ICT INVESTMENT IN THE CARIBBEAN

DRAFT SUMMARY OF MEETING OF DONORS AND STAKEHOLDERS

25 APRIL 2002

UNITED NATIONS HOUSE, BARBADOS

Present:

Mr. Philip Cross-ITU Caribbean Representative (Chairman)

Ms. Jean McCardle-CIDA, Barbados

Mr. Reid Levenson-Programme Officer, CIDA, Canada

Mr. Gerard Kenney-CIDA, Canada

Ms. Kathleen Gordon-Deputy Director, Information and Technology, CDB

Ms. Marlene Hall-Cable & Wireless

Ms. Michael Taylor-Programme Manager, USAID

Mr. Roberto Otto-Consultant, USAID

Ms. Olney Daly-UNDP

Ms. Andria Grosvenor-CDERA

Senator Phillip Goddard-Office of the Prime Minister

Mr. Randy Zadra-ICA

Mr. Damian Dunphy-Sunbeach

Mr. Chris Alleyne-Sunbeach

Mr. Anthony King-CAIC

Ms. Juliet Agard-Data Processing Department, Barbados

Mr. Dale Ifill-PAHO/WHO

Ms. Noreene Janus-USAID

Mr. Patrick Cozier-CBU

Prof. Badri Koul-UWI, Cave Hill Campus

Ms. Paula Mohamed-UNDP

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The Chairman welcomed the participants to the meeting and thanked them for attending. He proceeded to provide background information including:

(a)the agenda for connectivity emanating from the 2001 Summit of the Americas.

(b)CIDA’s proposal to the ITU for concerted and coordinated action on the creation of an enabling environment for ICT investment in the Caribbean.

(c)Consideration of this proposal at the ITU/BDT Preparatory Meeting for the World Telecommunication Development Conference, held in Trinidad and Tobago in October 2001.

(d)Acceptance of this proposal and the identification of the ITU to spearhead this initiative.

He further explained that a meeting of some members of the donor committee was held on 23 April 2002 during which information was shared on ICT activities in the Caribbean. For the present meeting both donors and stakeholders were present and the main objectives were:

(a)to share information on ICT activities in the Caribbean.

(b)To start preparations for the proposed Roundtable Meeting to be held sometime after June 2002.

Institute for Connectivity of the Americas (ICA) – Mr. Randy Zadra

Mr. Zadra explained that his organization was established as a result of the Summit of the Americas and is intended to promote connectivity in the Americas through the use of ICT. The ICA’s establishment was supported by Summit participants and initial funding was provided by Canada.

The Hemispheric Advisory Board was to be formed at the ICA Board Meeting to be held in Washington from 9 to 10 May 2002 and this will help to define the direction to be taken by the ICA. The ICA prefers to undertake activities on a regional basis. It will create and work with initiatives which are regional in scope. The ICA has worked with countries of South America in organizing a sub-regional meeting on ICT development.

Among the activities foreseen by the ICA to be included in regional plans are:

-computers for schools.

-Financial aspects of ICT, including venture capital and entrepreneurial projects.

-Work of NGOs and private sector

University of the West Indies Distance Education Centre, UNESCO Chair –

Prof. Badri Koul, Director

Prof. Koul explained that UWI has four distance education initiatives which he believes should be one. He referred to the UWI Distance Education Centre (UWIDEC) which has a presence in sixteen countries, the main ones being Barbados, Jamaica and Trinidad and Tobago.

The system has been digital since 1999 but it needs support. Leased lines are used and these are very expensive. He believes VSAT technology could enhance the capabilities of the system, although more computers are needed for students. There is also a need for more centers at reasonable cost to students. At present there are computer labs at each center. There are ten centers in Jamaica, four in Trinidad and Tobago and one in Barbados.

In addition to the need for technological support, including more computers, there is also a need to create on-line courses.

The other three initiatives involve IT Centres on three campuses and these are intended to help the universities in the following areas:

(1)manage students’ records, intake, registration, examinations, etc.

(2)Help faculties in the delivery of courses.

(3)Help in the management of finances.

Prof. Koul also indicated that he would welcome private sector collaboration in ICT activities related to the universities. Whenever feasible, he would also examine the possibility of using computers existing in schools.

Caribbean Broadcasting Union (CBU) – Mr. Patrick Cozier, Secretary General

Mr. Cozier explained that the convergence of technologies had allowed the CBU to utilise new technologies to carry out its functions as a regional broadcaster. There was however a need for skills building and for advocacy and representation in order to ensure that the voice of the CBU is heard.

Issues relating to the WTD, intellectual property as well as transportation and distribution options need to be carefully examined. The use of the internet has provided an additional option for the CBU and advantage should be taken of this.

The CBU in conjunction with the Commonwealth of Learning and the UWI has undertaken a study on the use of broadcasting technologies in distance learning. There is a need for content development and for the establishment of Multipurpose Community Telecentres (MCTs) and Media Resource Centres.

With respect to planning for the future there is a general lack of responses from CBU members.

Caribbean Disaster Emergency Response Agency (CDERA) –

Ms. Andria Grosvenor

Ms. Grosvenor explained that CDERA is conscious of the need for ICT to play an important role in disaster management in the Caribbean. However, CDERA is not able to do enough since there is a need for greater internet access and more web sites. There is also a need for better emergency telecommunications capacity. CDERA possesses satellite telephone systems but these are inadequate. Cheaper on-line access is necessary and this would assist CDERA in its role as an information clearing house. The cost of access is high, so other methods of accessing information should be examined. CDERA is also in the process if establishing a Virtual Disaster Library. In addition, Ms. Grosvenor mentioned that:

(1)there is a need for emergency broadcasting facilities which would allow stations to broadcast during emergencies.

(2)Digital maps and satellite imaging are under consideration.

(3)Facilities for early warning systems need to be updated.

Cable & Wireless – Ms. Marlene Hall

Ms. Hall referred to four areas which were relevant to the discussions taking place. These were network, business partnerships, services and cost.

She explained that C&W, a regional organization, was interested in providing regional connectivity. The bandwidth in the Caribbean was being increased.

She explained the importance C&W attaches to e-business and e-government. Her company assists customers to better use the Internet and assist governments in making their operations more efficient.

Caribbean Association of Industry and Commerce (CAIC) –

Mr. Tony King, CAIC V.P

CAIC was started some twenty years ago through assistance from USAID. Mr. King explained the role of the CAIC as the leading private sector organization in the Caribbean. Members are from the Chambers of Commerce throughout the Caribbean. CAIC makes regular presentations to CARICOM Heads of Government on various private sector issues.

ICT is of critical importance for the CAIC, however he explained that there was not adequate access to and from Caribbean countries. One reason was that only Cable & Wireless has access to fibre. C&W as the leading service provider also competes with other companies for the same services.

Mr. King then referred to the problems faced by regulators, who are not used to regulating the telecommunication sector. There are many problems including those of financing/costing, which involve depreciation periods and general pricing. The CAIC is involved in identifying problems, publicizing them and helping to seek solutions.

UNDP – Ms Paula Mohamed

Ms. Mohamed suggested a need for institutional strengthening in the ICT sector. The UNDP had created a Trust Fund for various sectors, including ICT and seed money is to be provided. The value of this Trust Fund is US$13million globally.

She suggested a need for intervention by the donor community which would also involve working with the CAIC. This intervention would involve the creation of awareness of ICT and the stimulation of activities. The UNDP itself has been involved in various ICT activities, especially at the community level.

Sunbeach (ISP) – Mr. Chris Alleyne, CEO

Mr. Alleyne explained that Sunbeach has been in operation for six years and was now the largest ISP in Barbados. A lot of time has been spent in negotiations with Cable & Wireless whose facilities must be utilized by Sunbeach. He also stated that no significant attempt was made.

With respect to e-commerce, Mr. Alleyne indicated that Barbados may be a bit late since all the necessary measures to encourage e-commerce development were not put in place. He also stated that banks were reluctant to get involved in e-commerce activities.

Special Advisor to the Prime Minister – Senator Phillip Goddard

Senator Goddard stated that e-business will be the way of the future and these activities will be achieved through the Internet. He suggested that the Caribbean was behind other countries in developing e-business, but progress can still be made. Among the possible solutions are the establishment of mechanisms through which internet devices are readily available and the provision of cheap access to the internet. In this regard, the digital TV will be an internet device.

He continued that in Barbados digital signatures are now legal. Identification cards should be smart cards but with information on a network rather than on the card. A similar case could also be made for driver’s licences.

Senator Goddard then suggested that there is a need for national ICT strategies throughout the Caribbean. The scope and breadth of ICT is so great that it requires commitment from the top. It should also involve all concerned Ministries, the private sector and citizens.

National strategies would help to define regional strategies, which would involve several players for successful implementation. CARICOM, CTU and other Caribbean organizations would be involved.

He also suggested that incumbent regional operators had done very well in the region and were able to influence decision makers.

The Chairman then informed the meeting that there were several regional and international agencies which had indicated an interest in the initiative but were unable to participate. They would all be contacted and their views would be obtained. Among these are the IDB, World Bank, OAS, CARICOM, Japan International Cooperation Agency, the European Commission, Caribbean Telecommunications Union (CTU), Caribbean Tourism Organization (CTO), Caribbean Association of National Telecommunications Organizations (CANTO) and the Caribbean Centre for Development Administration (CARICAD).

Following these presentations, which were in addition to those made at the meeting in April, there was a general discussion during which the following emerged:

  1. Donor agencies and Caribbean organizations should provide an electronic copy of their activities/plans in ICT development in the Caribbean.
  1. The present ICT initiative should now be known as ICT Development in the Caribbean, with the creation of an enabling environment for ICT investment as one component.
  1. The cost of leased lines is very expensive and there is a need for reduced prices. In addition, bandwidth prices are not regulated. Inadequate bandwidth or bandwidth at high cost are deterrents to investors.
  1. The private sector has been silent on regulatory issues and has been generally absent from debates on the liberalization of telecommunications.
  1. There is a need for institutional strengthening in both the public and private sectors. Interconnection issues and transfer pricing are two issues to be taken up by Caribbean regulators.
  1. It was suggested that the Caribbean identifies its needs and priorities regarding ICT. Perhaps a sector-wide approach is best. In addition, donors may wish to pool their resources and then divide this among themselves for project implementation.
  1. With respect to the proposal for a steering committee to guide the work in ICT development, it was agreed that for the time being the participants of the present meeting would act as an ad hoc steering committee. Members would be available for consultations especially in the preparation for the proposed Roundtable Meeting.
  1. With respect to the date for the Roundtable Meeting, mid to early August (after the Heads of Government meeting) may be the most appropriate period.
  1. For the Roundtable, the ICA indicated its willingness to provide funding for a limited number of participants. They would also consider providing a consultant to assist the ITU in undertaking the preparatory work.
  1. The Roundtable would be a working meeting over a period of about three days. Participants would be divided into various groups dealing with issues such as:

-regulatory issues

-innovative, thematic regional projects

-financing for ICT, including venture capital

-infrastructure development and use of ICT

11.A suggestion was made by CIDA to assist in the creation of an ICT model which would show the actual situation in the Caribbean. This could then be a working document for the Roundtable.

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