Iligan City known to be the Industrialized City of the South and the City of Majestic Waterfalls.
Welcome to the World Wide Web!
Generally, the internet usage has been growing in the last years in the Philippines. Comparing its internet service fees with the United States, Philippines are about 80% higher. Based from the Philippines' GNP per capita of 12%, the access of the internet is obviously limited to the wealthy citizens. Apart from this, it was recorded in 2007 that there was a huge growth of 600% in internet users. Philippines also has a very low personal computer penetration rate. Approximately it could only around at 10% of the total population has the access of internet. This further means that the huge growth of internet users during the past years is attributed by the proliferation of the internet café’s in the cities were many Filipinos can take advantage of.
The 2011 Internet Trends
However, the trend in 2011 is that more and more family seek their own household connections. As of June 2010, Philippines has an estimating number of 29,700,000 internet users with a penetration rate of 19.7% and 25,307,800 Facebook users as of June 30, 2011 with a penetration rate of 24.9% (www.internetworldstats.com).
Philippines is the second fastest-growing broadband market after Greece. In the year 2005, the Philippines has a total of 127,942 broadband subscribers and this number in 2006 increased to 329,216. Broadband subscribers in both giant providers in the Philippines reported a huge increase, for Globe from 74,000 in the year first quarter of 2007; it rose to 234,000 in the 4th quarter of 2008 (Globe Telecom 4Q 2008 Media and Analysis Briefing). On the other hand, from a total of 119,000 Smartbro subscribers in 2005; it rose to 1,215,000 in the year 2009.
Though personal computer ownership is non-existent for the poorest half of all households in the country, Filipinos has this talent of being “mapamaraan,”---that is looking any other way how to get things at hand. Being a Filipino, we are into “tingi-tingi” that is if you can’t buy things in bulk, then you have to buy few or less. We do that way, to save money or because we cannot afford to pay much. So we intend to buy materials and even food ingredients enough for what is needed. After all, why buy a lot when you only need less or few?
The Iligan City Situation
Now let us relate that to internet usage. In iligan City, if you visit an internet café and rent a computer to access the internet, the flat rate per hour is P15.00 that is regardless of what you do, either make your school paper projects, play a game or listen to music or anything you wish to accomplished. However, if what you do will not take that long, let’s just say half an hour is good enough. Then you have to pay P10.00 as their marked up rate. On the other hand, there are also internet café’s where you can pay based on how much time you actually used. All you have to do is tell the internet café attendant its “open time.” Open time means that anytime you could finish your work, it maybe hours or just a few minutes and then when you are done you only have to pay the equivalent amount of the time you actually spent. It is so easy, right?
Then, at present the conventional internet café’s who claims to be the “legal” internet café’s” are complaining that they are hurt by the proliferation of the “peso-peso” internet café’s they are referred as the “illegal internet cafés.” This is evident in the statement of the Vice-chairperson of the Iligan Internet Café Monitoring Board of the Iligan Internet Café Operators Association (IICOA). He said in a statement in a Facebook group, that the internet shops owners in Iligan City are complaining regarding the proliferation of this “backyard vending machines?” I don’t think so. Basically this coin operated computer machines or the “hulog-piso” that is spreading in every corners of the City are way better than the computer units found in what they refer as the the "legal internet cafe's."
According to him, the existence of these coin operated computers led to the decrease of sales of the (IICOA) members. Some people raised their concern on noise in having these coined operated computer machines, because these machines have an unregulated sound volume. Well, I saw these things around and they are just placed outside the house of the owner so it is out in the open. Anyone can hear the music or the sound when someone is using but if sound is the problem, the owner can easily tone it down. It was also pointed out that some owners of this coined operated machines actually has secured permits to operate, but the problem is that these owners declared to posses one in quantity but actually owns several number of it---I can smell dishonesty! that is if this is true.
Was the so called “legal internet café’s” claim true? Is their accusation to the so called “illegal peso-peso internet cafés” has some merit? Is the so called “illegal coined operated machine or the hulog-peso can be blamed directly to what the IICOA losses? To answer that, let us examine the situations.
This could be the Reasons, or This is the Reasons!
As pointed out earlier in this article, the year 2011 trend is that more and more Filipinos are seeking their own internet connections at home. I believe, clearly this is the primary reason why the conventional internet café’s in Iligan City is losing. I believe this does not concern to the Iligan segment only, but to the whole Philippine internet cafe industry. What do you think? And why is that more people generally preferred to have their own internet connections at home?
As an internet user, these are my reasons why I secure my own connection at home:
- Security and Safety. Well, there is no place like home…it’s the only place where you can feel safer than any place in the world. I will have no fear of being rubbed inside the internet café. Seriously, I experienced it once with some friends hit at his head by a 45 caliber pistol and I would never allow that to happen once again.
- Convenience. I enjoy unlimited internet. Well, I don’t have to spend sleepless nights in the internet café’s when I have deadlines for my works assignment, and school projects. I can conveniently lie down on my bed beside my computer table, whenever I felt that I have to get some sleep and rest for a while.
- Budget Friendly. It is very cost effective to pay an average of P1, 300.00 pesos per month with an unlimited internet connectivity and landline use.
- An internet user in Makati would spend an average of 10.4 hours per week working and maybe playing and opening their social networking accounts a day. So by that alone, in average, a person may spend P624.00 a month that is considering the rate in Iligan City. Plus the cost of food a person will actually spend while playing the computer at the internet cafés and the transportation fare going to the internet shops (ph.news.yahoo.com).
- File Security. As the only operator of my computer at home. There is no risk of losing or even spreading and displaying my classified documents to the public.
- Speedy internet connectivity. Well, since it’s a home connection I solely use the connection. No speed competition. Unlike in the internet café’s where slow connection is being shared to at least 20 or 30 computers.
- Growing number of Filipinos working at home. As an aspiring online worker and at present a blogger plus I am doing my school paper now. Internet connection at home is really the most cost-effective.
The Mobile Internet Access
IIWO failed to consider that mobile internet access is now possible. With the convenience of your own cellular phones, you can access your Facebook account. So apart from the gradual shift of preference from internet cafés to home, mobile internet access can possibly another reason for the decline in sales. The Yahoo!-Nielsen report indicated that internet access on mobile phones has grown from almost zero to five percent in the year 2010.
What are these “coin operated computer machines?”
The Vice Chair of the Internet Operators Board in Iligan City referred this coined operated computers as “backyard vending machines?” These machines actually are internet connected designed with a coin detector machine just like in a vending machines and slot machines. Once a coined is inserted the computer will automatically open and then you can access the internet for about 6 minutes for just one peso. Well, if you want to find out you have to visit and try using these computers. Then you would know and see with your own eyes that they function and look far better than the computers in the internet cafes in Iligan City. If these are actually vending machines, what is wrong with that….what difference they may have to the ATM “automatic tubig machine” and the “video singko?” If water, can be sold into “tingi-tingi” and karaoke songs into “tingi-tingi” per song, why not internet access? Nobody cried out “illegal” while vending water machines are scattered around the corners of Iligan City and the “video singko.” The coin operated computers was also featured on televisions and nobody cried “hey it’s illegal” it even gained popularity then and even sold online visit.sulit.com.ph. I believe possessing and operating them with sufficient business permit and other requirements is legal. Are they considered illegal just because they are not member of the IICOA? Where is the spirit of free enterprise? What if, they will seek memberships?
Apparently, if the internet operators wanted to compete and want people to go back into the internet café which for me is a very difficult challenge, I guess they need to do the following friendly advise.
- Provide security and safety in your establishments. Do not rely on the government. Take initiative in hiring someone who will take charge in the security of your business and to your client. You may consider installing a security spy camera inside the café. This will make your client feel secured.
- Having a board that regulates the operation of internet cafés in Iligan City. Set standards where the café owners have to strictly comply with. Like appropriate licensing of all computers and software’s. Standard rates of services, like uniform per hour basis rent, rates of document printing. This will provide equal opportunity for all internet operators.
- Like anyone else I like spending time at a clean place. Providing a clean and convenient place to play a game and comfortable seats would really attract people to hang-out at your internet café. Clean comfort rooms with water and please NO SMOKING inside internet café’s especially in air conditioned café’s. It’s not a disco pub or a private place for you can smoke.
- Devise a strategy that will attract customers. I knew some internet café’s in Iligan conduct a weekly event such as intergroup gaming competition. I believe this strategy is very effective. It makes me and my friends coming back again and again to that internet café just to participate although I have internet at home. We only stopped participating those contest after the internet café where we usually play was rubbed out.
- Track the recent trends. Keep awake. You might wake up one day and internet cafe's in Iligan City are all gone.
