ESTABLISHING AN INTERNET SERVICE IN VILLA
FERMIN, ECHAGUE, ISABELA
By:
Presented by:
Jasmine Bayer
Andrea Reyes
Aubrey Briones
Cait Lin Ericka Obra
Emerald Velasquez
Joshua Badongan
Chapter 1
THE PROBLEM AND ITS BACKGROUND
Introduction
As COVID-19 pandemic strikes its claws, a new normal emerges, thus forcing the community to embrace it. Schools are facing new
challenges such as no face to face classes, online classes and modules are the new system to meet the needs of the students.
Whereas in certain remote areas, online class is a struggle due to poor connection of internet or having no access at all. Connectivity is
a common problem in the Philippines. According to Valle Rey (2020), the internet connection of the Philippines is ranked the ‘second
slowest’ among the 10 ASEAN countries. At the same time, it is also the 110 th among the 139 countries.
Slow Internet connections or limited access from homes in rural areas can contribute to students falling behind academically, according
to a new report from Michigan State University’s Quello Center. “We were surprised with how powerful the findings were,” said Keith
Hampton, associate director for research at the Quello Center and a professor in MSU’s College of Communication Arts and Sciences.
“Students without Internet access and those who depend on a cell phone for their only access are half a grade point below those with
fast access. This gap has ripple effects that may last an entire life.” Conducted past researches results showed that the most rural and
socioeconomically disadvantaged students are least likely to have broadband Internet access at home. Only 47% of students who live in
rural areas have high-speed Internet access at home compared to 77% of those in suburban areas. Of those who do not have home
access, 36% live in a home with no computer and 58% live on a farm or other rural setting. Students with no high-speed Internet access
at home are also less likely to plan to attend a college or university. On the other hand, students with Internet access have substantially
higher digital skills, which are a strong predictor of performance on standardized tests (MSUToday.com, 2020).
Barangay Villa Fermin, Echague, Isabela is one of the rural areas in the Philippines that has a poor internet connections. To address the
problem of having a poor or lack of internet access, the researchers would establish BoostFi, an Internet Service Provider, which will be
a big help to the community of Barangay Villa Fermin.
Statement of the Problem
The central problem of this study is the evaluation of the viability of
establishing an Internet Service in Villa Fermin, Echague, Isabela.
Objectives
The main objective of this study is to determine the viability and
feasibility of establishing an Internet Service in Villa Fermin, Echague,
Isabela.
Specifically, objectives from the point of view of different functional
areas of management are as follows:
Marketing Study:
1. To present the product description of the proposed business;
2. To determine the demand for the products in the target market;
3. To devise a marketing plan with corresponding business strategies to
render the operations successful; and
4. To determine the supply for similar or close substitute products in
the target market.
Technical
1. To determine the most effective and efficient way on how the products will be
produced;
2. To come up with the list of necessary equipment, tools that are needed for operations;
3. To choose the best plant location for the proposed business;
4. To determine the maximum capacity of the production process and to create an
efficient and effective scheduling of business activities;
5. To indicate the process of waste management;
6. To enumerate the utilities and other operating cost resulting from business
operations;
7. To establish quality control in every stage of production; and
8. To ensure the appropriate use and management of resource and expenses.
Organizational and Human Resource
1. To select the most feasible form of business ownership;
2. To know the necessary requirements in establishing a business;
3. To identify the jobs necessary for business
4. To determine the corresponding personnel need for each area of business operations;
5. To set requirements and qualifications of personnel;
6. To detail the work specifications and related duties of each job indicated in the
organizational structure;
7. To establish a compensation plan for each job description and other individual and
group incentives; and
8. To identify the steps needed and projected time table for the implementation of the
proposed business
Strategic management
1. To develop the mission, vision, and objectives, key result areas (KRA), and
performance indicators (PI) that will reflect the main purpose of the proposed
organization;
2. To plan a strategic evaluation process to review business operations; and
3. To make short term and long term plans and also contingency plans for the proposed
business.
Financial
1. To describe and explain the assumptions adapted for the preparation of financial
statements;
2. To determine the total capital investment needed to implement the proposed project;
3. To make financial statements projections and interpret the results thereof; and
4. To determine the different considerations in choosing and sustaining the activities to make
the proposed project profitable and financially stable.
Significance of the Study
This study will benefit the followings:
To customers, this study will encourage them to have choices, overcome challenges, and
discover new ways to enjoy life.
To the future researchers, the findings of this study will support further researchers
concerning about the establishment of internet provider within the area. This can be use as
basis further studies so that they will have a strong foundation.
NELA College. This study would be an update to the researchers present in the institution's
library that anyone will use as a source and reference.
Community. The business will contribute to the economy by adding innovation and
development to the community where the Internet service provider is based.
Readers. This research will provide readers with more information about the Internet service
provider and will also help them develop a deeper understanding of how this service operates.
Scope and Limitations
The study is entitled “Establishing an Internet Service in Villa Fermin, Echague, Isabela.” The business is a telecommunications industry.
The researchers chose the location at Barangay Villa Fermin, Echague, Isabela due to the in demand need of internet service.
The target market of the proposed business are the households with students residing at Barangay Villa Fermin. The population of the
target market is 400. Therefore, the researchers did not use any sampling techniques and used the whole target market population as
respondents. There will be no competitors because of one location. Though this study is limited as to the information regarding the supply that
the target market has.
The proposed business is limited on providing internet services. The expansion of the business in other barangays who doesn’t have the
proposed business are expected.
The internet service business was based on conducted interviews and published articles regarding the topic of the proposed business.
The financial projections are limited to the period of the first three years of operations. All information in this study were taken from
interviews, books and publications, survey, questionnaires, observation and the internet.
The proposed business is a private enterprise and not by the government.
Chapter 2
REVIEW OF LITERATURE AND RELATED STUDIES
Related Literature
Internet Service Provider is considered as the main component of the Internet, and have
an essential role to keep the Internet available and steady. ISP provides services that
meet the needs of customers. According to that, ISP’s network should be built accurately
to prevent the denial of service as much as possible and provide the services in an
efficient way. (Rababah, 2015)
The internet became widely available in the Philippines in 1994, which led to a slowly developing internet savvy consumers in the
country. As of January 2020, the number of internet users in the Philippines grew to 73 million people, accounting for more than half of the
total population. The digital population mostly belong to the age group of 16 years old and above. Going digital is inevitable and a lot - if not
all services are now available online. Accessing the internet is now the most popular tool for consumers in the Philippines. The merchandise
value of the internet economy helped to boost industries because of their presence online, making the marketing of the services and products
much easier. Booking travels, selling products, online media, transport, and food deliveries are the thriving businesses in the Philippines
through the digitalization. For accessing the internet, consumers in the Philippines utilize several devices. However, mobile devices especially
mobile phones leading device for consumers to access the internet. The importance of this device to the Filipinos is to provide not just
communication but also the access to information. In fact, a quarter of the population used their mobile phone in 2018 to access the internet,
and it is forecasted to grow and penetrate almost half of the population by 2023. (Sanchez, 2020)
Related Studies
• The Republic of the Philippines is an archipelago of more than 7,100 islands spread over 300,000 square kilometres, with a population of more than 100 million people. After a
425-year history of colonialism and a traumatic period of authoritarianism (that ended in 1986), the country has emerged as a democracy that continues to experience political
upheaval and economic boom and bust. The Philippines has been ruled by a succession of political dynasties, many of whom also dominate the economy, including the media and
information and communications technology (ICT) industry. As a result, the ICT sector is underdeveloped, with only two major telecommunications companies dominating the
market. By law (Republic Act No. 7925), Internet service delivery is anchored on telecommunications networks that, in turn, are controlled almost exclusively by two monolithic
companies: the Philippine Long Distance Telephone Company, or the PLDT group—which also owns providers such as Smart, Talk n Text, and Sun Cellular—and Globe Telecom,
Inc. These two companies also own most of the Internet infrastructure in the country, allowing them to dictate the cost, quality, and extent of Internet connectivity. Entering the
country’s telecommunications industry is a cumbersome process. Anyone interested in conducting such a business must first obtain a franchise through Congress. The constitution
mandates that telecommunications firms—considered a public utility—must be principally owned (60%) by Filipino nationals. On top of that, various other licences and permits
from different government agencies, including local government units, must be secured. The Philippines has had the fastest growing Internet population in the world, experiencing
531% growth over the last five years,57 resulting in 47.1 million active Internet users as of January 2016.5. (The Citizen Lab, 2017)
Based on conducted researches, providing access to Internet infrastructure is
considered as the core and traditional business of ISPs. On this premise, parallel to the
increase in the significance of the Internet and Infrastructure, attractiveness and
importance of ISPs business also rises. (Hanafizadeh et al., 2019)
On the stated related studies shows that Internet Service Business is profitable.
This means that the proposed business could also be profitable considering the high
demand of internet related needs in the location of the proposed business.
Industry Profile
Global Internet Service Providers (ISP) Market has been thriving
with considerable revenue from previous decades and it is likely to
perform vigorously over the forecast period from 2020 to 2025. Various
factors such as development, rapidly increasing demand, lifting
population, economic stability are directly and indirectly fuelling
growth in the market. (Online Research, 2020)
The Philippines' telecommunications industry is continuously developing over the
years. The sector used to be a duopoly exclusively led by two telecommunications
networks in the past. However, the sector have rapidly produced new players,
especially in the internet services industry, resulting in an increasing number of
internet service providers. Furthermore, the continuing appetite of many Filipinos in
communicating through their mobile phones, accessing information through the
internet, streaming and downloading videos saw the rapidly growing mobile phone
internet user penetration in the Philippines yearly. The Philippines'
telecommunications market explained the surge of digital users in the Philippines has
been on the rise in recent years. Time spent on the internet by Filipinos, which was
the highest among other Asian countries, led to more demands for improving fixed
broadband services from the country's internet service providers despite its growth in
numbers. (Sanchez, 2020)
Success and Risk Factors
Opportunity analysis is useful in the preparation of company plans to reduce risks
and to make the most of the chances of success.
Strengths
Employees. Highly experienced and qualified innovative company officers to
manage and to take actions whenever there are problems that may occur.
Communication. Connecting people from separate distance and also it helps people
who work from home with ease.
Availability of service regardless time. Our staff will be attending all matters
regarding the problem as fast as we can.
Opportunities
Location. No real competitors in our precise space.
New technology. Increase interest
Partnership. Collaboration and communication opportunities between
the major internet service provider via new type of service provision.
Service development. Growing range of possibilities due to efficiency.
Risk Factors
Weaknesses and risks threaten the effectiveness and development of the company.
The following are some of the influences which can have an effect on the company
and which must be taken into consideration in order for the business to expand.
Weaknesses
Capital. Large amount of money is required to do such business.
Customers’ dissatisfaction. Even though guaranteed good service have been stated a
simmering sense of dissatisfaction among the customers may occur. Hence, our staff
will comply to it immediately.
Threats
New rival. Since the internet is very useful nowadays due to the pandemic people
might engage and offer cutting edge technology.
Definition of Terms
COVID-19. COVID-19: Stands for coronavirus disease-19. COVID-19 is the name of the infection caused
by the novel (new) strain of highly contagious coronavirus (SARS-CoV-2) that was first identified in late
2019
Information and Communication Technologies. Information and Communication Technologies refers to
technologies that provide access to information through telecommunications. This includes the Internet,
wireless networks, cell phones, and other communication mediums.
Internet. Internet is an electronic communications network that connects computer networks and
organizational computer facilities around the world.
Internet service provider. An Internet service provider (ISP) is a company that provides customers with
Internet access. It is often referred to as just “the provider.” Data may be transmitted using several
technologies, including dial-up, DSL, cable modem, wireless or dedicated high-speed interconnects.
