ESTABLISHMENT OF GTGNET: PISO WIFI VENDING MACHINE

AT UNIVERSITY OF RIZAL SYSTEM- BINANGONAN

An Undergraduate Feasibility Study

Presented to

the Faculty of College of Accountancy

University of Rizal System

Binangonan, Rizal

In Partial Fulfillment

of the Requirements for the degree

Bachelor of Science in Accountancy

CENTILLAS, ROBERT S.

MAYCACAYAN, CHARLENE M.

MENDOZA, FRENCH AIRA C.

MOZALES, JOVY E.

OCTOBER 2023
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Chapter 1

BACKGROUND OF THE STUDY

Introduction

In a rapidly evolving digital world, technology advancements and the

increasing internet integration has become essential into various aspects of daily

lives, especially the lives of the younger generation. This digital era has

transformed education by putting an extensive amount of information and

resources available to people. The internet enables students to gain access to a

wide range of online resources that transform how they learn, communicate and

interact with the outside world. However, it is important to acknowledge that not

all students have equal access to the internet. Students from low-income families

can limit their advancement in education, this can affect their ability to complete

their task and participate fully in the class. Therefore, access to reliable and

affordable internet connection has become a fundamental necessity. However,

the challenge of having internet access availability and affordability remains a

problem, particularly in educational institutions.

In the Philippines, the market for internet service providers is often

dominated by a few large companies. Limited competition can lead to higher

prices of internet connection which can result in consumers having a lack of

options to affordable internet connection. Therefore, the cost of the internet might

be a significant burden to students that come from low-income families. Although

there are students who have access to internet connection at home, a lot of them

do not have access to the internet at school because they can’t afford to support
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their data load for internet access due to its expensive prices. There are times

that the university also offers free wifi but it cannot provide a reliable speed

internet connection due to a large number of students and University is where

students spend most of their time studying.

Thus this feasibility study, which is specifically for students on university

campuses, not only addresses the financial difficulties that many students face

but also makes sure that the internet is accessible whenever and wherever it is

needed.

The proponents are challenged to establish a Piso-Wifi Vending Machine

that allows people to have access to internet connection and to answer the

problem stated above. Although there are places that implement and establish

the piso-wifi vending machine, they are usually in remote areas and not

specifically for academic facilities.

Background Information

It’s highly likely that you’ve come across those petite machines adorned

with shimmering lights and coin slots, making their presence known in urban

hubs and increasingly sought after in provincial regions over the past few years.

Piso Wi-Fi Vending Machines have become a common sight in public areas

across Binangonan, Rizal. They've proven to be a profitable and

low-maintenance business that we often encounter in various barangays..

However, there's a noticeable absence of this vending machine inside schools

and campuses, where the demand for accessible and budget-friendly internet
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access is on the rise. This idea has inspired the proponents to consider bringing

Piso Wi-Fi vending machines to the University of Rizal System Binangonan

campus.

College life is hectic, and many students find themselves short on both

time and budget. Loading up on data can be expensive, especially when

students have to juggle daily expenses like commuting to school. It's impractical

for them to rush to retail stores for internet top-ups when they urgently need

connectivity for quizzes, search, or even just to enhance their understanding of

course materials.

While the campus does offer free Wi-Fi access in the library, it's often

overcrowded, leading to frustratingly slow internet speeds. The ideal solution is

an affordable and easily accessible internet vending machine in different areas of

the campus to tailor to the needs of the busy and budget-conscious students.

As pointed out by Rea Trillanes, the success of a Piso Wi-Fi business

hinges significantly on its location, particularly in the absence of competitors. This

advantageous characteristic is precisely why the integration of a Piso Wi-Fi

vending machine within the University of Rizal System Binangonan presents a

promising business venture. Its appeal extends beyond being a source of

passive income with minimal maintenance requirements. Rather, it thrives due to

its niche market already situated in the vicinity.

https://www.thethriftypinay.com/2023/03/15/how-to-start-a-piso-wifi-business-ever

ything-you-need-to-know/
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The device bears a striking resemblance to bulky arcade game consoles,

featuring a screen integrated into a sizable metal enclosure. Within this enclosure

lies a central processing unit (CPU) that is connected to the internet. Rooted in

the Philippine style of consumerism known as ‘tingi’, which refers to the practice

of buying bit by bit, at need, rather than in advance. The concept of these

machines first emerged around 2010, aimed at providing a more cost-effective

option for internet connectivity.

When Dr. Cheryll Ruth Soriano, a digital cultures and information

communications technology professor at De La Salle University in Manila, began

researching Piso Nets, her team expected to find that the concept had been

imported from Malaysia, or Indonesia or China. They were surprised to trace the

idea back to Dagupan City in the northern Philippines, and to find it had been

created as a rural answer to internet cafés. “You don’t need sophisticated

knowledge to be able to create the pisonet mechanism, but it needs an

imperative,” Soriano told Rest of World.

(https://restofworld.org/2022/philippines-pisonet-internet-access/)

Since the Wi-Fi vending machine operates on a coin-based system, users

can access the internet via Wi-Fi by simply inserting a coin into the machine,

which basically uplifts our cultural roots by addressing the challenges faced in

low-income areas where conventional internet subscriptions are costly and not

easily accessible.
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Objectives of the Study

Generally, this study aims to determine the feasibility and viability of

establishing an affordable business in the University of Rizal

System–Binangonan.

Specifically, the study aims to:

1. Determine the demand for affordable and convenient wifi access to

students within the University.

2. Determine the profitability and sustainability.

3. Generate income and create employment.

4. Make some initial projections to determine the potential revenue of

investing in this project.

5. Identify potential risks associated with the project and develop a

strategy to mitigate it.

6. Determine the cost of running the business.

Significance of the Study

The proposed business presents an innovative solution in providing

affordable and accessible Wi-Fi through vending machines. This project

enhances the accessibility to online resources, enabling students at the

University of Rizal System and other educational institutions to be more capable

to conduct research, find academic resources, and keep up with current affairs. It

also enhances the university's competitiveness. It sets the institutions apart as

one dedicated to meeting the changing needs of its students.

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The implementation of piso Wi-Fi vending machines can be a major

source of income not only to owners but also to people who have limited options

in business ventures due to other commitments or obligations.

Furthermore, the potential for replication across other University of Rizal

System campuses is a key aspect. Success in Binangonan can serve as a model

for neighboring campuses, enabling them to implement a similar system, thereby

fostering both connectivity and entrepreneurial opportunities. This study's impact

can thus ripple through the entire URS system, enhancing the educational

experience and economic prospects for students and the community alike.

The local government will also benefit through tax, permits and licenses

and this could support their campaigns and other projects for improving the

community.

This study can be valuable to future researchers who would like to

conduct similar studies. This will guide them to understand the user preferences,

the challenges faced and the level of satisfaction, which can inform future system

improvements.

Scope and Limitations

The feasibility study delves into the viability of implementing Giants to Go

internet (GTGNet), a Piso Wi-Fi vending machine service, exclusively within the

confines of the University of Rizal System in Binangonan. GTGNet is designed to

cater to the university community, with key stakeholders including the university

administration, potential users, and vendors. The study aims to assess the

project's feasibility as a localized solution.

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In the proposed business structure, GTGNet will operate as a partnership

owned by the Proponents. The initial capital requirement of 60,000 PHP will be

provided by the proponents and professors within the university who express a

keen interest in funding the project, thereby limiting external investment. The

project's startup phase will involve the acquisition of four vending machines, with

the choice of four machines influenced by budget constraints and concerns

regarding lower-priced machines' specifications.

The strategic positioning of these vending machines will occur at four key

touch points within the university's vicinity: the North touchpoint, near the

canteen; the Center Touchpoint, close to the registrar's office and AVR; and the

South Touchpoint, in proximity to the COA office. GTGNet's operational hours will

be confined to Monday through Saturday, from 7:00 AM to 7:00 PM, aligning with

the university's schedule, which sets specific time constraints on service

availability. The pricing structure for Wi-Fi usage will be rigid, set at 1 PHP for 5

minutes, 5 PHP for 1 hour, and 10 PHP for 2 hours , and 20 PHP for 3 hours,

with all pricing tiers including unlimited data usage for users.

The study's focus is limited to assessing the feasibility of GTGNet

exclusively within the university's student and faculty community, with the

recognition that there may be considerations for extending this service to other

URS campuses in the future. While GTGNet will adhere to data privacy laws and

security regulations, budget constraints may limit the implementation of

comprehensive data security measures.

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Definition of Terms

The proponents defined operationally and conceptually the following terms

for the better understanding of the readers.

GTGnet: GTGnet, short for "Giants to Go Net," refers to an Internet

service specifically designed to cater to the students of the University of Rizal

System, Binangonan, who are referred to as "Giants."

Establishment: Establishment pertains to the process of creating and

setting up the infrastructure, systems, and services required for the operation of

GTGnet.

Piso Wi-Fi: Piso Wi-Fi refers to a system or service where users can

access the internet by inserting a one-peso coin into a vending machine,

providing them with a limited duration of internet connectivity.

Vending Machine: A vending machine is a self-service device that

dispenses goods or services, in this context, it refers to a machine that provides

Wi-Fi access for a fee.

Adorned: Adorned is to make more beautiful or attractive.

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Chapter 2

MANAGEMENT, PROPONENTS, PERSONNEL AND ORGANIZATION

Management is a fundamental aspect of every organization, whether

in businesses, a not-for-profit organization, or a government agency. It is crucial

for the success of any organization. It involves planning, organizing, coordinating

and directing a group of people to achieve specific goals and objectives

effectively. (onlinemanipal.com)

Managers represent the essence and governance. They organize,

plan, allocate resources, and make decisions. Managers oversee the overall

strategy and are responsible for the overall performance of the company. They

are the implementers that turn strategic goals into concrete steps and overcome

operational difficulties on a daily basis. Hence, it is important for the organization

to have efficient and effective management because it is the cornerstone of

achieving the goals and objectives of any enterprise.

Management Complement and Supporting Professional Firms

During Pre-Operating Period

In this phase, the proponents lay the foundation for the successful launch

of GTGNet's Wi-Fi vending machine business by focusing on management

complements and engaging with supporting professional firms. Capital

procurement is a key aspect, and our approach involves reaching out to

university's faculty, professors, and deans, offering them the opportunity to invest

in our vision. The proponents set a target of a minimum capital of Php 60,000,
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which will cover all necessary costs for starting a Piso Wifi Business consisting of

three vending machines, strategically placed in the lobby, faculty areas, and the

canteen to ensure wide accessibility.

Simultaneously, the proponents carefully select three top suppliers or

vendors of Piso Wifi Vending Machines within Rizal, conducting a thorough

analysis of their offers to ensure we secure equipment with the best-suited

specifications while keeping our costs in check.

Legal compliance is another top priority, encompassing business

registration, securing necessary permits, and adhering to specific regulations

governing Wi-Fi services. Open and transparent communication with school

authorities is maintained, ensuring that we engage in constructive discussions to

align our project with university policies and secure optimal locations for machine

installation. This comprehensive approach ensures that the business is built on a

strong foundation with a well-managed and legally compliant structure.

During the Operating Period

The general managers/owners will handle the business operation.

The operational activities includes the activation and deactivation of the wifi

vending machines and its safeguarding and maintenance. The checking and

payment of monthly utilities like the internet subscriptions and electricity is also

one of the priorities of the management.

The partners and employees will work together to carry out their

individual roles and duties effectively, aiming to prevent any possible

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miscommunications. Employee assignments will be based on their skills and

competencies, allowing them to carry out their designated tasks efficiently.

The proposed business will also coordinate with the university’s

administration for its betterment and the possibility of implementation in other

campuses.

The project management team strives to create an engaging and

motivating work environment that harnesses the full potential and collaborative

efforts of the team members. This will pave the way for the business to build its

foundation for success and long-term stability.

Proponents

The driving force behind this pioneering Wi-Fi vending machine

business venture, known as GTGNet, are Ms. Charlene Maycacayan, Ms.

French Aira Mendoza, Ms. Jovy Monzales, and Mr. Robert Centillas. Their

collective vision extends beyond just the realm of convenience and affordability

for students; it encompasses a broader mission of accessibility to quality internet

services. In line with this vision, the owners/proponents are diligently working to

secure the support of teachers and deans who share their commitment to this

cause, seeking investors who will finance the business's establishment.

Ms. Charlene Maycacayan, will be the Funding Manager that will be

responsible for securing investment and funding for the business. As a

Regulatory Manager, Ms. French Aira Mendoza oversees regulatory

requirements, including licenses and permissions. And for leading the marketing
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and promotion efforts for the business, it will be Mr. Robert Centillas, the

Marketing Manager. Lastly, Ms. Jovy Monzales, as the Supply Chain Manager,

she will manage supplier and vendor relationships.

Their collaboration and complementary skills make them well-suited

to lead this initiative. With a shared passion for the broader educational

community, a solid commitment to accessibility, and a clear understanding of

their roles, the owners/proponents are not only launching a business but also

paving the way for potential replication in other URS campuses. Their expertise,

dedication, and visionary thinking form the cornerstone of this endeavor, with the

aim of bringing affordable internet access to a wider audience.

Project Originators, Promoters and Founders

The originators of the proposed business are the proponents

themselves. The Piso Wifi will be established at the University of Rizal System -

Binangonan Campus because the owners want to have an affordable and

accessible wifi within the university’s grounds. The project promoters will be the

proponent/owner.

Personnel Workforce

During the Pre-operating Period

The successful launch of the GTGNet: Piso Wi-Fi Vending Machine

business at the University of Rizal System, Binangon, depends on a

well-organized and committed workforce during the pre-operating period. This

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phase is characterized by careful planning, preparations, and strategic

decision-making as the business lays its foundation. The personnel involved,

including the owners/proponents and investors, play pivotal roles in ensuring that

all aspects of the business are systematically addressed and set on the path to

success. Each party's distinct responsibilities contribute to the overall efficacy of

this pre-operating phase, ensuring that the business is well-prepared for its

forthcoming operation. Table 1 presents the duties and responsibilities of each

member and the number of persons needed during the pre-operating period.

Table 1

Workforce during Pre-operating Period

Number
Personnel Duties and Responsibilities of
Workers
Owners ● Business plan development 4
● Securing necessary permits and licenses
● Financial planning and securing initial capital
● Identifying and procuring vending machines
● Location and scouting setup
● Marketing and promoting strategies
● Purchases of supplies (equipment,
maintenance tools)
Investors ● Providing financial support 2 or more
● Participating in strategic decisions (if agreed)
● Reviewing and approving the business plan

The table illustrates that the owners/proponents, represented by the

feasibility study team, bear primary responsibilities, including business plan

development, permits and licenses, financial planning, location scouting,

marketing, and procuring supplies. Simultaneously, investors, potentially

comprising professor(s) or dean(s), provide financial support, engage in strategic

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decisions, and have a vital role in reviewing and approving the business plan.

These combined efforts are integral to the business's successful financial

preparation and strategic direction.

During the Operating Period

A quality service should be achieved through proper duties,

responsibilities and right qualifications of personnel. In this period, the owner will

manage the overall operation of the business.

The table 2 below shows the workforce as well as their job qualifications,

duties and responsibilities to be performed. It also includes the number of

workers that the business needed.

Table 2

Workforce during the Operating Period

Workforce No. of
Duties and Job Qualifications
Needed Workers
Responsibilities
Manager/Owner ● Responsible in ● At least college graduate 4
managing the overall ● Skillful and
operation of the knowledgeable in
business management of business
● In charge of negotiation ● Has excellent customer
and communication service skills
with the suppliers ● Responsible
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Administrative ● Responsible in ● At least college graduate 1

staff handling all the ● Skillful and
necessary documents knowledgeable to
in the business budgeting and financial
● In charge in preparing management
the financial ● Proficient to office and
statements financial software
● Assist with the application (MS word, Ms
scheduling of machine excel)
maintenance ● Trustworthy and honest
● Has good time
management skills
Machine ● In charge of installing ● At least college graduate 1
Technician the piso-wifi vending ● Proficiency in technical
machines skills and has a
experience in technical
● Responsible for
maintenance
regularly inspection of ● Knowledgeable in
vending machines to computer system and
ensure that they are in software
good working ● Hardworking and
● In charge in hardware trustworthy
repairs and keeping the
software up to date

Organization for the Operating Period

An organization is a structured and coordinated group of people

who work together to achieve common goals or objectives. In GTGNet, the

general managers, investors and the employees will work collaboratively to

achieve the business’s goals by using resources and processes in a coordinated

manner.

Form of Business Organization

The ownership structure for the proposed business, GTGNet: Piso

Wi-Fi Vending Machine at University of Rizal System, Binangonan, will take the

form of a partnership. The originators, represented by the feasibility study team,

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will jointly serve as partners, sharing ownership based on their individual

contributions to the project.

Their roles and responsibilities within the business will be defined to

ensure effective management. To secure the necessary capital of Php 50,000 for

four vending machines, investors, which may include the university, professors,

deans, or other stakeholders, will provide financial backing. These investors will

not be considered co-owners but will have a financial stake in the business.

The ownership structure's simplicity and clarity align with the practical

needs of this small-scale university-based business. Legal agreements will be

established to formalize these arrangements and provide protection for all parties

involved.

Internal Organizational Structure

As a small business expands, a solid internal structure provides a

scalable framework to accommodate new employees and responsibilities,

ensuring a smooth transition into a larger, more complex organization. In

essence, an internal organizational structure is the backbone of a small business,

guiding its day-to-day operations, enhancing its adaptability, and fostering a

culture of efficiency and accountability.

This line type of organizational structure is relatively similar to a small

partnership business, with limited resources and manpower under its operation.

The characteristics are suitable for GTGNet's current situation, with general

managers administering the daily function of the business.

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Meanwhile, the broken line that connects the investors to the general

managers, significantly represents the investors’ role in the proposed business.

They are the important figures in the decision making during the pre-operating

period wherein they will provide the capital for the said project. In addition,

during the operating period, if the management considers raising more capital

and investment, the decision will also be based on their approval. Lastly, their

presence is needed when it is time for the distribution of gains.

The administrative staff and the on-call machine technician will work

under the supervision of the general managers. Their substantial contrast is

defined by their work hours. The administrative staff have the potential to be a

regular employee of the business while the on-call machine technician works

under a specific time and situation which is the maintenance of the wifi vending

machine.

Figure 1 shows the organizational chart of the business.

Figure 1

Organizational Structure
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The figure above provides the general structure of GTGNet as a

partnership. It emphasizes the organized framework and the systematic

allocation of roles among its members who oversee the day-to-day operations of

the business.

Project Implementation Table

The project time table is the master plan that will serve as the guide

in the conduct of the business. It shows the step-by-step procedures that must

be conducted in establishing piso wifi vending machines at University. In its

pre-operating period, the business will acquire and install all the machines at its

confirmed location and comply with the University rules and regulations as well

as the legal requirements that it needs to start its operations. Its normal

operating period will take seven months.

Table 3

Project Implementation Timetable

Number of
Activities Months
Months
Aug – Nov 4
1. Conducting the feasibility study

2. Obtaining the capital requirements Aug – Sept 2

3. Business registration, coordinate with
the university and confirmation of the Nov 1
secure location
4. Hiring of personnel Dec 1
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5. Acquisition and installation of vending Dec – Jan 2

machines for the start of operation

6. Promotion Jan 1
7. Start of normal operation Feb 1

Table 3 shows that it will take seven months to perform all

pre-operating activities for the business to actually start its normal operation.

After four months of study and research, the proponents decide that the buyer is

ready to begin the establishment of the business. June and July are allocated for

obtaining the capital and one month for the completion of the necessary

requirements for the legality as well as the renovation of the building. Next is the

acquisition of equipment and supplies.

After all the pre-operating activities, the normal operation will

commence by November.

The Gantt chart shows the estimated time that each activity

requires to be completed. It will identify and analyze the flow of activities from the

planning stage up to the start of normal operation. The table shows that there are

activities possible to be done at the same time.

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Table 4

Gantt Chart

2023
Activities
Aug Sep Nov Dec Jan Feb
1. Conducting the feasibility study
2. Obtaining the capital requirements
3. Business registration, coordinate with the
university and confirmation of the secure
location
4. Hiring of personnel
5. Acquisition and installation of vending
machines for the start of operation
6. Promotion
7. Start of normal operation
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Chapter 3

MARKETING

Marketing is the lifeblood of any successful business, serving as the

driving force behind brand appeal, customer engagement and revenue

generation. Marketing strategies should align with the practical needs of the

consumer by showcasing how a product or service can serve as a solution to

every problem a consumer might have. Whether it's time-saving convenience,

cost-effectiveness, or a unique feature that enhances daily life.

Marketing needs to know exactly who the target audience is and what

value proposition to talk about. Sales need to be able to connect the specific

need of that target audience to the actual product, which in turn needs to deliver

on the value originally promised by marketing. The needs and desires of your

target market must dictate the products and services you provide. The fulfillment

of these needs and wants must be the key objective of a business. (Henry Ford)

Target Market

Our primary target market for GTGNet: Piso Wi-Fi Vending Machine is the

student community at the University of Rizal System, Binangonan campus.

Students, integral to our focus, seek accessible and budget-friendly Wi-Fi access

for various academic and recreational activities. Our service is designed to cater

to the unique connectivity needs of students within the campus environment,

providing a seamless and cost-effective solution. By concentrating on the student

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population, our aim is to position GTGNet as a leading Wi-Fi service, enhancing

the overall campus experience for this vital demographic.

Understanding the diverse requirements of students, our goal is to become

an integral part of their daily campus life, fostering a connected and engaged

university community.

Demand

Demand is an economic concept that relates to a consumer's desire to

purchase goods and services and willingness to pay a specific price for them. An

increase in the price of a good or service tends to decrease the quantity

demanded. Likewise, a decrease in the price of a good or service will increase

the quantity demanded. (Investopedia.com)

In today’s contemporary society, the internet has become a necessity due

to its pervasive influence on various aspects of daily life. It serves as a critical

tool for communication, connecting people globally and facilitating instant

information exchange especially, in the academe. The internet is an invaluable

resource for education, offering a vast repository of knowledge and online

courses that empower individuals to learn and acquire new skills. Because of this

rationale, the establishment of GTGNet: Piso Wifi Vending Machine will meet this

demand.
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Table 5

Projected Population for University of Rizal System–Binangonan

POPULATION
2024 7, 392
2025 7, 434
2026 7,462
2027 7,492
2028 7,520

Source: Registrar Office of University of Rizal System Binangonan

The business will be established technically in University of Rizal

System-Binangonan. It will cater the university through carefully placing the four

vending machines to highly dense areas called the touchpoints, mainly the

Canteen, Registrar Office, Audio Visual Room (AVR) and the COA Office. The

proponents determined the projected population of the university. Table 5

displays the projected population for the years 2024 to 2028.

Figure 2

Graphical Presentation of Subscribers and Non-subscribers

of the Internet in University of Rizal System-Binangonan

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After the survey conducted by the proponents in the target area, it has

been found that 93% of the population has an internet subscription.

Figure 2 shows the graphical presentation of subscriber and non

subscriber of the internet.

Figure 3

Graphical Presentation of Homeplan Internet Subscribers and Data Internet

Subscribers(Cellphone) in University of Rizal System-Binangonan

Out of the total population with internet subscription (93%), 71% have

internet access at home, while 29% rely on data subscription for their personal

device.

The findings reveal a remarkably high potential market for internet access

at school. Figure 3 illustrates the percentage of Homeplan Internet Subscribers

and Data Internet Subscribers.

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Figure 4

Graphical Illustration of the Demand for GTGNet

Among the 71% of individuals without internet access on their personal

devices, 56% express a definite willingness to avail an internet connection from

GTGNET. Additionally, 36% are open to the idea, indicating a potential market

expansion if the service is well-promoted. Only 6% are uncertain about availing

an internet connection from GTGNET, while the remaining percentage is not

interested in availing the service.

Historical Demand

It is very essential for every business to know the demand of the people to

answer customer’s needs and desires. For GTG Net, knowing our demand will

help us determine the trend of our services.

The proponents also conducted a survey among the students about their
 26

internet usage. The students were asked about the type and frequency of their

internet usage. The proponents then computed for the average number of wifi

used by the students multiplied to one month.

Table 6 shows the historical demand in the years 2021, 2022 and 2023.

Table 6

Historical Demand

Internet Annual
Target
Year Population Usage Per Demand
Market (71%)
Month (gb) (gb)

2021 7,159 5,083 84 426,972

2022 6,871 4,878 84 409,752

2023 7,342 5,214 84 437,976

Table 7

Total projected Demand

Average Total Projected

Year Base Year
Increase Demand

2024 437,976 1.43% 444,239

2025 444,239 1.43% 450,592

2026 450,592 1.43% 457,035

2027 457,035 1.43% 463,571

2028 463,571 1.43% 470,200

The proponents considered different factors in the computation of service

demand. First, Table 7 above shows the total projected demand of the students

in University in Rizal System Binangonan. Projected demand is shown as

 27

increasing by 1.43% each year. The average increase is computed using the

moving average method, the computation is presented in appendices of this

paper. The total projected demand is computed by multiplying the amount in the

base year by the sum of one and the average percentage increase and

readjusted by considering assumptions listed below.

The following is the list of assumptions used in computing the service

demand.

● Demand is based largely by the student population at the University of

Rizal System—Binangonan

● Changes preferences are expected to decrease the demand by 3%

● Seasonal variations such as suspension of classes and holidays are

expected to decrease the demand by 8.8%

● Dropout rate is expected to trim down the demand by 3%

● A conservative threshold of 10% is provided for in consideration of the

inherent survey risk of inaccuracy.

The following table shows the adjusted annual demand for the internet

expressed units. A supporting computation of the figures in the table can be

found on the appendices.

Table 8

Annual Projected Demand (in units)

Year Annual Demand

2024 353,692

2025 358,751
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2026 363,880

2027 369,084

2028 374,362

The proponents used figures derived from the survey they conducted. The

respondents were asked to fill out a questionnaire to test the demandability of

GTGNet. One hundred respondents were taken at random, who were all

students of University of Rizal System—Binangonan.

Because of the increasing demand that showed in the survey conducted

by the proponents, and the increasing and growing trend for the need for

affordable and reliable internet connection, the proponents believe that the

proposed business will be successful.

With effective management skills, the business has the potential to not

only enhance its current operations but also to expand its business to other

campuses of the University of Rizal System.

After evaluating the nature of the service and the extent to which

consumers could choose alternatives, the proponents decided to consider other

internet service providers. Mobile data plans using DITO, GOMO and other

simcards are considered as indirect competitors and thus treated as services that

satisfy the demand.

Historical Supply

In any business, procuring the necessary supplies is fundamental to

ensuring smooth operations. This section outlines the key supplies that GTGNet
 29

will require to operate its Wi-Fi vending machine business. An analysis of the

target area showed three alternative services of the proposed location which is

the mobile data plan offered by several Internet service providers in the

Philippines through sim card, Data Load from retail stores and free wifi at

University. They are considered to be indirect competitors of the business.

Table 9 shows the history supply of competitors

Table 9

Historical Supply

Competitor 2021 2022 2023

Mobile Data Plan 57,129 60,685 71,127

Data load from 21,946 26,921 35,038

retail store

Free wifi at 81,722 84,287 27,943

University

TOTAL 160,797 171,893 134,108

Projected Supply

Table 10 outlines GTGNet projected supply of Wi-Fi time usage over five

years. The annual average percentage increase, calculated using the moving

average method of historical demand, is specified at 1.43%. It's important to note

that the moving average of historical supply couldn't be computed since data is

available only for the year 2023.

 30

Table 10

Projected Supply

Year Base Year Increase Projected Supply

2024 134,108 1,918 136,026

2025 136,026 1,945 137,971

2026 137,971 1,973 139,944

2027 139,944 2,001 141,945

2028 141,945 2,030 143,975

The supply presented in the table above is computed based on the

following assumptions:

● Supply is based on the practical capacity of the business.

● Supply is anticipated to increase by 1.43% annually, and this projection is

grounded in the average increase observed in the projected demand.

For a more in-depth understanding of the relationship between demand

and supply, an analysis of the market share is presented.

Table 11 on the next page presents the five year projection of the demand

satisfied by different suppliers, the demand-supply gap, the percentage of the

gap satisfied by the GTG Net, and the residual demand known as unsatisfied

demand.
 31

Table 11

Demand-Supply Analysis

Year Demand Supply Unsatisfied

Demand

Historical Value

2021 426,972 160,797 266,175

2022 409,752 171,893 237,859

2023 437,976 134,108 303,868

Projected Value

2024 444,239 136,026 308,213

2025 450,592 137,971 312,621

2026 457,035 137,971 319,064

2027 463,571 141,945 321,626

2028 470,200 143,975 326,225

Analyzing the demand supply gap is necessary to determine the market

share of GTGNet. The gap will be obtained by subtracting the projected demand

to the projected supply. Table 11 shows the unsatisfied demand relative to the

total demand and supply, both historical and projected. The unsatisfied demand

is the difference between the annual demand and the annual supply. The

unsatisfied demand for the past years decreases in Year 2022, While the next 5

years is increasing. From the figures, it can be asserted that from Year 2023 to

2028, there has been a rising level of demand that has not been fully met or

satisfied. Looking forward, the expectation is that this trend will continue, and the
 32

demand for piso wifi is being measured is anticipated to increase even more over

the next 5 years.

Table 12

Market Share

Year Unsatisfied Market Share Supply Capacity

Demand (Per year)

2024 308,213 27.10% 83,520

2025 312,621 27.10% 84,720

2026 319,064 27.10% 86,466

2027 321,626 27.10% 87,161

2028 326,225 27.10% 88,407

Pricing

Pricing plays a pivotal role in the success and sustainability of a business.

Pricing is the linchpin of revenue generation. The price set for a product or

service determines the financial inflow for a company. Striking the right balance

between a price that customers are willing to pay and one that covers the costs

of production and operation is crucial for a business to thrive. A well-calculated

pricing strategy ensures that a business not only survives but also thrives in a

competitive market.

Historical Selling Price

Table 13 shows the historical selling price of the most affordable data load,

Globes’s Go50, students avail to help on their study. Globe’s Go50 offers 5GB of

internet validity for 3 days.

 33

Table 13

Unit Price of GTGNet

Year Selling Price

2020 50
2021 50
2022 50
2023 50
2024 50

Projected Selling Price

Table 14 displays the projected selling price for each hour to be offered for

Years 1 to 5. The selling prices are calculated by finding first, the cost per

Gigabyte(GB) of Globe’s Go50 which is P10.00 per GB to determine the cost per

hour of GTGNet's GB, which is P5.00 per hour.

Table 14

Projected Selling Price

Year Selling Price (Per hour)

2024 5
2025 5
2026 5
2027 5
2028 5
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Marketing Program

Channel of Distribution

GTGNet Piso WiFi vending machines establish a dynamic chain of

business services, starting with strategic distribution across key locations within

URS Binangonan. These machines, strategically placed in high-traffic areas,

serve as accessible points for students to purchase affordable and reliable WiFi

services. Beyond distribution, the chain continues with efficient maintenance and

customer support, fostering a connected and technologically enriched campus

environment for students during study sessions, collaborative projects, or leisure

moments.

Figure 5

Channel of Distribution
 35

Promotion

To effectively promote GTG Net, we have developed a comprehensive

strategy that covers both physical and online channels. In the physical domain,

we will create visually appealing posters that clearly outline the benefits and

affordability of our service, placing them strategically in high-traffic areas around

the campus, including libraries, common spaces, and near classrooms. We will

also seek permission to conduct brief classroom presentations to explain the

convenience and advantages of our service. Additionally, we plan to collaborate

with key student organizations like COASB, JPIA, and THE ZENITH to leverage

their networks and disseminate information about our service through their

events, meetings, and publications.

In the online platform, we will establish a presence on popular social

media platforms such as Facebook, Instagram, and Twitter. Regular and

engaging content will be posted, covering aspects such as promotions, success

stories, and interesting facts related to internet usage.

Furthermore, we will create informative content that educates students

about the significance of internet access for their studies and daily lives while

highlighting how our Wi-Fi vending machine service can cater to their needs. We

will encourage users to provide feedback and review these platforms, fostering

trust and attracting other giants and campuses.

Projected Service Revenue

The projected revenue for the following five years are shown in table 15.
 36

As seen in the table, service revenue is expected to increase from 2024 to 2028,

indicating potential business growth and financial success. Total service revenue

is computed by multiplying the supply capacity of the business per year to selling

price per hour. To keep up with the expected increase in electricity costs, the unit

service price will also increase by Php 5.00 every two years. A five year

projection of sales is given in Table 15.

Table 15

Projected Service Revenue of GTGNet

Year Supply Capacity Selling Price Total Service

(per year) (per hr) Revenue

2024 83,520 5 417,600

2025 84,720 5 423, 600

2026 86,466 5 432, 330

2027 87,161 5 435, 805

2028 88,407 5 442, 035

 37

Chapter 4

PRODUCTION, FACILITIES AND PRODUCTS

This chapter comprehensively deals with the production process of the

business including its operations, facilities, and product outputs.

Production is the process of creating goods or services, a cornerstone of

economic activity. (Ford, 2000)

Businesses in the domain of production strive to optimize processes,

efficiently creating goods or services to meet consumer demand and maximize

quality. Their aim is to ensure a streamlined production chain that not only

satisfies customer needs but also enhances profitability. Success in production

allows businesses to achieve operational efficiency and contribute positively to

the overall economic landscape.

Service Specification

The Piso WiFi vending machine is a smart solution for easy internet

access. The physical structure of these machines is carefully crafted to meet the

needs of users while ensuring durability and functionality. Encased in a sturdy

outer casing, the machine's exterior serves as a protective layer for its internal

components, safeguarding them from external elements and potential tampering.

To pay for the internet, users insert coins or bills into the acceptors. Some

machines have a coin return for unused money. The heart of the machine is the

router, giving users a stable internet connection. A controller manages payments

and controls internet access. The machine needs a steady power supply and
 38

good ventilation to work well. Altogether, it's a user-friendly and efficient way for

people to get online on the go.

Picture 1

Piso Wi-fi Vending Machine

Service Process

The service process provides step by step activities that the proponents

must execute to officially start the operation. To be able to offer the service to

target markets, the following steps must be followed:

1. Negotiate with the supplier and acquire the necessary number of piso wifi

vending machines.

2. Install the Piso Wifi Vending Machines at their designated location.

 39

3. Conduct testing payment processing and user authentication to ensure that users

will have a seamless experience when assessing the service.

4. Provide a clear instruction on how to use Piso Wifi Vending Machine.

5. Officially start offering the service at University.

Service Process Flow Chart

After installing the vending machines at their designated location, the

service of GtG Net will be available to the students of University of Rizal

System—Binangonan. Regularly monitoring the performance of Piso Wifi

Vending Machines will be performed to avoid internet disruptions and ensure

seamless experience to our customers.

 40

Projected Service Capacity

Supply capacity is a fundamental concept in business and economics,

representing the maximum quantity of goods or services that a producer or

supplier can deliver within a specified period. It serves as a critical metric for

businesses to assess and optimize their production capabilities, ensuring they

can meet the demand for their products while operating efficiently. Table 16

shows the service capacity of GTG Net.

Table 16

Service Capacity

Units Daily Supply Annual Supply

Year 1 (SY. 2024-2025)

4 480 83,520

Year 2 (SY. 2025-2026)

4 480 83,520

Year 3 (SY. 2026-2027)

4 480 83,520

Year 4 (SY. 2027-2028)

4 480 83,520

Year 5 (SY. 2028-2029)

4 480 83,520

Total Supplies in 5 years 417,600

 41

Service Schedule

GTGNet's operational hours will be confined to Monday through Saturday,

from 7:00 AM to 7:00 PM, aligning with the university's schedule, which sets

specific time constraints on service availability.

Tools and Equipment

The "Tools and Equipment" section plays a crucial role in detailing the

essential resources necessary for the successful operation of the GTGNet: Piso

Wi-Fi Vending Machine business. This segment outlines the tools and equipment

required throughout various phases, from the pre-operating period to the

commencement of normal operations. Each item listed in Table 17 below

contributes directly to the efficiency and functionality of the business, ensuring

that the venture is well-equipped to meet its objectives. The detailed inventory

presented in this section serves as a practical guide for procurement,

maintenance, and overall resource management, ensuring a seamless workflow

and optimal performance once the business is operational.

Table 17

Tools and Equipment

Tools/Equipment Description

Vending Machines Primary equipment; the core of the business.

Wifi Router Ensures stable and reliable internet connectivity

for users

Maintenance Tools Essential tools for routine maintenance and

troubleshooting: wrenches, screwdrivers,
multimeter, cable tester, and spare parts.
 42

Computer/ Utilized for administrative tasks, monitoring

Laptop (POS System) system performance, and data analysis. (Excel)

Installation Tools Tools required for the setup and installation of

vending machines and equipment: drills,
screwdrivers, wrenches, and leveling tools.

Security Cameras Ensures the security of vending machine

locations and deters potential vandalism.

Terms and conditions of assets acquisition

The equipment and accessories to be acquired will be purchased on a

cash basis. It is practical for the entity to buy the needed equipment on a cash

basis.

Table 12

Cost of Tools and Equipment

Description Quantity Unit Price Amount

Vending Machines 4 10,500.00 42,000.00
Antenna 4 1,294.00 5,176.00
Cable 4 - -
Router 2 - -
Metal cage for piso wifi
vending machine 4 1500.00 6,000
Security Camera 4 500.00 2,000.00
Computer 1 5,000.00 5,000.00
Total 60,000.00
 43

Picture 2 Picture 3 Picture 4

Metal Cage Antenna Cable

Picture 4 Picture 5 Picture 6

Security Camera Router Computer

Utilities
The business will install an internet router. It will also have to consume

electricity for both the vending machines and internet routers.

Table 13 lists the needed utilities to execute well the business operations

and its monthly consumptions. The proponents have estimated the following

figures based on research with the consumption of similar existing businesses.

 44

Table 13

List of Utilities

Utilities Consumption per month

Electricity 1,000.00
Internet Subscription 3,000.00
Total 4,000.00

Waste Disposal

Waste management for every business enterprise is essential and must

be strictly observed by authority. Hence, management will comply with local

regulations regarding electronic waste disposal in case of disposing of our old

piso wifi vending machines in the future.

Aside from proper waste disposal, We will also observe the cleanliness of

the area where our piso wifi vending machines are located.