MANILA, 6 June 2006 — A Filipino telecommunications company is offering overseas Filipino workers (OFWs) the chance to become entrepreneurs and invest in something other than the usual tricycle, FX taxi or jeepney.
A company of professionals in information technology, Everything Online Inc., is partnering with the Philippine Long Distance Telephone Co. (PLDT) and MyDSL to offer OFWs a possibility to run their own Internet cafes with a minimum investment of P35,000 (approximately $675).
“Our goal is to wire all communities in the country and introduce a new business model for OFWs and their families, an alternative to sari-sari stores, tricycles and FX taxi business,” Fortunato Agbayani, national sales manager of Everything Online Inc. (www.everythingonline.ph), told the Philippine Business Mirror late last week.
At the formal launch of the firm where PLDT pumped P70 million into marketing, Agbayani was quoted as saying “we’re an independent firm that has partnered with PLDT for its dedicated subscriber line (DSL) product.”
Agbayani said the EOL and Internet cafe franchise business should be differentiated from the wholly operated Netopia chain of Internet cafes of PLDT which cater to the more upscale Internet users.
This business has as its target the low-end customers, mostly those based in the provinces.
So, although the current applicants are in Metro Manila, Agbayani said EOL intends to expand the businesses in key cities in the Visayas and Mindanao. It already established an Internet cafe in Alaminos, Pangasinan and has 83 more applicants for the business.
Agbayani said 15 percent of these are families of OFWs.
He said the initial payment to EOL will be P35,000 (about $675) to put up an Internet cafe. For this amount, the would-be entrepreneur is entitled to a basic personal computer (CPU, monitor, speakers, modem, webcam with fixtures such as a desk and chair), signage and a DSL connection.
EOL will charge the same flat fee of P35,000 for every PC the entrepreneur decides to install in his/her cafe. Hence, a 5-PC cafe would mean the OFW would have to invest P175,000 (about $3,366).
In addition, the new entrepreneur would pay EOL a franchise fee of P700 per month for 24 months under a two-year contract. The usual monthly payment for DSL alone comes up to about P3,500 (about $67) for a minimum of 24 months.
This minimal franchise fee would cover EOL’s operating expense for business building, technical, research/development and customer services. Return on investment potential can be as quick as 6 months to 1 year.
On the plus side, the OFW or his/her family gets to retain whatever other income is made by his/her Internet cafe.
Agbayani also said EOL would not approve or disapprove applicants based on their location unless the cafés would be very near each other.
“If that happens, we could just recommend they put up a corporation,” he said.
EOL was formed by IT professionals from prominent IT companies to provide the complete information, communication & technological solution to bridge the digital divide & encourage mass participation in the new economy via the Internet.
