PLDT-owned Internet cafe chain expands

Philippine Long Distance Telephone Co. (PLDT) group subsidiary Netopia is undertaking a massive expansion program this year that will involve spending around P24 million and increasing the number of its branches from the current 39 to 70.

In an interview, Netopia president Raymond Ricafort said that of the 31 new branches, 12 will be company owned while 19 will be franchises.

Netopia Computer Technologies, the country’s largest Internet café chain, currently has 39 branches and around 1,400 workstations. It is owned 40 percent by ePLDT which is a 100-percent PLDT subsidiary, 10 percent by Newnet Holdings, and the balance, by a group of entrepreneurs.

The company is a network of owned and franchised retail outlets engaged in computer and networked computer leasing, shared Internet access, and desktop publishing services. All its branches are equipped with the latest personal computers and have its key advantages over its competition are per minute billing capability, broadband connection, and strong technical support per branch.

It was founded in 1996 when the first eight-workstation branch was established. Three more branches were put up in 1997 and another two the following year after which the owners decided to slowly build a system that would allow the firm to grow more rapidly and then take in new investors.

It was in November 2000 at a time when Netopia already had 14 branches when it attracted the attention of both Orlando Vea, founder of Smart Communications, and PLDT. By March 2001, PLDT, through ePLDT which is its principal corporate vehicle for information and communications technology assets and investments, and Vea’s Newnet Holdings, signed a memorandum of agreement to infuse an initial P30 million into Netopia.

Netopia together with PLDT, ePLDT, Intel, and Microsoft announced yesterday a collaborative initiative dubbed Digital Paradise, which is a new concept in Internet cafes that aims to bring state-of-the-art computer and Internet access at affordable prices to ever Filipino.

The Netopia Digital Paradise, the first branch of which is at SM North Edsa branch, is a high-tech facility equipped with the latest technologies, IT tools and infrastructure. Intel provided the branch with workstations running on Pentium 4 processors while Microsoft offered its Windows XP and Office XP software. PDLT made available broadband access infrastructure and digital subscriber line (DSL) connection.

According to Ricafort, of the 12 new company-owned branches that will be put up this year, six will be configured like the SM branch. "We will also encourage the franchisees to put up Digital Paradises," he said.

He said some of the new branches will be equipped with Pentium 4 or will run on XP platform. As to existing branches, Ricafort said that the conversion will depend on the area and the needs of the market. "We might have to leave some of the branches as ease, with Pentium 3, MS, 256 kbps," he explained.

Ricafort noted that with Digital Paradise, they hope to be able to set the standard for Internet cafes as venues for a wide range of purposes from the usual functions such as surfing the Net, emailing, and creating documents, to more advanced uses like gaming, downloading music, and editing images.

The Netopia Digital Paradise also has video chatting and videoconferencing facilities using the Intel Web cameras, user-friendly tools capable of taking instant high resolution and superior quality images.

Microsoft Phils. managing director Richard Francis said the project will be at venue where people can avail themselves of the latest offerings from the top technology companies at very competitive costs and help fulfill their vision of empowering people anytime, anywhere, and on any device.

ePLDT managing director Ariel Roda, meanwhile said: "Our infrastructure has always been developed with our customer needs. With the advent of digital media, we made sure Filipinos will have the advantage of broadband connection to make their digital communication possible."