Introduction
The promise of the Internet is based in its identity
as an economic, political and technological leveler. It can be seen
as either a tool of capitalism or a revolutionary tool granting economic
power to those who have never had it before. The pragmatic
solution for any government to adopt the Internet and promote technology
should be an economical decision. However, many governments that
are fearful of losing power have not taken an aggressive approach to the
adoption of the Internet. Furthermore, the developing world's access,
when available, is impeded by time, cost, uncertainty of connection.
State of the Internet in the Region
While all the countries have connectivity and offer a
full range of Internet services, the main communication pipes serving the
region have inadequate capacity and bandwidth, traffic routing is inefficient
and the network architecture is not optimized. As a result the service
is of low quality and expensive. Furthermore,
more than 50% of the telephone and Internet traffic between
the countries is routed to the US, resulting in a great deal of congestion.
(1)
The rate structure of Internet services varies in the
different countries, especially in the installation and rental of Leased/Dedicated
circuit access. The high cost of the international link is a significant
component in the structuring of charges. Most telecommunications
providers use time-based pricing for dial-up access.
It has been difficult to identify the exact number of
Internet users in the region, but an estimate of about 50,000 in Central
America and the Caribbean Community seems to be about correct.. In Central
America, the users are distributed principally among the business and academic
sectors and organizations; while in the CARICOM Countries, individual accounts
seem to prevail, due to the high cost of leased line rentals. (2)
The Internet in SVG
The Internet first appeared in St. Vincent in 1997. In
terms of Internet development, although the past year has seen dramatic
growth in connectivity , the current network is fragmented and relatively
sparse. There is no truly national backbone; connectivity is made
more difficult by the country's mountainous topography, and it is
mostly held together by microwave and satellite connections. SVG
is plagued by poor infrastructure, especially at the local loop and central
office levels in the cities and overall in outlying areas.
Unfortunately, all of these factors have seriously impeded both quality
and coverage of Internet access.
Nothing represents the face of modern IT more than the
PC. The domestic PC is the engine that drives many sectors of the
IT industry, including Internet service providers (ISPs), home banking
(and many other forms of electronic commerce), CD-ROM sales and the packaged
software industry. The penetration level of the PC (e.g., home, office,
telecommuting) is the ultimate measure of a nation's current acceptance
of IT as a part of everyday life. PC penetration based on data I was given
by Andrew Providence (Product Management Executive of Cable and Wireless)
would figure to be around 2%. (C&W customer base for internet
access- 1639 as of November 1, 1999 - represents approximately 75%
of the recorded PC’s on the island; therefore, there should be an estimated
number of 2185 PCs on the island which has a population of 112,000, putting
PC penetration 1.95%) Of these 1639 customers of Internet access,
1328 are individual accounts and the remaining customers represent the
business market. (3)
If this number of approximately 2% PC penetration, with
Internet users representing approximately 1.5% of the population,
is compared to the United Nations UNDP Human Development Report 1999, SVG
fairs well in comparison to overall percentages for the caribbean region.
The estimates that 26.3% of the US population are Internet users
In other OECD countries with the exception of the US, 6.9% of the population
are users. In the Caribbean this figures drops to .5% of the population
(4)
Internet Service Providers
At the present, the only Internet Service Provider
(ISP) in SVG is CaribSurf, which
is a wholly owned subsidiary of Cable and Wireless. CaribSurf provides
numerous levels of connectivity to the Internet such as: Basic Dial
Up/Subscriber Access, ISDN access, Leased/Dedicated Circuit Access and
Managed Leased COnnections. They also provide Web Development services
(Web Site Development, Web Server Development and Web Server Management)
and soon will provide ecommerce packages (see below to find ) similar to
what they provide in other regions like the Caymans and Bermuda.
Internet Hosts
At present their are no internet hosts registered under
the geographic domain name for St. Vincent (vc). (In July of
1997 , there was one) (5)
Internet Access and Cost
The prices for SVG for Internet access for individual
and business accounts are as follows. (All Prices are quoted in US$)
Individual Accounts
Registration, $37, with 5 free email accounts,
Monthly fees: $13 for 10 hours free access, next 40 hours
will be charged at $3 per hour, then each additional hour is $1.87; or
$28 for 20 hours free access , next forty hours charged at $2.8 per
hour, then each additional hour is $1.87
Business Accounts
Dedicated Internet Access - Speeds available and Costs
|
Monthly Port Rental |
Port Installation |
Monthly Local Loop Rentals |
Local Loop Installation |
| 64 Kbps |
1315 |
1500 |
375 |
187 |
| 128 Kbps |
2500 |
1500 |
555 |
187 |
| 256 Kbps |
5000 |
1500 |
555 |
187 |
| 512 Kbps |
10,000 |
1500 |
555 |
187 |
***T-1 rates are also available
C&W Business Domain Hosting Plan costs $2000 annually
for 50 MB of storage, and $4300 annually for 200 MB of storage. (6)
ECommerce
The words e-commerce and e-business are just beginning
to circulate amongst the business sector in SVG. The World BAnk project
dedicated to reform and regulation of the telecom industry has a training
component designed to educate business on e-commerce.
Many people think of ecommerce as online shopping and
in this sense of the definition, SVG has not yet arrived. However,
Ecommerce is much deeper than that. Below is a definition of ecommerce
as defined by the World Trade organization:
"There is no universally agreed definition of electronic
commerce. However, in the World Trade Organization Work Program on
Electronic Commerce, it is understood to mean the production, distribution,
marketing sale or delivery of goods by electronic means. A commercial
transaction can be divided into three main stages: the advertising and
searching stage, the ordering and payment stage and the delivery stage.
Any or al of these can be carried out electronically and may therefore
be covered by the concept of 'electronic commerce'" (7)
I would say that most of the ecommerce in SVG at
the moment is in the advertising and searching stage.
Ebusiness for non-governemtal organizations like the
SVG Chamber of Industry and Commerce,
the National Development Foundation.
and www.vincy.com (the main domain provider
in the country which hosts most of the websites for SVG businesses, government
departments etc.) are merely static, advertising and educational sites,
which as of yet do not allow user interaction. There are also
number of the sites are dedicated to the tourist industry.
The only exception to these static site would be online
casinos, which provide real-time gambling and process electronic
credit card payments. However, at the moment there are no online
casinos in SVG (The one online casino in SVG ceased operations in the summer
of 1999). Online casinos operating in the Caribbean are on the rise,
having increased from 15 to 40 sites in the last year.
Donald Austin mentioned that C&W has an ecommerce
package used presently in Bermuda and the Caymans that processes online
payments (both credit card and immediate bank withdrawals as the majority
of caribbean consumers do not have credit card) and should be available
sometime this year. (8)
I know of no other islands of the OECS that process credit payment online
yet (even Barbados to my knowledge has not yet begun to do this).
There are a few sites in other countries that sell items online, but they
require a faxed signature and copy of the credit card to process the transaction.
Conclusion
Up until now, most of the discussion in these islands
has been surrounding connectivity to the INternet and not content.
I was pleased to hear that some training initiatives have at least been
discussed in the area of ecommerce. Once the issues of connectivity
have been addressed, more focus will need to be placed on content, such
as access to electronic publishing tools, training in setting up online
storefronts etc. |