Internet café pricing a key issue, says study
PRICING remains a key issue in expanding the Internet café market to the countryside and investors must collaborate with other service providers to secure key business prospects, according to a recent study.
“The decelerating broadband costs, growing uptake of online gaming and declining hardware prices have all served as catalysts for growth in information and communication technology [ICT] spending from the Internet café industry. In order to capture that potential business opportunity from the sector, the nature and preferences of the Internet café must be considered at all times when addressing this particular market,” said Manuel J. Ravago, the research manager of Infocom Data & Consulting (Philippines) Inc. (IDC).
Based on the survey results, Internet cafés in the Philippines are generally microsized single-proprietor businesses with only one branch. Online gaming, Internet surfing and printing/scanning/facsimile/copying are the top three service offerings of most Internet cafés.
“From the economic standpoint, the cost of owning a personal computer [PC] is still restrictive for a large segment of the country, not to mention the additional cost of Internet access. With this, smaller cash expenditures on a pay-only-as-you-use basis are a good alternative, making Internet cafés widely accepted in the country,” the study said.
It indicated that the Internet café industry in the Philippines is a rapidly growing niche and evolving market, and from being mere local area network shops, Internet cafés are seen to become an important avenue for growth, as the industry transforms into a complete business center.
The IDC study also found that the biggest ICT budget allocation is spent on hardware, with particular focus on PCs, servers and networking products.
The research firm predicts that in the next 12 months, Internet cafés will concentrate heavily on replacement and/or maintenance of the present ICT setup.
It said the heightened attention of the Internet café space as a feasible and potential-rich addressable market will usher in a slew of product and service offerings from the growing number of providers, including hardware, Internet access providers and online gaming service providers.
“This fast-growing industry will continue to evolve in the near term, as competition within the Internet café ecosystem increases and the added attention from the technology vendors infuses a greater variety of hardware and services into the playing field,” the study said.
IDC, a premier global provider of market intelligence, advisory services for the information technology and telecommunications industries, has over 775 analysts in 50 countries that provide global, regional and local expertise on technology and industry opportunities.
--Angelo S. Samonte, Manila Times
“The decelerating broadband costs, growing uptake of online gaming and declining hardware prices have all served as catalysts for growth in information and communication technology [ICT] spending from the Internet café industry. In order to capture that potential business opportunity from the sector, the nature and preferences of the Internet café must be considered at all times when addressing this particular market,” said Manuel J. Ravago, the research manager of Infocom Data & Consulting (Philippines) Inc. (IDC).
Based on the survey results, Internet cafés in the Philippines are generally microsized single-proprietor businesses with only one branch. Online gaming, Internet surfing and printing/scanning/facsimile/copying are the top three service offerings of most Internet cafés.
“From the economic standpoint, the cost of owning a personal computer [PC] is still restrictive for a large segment of the country, not to mention the additional cost of Internet access. With this, smaller cash expenditures on a pay-only-as-you-use basis are a good alternative, making Internet cafés widely accepted in the country,” the study said.
It indicated that the Internet café industry in the Philippines is a rapidly growing niche and evolving market, and from being mere local area network shops, Internet cafés are seen to become an important avenue for growth, as the industry transforms into a complete business center.
The IDC study also found that the biggest ICT budget allocation is spent on hardware, with particular focus on PCs, servers and networking products.
The research firm predicts that in the next 12 months, Internet cafés will concentrate heavily on replacement and/or maintenance of the present ICT setup.
It said the heightened attention of the Internet café space as a feasible and potential-rich addressable market will usher in a slew of product and service offerings from the growing number of providers, including hardware, Internet access providers and online gaming service providers.
“This fast-growing industry will continue to evolve in the near term, as competition within the Internet café ecosystem increases and the added attention from the technology vendors infuses a greater variety of hardware and services into the playing field,” the study said.
IDC, a premier global provider of market intelligence, advisory services for the information technology and telecommunications industries, has over 775 analysts in 50 countries that provide global, regional and local expertise on technology and industry opportunities.
--Angelo S. Samonte, Manila Times
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