Olongapo Telecom & Information Technology

Wednesday, August 22, 2007

South Korean firm, IPVG team up on cyber café chain rollout in RP

Stylized, tech-savvy ‘Net café will cater to local and foreign customers

By JOEL D. PINAROC - Manila Bulletin

Sabiclub Corp., a South Korean-owned technology company, has partnered with listed technology company IPVG in a massive cyber café rollout in the Philippines.


"As strategic partner of Sabiclub, we will work closely together on a number of fronts. Sabiclub is a channel into the Internet café business and Korean market," IPVG CEO Enrique Y. Gonzalez in a statement said.

Sabiclub president and founder Don Hung Lee, said his company is looking at establishing 100 Internet cafés in the Philippines to cater to local and foreign customers.

The company is planning to put up the cyber cafés through a massive franchising drive, Lee, said.

The technology firm, which also has business interests in systems in integration and web development, will partner with IPVG for the Internet café rollout, Lee said.

The executive however remained mum on the financial arrangement his company and IPVG made, regarding the rollout.

IPVG also did not disclose other details of the deal. The company has various interests, including gaming, data center, and business outsourcing.

According to Lee, Sabiclub will put two Internet café brands, including i-Hooked and Station 168, catering to students, and foreign customers, respectively.

Sabiclub has currently two i-Hooked branches and several Station 168 centers.

Lee said Sabiclub will put the i-Hooked cafés around schools, while the Station 168 will be strategically located in and around communities with a high concentration of foreigners, particularly South Koreans.

Lee said Sabiclub is eyeing to "sell" the two franchises for 5 million pesos to 10 million pesos depending on the location and size of the Internet café.

The cash generated from this franchise sale will fund the bulk of the expansion drive, Lee said.

Currently, Sabiclub has recently opened two i-Hooked branches and several Station 168 centers.

Lee said Sabiclub is aiming to put up about 20 more cyber cafés in the "coming months."

The executive said Sabiclub may also acquire existing cyber cafés and turn them into i-Hooked branches that will be designed after South Korea’s "PC bang," a stylized Internet café popular in the country.

"Bang," means room in Korean, Lee said, adding that hew i-Hooked and Station 168 cafés will have spacious lounges, and top-of-the-line terminals, among others.

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