1. An Internet café is a business that provides customers access to the Internet using computers that are available for use in the café. 2. Internet usage in the Philippines has grown rapidly in recent years, increasing from 2 million users in 2000 to an estimated 12 million users currently, although access remains limited for many due to higher costs and lower incomes. 3. Internet cafés have played a key role in expanding Internet access in the Philippines by providing services to many who otherwise would not have a way to get online, given the country's low rates of personal computer ownership.

1. MISCONCEPTIONS AND INTRODUCTION Internet Cafe

2. Misconceptions

5. What is an Internet Café?

7. Basic Characteristics of the Internet Café Industry It is a capital extensive type of industry It is a highly technical type of industry It has a rapid rate of obsolescence It has no central government body to control it It has a high level of competition

8. Internet Usage

13. BRUNEI DARUSSULAM BN - 381,371 population - Area: 5,765 sq km Capital city: Bandar Seri Begawan - population 69,984 ('07) 176,029 Internet users as of June/07, 46.2% penetration, per AiTi. 11,181 broadband Internet connections as of June.30/07, per AiTi. INDIA IN - 1,147,995,898 population - Area: 3,166,944 sq km Capital City: New Delhi - GNI p.c.US$ 620 ('04), per World Bank 60,000,000 Internet users as of Sept/07, 5.2% penetration, per ITU. 3,130,000 broadband Internet connections as of Mar.31/08, per TRAI.

14. Internet Growth in Philippines: YEAR Users Population % Pop. Usage Source 2000 2,000,000 78,181,900 2.6 % ITU 2005 7,820,000 84,174,092 9.3 % C.I.Almanac 2006 14,000,000 87,236,532 16.0 % Yahoo!

15. In the Philippines the Internet is growing. Although there are almost 100 Internet Service Providers in the Philippines, most of them have connections through backbones located in the United States. Internet dial-up connection charges are approximately 2 dollars hourly (or 33 dollars for up to 60 hours monthly). This fee is approximately 80% higher than similar charges in the United States. Since GNP per capita in the Philippines is only 12% of that in the United States, it is clear that access to the e-world is currently limited to the wealthier citizens and companies. In 2000 Internet users were approximately 2,000,000. In 2003 this number had increased to 3,500,000 Internet surfers.

16. The Internet café has been the growth driver of online gaming with a 38-percent share from January to June 2004, with Metro Manila registering the highest share with 41 percent, followed by Central Luzon with 17 percent. Since the Philippines has a low personal computer (PC) penetration rate estimated at less than 10 percent of the total population, the Internet café has provided access to online gaming and the Web to many Filipinos.

17. Philippines to Reach 6.3 Million Gamers in 2008 MANILA, Jan. 28 (Xinhuanet) -- The number of online gamers in the Philippines will reach 6.3 million by 2008, said a research released by the International Data Corporation (IDC). The increase is driven by the availability of new online game titles and more broadband connections.

18. RP has highest percentage of social network users -- study In the Philippines, the study noted 15 percent Internet penetration and estimates 37 million "active" Internet users(aged between 16 to 54), or those who go online daily or every other day. The study estimates 83 percent of Internet users in the Philippines have created social network profiles, having the highest percentage ahead of Hungary (80 percent), Poland (77 percent) and Mexico (76 percent). It is estimated that nearly 90 percent of users in the Philippines have Friendster accounts, although the rest of the world is either logging on to MySpace or Facebook.

19. 5,550,000 + 6,300,000 12,000,000 ++ --

20. Total Population Philippines = 83 Million Total No of Internet Users = 12 Million Less Poverty Level = 22 Million Total Number of Potential Internet Users = 49 Million