PREF-48/July, 2002/REV May 2006/2
1.1 Project Brief
This objective of this document is to provide information regarding investment opportunity for setting up an Internet Café, with focus on product differentiation i.e., providing some unique services (Video/Audio Chat, Web Developing) which are not offered by a typical Internet Café. The business can be established in any of the major cities of the country. 1.2 Opportunity Rationale
In a short period of three decades, computer has become a household item all around the world. With the introduction of Internet, in the 90s, computers became a significant medium to communicate with people around the world. It became a source of information and now there is an increasing number of businesses shifting toward e-Commerce, which means doing business on the Internet. From a few hundred thousand pages on the Internet in 1994, there are now over a billion pages and these are being added at the rate of about a million new pages every day.
Internet was introduced in early 90’s in Pakistan, and since then, it has been on a tremendous growth because of incentives provided by Government of Pakistan to promote Computer related fields, such as computer education, Internet Service Providers, etc. The demand of Internet in the country has been growing since its introduction. From few ISPs in 90s, now (2005), there are more than 40 operating in Pakistan. There are more than7.5 million Internet users in Pakistan and the number is growing at a tremendous rate. There were only 29 cities with Internet facility in August 2000, which has expanded to around 1898 cities by 2005.
Given the income level and low purchasing power of majority of Internet users in Pakistan, opening an Internet café to cater to this segment is a viable project. 1.3 Proposed Capacity
The proposed project is based on 20 computer systems.
1.4 Total Project Cost
The total cost of the project is approximately Rs. 1.110 million. 1.5 Proposed Location
For the Proposed project following premises should be considered. Proximity to the majority of people living are from middle income group Proximity to Private hostels setup in different areas of cities. Low cost rent Rs. 4000/- per marla
Pre-Feasibility Study Internet Café
PREF-48/July, 2002/REV May 2006/2
Proposed internet café will provide full access to the resources of internet and other online services, printing, composing, scanning, fax. However or the sake of innovation and differentiation there would be a unique services of Video/Audio Chat. Just being a net café will not serve the purpose as business need to be more than a value addition process rather than a traditional net café, that is why after being operational for first two years there will be a facility added to the cart i.e. Web developing. It will not only be the value addition but also a business expansion tool.
2 CURRENT INDUSTRY STRUCTURE
According to an estimate, Internet subscribers are more than 300 million on the globe and Internet growth is 100 percent per year. Internet took only five years to reach 50 million users. The Internet market in Pakistan is moving in positive direction. Internet usage has shown a tremendous growth, since its introduction in Pakistan. In Pakistan, ISPs started to provide services in 1996. Today, the ISP market in Pakistan is booming, and new ISPs are being set up at a regular interval. In 2005, there were about 38,309 internet hosts. There were over 7.5 Million Internet users in 2005; this number has been growing with the increase in the number of cities that are now on the World Wide Web.
From few Internet providers, now all the major cities have quiet a number of Internet providers to cater to the increasing demand of Internet. According to PTCL, the number of cities in Pakistan that has Internet access has grown to 1898 and below is the breakup of these cities.