Internet cafes bankruptcy in Andhra Pradesh

Stalinist

There are 17 internet cafes in Srikakulam town and all of those cafes are in bankrupt condition. Some of them are ready to close their cafes if they find any other job. All of them believed the past government's propaganda that their is good future for internet in Andhra Pradesh and now internet cafe owners are facing bankruptcy. Some of the internet cafes in Vizianagaram and Parvatipuram were also closed because of heavy losses. Internet cafes in Srikakulam were not closed but most of them increased browsing charges from Rs 15 to Rs 20 per hour. There are also internet cafes in towns like Ongole that are showing blue films to customers to recover losses. Recently, an internet cafe owner was arrested while purchasing blue film CDs in a town.
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webgeek · Posted: Mon Jun 02, 2008 7:20 am Post subject:

I think Internet Cafe business across the country will go dull considering Internet connectivity charges are getting down every day and more people are now able to afford Internet at home, needless to say the PC penetration levels is increasing every year. I have seen cafes in my region to start offering services - such as railways / flight ticket bookings, TTD reservations, games and gamming contests etc. This will be a sustainable for sometime but surely not for long.

I see two problems in what cafes in Parvathipuram etc are doing:

1. Increasing fares will not attract more people. Infact lesser people will turn towards cafes as time progresses. I know this move is to ensure they don't go bust but still this is not a great idea.

2. Blue films or other illegal means are not good at all. This will put the owner into extreme risk. Looking for some other business is better than doing an illegal one.
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Stalinist · Posted: Wed Jun 04, 2008 10:28 am Post subject:

During 1999, there were only 4 or 5 internet cafes in Srikakulam. Now their number is 17. Increase in number of cafes generated unhealthy competition and resulted heavy losses. In past, they used to collect Rs 10 to Rs 15 per hour. Now that price is not at all favorable. Now they are collecting Rs 20 per hour. Internet cafes business was non-profitable even in past. 6 years ago, a person said that he visited an internet cafe in Ongole. That cafe was completely converted as blue films den. Last year, some one informed me that there are many internet cafes in state wide that are showing blue films (even by supplying CDs) to recover from losses. Recently, I heard that an internet cafe owner was arrested while purchasing blue film CDs.
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