RP internet cafe industry to boom - study

An information technology (IT) research firm said on Friday that the Internet cafe industry in the Philippines would enjoy rapid growth this year, as users shy away from the prohibitive cost of owning a personal computer (PC). "From the economic standpoint, the cost of owning a PC (personal computer) is still restrictive for a large segment of the country, not to mention the additional cost of Internet access," IDC Philippines said in a statement. "With this, smaller cash expenditures on a pay only as you use basis are a good alternative, making Internet cafes widely accepted in the country." IDC, in its latest report said the Internet cafe industry in the Philippines is rapidly growing and evolving. "From being mere LAN (local area network) shops or networked cafes, Internet cafes are seen to become an important avenue for growth, as the industry transforms into a complete business center, equipped with various value-added services," IDC said. In the next 12 months, IDC believes that the heightened attention of the Internet cafe 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. "This fast-growing industry will continue to evolve in the near term, as competition within the Internet cafes ecosystem increases and the added attention from the technology vendors infuses a greater variety of hardware and services into the playing field," IDC concluded. IDC predicts that within the year, Internet cafes will concentrate heavily on replacement and/or maintenance of hardware, particularly personal computers (PCs), servers, and networking products. "The decelerating broadband costs, growing uptake of online gaming, and declining hardware prices have all served as catalysts for growth in ICT spending from the Internet cafe industry," IDC Philippines Research Manager Manuel J. Ravago said. IDC said pricing remains a key issue when targeting the Internet cafes market. "This, along with higher collaboration between channels, focus on online gaming nature, and focus on Internet cafes in the rural areas, should be taken into perspective to be able to secure key business prospects," IDC added. Based on the results of the IDC survey, Internet cafes in the country are generally micro-sized businesses--single proprietorships with only one branch. The survey also showed that online gaming, Internet surfing, and printing, scanning, faxing, copying are the top three services offered by most Internet cafes in the country. - GMANews.TV