Wednesday, July 29, 2009

080807: Netopia eyes further expansion outside shopping malls

 

By Lawrence Casiraya
INQUIRER.net
First Posted 02:44pm (Mla time) 08/08/2007

MANILA, Philippines -- Digital Paradise Inc. (DPI) plans to expand further its chain of Netopia Internet cafés outside of malls and non-commercial areas.

At present, there are around 180 Netopia branches nationwide with at least three branches to be added every month until the end of the year, said Tito Chavez, vice president for marketing and sales at DPI.

The company owns half of these branches while the other half are owned under franchisees.

Started around 10 years ago, DPI's goal is to reach 500 branches by 2008, according to the company website ( http://www.netopia.ph/about.htm).

"We are present in almost all provinces except Sulu (in Mindanao)," Chavez said in an interview.

"Our expansion is really outside of malls and commercial establishments. In most malls, there are multiple Netopia branches already," he added.

DPI also runs another chain called Extreme Gaming Grounds or EGG that, as the name implies, targets primarily online gaming enthusiasts.

Jose Maria Grau, DPI's chief operating officer, meanwhile, noted that some branches found in malls have become smaller in size to make way for "right-sizing."

"The optimum operational size for us would be 20 to 40 workstations. That's why we cut down the number of workstations so we could put up more than one branch and expand our coverage in malls," Grau said in a separate interview.

He added that the 50-50 ratio between the company and Netopia franchisees applies as well to branches in the provinces.

While it owns a stake in DPI, local telecom giant PLDT has introduced products and services targeted at entrepreneurs who want to put up an Internet café business.

Grau acknowledged there is indirect competition with Netopia but said PLDT's clients are mostly mom-and-pop stores, not large commercial operators.

http://newsinfo.inquirer.net/breakingnews/infotech/view_article.php?article_id=81341

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