Issue 1.0 June 30, 2007 - Gov

Issue 1.0 June 30, 2007

Grenada Information & Communication Technology Sector Profile

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A PUBLICATION

OF

The Agency for Reconstruction and Development

BUILD BACK BETTER

On Behalf of the Government of Grenada


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PREFACE

The Government of Grenada has recognized the vital roles of the private sector both as the engine of economic growth, and as the principal source of income and employment in the economy. The Government also recognizes the challenges involved in overcoming the sizeable barriers to attracting private direct investment into the Grenada economy. In this regard, the Government is pursuing the vision of more firmly establishing Grenada as an attractive and viable investment location, by creating a more enabling environment for both foreign and local investors. To create such an environment, the Government recognizes the need for increasing the level of efficiency and effectiveness in the operations of the impacting agencies involved in the investment facilitation and decision-making processes. In order to facilitate the latter, the Government has placed a high priority on creating a legal, regulatory and institutional framework conducive to private sector investment and development. This has been given a high level of priority and is a key component of the Government’s on-going public sector reform programme. The Grenada Information & Communications Technology (ICT) Sector Profile is the final output of a consultancy assignment that forms part of the more major ARD Project # ERD-05201: WELCOMEGRENADA - INVESTMENT CLIMATE ENHANCEMENT PROGRAMME, a project conceptualized and designed in the last quarter of 2005. This sector profile is one of six economic sector profiles commissioned by the ARD using principally, locally-based consultants. The profiles in this series are:

• The Grenada Agricultural Sector Profile; • The Grenada Fisheries Sector Profile; • The Grenada ICT Sector Profile; • The Grenada Tourism Sector Profile; • The Grenada Higher Education & Training Sector Profile; and • The Grenada Craft & Gift Sector Profile

The economic sector profiles are targeted principally at potential investors-equity investors, bankers and other financial services providers having an interest in specific areas of economic activity in Grenada. The profiles are intended to provide the readers with the essential information needed to assist in the investment decision-making process; and to support the Government of Grenada with its investment promotion effort, by describing the general and sector-specific business environments, identifying investment incentives, highlighting businesses opportunities and pointing out potential business partners. While every effort has been made to make this profile as comprehensive, up-to-date and accurate as possible, the paucity of available data in some of the subject areas covered in the document has necessitated the use of approximations and the informed judgement of the author. Consequently, the publisher accepts no liability for any errors of fact or opinion herein.


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ACKNOWLEDGEMENTS This first issue of the Grenada Information and Communications Technology Sector Profile has been prepared for the Agency for Reconstruction and Development and authored by Ms. Isabelle Slinger, a Grenada-based Information Systems consultant and managing director of Comserv Limited. Mr. Richard de Lima, Director Economic Recovery has contributed significantly to the preparation of this profile document through patient counsel, continued encouragement and technical assistance with the editing and orientation of the document to meet the requirements of the primary intended readership - business investors and loan financiers.


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TABLE OF CONTENTS

1.0 OVERVIEW OF GRENADA’S ICT SECTOR................................... 8 1.1 INTRODUCTION...............................................................................................................8 1.2 KEY CHARACTERISTICS OF THE SECTOR.................................................................8 1.3 GOVERNMENT ICT POLICY ...........................................................................................9 1.4 KEY BUSINESS OPPORTUNITIES...............................................................................10

1.4.1 E-COMMERCE.........................................................................................................................10 1.4.2 ICT TRAINING..........................................................................................................................11 1.4.3 ISLAND WIDE INTERNET ACCESS........................................................................................11

1.5 THE INVESTMENT ENVIRONMENT .............................................................................11 1.5.1 THE NATIONAL TELECOMMUNICATIONS REGULATORY COMMISSION ..........................11 1.5.2 INTERNATIONAL INVESTMENT.............................................................................................12 1.5.3 INVESTMENT AND ECONOMIC GROWTH............................................................................12

2.0 THE COMMUNICATIONS SUB-SECTOR...................................... 13 2.1 BACKGROUND AND PERFORMANCE .......................................................................13

2.1.1 CABLE SERVICE .....................................................................................................................14 2.1.2 FIXED LINE..............................................................................................................................14 2.1.3 INTERNET AND BROADBAND ...............................................................................................16 2.1.4 INTERNATIONAL ACCESS .....................................................................................................17 2.1.5 MOBILE SERVICES.................................................................................................................17

2.2 MARKET CHARACTERISTICS .....................................................................................18 2.2.1 INTERNATIONAL TRAFFIC.....................................................................................................19 2.2.2 LOCAL TRAFFIC......................................................................................................................20 2.2.3 Capital Investment Telecommunications Sub-sector................................................................20 2.2.4 EMPLOYMENT IN TELECOMMUNICATIONS.........................................................................21

2.3 STRENGTHS, WEAKNESSES, THREATS AND OPPORTUNITIES (SWOT) .............22 2.3.1 STRENGTHS ...........................................................................................................................22 2.3.2 WEAKNESSES ........................................................................................................................22 2.3.3 OPPORTUNITIES ....................................................................................................................22 2.3.4 THREATS.................................................................................................................................23

2.4 MARKET & INVESTMENTS PROSPECTS ...................................................................24 2.4.1 E-GOVERNMENT BACKBONE ..............................................................................................24 2.4.2 INTERNET SERVICE PROVISION ..........................................................................................24 2.4.3 E-GOVERNMENT ....................................................................................................................24 2.4.4 EDUCATION ............................................................................................................................25

3.0 THE INFORMATION TECHNOLOGY (IT) SUB-SECTOR ....... 26 3.1 BACKGROUND AND PERFORMANCE .......................................................................26

3.1.1 IMPORTS AND EXPORTS.......................................................................................................28 3.2 MARKET CHARACTERISTICS .....................................................................................28

3.2.1 EMPLOYMENT IN THE IT SECTOR........................................................................................30 3.2.2 CAPITAL INVESTMENT IT SUB-SECTOR..............................................................................30

3.3 STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS............................31 3.3.1 STRENGTHS ...........................................................................................................................31 3.3.2 WEAKNESSES ........................................................................................................................31 3.3.3 OPPORTUNITIES ....................................................................................................................32 3.3.4 THREATS.................................................................................................................................32

3.4 MARKET & INVESTMENTS PROSPECTS ...................................................................33 3.4.1 E-COMMERCE.........................................................................................................................33 3.4.2 BUSINESS IT SUPPORT SERVICES......................................................................................33 3.4.3 E-GOVERNMENT ....................................................................................................................34 3.4.4 EDUCATION ............................................................................................................................34 3.4.5 TRAINING PROVISION............................................................................................................34 3.4.6 INTERNET CAFES...................................................................................................................34 3.4.7 KNOWLEDGE PARKS .............................................................................................................34 3.4.8 RETAIL AND INVENTORY SYSTEMS ....................................................................................34


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LIST OF FIGURES

Figure 1: Individual Licenses issued in Grenada to November, 2006 ............................... 13 Figure 2: Cable & Wireless Grenada Limited: Fixed Line Rates ....................................... 15 Figure 3: Rating of Fixed Line Service (March 2005)........................................................ 15 Figure 4: C&W Residential Internet Rates ....................................................................... 16 Figure 5: Type of Internet Access (Mar 2005)................................................................... 16 Figure 6: Internet Service Provider.................................................................................... 17 Figure 7 - Post Paid Mobile Plan Costs............................................................................. 18 Figure 8: Telecommunications Sector key Performance Statistics ................................... 18 Figure 9: Telecommunication Service Penetration in Grenada (March 2005) .................. 19 Figure 10: Cable & Wireless Grenada Limited International Rates................................... 19 Figure 11: Investment in Telecommunications in Grenada ............................................... 20 Figure 12: Employment in Telecommunications ............................................................... 21 Figure 13: Employment by ICT Sub-sector, October 2006 .............................................. 21 Figure 14: Personal Internet Access ................................................................................. 23 Figure 15: Communications Sub-Sector SWOT Summary ............................................... 24 Figure 16: Grenada's IT Sub-Sector Industry Players....................................................... 26 Figure 17: Grenada’s IT Sub sector by Category of Service Offered................................ 27 Table 18: IT Companies by Type of Service ..................................................................... 28 Figure 19: Profile of IT Customers .................................................................................... 29 Figure 20: Grenada’s IT sub-sector - Companies by Employee Size ............................... 30 APPENDICES Appendix A: ACT – Art and Design .....................................................................................................a Appendix B: Bryden & Minors Ltd – The Computer Zone ...................................................................b Appendix C: Buzz Systems Ltd ...........................................................................................................c Appendix D: Coconet Professional Solutions ......................................................................................d Appendix E: Compu-tec Services Ltd and Computer Support Ltd ......................................................e Appendix F: Compu-Data Electronics Inc.............................................................................................f Appendix G: Computer Maintenance and Network Solutions .............................................................g Appendix H: Computer Visioneers.......................................................................................................h Appendix I: Comserv Ltd....................................................................................................................... i Appendix J: Digi-Soft Computer Services............................................................................................. j Appendix K: Hankey’s Computer Service and Computer Store ..........................................................k Appendix L: K-Systems......................................................................................................................... l Appendix M: Kool Systems Ltd...........................................................................................................m Appendix N: ModOne...........................................................................................................................n Appendix O: Spice Tec Computers .....................................................................................................o Appendix P: Spicy Design....................................................................................................................p Appendix Q: TSL (Grenada) Ltd ..........................................................................................................q Appendix R: Grenada’s Private Sector Information Technology Firms ............................................... r


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DEFINITIONS For the purposes of this paper Information and Communication Technology (ICT) is defined as follows:

Information and Communication Technology (ICT) represents the fusion of computers and telecommunications. Computers enable people to work creatively. But they are limited by what they can access. Adding a communications channel, such as the Internet or other information services, significantly extends the capability of the computer. It allows it to be not only an inexpensive communications device. It can also become a means of obtaining education, information, and working creatively with others irrespective of geographical barriers1.

Despite the convergence/merging of Information Technology, Telecommunications and Data Networking Technologies into a single technology, we have defined the Information and Communication Technology (ICT) Sector in a manner which separates Information Technology from Communication Technology. This will provide focus to specific areas of ICT implementation in Grenada.

• Communication Technology is defined as the method, media and transmission techniques through which information is exchanged electronically.

• Information Technology (IT) is defined as all electronic manipulations, storage and

publishing of information. Implicit in the above definitions are providers of Internet Services, Web Hosting and Design and various levels of ICT training like basic computer skills, system administrators or web design.

1 Glossary and Cross-Reference Index; Paul Mobbs; GreenNet Civil Society Internet Rights Project, 2002.

http://www.internetrights.org.uk/


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1.0 OVERVIEW OF GRENADA’S ICT SECTOR

1.1 INTRODUCTION Information and Communication Technologies (ICT) offer novel and effective tools to help advance sustainable human development. Grenada’s ICT sector is growing as customer awareness and more importantly use of ICT increases. The high penetration (74%) of mobile (wireless) communications technology with its companion data services such as Internet access and messaging has help to exponentially grow the demand for ICT services. This demand has spilled over to the Information Technology (IT) sub-sector as more sophisticated services are increasingly demanded such as Voice over Internet Protocol (VoIP), web sites and portals, and e-commerce solutions. This mass of potential customers represents a real opportunity for service providers who can provide cost effective ICT solutions. In the 1990’s several foreign based ICT companies such as data processing and call centers had operations in Grenada. Unfortunately all fell victim to high telecommunication costs and the loss of clients due to changes in global out-sourcing markets and technologies. The recent introduction of new additional broadband facilities via fibre-optic submarine cable and satellite systems; and the rapid and significant reduction in telecommunications and Internet-access costs (bringing Grenada’s more in line with those of international and regional destinations) is now paving the way for for solid new business opportunities based on newer outsourcing models and for projects such as the development of an ICT Knowledge Park. Grenada’s domestic business sector is also gradually increasing the adoption of new ICT solutions as an integral part of their expansion and modernization plans. The Internet has been a key factor is propelling ICT use as it is frequently a requirement to do business with external partners.

1.2 KEY CHARACTERISTICS OF THE SECTOR There are three communications companies and nineteen information technology companies in Grenada. Most of these companies have started business within the last ten years. Competition was introduced in the communications sub-sector in 2002 as part of an initiative to open the region’s telecommunication sector. This led to reductions in rates and expansion of the services offered. With enforcement from the National Telecommunications Regulatory Commission (NTRC) and increasing competition, rates for fixed and mobile telecommunications services and Internet connection are being reduced. Affordability and connectivity to the Internet for citizens are major concerns, since the extended use of ICT applications is deemed necessary for sustained economic growth. The issuance of nine new licenses by the NTRC in 2006 bodes well for the consumer. The Information Technology sector has been slower in growing. One major obstacle to a more holistic expansion of Grenada’s ICT industry is the apparent lack of recognition of the commercial value of ICT by various established businesses, both large and small. The area in which full recognition appears to have been realised is the Tourism Industry in the areas of reservations and marketing. The hoteliers of the island, both large and small, have embraced the use of the Internet


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as a marketing tool in a major way and this has had an immediate and positive effect on their viability and profitability. E-Commerce has propelled development of the IT sector as customers need IT support to use ICT technologies. Website and e-commerce solutions are the most popular applications. New legislation to establish the legal principles for the conduct of e-commerce and the processing of electronic transactions are required to allow E-commerce to be more widely adopted. This would make services such as processing the credit card through point of sale systems possible. The availability of effective payment systems is a significant element of electronic commerce, enabling wholesale and retail businesses to move their business-to-business (B2B) and business-to-consumer (B2C) marketing and sales onto the web with minimal concerns about completing the financial portion of the transaction.

1.3 GOVERNMENT ICT POLICY The Grenada Government has designated this decade as the Knowledge Enhancement Decade with the specific objective of

“At least fifty percent of our human resources [must be] engaged in high-value knowledge-based activities, including information and communication technology, financial services, agriculture, tourism, sport and entertainment” Source: Information and Communication Technology: A Strategy and Action Plan for Grenada 2001-2005.

Information and Communication Technologies (ICT) was described as a significant, novel and effective factor to propel performance and sustainable growth of the Grenada economy and aid in poverty alleviation. Human resource development is also envisioned as a real sustainable benefit of the implementation of the Government’s ICT strategy and action plan.

“The Plan will seek to put information and communication technologies (ICT) at the centre of Grenada's economic development as a dynamic industry sector in itself, and in support of the development of other sectors of the economy.” Source: Information and Communication Technology: A strategy and Action Plan for Grenada 2001-2005.

In addition the Government has clearly stated its intent to encourage the private sector to be partners in developing and implementing the infrastructure required, assisting with developing the human resources, providing jobs and in taking on development activities. Prior to the devastating effects of Ivan Grenada had begun the implementation of its ICT Strategy Action Plan. The implementation included the formation of the National Telecommunications Regulatory Commission (NTRC) and a government entity called the Central Information Management Agency (CIMA). The NTRC is responsible for regulation of the telecommunications sector and issuing of licenses. The CIMA is the central administrative and technical unit to manage the implementation of the ICT Plan. Unfortunately and due to Ivan’s devastating effects on the country the Government’s policy priorities changed and this has resulted in much of the plan still to be implemented. However, recent activities have suggested that there is going to be renewed focus on the Government’s own ICT development. The recent commitment of funding by the Indian Government for the development of E-Government is anticipated to provide the resources required to implement this aspect of the overall ICT strategy and action plan. By extension it is hoped that the project will stimulate growth and investment in the countries overall ICT sector. The E-Government project as envisioned in the ICT Strategy Plan could provide great opportunity for development of ICT skills and a welcome boost to the ICT sector as has been the experience in other countries globally.


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1.4 KEY BUSINESS OPPORTUNITIES The Government’s initiatives aimed at encouraging the growth of the ICT industry in Grenada provides a sound foundation for a wide variety of new business opportunities on the island, whether related to existing businesses that wish to expand or to completely new businesses. The blend of Information Technology with the latest Communication Technology provides businesses with the opportunity to reach out actively and directly to their client base, to expand the latter and to better service the interests and needs of those clients. Both research studies and business experiences drawn from other countries indicate that the adoption of electronic commerce will enable Grenada’s small to medium sized enterprises to continue to lead in the creation of new jobs and to growth of the economy. A key requirement now is the on-going education of the business sector in this regard. This may be best achieved by the provision of Government and privately sponsored seminars conducted by appropriately qualified IT companies and individual experts.

1.4.1 E-COMMERCE Adapting to the relatively new era of E-Commerce has allowed many businesses in the developing world to realise rapid and significant growth leading to major increases in net profitability. Areas in which significant benefit could be realised within Grenada through the provision of online services include:

• Online Banking – connecting customers with their accounts from home/business; • Government/Business – facilitating utility bill tracking and payment, GCT and VAT*

collection/verification; • Business/Business – online ordering, billing and accounting; • Business/Customer – online advertising, shopping.

For example, the application of E-commerce technology would make the products of businesses such as the Grenada Chocolate Factory open to the world market by providing the opportunity for a higher level of sales and turnover. Another example of significance to the overall economy lies with the introduction of the proposed new VAT legislation and system. It is clear that both the relevant civil servants and all VAT payees will need to become more ICT literate to permit the computer-based VAT accounting system to function effectively. Without the adoption of the technlogy, it is more than likely that full compliance in the manner of fair and equally distributed VAT collections would be difficult or near to impossible to achieve. Furthermore new emerging mobile communication technologies are opening even more business opportunities with far-reaching implications for e-commerce to be conducted via mobile telephony. “Tele-working” is another area for potential job-creation in a knowledge-based economy. It has the potential to bring back into the market the less advantaged groups such as women, retirees and persons with special needs.


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1.4.2 ICT TRAINING There is a significant market opportunity within Grenada for ICT training businesses and facilities. As the understanding of ICT benefits grows, so will the need for training in the following areas:

• User training for businesses and clients that are not yet ICT/computer literate;

• Management Training – enabling businesses to take full advantage of ICT systems capabilities;

• Technical Training in the fields of ICT hardware, hardware repair, software, system maintenance, networking set up and support, etc.

In order to support the growing ICT infrastructure there is also a need for higher-end skills training in such fields as:

• Computer Programming; • Software Development and Analysis; • Software Maintenance; • Specialised propriety software training such as Microsoft, Cisco etc.

One project that is being considered as part of the loan from India (to support ICT growth) is the development of an ICT ‘Knowledge Park’ where these skills would be needed.

1.4.3 ISLAND WIDE INTERNET ACCESS A further Government initiative is looking at the provision of a very low cost Internet connection capability for all Grenadians; with Island wide connection being made available to all citizens via such facilities as local internet cafes and community centres. This project is intended to provide motivated individuals with the facilities required to support their ICT literacy and to increase training and local business opportunities. Development of the ICT capacity will combine to make Grenada a very attractive base for ICT companies – with the on-going reduction of the cost of wide band width Internet access. The opening in early 2007 of a call centre in Frequente Industrial Park is a more recent example of what is possible. Grenada is further well-positioned to benefit from the recent availability of new and cheaper Internet access by virtue of its convenient Geographic location for serving the North American and British markets and a work force with a history of experience in the off-shore call-centre and data-processing industry.

1.5 THE INVESTMENT ENVIRONMENT

1.5.1 THE NATIONAL TELECOMMUNICATIONS REGULATORY COMMISSION The National Telecommunications Regulatory Commission (NTRC) is responsible for regulation of the telecommunications sector in Grenada by ensuring:

• Open entry, market liberalization, and competition in telecommunications • Policies and practices in relation to management of telecoms are in harmony with those of

ECTEL • Widest possible access to telecommunications at an affordable rate in Grenada • Fair pricing and the use of cost-based pricing methods by telecoms providers in Grenada • Fair competition practices by telecommunication providers


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• Advanced telecommunications technologies and increase range of services • Public interest and national security are preserved. • The application of appropriate standards • The overall development of telecoms in the interest of sustainable development of

Grenada and the region Its role is to promote and monitor the transformation of the telecommunications regulatory environment in Grenada. The more effective regulation and control of the issue of licences to qualified ICT enterprises represents a sound foundation for further investment in this sector. It has already begun to encourage healthy competition that should continue to lead to further reductions in the cost of ICT services.

1.5.2 INTERNATIONAL INVESTMENT The recent agreement between Grenada and the Government of India involving a grant valued at some US$25 million dollars for the development of the e-Government project should also provide immediate opportunities for sector growth. The project includes the proposed development of the Government of Grenada’s e-Government portal, linking all government offices and departments and the establishment of an ICT Knowledge Park specifically designed to house ICT based industries. This facility, it is hoped, would encourage both local and foreign ICT investment.

1.5.3 INVESTMENT AND ECONOMIC GROWTH The issue of licences by NTRC to competing companies, the plan to provide inexpensive access to the Internet for all Grenadians and the welcome financial assistance from India are amongst the many factors that should ensure the efficient and rapid growth of the ICT sector. This in itself will represent a marked increase in local economic activity and, more particularly, will enable major economic growth to occur should the various training initiatives described above come to fruition. Such growth can however be severely hampered if other Government agencies do not provide the same level of incentive and encouragement. Of particular importance would be an immediate review of the GCT and other taxes that are charged on ICT related equipments and services. In spite of recent changes in this area, there is a lack of clarity with respect to chargeable items and many of the charges that continue to be levied are a major disincentive to those businesses that are looking at entering the ICT sector but who cannot afford the present burdensome duties, taxes and costs. Lowering the government controlled costs across the board would have an immediate impact on the number of businesses becoming ICT literate and this would reap indirect but substantial benefits for the government in the medium and long terms.


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2.0 THE COMMUNICATIONS SUB-SECTOR 2.1 BACKGROUND AND PERFORMANCE

Grenada began the liberalization of its telecommunication sector in 2002. The resulting competition has contributed significantly to a reduction in the costs of telecommunications services and has helped to increase the range of services being offered to customers. The National Telecommunications Regulatory Commission (NTRC) of Grenada was established to regulate the newly liberalized telecommunications market in Grenada, Carriacou and Petit Martinique pursuant to the Eastern Caribbean Telecommunications Authority (ECTEL), ECTEL Treaty (Act 30 of

2000) and the Telecommunications Act (Act 31 of 2000). The National Telecommunications Regulatory Commission (http://www.ectel.int/grd) presents ECTEL at the local level and is responsible for issuing licenses. The NTRC is governed by the Eastern Caribbean Telecommunications Authority (ECTEL), a St. Lucia sub-regional regulatory body, established by five OECS countries (Grenada, St. Vincent and the Grenadines, St. Lucia, The Commonwealth of Dominica and St. Kitts and Nevis). Its role is to promote and monitor the transformation of the telecommunications regulatory environment in the sub region. The individual licenses issued by the NTRC as of November 2006 are listed below. In addition to individual licenses, a number of class licenses have also been issued covering a range of services that include International Simple Voice Resale, Internet Service Provider and Value Added Services. Type of Service Company Date Issued Fixed Public Communications

• Cable & Wireless Grenada Ltd. • Global Network Partners Inc. * • Trans-World Telecoms Caribbean Ltd* • Digicel Grenada Limited • Grenada Cablevision Ltd

• 12 October 2001 • 25 January 2002 • 29 May 2002 • 4 October 2006 • 4 October 2006

Public Mobile Telecommunication

• Cable & Wireless Grenada Ltd • Global Network Partners Inc. * • Trans-World Telecoms Caribbean Ltd * • Digicel Grenada Ltd • Grenada Wireless Holdings Ltd

• 12 October 2001 • 25 January 2002 • 29 May 2002 • 20 May 2003 • 26 May 2003

Internet Network/ Services • Cable & Wireless Grenada Ltd • Global Network Partners Inc * • Caribbean Knowledge and Leaning Network • Digicel Grenada Limited • Grenada Cablevision Limited • Grencomm Limited

• 12 October 2001 • 25 January 2002 • 7 March 2006 • 4 October 2006 • 4 October 2006 • 11 October 2006

Submarine Cable Landing • Southern Caribbean Fibre Grenada Limited • 24 November 2006 Cable Network and Services • Grenada Cablevision Limited • 23 June 2006 Cable Television Broadcasting • Grenada Cablevision Limited • 23 June 2006

Figure 1: Individual Licenses issued in Grenada to November, 2006 Source: NTRC Grenada * Companies not currently operational There are three telecommunication companies operating in Grenada as of November 2006: Digicel Grenada Ltd (Digicel), Cable and Wireless Ltd (C&W) and Grenada Cablevision Ltd (Cablevision).


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The services provided are: mobile internet and mobile services, fixed-lines, ADSL, dial-up, leased lines, Email and Web site Hosting, cable television services and the provision of satellite communications services. Digicel and C&W have been competing for four years in the mobile services market. Grenada Wireless Holdings Ltd (AT&T) operated for one year until Hurricane Ivan in 2004 but did not reopen after the hurricane. Its operation in Grenada was purchased by Digicel. The granting of an additional four licenses in late 2006 should produce further reductions in the costs of telecommunications services due to competition. One of the largest barriers to customers using ICT technologies is the cost. Cablevision has been granted two licenses; one for the provision of fixed public network services and another for Internet network services. Cablevision is the sole provider of cable TV service. Another company, Grencomm Limited has received a license to provide Internet network services and Southern Caribbean Fibre Grenada Ltd has been granted one license to land a submarine cable. This will effectively break all monopolies that C&W had in Grenada’s telecommunications sub sectors. This competition in the Internet network services has already produced a reduction in rates by the incumbent in Feb 20072.

2.1.1 CABLE SERVICE Grenada Cablevision Ltd offers cable TV services using a hybrid coax/fibre network that covers the entire island. Currently they have 15,000 subscribers. Although their cable infrastructure suffered severe damage during Hurricane Ivan in 2004, most of the infrastructure has been restored and upgraded with two-way amplifiers that allow for data traffic. The company offers four packages aimed at catering to the varied financial and entertainment needs of most customers; a basic package, a value package, a gold package and a movie package. A maximum of 67 channels is currently offered. The basic package costs EC$45.00 per month. In October 2006, the company was granted additional licenses to provide Fixed Public Communications and Internet networks/services. Internet services are yet to be implemented.

2.1.2 FIXED LINE Cable and Wireless Grenada Ltd is currently the only company offering fixed-line services and fixed line Internet connection: Dial up, ADSL and leased lines. They also provide mobile services.

The passage of Hurricane Ivan in 2004 damaged much of the company’s fixed line infrastructure. However, over the past two years, service has been restored to approximately 97% of the country. In March 2002 the number of fixed line subscribers was 29,940. The number of subscribers decreased by 16% to 25,226 in March 2005.3 This decline is due to customers choosing not to reinstall because of the cost of the reconnection coupled with the rapid growth of mobile usage. This decrease was accompanied by a rapid growth in the level of mobile phone penetration.

The cost of fixed line service is EC$26.40 per month for residential service and EC$40 per month for businesses. Per minute fixed to fixed line charges for residential lines are EC$0.07 (day) and 2 see Figure 4: C&W Residential Internet Rates 3 Quote source


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EC$0.04 (evening and weekends). Fixed to Mobile call charges are EC$0.71 per min (day) and EC$0.69 (evening and weekends).

Figure 2: Cable & Wireless Grenada Limited: Fixed Line Rates Source: Cable and Wireless Limited C&W also offered local leased line service with the cost ranging from EC$1,000 for 64K to EC$8,100 for 2048K. The one time installation charge is EC$500. Based on the most recent survey data available, C&W’s customers are generally satisfied with the quality and the features available on fixed line service. On a scale from 1 (not satisfied) to 10 (completely satisfied), C&W Grenada leads the ratings among the ECTEL group as shown in Figure 3.

Figure 3: Rating of Fixed Line Service (March 2005) Source: ECTEL In October 2006 both Cablevision and Digicel were awarded licenses to provide fixed public communications. Neither has begun offering the service to date.

Service Mar 2002 Mar 2003 Mar 2004 Mar 2005 Mar 2006 Residential Fixed Line Access Charge EC$45.00 EC$54.00 EC$54.00 EC$26.40 EC$26.40

Per minute Fixed to Fixed Line rates (Peak) EC$0.07 EC$0.07

Per minute Fixed to Fixed Line rates ( Evenings/ Weekends)

EC$0.05 EC$0.04

Per minute Fixed to Mobile call Charges (Peak) EC$0.76 EC$0.71

Per minute Fixed to Mobile call Charges ( Evenings/ Weekends)

EC$0.75 EC$0.69

0

1

2

3

4

5

6

7

8

9

Dominica Grenada St Lucia St Vincent and theGrenadines

Average Rating

Monthly Rental

Customer ServiceQuality of Reception on phone line

Features Available


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2.1.3 INTERNET AND BROADBAND C&W remains the sole Internet Service Provider in Grenada offering dial-up, wireless and ADSL Broadband access from fixed lines. The rates for Internet services offered by Cable & Wireless are regulated under the Price Cap Plan. The Price Cap Plan was negotiated by ECTEL and Cable & Wireless in 2004 and defines the rates charged for both fixed line and internet services. C&W offers Internet access via dial-up, ISDN, wireless, international leased lines, dedicated Internet Access and ADSL. Currently, wireless Internet

service is available free of charge at the Point Salines International Airport. Dial-up is available on all of its 33,000 fixed lines. Currently all 21 exchanges have been equipped with ADSL. Cable & Wireless plans to offer fixed wireless broadband services to complement the coverage of the ADSL broadband services for locations that are at more than three miles from an exchange. In March 2005 ADSL rates for 256Kbps were reduced 40% to $149. This reduction in price was accompanied by a 135% increase in subscribers. The residential rates for the C&W unlimited dialup and ADSL prices are shown below: Internet Access Dial-up 128 kb/s 256 kb/s 512 kb/s 768 kb/s 1544 kbs Monthly rates to Jan 2007 EC$129 EC$99 EC$149 EC$199 EC$379 EC$699

Rates from Feb 2007 EC$99 EC$149 EC$379

Figure 4: C&W Residential Internet Rates Source: Cable and Wireless C&W offers dedicated Internet access with prices ranging from EC$2,000 per month for a 128kbps connection to EC$192,100 for a 45 Mbps connection.4 The cost of installation is EC$2,000 and discounts are given for contracts longer than one year. According to C&W, these prices are due to be lowered. C&W also provides international private leased circuits to various destinations with bandwidths from 54 kbit/s to 2048 kbit/s. Connection to the Internet can also be made using mobile units. Both C&W and Digicel offer the service including email retrieval.

Figure 5: Type of Internet Access (Mar 2005) Source: ECTEL

4 http://www.candw.gd/internet/solutions/dia_pricing.asp

31.10

61.5 34.8

46.3

24.40

5.8

0

24.1

22.20 15.4 53

29.6

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

100%

Dominica Grenada St Lucia St Vincent andthe Grenadines

Don't know Other high speed access

Wireless or cellular ADSL Cable Modem Dial up modem


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The lack of fixed line service for prolonged periods of time after Hurricane Ivan contributed to the growth of the Mobile Internet access. Grenada has the highest cellular/wireless access in the ECTEL countries The market share of the two Internet providers is C&W 87.8% and Digicel 12.2%.

Figure 6: Internet Service Provider Source: ECTEL Digicel Grenada Limited, Grenada Cablevision Limited and Grencomm, another start up Grenadian Company, are also planning to offer telephony and Internet services beginning in 2007. Their applications have received favourable recommendation from ECTEL and were granted in October 2006.

2.1.4 INTERNATIONAL ACCESS For international fibre access, Grenada relies upon the Eastern Caribbean Fibre System (ECFS), and a submarine cable owned by a consortium of operators that includes Cable & Wireless. These charge high wholesale and retail Internet bandwidth rates that contribute to high rates for broadband Internet access services which further serves to hamper the growth of Grenada’s ICT sector. ECTEL has received applications to land the GCN / MCN cable in all ECTEL Member States and has made recommendations for the award of license. Southern Caribbean Fibre (Grenada) Limited was awarded a license in November 2006. The new international fibre cable was brought to the Grenada with the help of the Regional Council of Guadeloupe and financial support from the European Union. Cablevision will control and distribute this international link locally.

2.1.5 MOBILE SERVICES Cable & Wireless and Digicel Grenada Limited provide mobile services to customers in Grenada. Digicel acquired the assets of Grenada Wireless Holdings Ltd (AT&T) after Hurricane Ivan.

79

87.8

100

76

0% 20% 40% 60% 80% 100%

Dominica

Grenada

St Lucia

St Vincent and the Grenadines

Cable and Wireless

Alternative Provider


18

The liberalization of the market in 2003 effectively ended the monopoly of Cable and Wireless. With new entrants in the market came the introduction of advanced services and technology as well as improvements in service quality spurred on by competition. Mobile service, on the TDMA platform, was available to consumers from 2000 with features such as caller ID and voicemail. However, the post liberalization environment saw the introduction of mobile service on the GSM platform and the introduction of GPRS technology by Digicel in October 2003. With the GSM platform came an explosion in the use of SMS text messaging, picture messaging, email and Internet access via the mobile phone. Bluetooth technology was also launched by Digicel in October 2003. Roaming was made available to pre-paid mobile subscribers in August 2004. Competition between the current two mobile service providers continues to support the introduction of new services and technologies as companies vie to attract new customers and increase their market share. The rates for mobile services are set by competitive market forces. The cost of post paid plans is similar for both companies. Both providers also offer mobile email, text, voice mail and mobile web options. Provider Post Paid

Plan Cost Bundled Minutes

Add’l mins Peak time Same Provider

Add’l mins Peak time Other Provider

Fixed lines

Digicel EC$48 150 0.35 0.80 0.80 EC$99 320 0.33 0.75 0.75 EC$150 520 0.30 0.70 0.70 EC$285 1000 0.28 0.65 0.65 C&W EC$45 130 0.45 0.69 0.45 EC$90 275 0.45 0.69 0.45 EC$150 500 0.45 0.69 0.45 EC$225 750 0.49 0.69 0.49

Figure 7 - Post Paid Mobile Plan Costs Source: Cable & Wireless

2.2 MARKET CHARACTERISTICS The telecommunication services market reached a volume of EC$142 million in March 2005. This represents an overall compound annual growth rate (CAGR) of 3% over March 2002. Opposing forces have affected revenues in the telecommunications sector. The negotiated reduction in rates for both local and international calls from fixed lines has exerted downward pressure on telecommunications revenue. This decline in revenues from fixed line services has been offset, in part, by the expansion of the mobile segment in terms of both the number of subscribers and the minutes of use. In March 2004, the new entrants into the market for mobile services, Digicel and Grenada Wireless Holding (AT&T), accounted for 8%of the overall telecommunications revenues. This almost tripled to 24% by March 2005. Revenues Mar-02 Mar-03 Mar-04 Mar-05 Telecommunications Revenues (per million) EC$128 EC$114 EC$114 EC$142

Fixed Line Penetration 29% 29% 26% 21%

Mobile Penetration 7% 21% 67% 74% Internet Penetration 4% 4% 5% 5% International Outgoing Traffic (millions of minutes) 14 14 14 19

Local Traffic from Fixed lines (Millions of minutes) 330 461 248

Local Traffic Originating from a Mobile Phone (Millions of minutes) 6 18 42

Figure 8: Telecommunications Sector key Performance Statistics Source: ECTEL/operators NB: Estimated where ECTEL did not receive data from the operators


19

Penetration of the market varies depending on the type of service. Fixed line penetration has been declining since 2003 and by March 2005 was 21%. Mobile penetration, on the other hand, has increased ten fold to 74% in March 2005. In March 2002, with Cable and Wireless as the sole provider, mobile penetration was 7%, a total of 7,553 subscribers. The entrance of two new companies, Digicel and Grenada Wireless Holding (AT&T) in 2003 and the resulting reduction in rates is the main factor attributed to the high penetration rate. However Internet penetration is still quite low in Grenada compared with other Islands. The number of Internet subscribers stood at roughly 3,785 in March 2002 representing an average penetration of 4% with 4% of Internet subscribers having broadband service. By March, 2005 the number of Internet subscribers increased 39% to 5,200 with roughly 25% having broadband access. Access to a computer and the cost of broadband access are the main factors that have contributed to this low Internet penetration rate.

Figure 9: Telecommunication Service Penetration in Grenada (March 2005) Source: ECTEL 2.2.1 INTERNATIONAL TRAFFIC Outgoing international traffic stood at 19 million minutes in March 2005, representing a 36% increase over March 2003 figures. There are a number of factors that have contributed to this growth. The main factor has been the reduction in the cost of international calls from fixed lines. Additionally the introduction of per second billing for international calls made from mobile handsets has further increased international traffic. New entrants in the mobile market have also shared in this growth going from a mere 8% of outgoing international traffic in March 2004 to 31% by March 2005. Destination Daytime Evening/ Weekend OECS $0.79 $0.79 C&W Caribbean $0.79 $0.79 USA, UK Canada $0.90 $0.90 Rest of the World $1.65 $1.25

Figure 10: Cable & Wireless Grenada Limited International Rates Source: Cable & Wireless Grenada Ltd

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

2002 2003 2004 2005

Period Ending March

Penetration

Fixed Mobile

Internet


20

2.2.2 LOCAL TRAFFIC The volume of local traffic originating from fixed lines in Grenada was in excess of 248 million minutes in March 2005. Local traffic decreased by 25% compared to March 2003. This is consistent with the reduction in number of fixed line subscriber’s base. During the same period mobile local traffic increased dramatically from 6 million minutes in 2003 to 42 million minutes in 2005. This trend has also been seen in the other ECTEL states. Country Mar-03 Mar-04 Mar-05 Dominica n.a. n.a. n.a. Grenada 6 18 42

St Kitts and Nevis 5 15 15 Saint Lucia 8 51 60 St Vincent and the Grenadines 90 118 126

Totals 109 202 243 Figure 13: Local Traffic Originating from a Mobile Phone (Millions of minutes) Source: ECTEL/operators 2.2.3 Capital Investment Telecommunications Sub-sector Grenada has attracted high levels of Foreign Direct Investment (FDI) per capita and was rated ninth (9) in the world with US$41 million dollars being spent from 1990-2003 – a FDI per capita figure of US$424. This significant level of investment was made by both new entrants and the incumbent telephone company, Cable & Wireless Ltd in their preparation for competition. A total of EC$5.6 million had been invested in the telecommunications sector as of March 2002. Mainly due to two new entrants launching their operations in 2003, investment increased to a peak of $51 million in 2004. Investment in the sector continued to remain robust in 2005 with the sector attracting approximately $25 million in capital.

Figure 11: Investment in Telecommunications in Grenada Source: ECTEL/operators NB: Estimated where ECTEL did not receive data from the operators

0

10

20

30

40

50

60

2002 2003 2004 2005

Period ending March 2005

EC$ Millions


21

32%

68% Information Technology Sub-sector

Telecommunication Sub-sector

Capital investment in the telecommunications sub-sector is expected to remain significant over the next few years. Seven new individual licenses have been issued in 2006. Two in the fixed line service provision, four in the Internet Networks/Services provision and one for submarine cable landing. Competition is expected to continue to drive the need for service providers to innovate in order to attract new customers and retain existing ones. 2.2.4 EMPLOYMENT IN TELECOMMUNICATIONS The telecommunications sector’s labour market has witnessed some dramatic shifts with the liberalization of the sector. The net result has been positive with an increase in the overall level of employment. Although direct employment of the industry’s employees has declined there has been an increase in the level of indirect employment with the outsourced providers. Direct employment in the sub-sector has decreased from 219 in March 2002 to 183 in March 2005. The incumbent provider C&W reduced its staff by 30%. The effect of this reduction has been offset by the employment opportunities presented for independent contractors and entrepreneurs who now perform services previously provided by Cable and Wireless such as customer premises wiring and trenching. Multi Tech and All Services are two such companies. Other business opportunities include the management of customer service stores, the sale of handsets and mobile accessories, sale of pre-paid mobile phone cards, public payphone cards and calling cards for fixed line phones. Country Mar-02 Mar-03 Mar-04 Mar-05 Dominica 283 273 275 282 Grenada 219 172 190 183

St Kitts and Nevis 150 122 120 140 Saint Lucia 327 353 359 395

St Vincent and the Grenadines 160 147 137 156 Total 1139 1067 1081 1156

Figure 12: Employment in Telecommunications Source: ECTEL / operators NB: Estimated where ECTEL did not receive data from the operators Despite the small number of telecommunication enterprises, these companies heavily impact the ICT sector. They have over 180 employees and their annual revenues are EC$142 million in 2005 compared with 101 employees, and EC$4.3 million earned by the IT sector.

Figure 13: Employment by ICT Sub-sector, October 2006


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2.3 STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS (SWOT)

2.3.1 STRENGTHS Backbone Infrastructure Capacity Significant investment in backbone infrastructure has already been made. The C&W infrastructure has spare capacity so should be able to easily handle additional demand. Both C&W and Cablevision have island wide coverage. C&W has 33,000 fixed lines all of which can be used to connect via ADSL. Cablevision has 15,000 subscribers and an island wide backbone installed. C&W was the only provider of international access connection but in January 2007 another provider landed a cable in Grenada. This cable is to be used by Cablevision. The immediate result of this competition was that prices for ADSL internet access from Cable & Wireless were reduced (see Figure 4: C&W Residential Internet Rates) Established Regulatory Framework The government and regional bodies (such as ECTEL) have a well established regulatory framework with experienced regulations who oversee the industry. They are currently working on a strategy for the ECTEL states to help promote development of the ICT sector and by extension stimulate growth in the economies of the respective countries. Various pilot projects such as the SMART school in Grenada have been launched. Customer Demand Customer demand for telecommunications is high. Most people either have or want to have a mobile phone. One of the effects of globalization has been to open local customers’ minds to the benefits to be gained by the use of the Internet. Given a cost-effective solution most customers would want to be connected.

2.3.2 WEAKNESSES Lack of professional training facilities Professional training is not available locally especially for specialized technical skills. Most people have to go overseas or use correspondence courses to get the training they need. Cost of Service The main threat to the growth in the communication sub-sector is the cost of service and the equipment needed to use the service. C&W has begun offering a bundle of Internet connection and a laptop computer with payment terms to help make the equipment more affordable.

2.3.3 OPPORTUNITIES Internet Service Provision Although Grenada’s mobile service market is fairly saturated (74% penetration) and competition is keen between the current two service providers, depressing rates to fairly low levels, there is significant room for growth in the provision of Internet network connection and services.


23

ECTEL’s customer survey5 conducted from June to August 2005 indicated that approximately 20% of persons without Internet access planned to get access in the next year. The reasons cited for not planning to get access were:

I do not own a computer, I do not need Internet access; and Internet access is too expensive.

Figure 14: Personal Internet Access Source: ECTEL The use of mobile phones to connect to the Internet and to communicate using SMS is also growing. One survey showed that 97% of respondents used their cell phones to send and receive text messages. This presents opportunities for alternative use of this service for applications like advertising and marketing. Consumers could reap significant benefits from these innovations. Internet Based Services The demand by business and individuals for services provided through the Internet such as websites, E-commerce and Business e-mail services is growing. The use of E-commerce solutions is creating opportunities for companies able to provide cost effectively these support services.

2.3.4 THREATS Environmental Most of Grenada’s communication infrastructure is above ground and therefore prone to damage especially by Hurricanes. Some of the East coast does have its telephone infrastructure underground but there are not any immediate plans to extend this.

5 Socio-Economic Impact of Liberation Etc

20.8

8.8

27.7

11.5

79.2

90.7

72.3

88.3

0%

20%

40%

60%

80%

100%

Dominica Grenada St Lucia St Vincent and the Grenadines No

Yes


24

Pricing The biggest threat to the use of communications is the cost of the service. International calls, Internet Access and Mobile communication need to be cheap enough to encourage use by making it affordable to a wider group of customers. The NTRC and ECTEL have helped make communication cheaper but cost will still have to come down to equal those available in the USA and Europe. Competition has also assisted in reducing costs. Strengths Weakness • Backbone Infrastructure Capacity • Established Regulatory Framework • Customer Demand

• Lack of professional training facilities • Cost of Service

Opportunities Threats • Internet Access Provision • Internet Based Services

• Environmental • Pricing

Figure 15: Communications Sub-Sector SWOT Summary

2.4 MARKET & INVESTMENTS PROSPECTS

2.4.1 E-GOVERNMENT BACKBONE One of the objectives of the Grenada’s ICT Strategy was the provision of a national backbone providing inexpensive high-speed connection to the Internet for all citizens. The project included providing each national with an email address and inexpensive Internet access either using the local community centers or private connection for those citizens with computers. The email address provided would be used for Government to Citizen communication and it is hoped that people will migrate to using the Internet rather than having to go to the respective government office. 2.4.2 INTERNET SERVICE PROVISION Demand for Internet access will increase as the use of Business-to-Business and Business to Government transactions that utilize electronic funds transfer, procurement methods, and other ICT systems grows both locally and internationally. Companies will also need other associated services such has E-commerce site hosting and web site hosting. Currently the high cost of bandwidth and international access makes host web sites locally ineffective or if hosted locally, slower and expensive. This has resulted in most websites being hosted overseas but the site and content developed locally. There is a demand for low cost internet service connection, website hosting, e-commerce solution hosting and business email service.

2.4.3 E-GOVERNMENT A recent agreement between Grenada and the Government of India involving a grant valued at some US$15 million dollars for the development of the e-government project should provide immediate opportunities for the growth. The project includes the development of a national backbone to provide inexpensive access to the Internet. Additionally the Government will need a cost-effective provider of international access.


25

2.4.4 EDUCATION The government has computerized most secondary schools and aims to complete computerization of the primary schools within the next five years. Their goal is to provide Internet access and distance learning opportunities to the students. Providers of content and technical support services would be needed to support this initiative.


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3.0 THE INFORMATION TECHNOLOGY (IT) SUB-SECTOR 3.1 BACKGROUND AND PERFORMANCE

A substantial increase in the use of IT systems in Grenada has occurred during the past 10 years. The earliest users were primarily the banks, other financial institutions and, in some cases, the larger companies (over 100 employees) where the requirements of parent companies abroad or trading partners influenced the computerization of their operations or parts thereof. The establishment of data processing companies, call centers and offshore banking, in the 1990’s, further fuelled the introduction and use of IT. More recently, growth in the past five years has come from small to medium size businesses developing their IT/IS infrastructure such as establishing

office computer networks and implementing retail applications. In addition, the demand for IT based equipment such as laptops, MP3 players, ipod’s, and personal computers has helped to further spur sector growth. A key factor in this growth has been the growing use of the Internet for marketing, communication and research especially by those in the Tourism Sector. This growth of Grenada’s IT sub-sector has resulted in the emergence of nineteen (19) local companies providing IT services to both local and foreign customers. Some 50% of the IT Industry’s product and services providers started operations within the last 5 years. The consensus of the companies surveyed is that the demand for IT services is growing and most of them have expansion plans for their businesses.

Company Approx Annual sales EC$

Years In business

Number of Employees

Corporation

Sole prop.

1 Act - Art and Design $ 12,000.00 3 1 X 2 Bryden & Minors $ 204,000.00 8 3 X 3 Buzz Systems Ltd $ 160,000.00 4 4 X 4 Coconet Enterprises Ltd $ 15,000.00 3 3 X 5 Comptech Ltd/Computer Store Ltd $ 750,000.00 13 8 X 6 Compu Data Electronics $ 300,000.00 5 4 X

7 Computer Maintenance & Network Services $ 125,000.00 10 3 X

8 Computer Visioneers $ 100,000.00 10 5 X 9 Comserv $ 150,000.00 10 3 X 10 Digi-Soft Computer Services $ 100,000.00 4 3 X 11 Hankey's Computer Store $ 300,000.00 9 14 X 12 Jonas Browne & Hubbards $ 400,000.00 5 X 13 Kool Systems Ltd $ 1,120,000.00 4 14 X 14 K-Systems $ 150,000.00 5 1 X 15 ModOne $ 150,000.00 0.66 3 X 16 Spice Tec Computer $ 150,000.00 8 5 X 17 Spicy Design $ 75,000.00 10 2 X 18 The Computer Store $ 1,000,000.00 9 11 X 19 TSL (Grenada) Ltd $ 800,000.00 5 9 X

Total IT Sector Gross Sales $ 4,261,000.00 101 Figure 16: Grenada's IT Sub-Sector Industry Players Source: ICT Sector Survey Nov 2006 (Estimated by surveyor)


27

Most of the companies operating in the sector provide more than one (or several) different categories of services. They include: hardware sales and repair; (68% of the companies); network infrastructure setup/support (63%); Internet related services (Website Design, Internet cafes, email and website hosting) (53%); training (32%); software support (26%); and software Design and Development (11%). (ICT Survey Oct 2006 see Appendix).

Figure 17: Grenada’s IT Sub sector by Category of Service Offered Source: ICT Sector Survey Nov 2006 The services most offered are hardware sales and repairs and network infrastructure support. More recently, the demand for Internet related services has driven the increase in range and type of IT service provided. Companies focusing on hardware sales and networking include Buzz Systems, Comptech Ltd, Compu Data Electronics, Computer Maintenance & Network, Digi-Soft Computer Services, Hankey’s Computer Store, Kools Systems Ltd, K-systems, Spice-tec Computer, The Computer Store and TSL (Grenada) Ltd. The cost of network infrastructure services ranges between EC$75 to EC$150 per hour. Hardware repair cost ranges between EC$50 to EC$125. ModeOne, Spicy Design, Coconet Enterprises Ltd, TSL(Grenada) Ltd and Act- Art and Design focus on web site development, e-mail hosting and ecommerce solutions. Training is provided by Hankey’s Computer Store, Comserv, Compu Data Electronics, Computer Visioneers, Digi-soft Computer Services and Spice Tec Computer. More sophisticated services such as Software Support, Information Systems Development and System Integration are provided by Comserv, Buzz Systems, Computer Maintenance & Network Services, Comptech Ltd and Spice Tec Computer.

0%

10%

20%

30%

40%

50%

60%

70%

Service Type

Software Design/DevelopmentSoftware SupportHardware Sales/Repairs NetworkProgramming Web Site Design E-commerce/ Email hostingInternet Café Training


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Table 18: IT Companies by Type of Service Source: ICT Sector Survey Nov 2006 The IT sub-sector’s contribution to Grenada’s GNP is not tracked by the Government’s statistical department but according to Mr. Sinner of the Government’s Central Information Management Agency (CIMA), it is roughly estimated to be 0.1% of the GNP. The estimated annual gross sales of the Industry is EC$4.3 million (see Error! Reference source not found.) While the IT sub-sector is currently not a major contributor to GNP, the potential is high for further dynamic growth as use of IT Technology increases. 3.1.1 IMPORTS AND EXPORTS Grenada does not produce nor export any IT equipment. Most of Grenada’s IT equipment is imported from the USA and the Far East. Assembly of computers, to a limited extent, is done by some of the companies in the sector but not for export. The higher importation cost of parts needed to put the computer together has hampered development in this area. Software is increasingly being bought online and downloaded into the system. The importation cost on software is sixty-five (65%) which helps fuel this trend. Three of the companies operating in the IT sector provide services to/in other islands. The services currently offered are website development and software development and support services. Several of the companies interviewed indicated an interest in developing business regionally.

3.2 MARKET CHARACTERISTICS The demand for IT services is increasing as exposure to and ownership of computers grows. Both individual and companies are investing in IT assets as they realize the importance or are pressured by external organisations to use them.

Company name Approx Annual

Number of Customers

Corporate Customers

Private/ Individuals Repeat Once Local Over

seas

Act - Art and Design 7 Brydens 300 50% 50% 50% 50% 100% 0% Buzz Systems Ltd 20 90% 10% 95% 5% 100% 0% Coconet Enterprises Ltd 3 50% 50% 70% 30% 80% 20% Comptech Ltd/ Computer Store Ltd N/A 50% 50% 50% 50% 100% 0%

3% 8%

24%

19%5% 15%

8% 8%

10% Software Design/Development

Software Support

Hardware Sales/Repairs

Network

Programming

Web Site Design

E-commerce/ Email hosting

Internet Café

Training


29

Compu Data Electronics 4 25% 75% 25% 75% 95% 5% Computer Maintenance & Network Services 40 75% 25% 75% 25% 95% 5%

Computer Visioneers 10,000 5% 95% 5% 95% 100% 0% Comserv 15 95% 5% 95% 5% 50% 50% Digi-Soft Computer Services 400 40% 60% 60% 40% 100% 0%

Hankey's Computer Store 14 35% 65% 35% 65% 100% 0% Jonas Browne & Hubbards 100% 0% Kool Systems Ltd 5,000 50% 50% 50% 50% 100% 0% K-Systems 100 65% 35% 70% 30% 100% 0% ModOne N/A 80% 20% 95% 5% Spice Tec Computer 500 30% 70% 50% 50% 100% 0% Spicy Design N/A 50% 50% 50% 50% 100% 0% The Computer Store 100% 0% TSL (Grenada) Ltd 150 70% 30% 80% 20% 100% 0% Total Information Technology Services 16,403

Figure 19: Profile of IT Customers Source: ICT Sector Survey Nov 2006 The World Bank ICT Survey 2004 states that there are 135 personal computers per 1000 people. This represents an increase of 12%, from 118 in 2000. The number of internet users has increased from 41 per thousand people in 2000 to 182 per thousand people in 20046. This growth was closely related to the reduction in the cost of the Internet connection. The cost of the equipment and the Internet connection are the main barriers to growth. A growing number of businesses are using ICT systems to support their business activities. The use of email as an inexpensive communication method and the Internet as a research method has helped to push growth. All business computers are used for basic administration tasks and some business function such as accounting. Many of the companies also operate some type of network system to link their computers to share files and printers and to share Internet connection. The use of computer based Point of sales systems has been gradually growing. Most of the larger supermarkets and the major restaurants now have industry specific solutions. Currently approximately 15% of all retail outlets have electronic systems. The Government is in the process of introducing VAT in Oct 2007. One of the effects of this change will be that companies will need to improve their record keeping to comply with the new requirements. As a result the demand for Point of Sale Systems is expected to increase. The main source of e-commerce activity in Grenada is from the tourism industry in the form of Web sites promoting hotels, resorts etc. There is a small amount of export-oriented e-commerce activity based in Grenada. There are several Web sites devoted to Grenada businesses providing products, news and information, entertainment and culture. One example is Grenadamarket.com, which offers Grenadian products directly for sale to the public. On the other hand, there are several overseas Web sites devoted to Grenadian businesses, including products, news and information, entertainment, and culture. One major site, belgrafix.com, operates under the slogan, “Grenada on the Internet, One Byte at a Time”. This site offers a rich mix of information sources as well as links to numerous other Internet sites focused on Grenada, with particular appeal to ex-patriot citizens (http://www.belgrafix.com/). 6 World Bank ICT at a Glance - Grenada


30

Another example is Grenadamarket.com, which does offer numerous Grenadian products directly for sale to the public, utilizing a well-designed e-commerce interface, complete with “shopping cart”, credit card, and PayPal capabilities. The company that operates the site, Belcom Business Solutions, Inc., is based in New York City and St. George’s, Grenada, indicating that this business has established an export link to the U.S.-based market for Grenadian products. (http://grenadamarket.com/catalog/) Over the last year several new sites have been developed to market Grenadian products and resources. One example is a consultant database http://www.outsourcegrenada.com/ and the Grenada Agriculture Information Service http://www.foodandfarmgrenada.com/. GAIS is designed to assist the country’s farmers and fisher folk by providing them with timely and accurate information through the publication of its "Food & Farm Grenada" Weekly Bulletin and Bi-Monthly Newsletter; and the operation of its dedicated Web Portal. 3.2.1 EMPLOYMENT IN THE IT SECTOR The businesses operating in the IT sector employ one hundred and one (101) persons. Over 75% of IT companies employ 1 to 5 persons, 11% employ 6 to 10 persons, and 14% of companies have 11 to 15 employees. The unavailability of professional IT training locally means that training and development of the skills become more costly. One of the challenges faced by IT companies wanting to provide additional services is locating suitable qualified personnel. In November 2006 Hankey’s Computer Store started offering professional training and examinations in A+ and Net+ certifications.

Figure 20: Grenada’s IT sub-sector - Companies by Employee Size Source: ICT Sector Survey Nov 2006 3.2.2 CAPITAL INVESTMENT IT SUB-SECTOR

Grenada’s IT sub-sector is comprised principally of small local companies. Capital investment has been limited primarily to the acquisition of hardware- computers and support equipment and to a lesser extent retail software and systems. IT service providers have typically invested between EC$15,000 and EC$20,000 in IT infrastructure and support equipment. The ones which provide training have made slightly larger investments since their operation involves the establishment of training labs. The level of investment has been EC$2,750 per seat including network infrastructure. Investment in IT hardware and the software that retailer’s purchase would be dependant on the size and type of stock they intend to sell.

1-5 Employees 75%

6-10 Employees11%

11-15 Employees14%


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3.3 STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS 3.3.1 STRENGTHS Growing Market Most companies and individuals are now aware of the use of IT/ICT systems. The main barrier is the cost of the equipment and the associated service costs. Initiatives like the CSME will force the local companies to upgrade their systems to remain competitive. Education and Training in IT

The Science and Technology Council, in collaboration with the T A Marryshow Community College (TAMCC) are now offering an Associate Degree Programme in Information Technology using distance education methods. In addition, ICT training programmes have been arranged for teachers and senior public servants. A degree in Management Information Systems (MIS) is being offered at St. George’s University. Some web management training is being offered and several websites are being set up. Recently professional

certification A+ and Net + course are being offered 3.3.2 WEAKNESSES Lack of Awareness of IT’s Potential Growth of investment by businesses in IT equipment is limited by the lack of awareness by customers of the potential of information systems to increase their profitability and solve operational inefficiencies. The consensus of the IT service providers is that activities to increase customer awareness such as seminars are required to help increase demand. Another key factor is the traditional perception of many small retail companies that the volume of sales does not warranty the investment in IT. Lack of Standards and Absence of Industry Trade Body Currently there are no IT standards in force to support best practices and ensure level of service. The IT industry is in the process of forming an association to help with the development of such standards. Lack of Available Skills The number of complex/large IT projects carried out in Grenada is small and typically require very specialized systems and skills. Many times the skills are not available locally nor is it cost effective to provide them due to the small demand. This results in the larger projects being performed by overseas companies. Some local companies have started to partner with these overseas companies to provide some of the required services. The lack of professional IT training facilities locally means that the cost of getting the expertise training is higher and typically requires the candidate to travel overseas to take course or sit the exams.


32

3.3.3 OPPORTUNITIES Growth of the Economy Growth of the Grenadian economy as the country recovers from the effects of Hurricane Ivan (actual GNP growth information needed) has resulted in individuals having more disposable income to invest in previously regarded “non essential” items such as computers for home use and internet access. Although no study has been done specifically on the size of market, survey results on Internet penetration in Grenada show that it is still quite low at 8.8% of the population7. The number of Internet subscribers increased by 39% to 5,200 in March 2005. These users represent potential customers. The penetration of IT usage is still small but customer interest is rising. Need for more sophisticated systems and services As the economy grows and more businesses start operation, the demand for more sophisticated systems and services will increase making provision of these services economically feasible in Grenada (such as development of software and programming skills). These skills could also be marketed regionally and internationally. Changes in Government Taxation Policy Changes in the government’s taxation methods by the introduction of VAT will fuel demand for business customers to have more efficient accounting systems to record the operations of the companies in the country. This provides opportunities for providers of such systems. 3.3.4 THREATS Cost of Equipment and Services The major threats to growth in the sub-sector are: the cost of the equipment and materials and the cost of internet connection. The latter is expected to be reduced in the near future with additional competition and the continued efforts of ECTEL and NTRC to ensure fair prices for telecommunication services As an incentive for computer ownership, Government Consumption Tax (GCT) is not charged on computer systems imported but a five percent (5%) Customs Service Charge and a five percent (5%) duty charge is payable. However replacement parts and accessories attract GCT and duty at various levels ranging from 10% to 37.5%. Sixty-five (65%) is charged on software. This has resulted in several companies stopping assembling computers locally resulting in loss of jobs and fewer cost-effective equipment being available to customers. The trend in software is that customers are downloading software rather than purchasing the programs in Grenada. Caricom Single Market Economy (CSME) and Outsourcing As the implementation of the CSME proceeds the barriers against entry of external companies are being removed allowing free movement of people and capital between the islands. This is a potential threat to local companies who would not necessarily have the same skills and expertise so will therefore find it difficult to compete for the handling of more complex IT solutions.

7 ECTEL – Social – economic impact of Liberation of the telecoms sector in ECTEL member states


33

Strengths Weaknesses • Growing Market • Education and Training in IT

• Lack of Awareness of IT’s Potential • Lack of Standards and Absence of Industry

Trade Body • Lack of Available Skills

Opportunities Threats • Growth of the Economy • Need for more sophisticated systems and

services • Changes in Government Taxation Policy

• Cost of Equipment and Services • Caricom Single Market Economy (CSME)

and Outsourcing

Figure 1: Individual Licenses issued in Grenada to November, 2006

3.4 MARKET & INVESTMENTS PROSPECTS

3.4.1 E-COMMERCE The role of IT in the business and finance sectors in Grenada appears to be still relatively undeveloped. There is very little in the way of Business-to-Business (B to B) transactions that utilize electronic funds transfer, procurement methods, and other ICT systems. Nearly all of Grenada’s retail stores and small businesses conduct transactions manually. The banks generally do not offer on-line account services nor do they provide on-line credit card payment processing facilities for local e-commerce web sites. Credit cards are accepted by the tourism operators and retail stores. Currently there is no Business to Government (B to F) or Customer to Government e-commerce. This is changing as more departments of the Government get online. The Government does have a website but it is mainly for information and does not have the capacity for e-commerce transactions (www.gov.gd). Additionally not all ministries are represented. 3.4.2 BUSINESS IT SUPPORT SERVICES

The trend is toward a greater use of IT systems by business thus creating more demand for IT services especially network infrastructure, hardware and software support. This trend will also promote the use of customized solutions such as database systems. As a consequence, design and maintenance support services is another good prospect. The growing dependence on IT also opens the market for data security services such as remote backup and data security evaluation. One of the effects of the CSME agreement is the opening up of new regional markets. For Grenadian companies to maximize the opportunity presented,

they will require more cost effective methods of doing business such as the use of E-commerce applications and the use of the Internet to advertise their services and products.


34

3.4.3 E-GOVERNMENT A recent agreement between Grenada and the Government of India involving a grant valued at some US$25 million dollars for the development of an e-government project is expected to provide significant opportunities for the growth of the local industry. The project includes the development of systems to allow Business to Government transactions to be processed online. As companies begin to take advantage of this facility the demand for IT equipment will increase. 3.4.4 EDUCATION Over the period of 1998 to 2005 computers have been placed in secondary schools and the government intends to do the same in the primary schools. The Caribbean Knowledge and Learning Network (CKLN), a Caribbean Community (CARICOM) project is headquartered in Grenada. The "Smart School" concept is being explored in collaboration with the Commonwealth Partnership for Technology Management (CPTM). One of the opportunities these types of projects present to the sub-sector is the demand for content and training. Another is to provide the hardware support. 3.4.5 TRAINING PROVISION There is a strong consensus on the need for substantially more training at the IT professional and user level. Most of the companies interviewed reported having to send their staff overseas to take IT professional courses and to sit the exams in various technical fields. Three companies, Compu Data Electronics, Computer Visioneers and Hankey’s Computer Store, have recently opened training centres, and are looking to expand technical training services. Hankey’s Computer Store has recently become an authorized examination center for the A+ and Net+ exams but the country’s lack of expertise makes it difficult to find qualified trainers. User level training is also available to a limited extent. The majority of courses offered are at the introductory level. Much needs to be done in the training sector in order to help the industry grow and to fuel greater consumer awareness and demand for products and services. 3.4.6 INTERNET CAFES The demand for Internet cafes is growing as more services become available online and interest in using the Internet grows. Internet cafes typically provide access to computers and the Internet but also secretarial services such as typing of documents and binding. Five (5) of the IT companies interviewed had one or more computers for use by customers. 3.4.7 KNOWLEDGE PARKS One of the projects being discussed as part of the Indian Government aid is the creation of facilities specifically designed for ICT Industries. This is hoped to attract businesses wishing to setup these types of business such as call centres, programming centres and data processing. 3.4.8 RETAIL AND INVENTORY SYSTEMS There is a growing demand for electronic systems for retail and inventory solutions. Such systems greatly aid with the management and control of these operations. Many of the larges business are in the process of adopting this technology.


35

REFERENCES Office of the Prime Minister:

”Information and Communication Technology: A strategy and action plan for Grenada 2001-2005”. ed June 10, 2002. Government of Grenada

ECLAC (Economic Commission for Latin America and the Caribbean):

2005, “Information and Communications Technology in the Caribbean: Stocking report” http://eclac.org/publication/xml/3/23213/l.56.pdf.

ECLAC:

2005, “Report of the expert group meeting on the Caribbean Information Society” http://www.eclac.cl/publications/xml/8/21868/L.044.pdf.

ECLAC:

2006. “Socio-economic Impact of Liberalisation of Telecoms Sector in the ECTEL Member States” http://ectel.int/ectelnew/latesnewsdoc/Socioeconomic%20Impact%20of%20Liberalization%20of%20Telecom%20Sector%202005.doc

World Bank:

“2006 Information and Communications for Development: Global Trends and Policies”. World Bank, Washington, D.C. Online http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTINFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/0,,contentMDK:20831214~pagePK:210058~piPK:210062~theSitePK:282823,00.html

NTRC Grenada:

http://www.ectel.int/grd/


a

APPENDICES

ACT – Art and Design Business Summary The business offers Website Development, Graphic design and Corporate branding services. They are located within the Art Council Offices in Tanteen. Location Craft Center, Lagoon Road, St. George’s Mailing Address Craft Center, Lagoon Road, St. George’s Years in Operation 3 years Number of Employees One Qualification Level of staff Swiss Certified Web Publisher Brands/Manufactures representative

None

Annual Sales (approx) EC$12,000 Organisation Structure/Ownership Partnership Interest in Investment/Joint ventures

Yes

Core Services Web Site development and design, Graphic Design and logos, Corporate Branding

Annual Number of Customers 10 Customer Types Business Customers 50% and Individuals 50% Expansion Plans Yes, Freelance Copy Writing Main Contact Daniela Froehlich - Manager Email/Website [email protected] www.artanddesign.com Appendix A: ACT – Art and Design


c

Bryden & Minors Ltd – The Computer Zone Business Summary The Computer Zone is a department of Bryden & Minors Ltd, one of the larger companies in Grenada. The department is located within Bryden & Minors Ltd office supplies store. The Computer Zone represents Canon in Grenada. They sell their printers and printer supplies and perform Canon printer repairs. The department stocks a limited amount of IT accessories and various brands of computers but they are not the representative of any particular manufacturer or brand. The customers are a mix of walk-in customers, mainly for printer supplies and habitual customers to which printer and computer support is provided. Location Lagoon Road, St. George’s Mailing Address P.O. Box 14, St. George’s, Grenada Years in Operation 8yrs Number of Employees 3 Qualification Level of staff Computer and Electronic Repairs Courses Brands/Manufactures representative Canon Annual Sales (approx) $204,000 Ownership Corporation Interest in Investment/Joint ventures Yes, especially product representation Core Services Computer and Cannon printer repair, Annual Number of Customers 300 Customer Types Walk-in/Individuals 50%/Corporate 50% Expansion Plans Additional Product Representation Main Contact Person Andrew Minors - Director Email/Website [email protected],

www.brydens.com,www.canonlatinamerica.com Appendix B: Bryden & Minors Ltd – The Computer Zone


d

Buzz Systems Ltd Business Summary Buzz Systems Ltd is an IT Infrastructure support company. They focus on corporate systems and will setup both LAN’s and wireless systems. They do not stock IT equipment but will bring in the equipment needed for their customers. Software support services are also offered. Location Old Mill Rd, True Blue, St George’s Mailing Address Old Mill Rd, True Blue, St George’s Years in Operation 4 years Number of Employees 3 Qualification Level of staff MCSE, A+ and Net + Brands/Manufactures representative None Annual Sales (approx) $160,000 Organisation Structure/Ownership Company Interest in Investment/Joint ventures Yes – Software representation Core Services Software support, Hardware Sales and Network

Infrastructure support, , Mail and Web Hosting Annual Number of Customers 15 Customer Types Regular Customers 85%, One time 15% Expansion Plans Yes, software support Main Contact Danie Brink Email/Website [email protected], www.buzz-systems.comAppendix C: Buzz Systems Ltd


e

Coconet Professional Solutions Business Summary This company offers Website Development, Graphic design and Corporate branding services as well as IT hardware support. They setup and support small networks and source the equipment necessary to complete the system. Location Pegs Complex, Lance Aux Epines Main Road, St.

George’s Mailing Address P.O. 1699, Grand Anse Years in Operation 3 years Number of Employees Three Qualification Level of staff Macromedia Certified Training, Dream weaver,

Fireworks and Flash Brands/Manufactures representative None Annual Sales (approx) EC$150,000 Organisation Structure/Ownership Corporate Interest in Investment/Joint ventures Yes Core Services Web Site development and design, Graphic Design

and logos, Corporate Branding Annual Number of Customers 40 Customer Types Business Customers 70% and Individuals 30%

50% of the customers are foreign Expansion Plans Main Contact Mike Jordan – Managing Director Email/Website [email protected] Appendix D: Coconet Professional Solutions


f

Compu-tec Services Ltd and Computer Support Ltd Business Summary Compu-tec Services Ltd and Computer Support Ltd are sister companies. The companies have been in operation since 1993. Compu-tec Services Ltd sells IT Hardware and accessories which include computer systems, memory, hard drives, printer supplies, mice, various cables. Computer Support Ltd provides computer and network infrastructure repair and support and assemblies computers for sale. They are a Microsoft partner. Large scale training of IT professionals and exam hosting was provided prior to Ivan. Currently this is only being done to a limited extent on an in house job training basis. Location Food Fair Mall, Grand Anse, St. George’s Mailing Address Food Fain Mall, Grand Anse Years in Operation 16 yrs Number of Employees 8 Qualification Level of staff Microsoft Instructor (MCT), Microsoft Certified

Systems Engineer (MCSE), Cisco certified, A+, Net+, Brands/Manufactures representative Microsoft Annual Sales (approx) N/A Organisation Structure/Ownership Corporation Interest in Investment/Joint ventures Yes, especially new services or product

representation Core Services IT Hardware Sales/repairs, Network Infrastructure

Setup/Support, IT supplies sale Annual Number of Customers N/A Customer Types Walkin/Individuals 50%/Corporate 50% Expansion Plans Not at this time Main Contact Mr. Ganness – Managing Director Email/Website [email protected] Appendix E: Compu-tec Services Ltd and Computer Support Ltd


g

Compu-Data Electronics Inc Business Summary Compu-Data Electronics Inc offers computer and telecommunications services, computer and telephone sales, repairs and installation, networking and consulting services. They also have a two room training center offering user level courses such as Introduction to Computers, Microsoft Word and Excel. The company has recently opened an office in Trinidad. Location St. John’s St, St. George’s Mailing Address P. O. Box 2216, St. George’s Years in Operation 5 years Number of Employees Four Qualification Level of staff Diploma IT, Associate Degree in IT (TAMCC),

Electronics Engineering Brands/Manufactures representative None Annual Sales (approx) EC$300,000 Organisation Structure/Ownership Corporate Interest in Investment/Joint ventures Yes Core Services Hardware sales and repair, Training Annual Number of Customers 5000 Customer Types Business Customers 25% and Individuals 75% Expansion Plans Additional training space, renovation of Grenada

office Main Contact Martin Alexander – Managing Director Email/Website [email protected] Appendix F: Compu-Data Electronics Inc


h

Computer Maintenance and Network Solutions Business Summary Computer Maintenance and Network Solutions provides IT infrastructure support to, mainly, corporate clients. This support included database programming, network infrastructure support and installation, sourcing of required equipment and software support. The company is one of the few that does offer database application development and support. They also sell IT equipment but only keep a limited quantity of stock. Location 12 Church St, St. George’s Mailing Address 12 Church St, St. George’s Years in Operation 10 yrs Number of Employees 3 Qualification Level of staff A+, Brands/Manufactures representative None Annual Sales (approx) $125,000 Organisation Structure/Ownership Sole Proprietor Interest in Investment/Joint ventures Yes, especially product representation Core Services IT Hardware Sales/repairs, Network Infrastructure

Setup/Support, Programming Annual Number of Customers 40 Customer Types Regular Customers 85%, One time 15%

Corporate Customers 75% and Private/Individuals Customers 25%

Expansion Plans Offering training Main Contact Phillip Williams - Manager Email/Website [email protected] Appendix G: Computer Maintenance and Network Solutions


i

Computer Visioneers Business Summary Computer Visioneers operate two Internet cafés that offers Internet access and training on computers. They will also supply IT equipment. They offer user level courses focusing on the Microsoft Office suite of products. The company is planning to expand its operation by opening a larger office and retail outlet within the next year Location Gore St, St. George’s and Seaton Brown, Grenville Mailing Address Gore St, St. George’s Years in Operation 10 years Number of Employees Five Qualification Level of staff Associated Degree in Computer Sciences, A+ Brands/Manufactures representative None Annual Sales (approx) EC$100,000 Organisation Structure/Ownership Sole Proprietor Interest in Investment/Joint ventures Yes Core Services Hardware sales and repair, Training Annual Number of Customers 5,000 Customer Types Business Customers 5% and Individuals 95% Expansion Plans Additional training space, Large office Main Contact Elton Charles – Manager Email/Website [email protected] Appendix H: Computer Visioneers


j

Comserv Ltd Business Summary Comserv has been advising its clients for the last fifteen years on Information and Technology Systems. The company specializes in IT systems Project Management and systems implementation. They are also certified Quickbooks Pro Advisors. The products they represent are Pixel Point Restaurant Software, Quickbooks Pro and Point of Sale systems. Location Lance aux Epines, St. George’s Mailing Address P.O. Box 44, St. George’s Years in Operation 10 years Number of Employees Three Qualification Level of staff Bsc Information Systems and Computers,

Quickbooks Pro 2006 certification Brands/Manufactures representative Quickbooks, Pixel Point Annual Sales (approx) EC$150,000 Organisation Structure/Ownership Company Interest in Investment/Joint ventures Yes Core Services Information System Development and

implementation, Quickbooks Support and Training Annual Number of Customers 15 Customer Types Business Customers 95% and Individuals 5% Expansion Plans Additional training space, Larger office Main Contact Isabelle Slinger – Managing Director Email/Website [email protected],

www.comserv.homstead.com Appendix I: Comserv Ltd


k

Digi-Soft Computer Services Business Summary Digi-Soft Computer Services operates in Carriacou. They provide internet café services, website design, Hardware Sales and support, Network Infrastructure Setup/ Support, and printer sales. They also provide secretarial services. Location Hillsborough, Carriacou Mailing Address Hillsborough, Carriacou Years in Operation 4 yrs Number of Employees 3 Qualification Level of staff A+, Network +, Website Design course Brands/Manufactures representative None Annual Sales (approx) $100,000 Organisation Structure/Ownership Sole Proprietor Interest in Investment/Joint ventures Yes, especially product representation Core Services IT Hardware Sales/repairs, Network Infrastructure

Setup/Support, Internet Café, Website Design Annual Number of Customers 500 Customer Types Regular Customers 50%, One time 60%

Expansion Plans New locations and expanding of the types of services

offered Main Contact Jade Whyte - Manager Email/Website [email protected] Appendix J: Digi-Soft Computer Services


l

Hankey’s Computer Service and Computer Store Business Summary Hankey’s has two locations, one in St. George’s and one in Genville. They sell computer hardware and accessories, and provide support and repairs services. Both stores have a wide variety of stock and have an Internet Café area. They offer A+ and Net + professional training and certification as well as user level courses. Location Grenville St., St. George’s and Sendall St., Grenville,

St. Andrews Mailing Address Grenville St., St. George’s Years in Operation 9 years Number of Employees Fourteen Qualification Level of staff Microsoft Certified Professional, A+, Net +, Associate

Diploma in Computer Systems Brands/Manufactures representative E-Power Annual Sales (approx) EC$300,000 Organisation Structure/Ownership Corporate Interest in Investment/Joint ventures Yes Core Services Training and Hardware sales and support Annual Number of Customers 3000 Customer Types Business Customers 35% and Individuals 65%

Onetime Customers 65%, Regular 35% Expansion Plans Yes Main Contact Garfield Hankey – Managing Director Email/Website [email protected] / www.spiceisle.com/hcs Appendix K: Hankey’s Computer Service and Computer Store


m

K-Systems Business Summary K-Systems offer IT Infrastructure support to companies and individuals. The services are offered on an appointment basis. Their core business in network infrastructure support. Location P.O. Box 855, St. George’s Mailing Address P.O. Box 855, St. George’s Years in Operation 5 years Number of Employees 1 Qualification Level of staff MSCE, CCNA, A+ and Net + Brands/Manufactures representative None Annual Sales (approx) Organisation Structure/Ownership Sole Proprietor Interest in Investment/Joint ventures Yes Core Services Software support, Hardware Sales and Network

Infrastructure support Annual Number of Customers Customer Types Regular Customers 70%, One time 30% Expansion Plans Yes Main Contact Andrew Richards - Manager Email/Website [email protected],

www.ksystemsgrenada.com/ Appendix L: K-Systems


n

Kool Systems Ltd Business Summary Kool Systems Ltd has been in operation for four years providing IT support services and selling IT equipment and accessories. Kool Systems Ltd stocks a wide variety of IT Hardware and accessories which include computer systems, memory, hard drives, printer supplies, mice, various cables, and games. On a limited basis assembly of computers is also done. They supply IT products to both end users and other IT firms. This year they decided to separate the operations into two departments, one to provide IT services and support and the other to sell the products. Limited training to purchasers of Computer is offered. Internet café services are provided at the Young St branch. Network Infrastructure installation and maintenance is also provided to corporations and small businesses. Location Young St, St. George’s Mailing Address P.O. Box 2072, St. George’s, Grenada Years in Operation 4 yrs Number of Employees 14 Qualification Level of staff Microsoft Certified Systems Administrator (MCSA),

A+, Network +, Microsoft Office Specialist (MOS) Brands/Manufactures representative Microsoft through a USA based wholesaler Annual Sales (approx) $1,120,000 Organisation Structure/Ownership Corporation Interest in Investment/Joint ventures Yes, especially product representation Core Services IT Hardware Sales/repairs, Network Infrastructure

Setup/Support, IT supplies sale, Internet Cafe Annual Number of Customers 5,000 Customer Types Walkin/Individuals 50%/Corporate 50% Expansion Plans New locations and expanding of the types of products

offered Main Contact Vaughn Lawrence – Managing Director Email/Website [email protected] Appendix M: Kool Systems Ltd


o

ModOne Business Summary ModOne is a recently established I.T. firm that currently provides services to local, regional and international clientele. Their services include Web Design & Development, Wired & Wireless Networking, Computer Repairs, Database Development, Offsite Data Backups, Data Recovery and Business E-mail Hosting. They are capable of developing dynamic, content rich, database driven websites for small to medium businesses to the large enterprise corporations. Location Maurice Bishop Highway, Grand Anse Mailing Address P.O. Box 1743, Grand Anse Years in Operation 8 months Number of Employees 3 Qualification Level of staff E-business diploma, E-Business Solutions

Developer, Business Marketing Diploma Brands/Manufactures representative None Annual Sales (approx) Organisation Structure/Ownership Sole Proprietor Interest in Investment/Joint ventures Yes Core Services Web Site services, E-Commerce, Email and remote

backup hosting Annual Number of Customers Customer Types Regular Customers 85%, One time 15%


Expansion Plans Main Contact Christian Chu Fook Email/Website www.modone.net, [email protected] Appendix N: ModOne


p

Spice Tec Computers Business Summary Spice Tec Computer offers a wide variety of IT services mainly to individuals. They are planning to open an office in Seamoon, St. Andrews. They do not stock IT equipment and parts but will source and install them for customers. It is also one of the few IT organisations operating in St. Andrew’s. Location Seamoon. St. Andrews Mailing Address Years in Operation 8 years Number of Employees 5 (part time) Qualification Level of staff A+, MIS – IT and Telecommunications, A+ and Net +, Brands/Manufactures representative None Annual Sales (approx) $150,000 Organisation Structure/Ownership Sole Proprietor Interest in Investment/Joint ventures Yes Core Services Programming, Software support, Hardware support

and sales, Network support, Training, Web Development

Annual Number of Customers 300 - 700 Customer Types Regular Customers 85%, On time Customers 15%,

Business companies 35% and Individuals 65% Expansion Plans Yes, opening a office Main Contact Daniel Williams - Manager Email/Website [email protected], [email protected] Appendix O: Spice Tec Computers


q

Spicy Design Business Summary Spicy Design offers website development services. Theses services include development of the web pages, graphic designs, web hosting and domain registration. They also offer web use training. Location P.O. Box 192, St. George’s Mailing Address P.O. Box 192, St. George’s Years in Operation 10 yrs Number of Employees 2 Qualification Level of staff Web design course Brands/Manufactures representative None Annual Sales (approx) $75,000 Organisation Structure/Ownership Sole Proprietor Interest in Investment/Joint ventures No Core Services Web Design, hosting and training Annual Number of Customers Customer Types Regular Customers 50%, One time 50%


Expansion Plans Main Contact Neil Winsborrow Email/Website [email protected] Appendix P: Spicy Design


r

TSL (Grenada) Ltd Business Summary TSL (Grenada) Ltd offers IT infrastructure support services and is the representative of several software and hardware brands. These include Counterpoint, HRD5 – a HR package, Net2Phone authorized dealer and Verifone Terminals. They are associated with the TSL Group. They mainly support corporate clients and only stock a limited amount of hardware. They do source the hardware required to service their clients. Location LL Ramdhanny Building, Maurice Bishop Highway,

Grand Anse Mailing Address LB#68, c/o Republic House Grand Anse Years in Operation 5 years Number of Employees 9 Qualification Level of staff MCSE, A+ and Net +, BSC Engineering Technology,

Security + Brands/Manufactures representative Counterpoint, HRD5, Net2phone, Verifone Terminals,

Netscreen Annual Sales (approx) $800,000 Organisation Structure/Ownership Company Interest in Investment/Joint ventures Yes Core Services Software support, Hardware Sales and Network

Infrastructure support, , Mail and Web Hosting Annual Number of Customers 150 Customer Types Regular Customers 85%, Walkin Customers 15% Expansion Plans Yes Main Contact Richard Ramdhanny – Managing Director Email/Website [email protected],

www.tslgrenada.com Appendix Q: TSL (Grenada) Ltd


b

Company Name of Owners/ Department Head Address Phone/Fax Email WebSite Start

Up Foreign Assoc.

ACT – Art and Design Daniliela Froehlich Craft Center, Lagoon Rd 535-9213 [email protected] www.artanddesign.com 2003 N

Bryden & Minors – The Computer Zone Andrew Minors Lagoon Road,

St George’s 440-6315 [email protected] www.brydens.com 1998 Y

Buzz Systems Ltd Danie Brink Old Mill Rd, True Blue 418-0823 2003

Coconet Professional Solutions Ltd Mike Jordon

Pegs Complex, P.O. 1699, Grand Anse

439-2442 4074073 [email protected] www.coconet-ltd.net 2003

Compu Tec Services Ltd/Computer Support Ltd

Mr. Ganness Food Fair Mall, Grand Anse, St. George’s

440-0312 444-4000 [email protected] 2002 N

Compu-Data Electronics Inc Martin Alexander St John’s Street

St George’s 435-4342 405-9676 [email protected] www.cdegrenada.com 1993 Y

Computer Maintenance & Networks Phillip Williams Church Street

St George’s 444-3565 407-0382 [email protected] 1996

Computer Visioneers Elton Charles Gore Street St George’s

435-1842 407-4543 [email protected] None N

Comserv Ltd Isabelle Slinger Lance aux Epines, St. George’s

435-0186 407-4487 537-9200

[email protected] None 1996 Y

Digi-Soft Computer Services Jade Whyte Hillsborough

Carriacou 443-8955 [email protected] None 2002 N

Hankeys Computer Services Garfield Hankey

Azar Building, Grenville Street St George’s

435-0101 [email protected] www.spiceisle.com/hcs N

Jonas Browne & Hubbard Leo Lander

K-Systems Andrew Richards P.O. Box 855, St. George’s 417-3231 [email protected] www.ksystemsgrenada.com 2003 N

Kool Systems Vaughn Lawrence

Carenage St George’s 435-5005 [email protected]

ModOne Chris Chu Fook Grand Anse St George’s 4396631 [email protected] [email protected] www.modone.net 2006 Y

Spice Tec Computers Daniel Williams Seamoon, St. Andrews 538-9804 [email protected] 2000 N

Spicy Design Neil Winsborrow P.O. Box 192, St George’s

440-4829 435-6121 [email protected] www.spicy-design.com 1996 N

The Computer Store George Blaze Marquis Mall Grand Anse 444-3653 www.tcsgrenada.com 1997 Y

TSL Grenada Richard Ramdhanny Grand Anse St George’s 439-1810 [email protected] www.tslgrenada.com Y

Appendix R: Grenada’s Private Sector Information Technology Firms

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