The document provides an overview of operating an internet cafe, including: - A brief history of internet cafes originating as LAN shops in the late 1990s in the Philippines. - Regulations internet cafes must follow, such as restrictions on student access and prohibited content. - Requirements to legally operate an internet cafe business, including registrations, permits, licenses and following certain software licensing processes. - Considerations for the type of computer system and equipment needed based on the target market and business model.

1. One Day Internet Cafe Skills Development Program ICT Module

2. What is an Internet Cafe? The high-tech equivalent of the coffee house. However, instead of playing chess or having heated political discussions, you browse the Internet and discuss the latest technology. CDs, DVDs, games and other "cyber stuff" are also generally available.

3. History of Internet Cafes in the Philippines Internet Cafes Started out in the late 1990's as LAN Shops – a center in which computers are networked in order to play LAN Games.

4. Internet connection then was dial up and relatively expensive therefor only a few shops offered internet service.

5. The bulk of their service back then was gaming and typing services for students.

6. The introduction of a fast internet service

7. Kinds of Internet Cafes

10. Internet Kiosk New Variation In the Philippines it is called as Hulog Piso Internet Cafe

11. Internet Cafe of the Future

12. Equipments Used in Internet Cafes

14. Parts of a Computer System Computer Hardware Computer Software Peopleware

15. Parts of a Computer Hardware System

17. Motherboard

18. Processor RAm

19. Video Card Hard Drive

20. Power Supply Sata Connectors Ribbon Connectors

21. Question Is it advisable to buy second hand computers to be used in an internet cafe?

22. Answer: Definitely a NONO Moore's Law “ The Number of Transistors in every Chip will Double every 24 months”

23. Meaning: It would be far more expensive for you to maintain an old computer system than a new one. You might be saving money in acquisition cost but in the long run it you would suffer in terms of your maintanance cost. New Computers are much more powerful and much more cheaper to maintain than old computer units.

24. What is best system for an internet cafe?

25. Answer: It Depends on three things: 1. The Target Market that you want to reach 2. Your Business Model 3. The kind of Internet Cafe that you are going to establish

26. If you are planning to cater to an internet only market it does not require a very complicate computer system. Nettop ng Bayan 2.0 will have the following: * Intel Atom Processor * 80GB Hardisk * 1GB Memory * Keyboard and Mouse * LCD Monitor

27. If you are going to cater to a gaming market then you would need the following: 1. A fast processor – min Dual Core Processors or Core 2 Duo Extreeme Intel I Series. 2. At least 2 G of RAM 3. At least 1 G Video Card 4. A large hard disk space to store your online and lan games. 5. A steady supply of keyboards and mouse

28. Or

30. Computer network Server C L I E N T S

31. Additional Equipments

32. Yahoo Nielsen Internet Usage Philippines Services Offered in Internet Cafes

33. Regulations in Internet Cafe Operations The Internet Cafe Industry despite being the primary access point of the community to the internet is still considered to be a backyard industry thus: Who is in Charge of the internet cafe industry?

34. Since the primary notion of people is that an internet cafe is a gaming center and most of its stakeholders are actually engaged in the gaming model thus The LGUs classifies the internet cafes as an entertainment and recreation center along with the billard halls, karaoke bars and other center for vices This classification provides some problems:

35. Distance Requirements

36. Student Restrictions Students are not allowed to enter internet cafes during school hours unless there is a written permission from the teacher that their presensce is related to their school work

37. Restrictions on access to pornography and other violent materials online Internet Cafes are often accused as the primary access points of pornography and places were pedophiles converge

38. Internet cafes are required to use licensed software in their operations

39. Documentation and Business Registration Register your business name Get your Barangay Clearance Get your Business Permit Register at the BIR

40. Requirements DTI Registration o Make sure that your business is on Metro Manila (i.e. Manila, Pasay City, Taguig, Pateros, Muntilupa City, Paranaque City, Las Pinas City, Pasig City, Quezon City, Marikina City, Mandaluyong City, San Juan, Caloocan City, Malabon, Navotas, Valenzuea City), otherwise, proceed to the DTI Provincial Office where your business is located. o Applicant must be a Filipino Citizen of majority age (18 years old and over). o Accomplish the application form in duplicate. Type or print completely and clearly, all information required in the form. o Only the owner of the business is authorized to sign all forms. A representative may sign for and in behalf of the owner provided a Special Power of Attorney authorizing the representative is submitted. o Submit the following together with the application form to the proper DTI Office where the business is located. ¸Photocopy of proof of citizenship such as: - Birth certificate, PRC ID, voter’s ID, passport for NATURAL BORN Filipinos whose names are suggestive of an alien nationality (e.g. Chua, Taylor, etc.). Present original copy for comparison.

41. FEES: ¸ Basic Application fee (New/Renewal) - Php 300.00 ¸ Documentary Stamps - Php 15.00 ¸ Surcharge (For renewal of BN beyond 90 days after expiration) - Php 100.00 ¸ Bulk Sales - P55.00

42. After securing your DTI registration which usually takes around a week or 2 if your business name does not have any conflict in their records go to your barangay hall to get your barangay permit. Fees for the barangay permit would depend on your respective barangays. After securing your barangay permit then proceed to your city or municipal hall to get your business license. Requirements for the Business License 1. DTI Registration 2. Barangay Clearance 3. In most cases you are asked to undertake a “Deed of Undertaking”

43. After securing your business permit go to BIR to get your business TIN there are 3 things that you need to do: 1. Register your business establishment and all its branch offices, if any. You do this at the BIR Revenue District Office (RDO) in the place where your business is located. Once you obtain your Certificate of Registration, you must display it in a conspicuous place within your business establishment. 2. Register your books of accounts. You accomplish this at the same RDO. 3. Request for permit to print and issue receipts and invoices. You must thereafter post a notice in your business premises stating that your establishment issues receipts, and that if no receipt is issued by the cashier, then the customer must ask for one.

44. Documents to bring: - 2x2 colored picture with white background - Mayor’s or Business Permit - DTI Business Name Registration Certificate - Tax Identification Number (TIN) Card - Sketch of Business Location - Owner’s Birth Certificate - Owner’s Marriage Certificate - Birth Certificate of owner’s dependents (21 yrs & below) Forms: - BIR Form 1901 (Application for Registration) BIR Form 1925 – for the TIN Card. If owner has TIN, no need to apply for another

45. BIR Payments: Montly = 3% of your monthly gross sales Quarterly = 3% of your quarterly gross sales less the previous months payment

46. Software Licensing Software: A set of instructions for a computer.

47. There are two kinds of software: system software application software.

48. Two Kinds of Software License Proprietary software Copy Right Software Free and Open Source Software Copy Left Software

49. What are the different software used in internet cafes that needs licences? 1. Microsoft OS 2. Anti – Virus 3. Application software like Office, Photoshop and LAN GAMES 4. Any software that requires a product key

50. Software Licensing for Microsoft OS Original Equipment Manufacturer - OEM

51. Full Product Package