COIN OPERATED INTERNET WIFI HOTSPOT STATION

I. INTRODUCTION

This project proposal aims to design and develop a system that could allow mobile phones,

laptops and tablet users to have an internet connection through a payable wifi hotspot station.

The features of this station are fast or enough speed connection that the users can enjoy by

limiting the devices that can connect and use the hotspot connection on a given period of time,

and this has a cheap payable data connection compared to mobile data and internet shops that

render internet services.

In this project, there will be a main computer where internet connection is available such

as desktop. With the help of a USB network adapter, the machine can produce a wifi hotspot

where internet users can connect. This system will also use Graphic User Interface and database

software that would record transactions done which can be access anywhere via mobile phone or

any gadgets that can connect to internet by the owner of the system. With this database recorder,

the former can analyze if this internet station is earning money or not in that specific area. The

owner can also control the power source of the equipment through internet or SMS text. Then,

the GUI will be the main controller software that would allow only those users who have account

credits that can be paid using the coin slot of the machine. We will use the method of traffic

shaping to control the rate of packet data transferring from server to its client users. This method

will help in allocating the bandwidth of the ISP given to the owner of the system.

Furthermore, we will also use microcontroller, alarm sensor and circuits and GSM

module for the security and notification purpose of the machine’s owner. Lastly, a coin acceptor

is the device that will recognize the coin values of 1, 5 and 10 pesos which will trigger the

microcontroller for adding the total coins inserted to the account of the user.
 II. BACKGROUND

Filipinos love to use the internet. Like most people, Filipinos use the internet to connect, to

learn new things, and to do business. The Philippines first connected to the internet back on

March 29, 1994 (DICT, 2015). Since then, the Philippines' online activities increased

dramatically to the point that they become the top country that spends most of their time on the

internet (Aguilar, 2019). Although the cost of mobile data in the Philippines is still considered

one the cheapest in the world-ranked (67th at $3.16/Gb, the world average is $8.53)

(Amoros,2019), it is still the main problem why some Filipinos cannot access the internet. The

cost of 1Gb data that is considered cheapest might be just too expensive for most of the Filipinos.

Also, in the Philippine market scene, we have this concept called "Tingi" or as defined as "the

practice of selling and buying goods in amounts less than the smallest retail packaging." This

allows most people, especially those in the middle or poor income class, to buy just enough

amount of item or service that they can afford at that particular time. This is usually allowed in

local stores called "sari-sari stores" or small neighborhood version of a convenience store like 7-

11 and in local wet and dry market stalls. According to Albert et al. (2018), 85% of the

Philippine population is composed of poor to middle-income class. That translates to 85.8

million out of 100.98 million Filipinos population as of 2015. That is the market segment that

this product is targeting.

The location of this coin operated internet wifi hotspot station is in Porais, San Jose City,

Nueva Ecija which is nearby to schools and that will be our target market.
III. MISSION & VISION

 Our vision is to become the number one public Wi-Fi hotspot provider in Porais.

 Our mission is to build a well-equipped public Wi-Fi hotspot brand that will become the

preferred choice for a wide range of clients in and around our barangay.

IV. DIAGRAM
 V. MARKET TRENDS

It is known fact that public Wi-Fi hotspot are a natural evolution of the cyber café. As a

matter of fact, cafés started as places for information exchange, and have always been used as

places to read the paper, send postcards home, play traditional or electronic games, chat with

friends, find out local information.

As internet access is in increasing in demand, many pubs, bars and cafés have terminals, so

the distinction between the Wi-Fi hotspot and the cyber café is eroded. For instance, in some

countries, the number of pure cyber cafés is decreasing since more and more public Wi-Fi

hotspot offer the same services. However, there are countries where the total number of publicly

accessible terminals is also decreasing.

Lastly, while most Wi-Fi hotspots are privately owned businesses, many have been set up to

help bridge the ‘digital divide’, providing internet access and training to those without home

access.

VI. TARGET MARKET

The target market for the Wi-Fi hotspot business is all encompassing because of their service

offerings. In view of that, we have created strategies that will enable us reach out to various

corporate organizations and individual who we know will need our services.

We have conducted our market research and survey and we will ensure that our Wi-Fi

hotspot attracts the kind of clients we would love to work with. Below is a list of the people

and organizations that we have specifically market our services to;

 Corporate organizations (basically for teleconference and similar web meetings)

  All adults in the locations where our internet café is located

 Students who would need internet facility to fill forms online and to make photocopies

and scan documents

 Job applicants who would need to fill online applications and to forward their CVs and

documents

 Gamers – Those who loves to play online and offline games.

VII. MARKETING STRATEGY

Wi-Fi hotspot business is not a business that you have to go out there to retail products which

is why we must do all we can to maximize any opportunity that comes our way to attract people

to patronize and subscribe to our public Wi-Fi hotspot services.

The most effective way of advertising a business is a word of mouth. In this, I will tell my

friends and colleagues of such business I have. I will also disseminate and post some printed

materials in near location for promotion.

Also, I will put an announcement or schedule of friendly tournament for the gamers. It will

help to get know more my hotspot station. And with the use of social media as a marketing

strategy, I will also post online about my business so that my friends will easily see it.
Sample Poster:

COIN OPERATED INTERNET WIFI HOTSPOT STATION

Where: PORAIS, SAN JOSE CITY, NUEVA ECIJA

Who/Target Market: RESIDENTIAL COMMUNITY

How: OFFER CONVENIENT AND AFFORDABLE SERVICE

 VIII. INTERNET USAGE AND BILLINGS

  Light Use Moderate Use High Use

(Basic functions only: (Basic functions plus (Basic functions plus
email, web surfing, one high-demand more than one high
basic streaming video) application: streaming demand application
HD, video running at the same
conferencing, OR time)
online gaming)

1 user on 1 device Basic Basic Medium

(e.g., laptop, tablet, or
game console)
2 users or devices at a Basic Basic Medium/Advanced
time
3 users or devices at a Basic Basic/Medium Advanced
time
4 users or devices at a Basic/Medium Medium Advanced
time

Basic Service = 1 to 2 Mbps*

Medium Service = 6 to 15 Mbps

Advanced Service = More than 15 Mbps

>>>Source: http://www.fcc.gov/guides/household-broadband-guide<<<

Monthly Billing Plans:

IX. COMPUTATION BASIS

 For 2.5 Mbps for P1599

Limited user = 4

2.5Mbps / 4 users =~ 0.7 Mbps/user

Income assume: P 1.00 / 6 minutes

Computation (for 1 client/user):

1*6*10 = P10.00 / hour

P 10.00 * 8 hours of operation per day = P80.00 per day

P 80.00 * 30 days (1 month) = P 3200.00 gross income for only 1 user

--if 4 user continuous –

P 3200 * 4 users = P12, 800.00 gross monthly income for 4 maximum users

Gross Income – Expenses per month = net income

P12, 800 – P2500 (rough estimate) = P10, 300.00 net income per month
 X. DISCUSSION

To provide affordable access to the internet, this study offers a coin-operated Wi-Fi hotspot

machine in Porais, San Jose City, Nueva Ecija. This enables any high-speed broadband

connection to be converted into a small scale internet provider through a wifi connection. The

hardware itself is a small low-powered single computing device interfaced into a coin reader and

any high-speed broadband Internet Service Provider. The system accepts all modern coins in the

Philippine circulation. Each coin denomination allows the client to have internet access for a

certain amount of time. User can pay as low as Php1.00 for 6-minute internet access. Payment

options and advance feature may evolve in the future. To use the system, the client connected to

the WIFI network of the machine then the machine will ask the client to insert the equivalent

amount of coin for the amount of time the client wants to have access to the internet.

XI. CONCLUSION

Given the market scene in the Philippines, offering this type of business opportunity to

investors who want to tap the potential market of this Wifi Hotpot business, the coin operated

internet wifi hotspot station seems a good start. Owning a few of this system and placing it on

strategic location will surely provide you with passive income that will not require tradition

manpower to operate and maintain. All you need is a good internet connection, a power source,

and a good spot