and internet services. No data has been published on their website or on any other reliable sources regarding the total number of its subscribers or customers.

9. Bell Telecommunication Philippines Inc.

It's a full-service telecommunications company that began its commercial operations in January 2002. It offers phone/voice, data, internet, web development/hosting, email hosting services and leased lines. No data has been published on their website or on any other reliable sources regarding the total number of its subscribers or customers.

10. Wi-tribe Telecoms Inc.

A subsidiary of Liberty Telecoms Holdings, Inc., Wi-tribe Telecoms offers wireless broadband internet service. No data has been published on their website or on any other reliable sources regarding the total number of its subscribers or customers.

CONSIDERATIONS IN CHOOSING ISP

Our fast-paced world today makes almost everyone dependent on technology, thus we have all grown dependent on the use of the internet. Unfortunately, internet service is something that is not easy to define with regards to being the best, the fastest, and the cheapest. Identifying which is the best internet service provider (ISP) is also dependent on several factors that are both subjective and objective. Because of this, there is no specific black and white answer to everyone’s search for the best ISP.

You can, however, make smart decisions on subscribing for the right ISP that suits your needs and internet requirements. Finding the right ISP depends on your location. Other factors to consider also are the availability and affordability of the service. We should also consider finding the ISP company that offers good customer service.

Broadband connection can provide high-speed internet connection. These are available through the installation of a modem, antenna or via television cable connection. It helps to first know the differences among these types of internet connections.

Digital Subscriber Line (DSL) offers high-speed internet connection through the use of a regular telephone line in partnership with a modem. Telephone lines are made of copper wires. DSLs are affordable. One disadvantage though is that the quality and speed of DSL service are dependent on distance. Thus, the farther you are from the ISP’s central office, the slower and less reliable your connections will be. DSL, however, is an improvement of the old dial-up connection.

Cable broadband is an internet service offered by cable television providers. This operates via “coaxial” cable TV wires. Cable is much faster than DSL and more available than Fiber Optic Service. One disadvantage of cable broadband is that if you share bandwidth with other people in your neighborhood, this might affect your internet speed.

Antenna is similar to cable broadband and also as reliable because it runs through signals and not via telephone line. However, an antenna is dependent on its mother antenna of a location. If a lot of people in your neighborhood are getting signals from the same mother antenna, one might experience slow internet connection on certain times of the day.

Fiber Optic Service (FiOS) is better than DSL or others. In fact, FiOS is the fastest of all internet connection types. This is an application of fiber optic technology or optical network using lights; therefore, we can say it has “the speed of light.” Fiber optic lines are as thin as human hair and are pristine like glass. The disadvantages of FiOS is that it is expensive and not available in all locations. For example, the PLDT “Fibr” is available only in selected areas of Makati, Ayala Alabang and other cities in Metro Manila.

Wi-Fi is for people who need wireless internet connection for gadgets, phones or others. Wi-Fi is a technology that allows gadgets and electronic devices to connect to the internet wirelessly using radio waves. Wi-Fi is also known as WLAN or Wireless Local Area Network. Wi-Fi antennas are installed to make an area Wi-Fi available. There is also the pocket Wi-Fi like the one offered by Smart. With Pocket WiFi, one can create a Wi-Fi hotspot anywhere. The Pocket WiFi can connect up to 5 gadgets. Internet speed is up to 7.2 Mbps. Other ISPs offer the same service but of a slower internet speed. Disadvantage: Not all electronic devices are Wi-Fi-ready.

Fiber optic cable. It operates at “the speed of light.”

ISPs have various plans or package rates. Plans generally have affordable monthly rates and even promotions for discounted gadgets or other free items. One should also be aware that some low-rate plans might offer a limited speed rate for downloading and uploading. To avoid subscribing in the wrong ISP plan, we should first study the features per plan and compare these specs with other ISP packages. Doing your homework can make a big difference.

Know Your Purpose

Some people rant about their ISP as being the worst. Others just ask a vague question on which is the best ISP in the country. But often, people just ask which is the best ISP without clearly defining what they need an internet for in the first place. If this is not defined, then people will start having unrealistic expectations about ISPs in general, and then they will be discontented about their ISP.

So the smart move in finding the right ISP for you is to identify your internet requirements and purpose. When you visit a branch of an ISP company, tell them what kind of application you need an internet for. They will, in turn, give you advice on which package suits you best. Ask a second opinion or a third opinion from another ISP company.

Will you use the internet for games, downloading, or uploading large files? Will you need the internet connection for business? For these types of applications, one would need a high-speed, reliable internet. One of the popular choices among offices is the PLDT myDSL. As their famous line goes, “PLDT myDSL is a high-speed broadband internet service that runs on PLDT’s extensive phone network.”

PLDT started as a monopoly in the Philippines as the only telephone company in the country for decades. Being the pioneer in telecommunications technology, they have also evolved through the demands of the times. They have internet connection of up to 10 Mbps (internet speed) that can provide HD-quality video streaming.

For simple home use of the internet such as home gaming, simple video streaming, and video chat, PLDT offers the 1.5 Mbps internet package. For an upgraded version of this plan, they have 3 Mbps and 5 Mbps. The 5 Mbps speed can download larger files. This also allows multiple and simultaneous downloads.

The internet connection they offer is wire-based with unlimited surfing hours. Other than that, subscribers also receive a free Wi-Fi modem and installation as part of their latest promo.

Location

Location is a major factor in choosing an ISP. Sometimes the performance of an ISP depends on the location in the Philippines. For example, SmartBro ranks from fair to good (or very good) in residential parts of Makati and Quezon City, while Globe’s signal is poor in some parts of these locations. Globe’s signal is very good so far in Pasig City and other areas in Metro Manila, while SmartBro’s signal is poor in these areas. Some people are happy with Globe Tattoo wireless internet in Taguig or Makati, while others are frustrated with it in Quezon City.

Therefore, because of location, internet speed and connection performance varies. The best thing to do is to make a survey among your neighbors. Ask the happy people in your neighborhood which ISP are they using at home or at work. Also seek the advice of people who run an internet

café in your area. Their business is dependent on their ISP, therefore if their business is running well, they are probably subscribed at the best ISP in your area.

Availability and Services

Choose an ISP company that has a branch in the mall or an office near your vicinity. This will be an advantage when you experience internet connection problems. This is also useful during the times when you need to inquire about other services or if you need to claim gifts from their various promos.

It also helps to find out where you can pay your monthly bill and what are the acceptable modes of payment. For example, for some ISPs you can pay via bank deposit or payment centres in the shopping malls. Paying through BPI Express Online and via phone call are other options too.

It is also important to find out if there are penalties in cases when you are unable to pay your monthly bill on time.

Application Process

Application process also varies per ISP company.

Smart and Globe – Once you have the paper requirements, your request may be approved on the same day of application. Expect technical service crew to come to your house the next day for installations even on Sundays.

PLDT – Their myDSL internet service is very good, but application process is sometimes frustrating, depending on the location. This favours those who have been a subscriber of PLDT landline phone for a number of years. Such subscribers can simply request for an upgrade of their current PLDT phone contract. If you are not a PLDT subscriber and would like to avail their internet service, they will tell you to wait for one week for feedback on when they can serve you. Expect a longer wait which will take months, especially for those living in Makati or Quezon City. They cannot give you a definite date when your internet connection request will be granted. It seems they give priority to applicants for business purpose and less priority for residential use.

On a Perfectly Bad Day

Assuming you now have high-speed internet and you are very contented with it. Then one day, your internet connection is out. You have no idea what is wrong or how to fix the problem. You then decided to call your ISP’s customer care hotline.

Upon calling your ISP’s hotline number, you soon realise that this company may have the best internet technology but they have the worst people for the troubleshooting team. Sometimes, you will encounter high-IQ people in the customer service team but their social or communication

skills are from hell. Isn’t this scenario frustrating? These and more are just some of the realistic scenarios one might encounter with an ISP’s customer care service. In other cases, the people who will handle your concerns are good and competent, but the system in handling customer concern is poor.

Smart – Calling the customer service hotline is a tedious task. If you have no internet connection due to area upgrade of the mother antenna, once you call their hotline, it is hard to get through because other subscribers are also calling the same number. However, once you are connected to a “human” customer service representative, expect your concerns to be dealt with. Their technical team are mostly very competent, polite, and smart. Asking for a payment refund for the days without an internet connection is also easy.

Globe – Customer service people on the phone are sometimes not technically skilled because they give wrong troubleshooting diagnosis when you call in a problem. However, this is not always the case. There are still some people on their tech team or customer service who give quality service. According to some subscribers of Globe’s internet service, they do not accept requests for payment refund because they rarely have connection problems. For days when the internet connection is out, the repair crew will fix the problems in less than a day. Therefore, they say there is no need for any refunds.

PLDT – Same with Smart, they have good customer service on the phone. Although sometimes when you call their hotline, there are times when they won’t transfer you directly to the right local number. The phone operator will ask you to make direct calls to other numbers. After making so many calls to different hotline numbers, you’ll eventually realise that you’re not accomplishing anything.

In a Nutshell

There are no perfect internet service providers, but if we make our expectations realistic and if we clearly define what our internet requirements are, then the search for the right ISP will eventually lead you to the right path.

In summary, these are the things to consider in choosing the right ISP:

You first need to define your purpose for having an internet. This will determine your internet speed requirements and other needs.

It helps to canvass from different ISP branches in your area. Read the specs of each of the payment plans that they offer. Ask their opinion also about which plan is the best for your internet needs.

Ask the people in your neighborhood about which ISP they are using at home or at work. Learn from their feedback about their ISP’s features. It is also good to get feedback, suggestions or recommendations of a good ISP from people who run internet cafés in your area.

Choose an internet service provider with a branch or office that is near your vicinity. This will make installations, repairs, and monthly payments convenient for you in the long run

Company Description

Value Solutions Computer Shop is a new company that will provide the latest and up to date computer hardware and fast internet service for high quality gaming and surfing experience to it's clients. Value Solutions is scheduled to begin operations on November 15, 2014. Value Solutions will be a owned and operated by Engineers John Ryan Antonio, Lenard Melgar, Enrique Daguno, Raymund Decena and Maria Cristina Perillo.

Value Solutions Computer Shop will target the gaming and computer aficionados within the ________________, Marikina.

The primary objectives of Value Solutions Computer Shop over the next year are to:

- Obtain commercial financing of Php _____________ to cover start up costs and initial operating expenses; 

- Generate a net profit of Php _______________ in the first year of operations by developing a strong client base and keeping overhead costs to a minimum; 

Value Solutions Computer Shop is located at:

__________________________________

__________________________________

The space is rented and will accommodate the necessary equipment such as computers, fax machine, photo copier and other engineering equipment.

Value Solutions Computer Shop’s mission statement is to:

Provide a quality service to its customers that will exceed their gaming and surfing expectations while maximizing the value of their money.

Value Solutions Computer Shop aims meet the expected gaming and surfing experience for the common public through the medium of the computer and the internet. Value Solutions Computer Shop is the answer to an already estalished demand. The public wants: (1) access to the methods of entertainment, communication and volumes of information now available on the Internet, and (2) access at a cost they can afford and in such a way that they aren't socially, economically, or politically isolated.

The initial financing has already been secured in the form of: (1) Php _____________ of personal savings from the owners John Ryan Antonio and Lenard Melgar, (2) Php _________________ from three investors, Enrique Daguno, Raymund Decena and Maria Cristina Perillo (4) and Php ____________in the form of short-term loans.

The capital contributions from the owner and investors will allow Value Solutions Computer Shop to successfully open and maintain operations through year one. The large initial capital investment will allow Value Solutions to provide its customers with a full featured Internet cafe. A unique, upscale, and innovative environment is required to provide the customers with an extraordinary experience. Successful operation in year one will provide Value Solutions with a customer base that will allow it to be self sufficient in year two.