CHAPTER 1

PROJECT AT A GLANCE
1.1

PROJECT BRIEF

This objective of this document is to provide information regarding investmentopp ortunity for

setting up an Internet Caf, with focus on product differentiationi. e., providing some unique services

(Video/Audio Chat, Web Developing) whichare not offered by a typical Internet Caf. The business can

be established in anyof the major cities of the country. 1.2 OBJECTIVES

For operating and establishing SunShine Internet Caf, we are having someobjectives .

To earn profit at less investment s. To satisfy our customers providing

best quality service at effective price. Providing the service at low cost by

providing the best quality at affordableprice. To know a fair return on the capital invested by the owner

1.3 MISSION ST ATEMENT

To achieve the economies of scale to minimize costs while

maximizingvalu e to Customers. To achieve leadership, cor e and functional competencies

internet cafebusiness .
1 1.4

PROJECT RATIONALE As the Internet spins a web of

interconnectivit y around the globe, as it growsliterally by the hour, India is struggling, not to catch up but

to keep from fallingfurther an d further behind. There has been a great increase in Indian content

onthe Internet. Many net entr epreneurs hav e been quick t o realize the h ugepotential of the global market. Initially,

most sites targeted the global Diaspora of Overseas Indians who had more access to the Internet, not to

mention the creditcards that drive Net commerce. But there is a growing realization that the

Netcan reach t he large and wealthy Indian Middle class. This group is rapidl yplugging into the Net (still

out of range for most people here) and there isincreased use of credit cards. The Internet

represents so much potential for India, and the demand for efficient Internet infrastructure is growing

rapidly. Thisis where India has been failing. The demand has not yet been met efficiently andthis

represents an enormous barrier to business and societal development. thegovernment , which has

monopolized infrastructure development until recently,has recognized it must not hold back this

development. T hey have opened theindustry to private entrants and promised support. In

practice, though, the vastbureaucra cies that imple ment (theoretic ally) the gover nment program s havemoved s

luggishly and i neffectively. Fo r instance, the private ISPs th at wereallowed were initially re quired to acqui re their bandwi

dth from VSNL whichwanted a country wide monopoly on this lucrative sector. The result, new userssigning

up competed for increasingly limited bandwidth. Now the ISPs havebeen allowed to establish their

own gateways but the effect has not yet been feltextensively. The DOT, responsible for providing

phone lines to ISPs lagged waybehind and the new providers are often left with far too few lines to service

theincreased d emand. Lease lines are reduc ed, though still very expensiv eapproximately $1000 per

month for a 64 Kpbs line. Businesses are relying mor eand more on aspects of the Internet. Email,

for instance, is a huge asset tocompanies. And more and more compani es are enterin g into web rela tedbusiness

activities, like web site creation, software development, and variousservice oriented

businesses that utilize the Net, like medical transcription or dataprocessing for overseas companies. As the internet

demographic becomes moremainstrea m India is going to a prime battleground for internet

business over thenext five years. the Internet Service Providers Association of India (ISPAI)

wasset up in 1998 with a mission to 'Promote Internet for the benefit of all'. ISPAI isthe collective

voice of the ISP fraternity and by extension the entire Internetcommu nity. Over the years ISPAI

has helped influence, shape and mould thetelecom policies, so that ISPs and entreprene

urs in the business of Internet cansetup and grow their services in an environment that is

supportive and enabling.