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26 Doña Hemady Ave New Manila, Quezon City
Introduction to the Internet Cafe Industry in the Philippines

       The Internet Cafe industry is one of the most dynamic and yet unrecognized industry in
the ICT infrastructure of the Philippines. In a country that is characterized by a low PC
penetration rate and broadband subscription, it is quite surprising that the Philippines places
18th over all in the most number of Internet users all around the world. Twenty four and half
percent (24.5%) of the total population of the Philippines goes on line in a country with an
8.4% PC penetration rate and with just more than a million broad band subscribers.

         In a 2009 study by Yahoo and Nielsen entitled “Internet Habits in the Philippines”, it
stated that Internet Cafés are very important Internet access points in which Seventy One
percent (71%) have accessed the Internet in Internet Cafés in a given three (3) month period.
Forty seven percent (47%) of all Internet time is accessed through the Internet Cafés and it is
the dominant access point for users from the lower socio-economic class. From the time the
first Internet Cafés were set up in the late 1990's it has been considered to be the creator of
the demand for ICT products and services. Due to their enormous number and are frequently
located in the various communities around the country, Internet Cafés are places wherein the
Filipinos first learned to use the computer and know about the Internet.

       Despite of this the Internet Cafe industry is one of the most unrecognized and
unappreciated industry in the ICT infrastructure of the country. Since it started off as computer
gaming center and up to this time a majority of the Internet Cafe operators is very much
dependent on the computer gaming business model for their sustainability, it has received a
negative perception in the community in which it serves. It is the most regulated industry
without actually receiving any government support. Standards are not set therefor the quality
of service is rather poor. Internet Cafe operators does not have accessed to ICT resources
and trainings that they need in order to improve their operations.

Pilipinas I-Cafe Marketing Cooperative

         Believing that the Internet Cafe industry still holds a lot of potentials despite the
problems that it is facing, a group of 26 Internet Cafe operators coming from the different
places in Luzon gathered together on May 21, 2010 at 26 Doña Hemady Ave New Manila,
Quezon City to organize the Pilipinas I-Cafe Marketing Cooperative. Community ownership of
initiatives is an essential feature that is needed in order to achieve the changes and support
that is needed by the industry to propel it to greater heights. The cooperative mode of
ownership was chosen by the cooperators since it would provide them with the opportunity for
faster accumulation of equity through their contributions while enjoying the most democratic
form of business ownership. Each member of the cooperative is only allowed to have one
vote on matters pertaining to its operations no matter how big his equity contribution to the
cooperative. No single individual can control the cooperative since a member is only limited to
a ten percent (10%) equity share in the company.
Cooperative Capitalization


      The authorized Share Capital of this Cooperative is ONE MILLION PESOS ONLY (PhP
1,000,000.00) Philippine currency, divided into:

   1. Fifteen Thousand shares (15,000) common shares with a par value of Seven Hundred
      Fifty Thousand (PhP 750,000.00) Pesos at P50.00 per share;

         and

   2. Five Thousand (5,000) preferred shares with a par value of Two Hundred Fifty
      (Php250,000.00) Pesos at P50.00 per share.


   As of May 21, 2010 at least twenty five percent (25%) of the authorized capital stock has
been subscribed and at least twenty five percent (25%) of the subscribed capital stock has
already been paid for by the cooperators.


Mission, Vision and Values of Pilipinas I-Cafe Marketing Cooperative


Mission
   We believe that the advancement and innovations brought about by Information
Communication Technology will bring about social change and economic development to the
various communities in the Philippines. It is in this light that we would strive to develop an
ICT enabled community whose members are empowered with the proper ICT knowledge and
skills so that they could effectively engage in a globally competitive economy.


Vision
  In our quest to develop an ICT enabled community we will strive to achieve the following:
      1. To be a leader in providing connectivity and social ICT infrastructure that could serve
      as a standard on the effective use of ICT resources at the community level.
      2. To provide trainings and accreditation programs to the community ICT practitioners
      that could lead to their professional growth and development.
      3.    To formulate ICT business solutions and packages that will bring about the
      development of e-commerce and providing economic opportunities to people through
      ICT.
Values
  As we strive in the achievement of our goals, we are guided by our values that would serve
as our guide:
      1. Leadership – the courage to take bold steps in shaping for a better future.
      2.Transparency – what we do we let other people know
      3. Collaboration – leverage collective genius
      4. Integrity – be real
      5. Accountability – we take responsibility for our actions and decisions
      6. Passion – committed in heart and mind
      7. Camaraderie – Friendship in business
      8. Professionalism – we follow the golden rule-do unto others what you want others to
      do unto you.
Cooperators




                    Name                  Name of Internet Cafe                   Home Address
      Albuera, Rodolfo Jr. G    Homebiz.com                             Cabuyao, Laguna
      Apostol, Evelyn R.        Apostle.com Systems Inc                 Imus, Cavite
      Balajadia, Bienvenu       Net N'Counter Computer Services         Marikina City
      Ballarta, Noel N          Richnet Internet Cafe                   Quezon City
      Cabañgon, Santiago G      Quick Silver Internet Cafe              Mandaluyong City
      Cañada, Emmanuel P        LernQuezt Internet Cafe                 Laguna
      Conise, Ricky John H      Conise Internet Cafe                    Makati City
      Cruz, Norman Vincent      Isurf Express Internet Cafe            Sta Mesa Manila
      Dasal, Pio Rommel         TGAR! Internet Cafe                     Imus, Cavite
      De Villa, Emilio Jr. G    EGD Internet Cafe                       Manila
      Gimena, Arthur A.         Dj Hobbies                              Quezon City
      Gonzaga, William R.                                              Marikina City
      Martirez, Arnel M.        Patricia's Net Station                 Valenzuela City
      Morada, Gener Luis R      Mando's Computer Services              Imus, Cavite
      Nablo, Joseph G           Skill Up Computer Shop                 Valenzuela City
      Pascual, Rally Benitez    Ralzky Internet Cafe                   Antipolo City
      Pinlac, Eric S.           Potholes Cyberzone                     Valenzuela City
      Rodriguez, Dolores A.     Hidden Tribe Internet Cafe             Valenzuela City
      Salamat, Thelma L         Alkates Computer Center                 Valezuela city
      Saul, Eric L.             King Saul Computer Shop                 Batangas
      See, Michael Benedict N   Uranus Internet Cafe                    Pampanga
      Somera, Vic Donald Q.     Copy Prints internet Cafe               Bulacan
      Tuboro, Maria Remily P    Lucky Dragon Computer Shop              Catanduanes
      Tuboro, Rosette P         Virtual Nook Computers and Gen. MDSE    Catanduanes
      Vibar, Joey Y             JYBIZZ Internet Cafe                    Imus, Cavite
      Zafra, Edgardo C.                                                Marikina City
Board of Directors




 Morada, Gener Luis R   Mando's Computer Services              Chairman of the Board   Imus, Cavite

 Balajadia, Bienvenu    Net N'Counter Computer Services           Vice - Chairman      Marikina City


 Salamat, Thelma L      Alkates Computer Center                     Treasurer          Valezuela city


 Nablo, Joseph G        Skill Up Computer Shop                       Secretary         Valenzuela City

 Tuboro, Rosette P      Virtual Nook Computers and Gen. MDSE      Board Member         Catanduanes

 Vibar, Joey Y          JYBIZZ Internet Cafe                      Board Member         Imus, Cavite



 Cabañgon, Santiago G   Quick Silver Internet Cafe                Board Member         Mandaluyong City
Projected Increase in Membership and Authorized Capital Stock
   The regular membership of the cooperative is open to any natural person, Filipino citizen,
of legal age, with the capacity to contract and are owners or operators of internet Cafés in the
Philippines. While associate membership is open to any natural person, Filipino citizen, of
legal age, with the capacity to contract and who are either engaged in the internet cafe
business or any related ICT business.


  Regular and Associated membership in the cooperative entails the minimum purchase of
100 of common/preferred shares.


                   05/21/10          12/31/10           12/31/11          12/31/12
                      26                255                400              550

                 Table 1: Projected Increase in Cooperative Membership
                       2010                     2011                    2012
                Php1,000,000.00          Php3,000,000.00           Php5,000,000.00

                 Table 2: Projected Increase in Authorized Capital Stock


Products

Computer Packages

   1. I-Citizen PC - an entry level personal computer for both home and internet cafe use
   2. Business PC - a mid range personal computer that could run most of the business
      applications and games
   3. Gaming PC - a reasonably priced gaming computer that is configured to provide the
      best gaming experience for customers of internet cafés.

Computer Parts and Peripherals

    1. Processors
    2. Motherboards
    3. RAM
    4. Power Supply
    5. Video Cards
    6. Hard Disk
    7. Casings
    8. Monitors
    9. Keyboard
    10. Mouse
    11. Web Cameras
Internet Cafe Business Packages - a complete business package that includes consultancy
services from business set up and business competency trainings.

   1. Community I-Cafe Centers (CICC) - the Community I-Cafe Centers takes the Internet
      only business model into a higher level. Traditional Internet only business model just
      offers Internet access to its customers but the CICC would serve as a community ICT
      center catering to the educational needs for Internet connectivity and ICT services for
      the Mini, Small and Medium Enterprises (MSMEs).
   2. Gaming I-Cafes (GIC) - the GIC is the traditional internet Cafés business model in
      which it is centered on catering to the needs of the online and LAN gaming segment.
      Emphasis would be centered on the total gaming experience of the customer as to
      their comfort and game play.
   3. Community I-Cafe Business Centers (CICBC) - it will primarily center on the needs of
      the starting entrepreneurs, professionals, students and MSMEs for an affordable place
      to do their work. It would be equipped with the necessary communication facilities and
      services in a business friendly atmosphere.

Training Programs

   1. Internet Cafe Entrepreneurship Seminar - provides participants with industry
      information, conducting a feasibility study and basic business skills in setting up an
      internet cafe business.
   2. Internet Cafe Basic Operations - provides participants with the basic technical and
      business skills in operating an internet cafe.
   3. Computer Hardware and Software Maintenance - provides the participants with the
      technical skill that they need in operating their internet Cafés properly
   4. Appreciation Seminar on Open Standards Platform - provides the participants with
      information about the open standards software that would work in both open source
      and proprietary platforms.
   5. Community I-Cafe Centers Development Program - this program will primarily center
      on those who will be setting up Community I-Cafe Centers in their respective
      communities. It would center upon the integration of ICT in education and developing
      programs for the MSMEs.

Business Solutions Offering

   1.   Open Standards Platforms for education and MSMEs
   2.   Internet Cafe Management System
   3.   Microfinance Management System
   4.   Establishing Internet Presence for MSMEs

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Pilipinas i cafe marketing cooperative company profile

  • 1. Company Profile 26 Doña Hemady Ave New Manila, Quezon City
  • 2. Introduction to the Internet Cafe Industry in the Philippines The Internet Cafe industry is one of the most dynamic and yet unrecognized industry in the ICT infrastructure of the Philippines. In a country that is characterized by a low PC penetration rate and broadband subscription, it is quite surprising that the Philippines places 18th over all in the most number of Internet users all around the world. Twenty four and half percent (24.5%) of the total population of the Philippines goes on line in a country with an 8.4% PC penetration rate and with just more than a million broad band subscribers. In a 2009 study by Yahoo and Nielsen entitled “Internet Habits in the Philippines”, it stated that Internet Cafés are very important Internet access points in which Seventy One percent (71%) have accessed the Internet in Internet Cafés in a given three (3) month period. Forty seven percent (47%) of all Internet time is accessed through the Internet Cafés and it is the dominant access point for users from the lower socio-economic class. From the time the first Internet Cafés were set up in the late 1990's it has been considered to be the creator of the demand for ICT products and services. Due to their enormous number and are frequently located in the various communities around the country, Internet Cafés are places wherein the Filipinos first learned to use the computer and know about the Internet. Despite of this the Internet Cafe industry is one of the most unrecognized and unappreciated industry in the ICT infrastructure of the country. Since it started off as computer gaming center and up to this time a majority of the Internet Cafe operators is very much dependent on the computer gaming business model for their sustainability, it has received a negative perception in the community in which it serves. It is the most regulated industry without actually receiving any government support. Standards are not set therefor the quality of service is rather poor. Internet Cafe operators does not have accessed to ICT resources and trainings that they need in order to improve their operations. Pilipinas I-Cafe Marketing Cooperative Believing that the Internet Cafe industry still holds a lot of potentials despite the problems that it is facing, a group of 26 Internet Cafe operators coming from the different places in Luzon gathered together on May 21, 2010 at 26 Doña Hemady Ave New Manila, Quezon City to organize the Pilipinas I-Cafe Marketing Cooperative. Community ownership of initiatives is an essential feature that is needed in order to achieve the changes and support that is needed by the industry to propel it to greater heights. The cooperative mode of ownership was chosen by the cooperators since it would provide them with the opportunity for faster accumulation of equity through their contributions while enjoying the most democratic form of business ownership. Each member of the cooperative is only allowed to have one vote on matters pertaining to its operations no matter how big his equity contribution to the cooperative. No single individual can control the cooperative since a member is only limited to a ten percent (10%) equity share in the company.
  • 3. Cooperative Capitalization The authorized Share Capital of this Cooperative is ONE MILLION PESOS ONLY (PhP 1,000,000.00) Philippine currency, divided into: 1. Fifteen Thousand shares (15,000) common shares with a par value of Seven Hundred Fifty Thousand (PhP 750,000.00) Pesos at P50.00 per share; and 2. Five Thousand (5,000) preferred shares with a par value of Two Hundred Fifty (Php250,000.00) Pesos at P50.00 per share. As of May 21, 2010 at least twenty five percent (25%) of the authorized capital stock has been subscribed and at least twenty five percent (25%) of the subscribed capital stock has already been paid for by the cooperators. Mission, Vision and Values of Pilipinas I-Cafe Marketing Cooperative Mission We believe that the advancement and innovations brought about by Information Communication Technology will bring about social change and economic development to the various communities in the Philippines. It is in this light that we would strive to develop an ICT enabled community whose members are empowered with the proper ICT knowledge and skills so that they could effectively engage in a globally competitive economy. Vision In our quest to develop an ICT enabled community we will strive to achieve the following: 1. To be a leader in providing connectivity and social ICT infrastructure that could serve as a standard on the effective use of ICT resources at the community level. 2. To provide trainings and accreditation programs to the community ICT practitioners that could lead to their professional growth and development. 3. To formulate ICT business solutions and packages that will bring about the development of e-commerce and providing economic opportunities to people through ICT.
  • 4. Values As we strive in the achievement of our goals, we are guided by our values that would serve as our guide: 1. Leadership – the courage to take bold steps in shaping for a better future. 2.Transparency – what we do we let other people know 3. Collaboration – leverage collective genius 4. Integrity – be real 5. Accountability – we take responsibility for our actions and decisions 6. Passion – committed in heart and mind 7. Camaraderie – Friendship in business 8. Professionalism – we follow the golden rule-do unto others what you want others to do unto you.
  • 5. Cooperators Name Name of Internet Cafe Home Address Albuera, Rodolfo Jr. G Homebiz.com Cabuyao, Laguna Apostol, Evelyn R. Apostle.com Systems Inc Imus, Cavite Balajadia, Bienvenu Net N'Counter Computer Services Marikina City Ballarta, Noel N Richnet Internet Cafe Quezon City Cabañgon, Santiago G Quick Silver Internet Cafe Mandaluyong City Cañada, Emmanuel P LernQuezt Internet Cafe Laguna Conise, Ricky John H Conise Internet Cafe Makati City Cruz, Norman Vincent Isurf Express Internet Cafe Sta Mesa Manila Dasal, Pio Rommel TGAR! Internet Cafe Imus, Cavite De Villa, Emilio Jr. G EGD Internet Cafe Manila Gimena, Arthur A. Dj Hobbies Quezon City Gonzaga, William R. Marikina City Martirez, Arnel M. Patricia's Net Station Valenzuela City Morada, Gener Luis R Mando's Computer Services Imus, Cavite Nablo, Joseph G Skill Up Computer Shop Valenzuela City Pascual, Rally Benitez Ralzky Internet Cafe Antipolo City Pinlac, Eric S. Potholes Cyberzone Valenzuela City Rodriguez, Dolores A. Hidden Tribe Internet Cafe Valenzuela City Salamat, Thelma L Alkates Computer Center Valezuela city Saul, Eric L. King Saul Computer Shop Batangas See, Michael Benedict N Uranus Internet Cafe Pampanga Somera, Vic Donald Q. Copy Prints internet Cafe Bulacan Tuboro, Maria Remily P Lucky Dragon Computer Shop Catanduanes Tuboro, Rosette P Virtual Nook Computers and Gen. MDSE Catanduanes Vibar, Joey Y JYBIZZ Internet Cafe Imus, Cavite Zafra, Edgardo C. Marikina City
  • 6. Board of Directors Morada, Gener Luis R Mando's Computer Services Chairman of the Board Imus, Cavite Balajadia, Bienvenu Net N'Counter Computer Services Vice - Chairman Marikina City Salamat, Thelma L Alkates Computer Center Treasurer Valezuela city Nablo, Joseph G Skill Up Computer Shop Secretary Valenzuela City Tuboro, Rosette P Virtual Nook Computers and Gen. MDSE Board Member Catanduanes Vibar, Joey Y JYBIZZ Internet Cafe Board Member Imus, Cavite Cabañgon, Santiago G Quick Silver Internet Cafe Board Member Mandaluyong City
  • 7. Projected Increase in Membership and Authorized Capital Stock The regular membership of the cooperative is open to any natural person, Filipino citizen, of legal age, with the capacity to contract and are owners or operators of internet Cafés in the Philippines. While associate membership is open to any natural person, Filipino citizen, of legal age, with the capacity to contract and who are either engaged in the internet cafe business or any related ICT business. Regular and Associated membership in the cooperative entails the minimum purchase of 100 of common/preferred shares. 05/21/10 12/31/10 12/31/11 12/31/12 26 255 400 550 Table 1: Projected Increase in Cooperative Membership 2010 2011 2012 Php1,000,000.00 Php3,000,000.00 Php5,000,000.00 Table 2: Projected Increase in Authorized Capital Stock Products Computer Packages 1. I-Citizen PC - an entry level personal computer for both home and internet cafe use 2. Business PC - a mid range personal computer that could run most of the business applications and games 3. Gaming PC - a reasonably priced gaming computer that is configured to provide the best gaming experience for customers of internet cafés. Computer Parts and Peripherals 1. Processors 2. Motherboards 3. RAM 4. Power Supply 5. Video Cards 6. Hard Disk 7. Casings 8. Monitors 9. Keyboard 10. Mouse 11. Web Cameras
  • 8. Internet Cafe Business Packages - a complete business package that includes consultancy services from business set up and business competency trainings. 1. Community I-Cafe Centers (CICC) - the Community I-Cafe Centers takes the Internet only business model into a higher level. Traditional Internet only business model just offers Internet access to its customers but the CICC would serve as a community ICT center catering to the educational needs for Internet connectivity and ICT services for the Mini, Small and Medium Enterprises (MSMEs). 2. Gaming I-Cafes (GIC) - the GIC is the traditional internet Cafés business model in which it is centered on catering to the needs of the online and LAN gaming segment. Emphasis would be centered on the total gaming experience of the customer as to their comfort and game play. 3. Community I-Cafe Business Centers (CICBC) - it will primarily center on the needs of the starting entrepreneurs, professionals, students and MSMEs for an affordable place to do their work. It would be equipped with the necessary communication facilities and services in a business friendly atmosphere. Training Programs 1. Internet Cafe Entrepreneurship Seminar - provides participants with industry information, conducting a feasibility study and basic business skills in setting up an internet cafe business. 2. Internet Cafe Basic Operations - provides participants with the basic technical and business skills in operating an internet cafe. 3. Computer Hardware and Software Maintenance - provides the participants with the technical skill that they need in operating their internet Cafés properly 4. Appreciation Seminar on Open Standards Platform - provides the participants with information about the open standards software that would work in both open source and proprietary platforms. 5. Community I-Cafe Centers Development Program - this program will primarily center on those who will be setting up Community I-Cafe Centers in their respective communities. It would center upon the integration of ICT in education and developing programs for the MSMEs. Business Solutions Offering 1. Open Standards Platforms for education and MSMEs 2. Internet Cafe Management System 3. Microfinance Management System 4. Establishing Internet Presence for MSMEs