E-Business & ICT

E-Business & ICT, Members in the News

Data Hosting in The Bahamas

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The Bahamas has a solid Internet infrastructure, and is a favourable jurisdiction for data privacy. This has been affirmed by Richard Douglas. He moved to The Bahamas from Canada in the 1990s to explore opportunities in the IT space. By the late 90s, data centres were built, with the local phone company and the cable company providing high speed internet. In 2001 he co-founded [Secure Hosting](http://www.securehost.com/), and serves as its Chief Technical Officer (CTO). At that time he had said, *“I actually tried to go to other countries besides The Bahamas to look at opportunities but there were no reliable Internet connections. The Bahamas was really the only country that had set up subsea fiber and high speed Internet that we were used to in North America. It’s very close to the US so it was easier to set up a hosting company here.”* Soon afterwards the Government launched a public-private sector collaboration to develop e-business and data protection legislation and regulations. *“The team spent over a year in consultations to discuss what legal framework would be required to protect the data that is in The Bahamas, as well as to encourage local business to adopt the Internet and trust it as a way to do e-commerce, as well as encourage international companies to look at The Bahamas as a place where they could come and set up an operation,”* Douglas said. In 2003, The Bahamas passed The Electronic Communications and Transactions Act, The Computer Misuse Act 2003, and The Data Protection Act 2003 – the last ensuring that data stored in The Bahamas is not transferred to any other country. The Secure Hosting CTO adds that the public private sector collaboration effectively was instrumental in creating a data protection and privacy law which specifically addresses personal privacy and protection of corporate data in The Bahamas – a plus for the jurisdiction in attracting data hosting providers. Douglas references the much-publicised case of US-based Microsoft and whether US prosecutors can access customer emails in a data centre located outside the US based on Microsoft’s “ownership” of such a centre. He said this highlights the reasons why you should be careful where you put your data, also pointing out that The Bahamas is not the only “solution” in the world. *“Indeed, there are many providers that offer offshore hosting, and locations including Switzerland and Panama.”* He recommends that companies choose who they host with – and where – very carefully. *“If your business is that important and you have business data or confidential data or intellectual property, it may not be protected by US providers”*. It is recommended that hosting customers ask where a provider’s offices are located, and whether they have a sales office in the US since that still counts as a US presence. They should also inquire about company executives and the board of directors, because they may be American and therefore may be under jurisdiction in the US. *“There are companies in Europe or Asia who mistakenly feel like they’re dealing with the local version of Amazon or Rackspace and not the US version.”* Many of Secure Hosting’s clients are financial institutions, and use its data centres as their primary location or a satellite office. The company has data centres in Nassau and Freeport, the latter of which it opened in 2013. Local firms use Secure Hosting’s services for disaster recovery and data continuity. Douglas also notes that storm concerns in the Caribbean are overrated because data centres are built to deal with such contingencies. Insurance companies and government agencies also use Secure Hosting’s data centre to meet regulatory compliance. Secure Hosting isn’t the only data hosting provider in The Bahamas, but it is one of a handful of providers, including [Maxil Communications](http://www.maxil.com/).

E-Business & ICT, Industry News, Members in the News

E-Commerce Platform Launched

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[Bank of the Bahamas](http://www.bankbahamasonline.com) has unveiled its e-commerce platform as a major part of the institution’s growth strategy to recalibrate its business model to better suit the business environment. Effectively, the facility will act as a clearing and settlement house for e-commerce transactions; it will be the first in The Bahamas to fully facilitate online payments in Bahamian dollars, allowing merchants to accept all major credit cards on their website and receive prompt payment in the currency. The dual components – prompt settlement and payment in B$ – reportedly have made this the most sought-after business product that Bank of the Bahamas has ever introduced. Managing Director Paul McWeeney notes that they have several hundred merchants clients at the present time and anticipates that all of these will sign up for the programme. Over the years, Bank of the Bahamas has invested substantially in its electronic banking service offerings and the institution says the costs incurred in launching the e-commerce platform were *”already built into the infrastructure”*, effectively making the service an “add on” to what it currently provides. Mr. McWeeney points out that B$ e-commerce was a natural progression. *”This is a project that we began envisioning several years ago, and it has taken a lot of time and investment,”* he said. The ultimate goal, he said, has been to make it easier for business to do business in The Bahamas. *”BOB’s launch of e-commerce with next day settlement of online credit card payment for goods and services in B$ is almost as dramatic a paradigm shift in how business is done as the introduction of the credit card itself,”* added Mr McWeeney. *”We are very proud to be in the position to assist business in this way.”*

Business, E-Business & ICT, The Economy

New E-Government Services Platform

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Prime Minister, the Rt. Hon. Hubert Ingraham today launched a $10.2 million e-government initiative, noting *”Today marks a significant milestone for the Bahamas. Today we change the concept of service delivery by moving government services from the counter only to the computer screen also.”* Persons are now able to renew driver’s licenses, pay real property tax, access customer services and make vendor enquiries through the government’s [website](http://www.bahamas.gov.bs), with applications for business licenses and payment of business licence taxes to be introduced within the next few weeks. *”This is a fundamental change that could have tremendous benefits for our country,”* said the Prime Minister. In addition, the system provides for a vendor enquiry service for businesses and independent entrepreneurs who provide goods and services to the government. In addition, pending legislative changes, there will be alignment of fixed penalties with such payable online by theend of 2011. Also plans include – in the not-too-distant future -making available online applications for new and renewal work permits, payment of customs duties; payment of police character certificates; payment of passport applications; and payment of post office box rentals. The public and private sector participants at the launch took note of the deepening and broadening of the Government’s efforts to create a service culture aided by cutting-edge technology and best practices in the public service. The Prime Minister concluded *”Our vision for The Bahamas is that investing in the use of technology to deliver public services will catapult our nation forward in the delivery of services to the Bahamian public. Our vision is that the Government’s substantial progress in implementation of e-Government will serve as a catalyst to drive a new wave of the use of technology in all facets of the Bahamian economy.”* Also speaking at the launch ceremony, Minister of State for Finance, the Hon. Zhivargo Laing said the newly-launched e-services platform will transform The Bahamas into *”a more business friendly jurisdiction”*, with enhanced efficiency and productivity overall. It also is anticipated that increased Treasury revenues will be among the significant potential benefits accruing from the ease of online payments. While the Minister spoke to significant improvements in The Bahamas’ Ease of Doing Business rankings, the Prime Minister pointed out the Government’s intention to see positive changes in the UN’s e-government ranking; The Bahamas currently is ranked 65 out of 180 nations. A new Department of Information Technology has been created within the Ministry of Finance. Last year the government signed a contract with IDA International, a consultancy arm of the Singapore government, to establish a comprehensive platform for delivering e-Government in The Bahamas. At that time, it was [announced](https://bfsb-bahamas.com/news.php?cmd=view&id=3050&pre=y) that the launch would take place in July, 2011.

Business, E-Business & ICT, Industry News

BTC Privatisation Paves Way for Centre of Excellence

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Yesterday the Government of The Bahamas and [Cable and Wireless Communications](http://www.cwc.com) (CWC) signed a share purchase agreement and shareholders agreement governing the terms of CWC’s acquisition of 51 percent of the shares of the [Bahamas Telecommunications Company](http://www.btcbahamas.com) (BTC) for a consideration of $210 million plus $7 million stamp tax. Later in the day, in the House of Assembly, the Prime Minister tabled the Memorandum of Understanding (MOU) outlining the commitments between the two parties. The transaction is subject to parliamentary and regulatory approvals, which are expected to be concluded by April 4. CWC would then take responsibility for the management and operation of BTC under terms defined in the shareholders agreement. The Prime Minister foreshadowed the Privatisation Bill, and Amendments to both the Communications Act and Utilities Regulation Act. Thanked were the Advisory and Privatisation Committees for their hard work in bringing the deal to fruition, with Prime Minister Ingraham noting, “*We are satisfied that we have found the right partner for The Bahamas; that telecommunications and communications generally will be improved, that cost will be lowered, and that we will be on the cutting edge of technology.”* The Government has said the move to privatise the telecommunications company also will mean that BTC will be designated as a center of excellence in the Caribbean; it will have a larger role in regional communications following the purchase of a majority shareholding by Cable and Wireless Communications. *“CWC plans for BTC to be one of three hubs in the region alongside Barbados and Jamaica, as well as a center of excellence in areas where BTC can provide services to other parts of the LIME group,”* Prime Minister Ingraham said. *“These include a high value consumer call center, and certain network and technical areas where BTC has some particular strength.”* The Prime Minister concluded, *”We are committed to making this country an international business center of choice, committed to giving Bahamians access to the latest and best technologies available in telecommunications and committed to opening this economy for the further participation of progressive, innovative Bahamian entrepreneurs.”* Commenting on the acquisition, Tony Rice, CWC’s Chief Executive, said *“We are pleased to have BTC join the Cable & Wireless Communications group. It is a business with strong prospects, well positioned in one of the Caribbean region’s largest economies. It will form a key part of our Caribbean business, benefitting from our regional platform and scale, while maintaining its Bahamian character. Our immediate focus will be on preparing the business for competition. We intend to improve its networks, introduce new services and move it to a cost base able to sustain the business in a competitive environment. In partnering with the Government of the Commonwealth of The Bahamas we believe that we can deliver a world-class telecoms capability to the people and businesses of The Bahamas.”* The shares in BTC will be acquired by CWC Bahamas Holdings Limited, a wholly-owned subsidiary of CWC.

Business, E-Business & ICT, The Economy

E-Government Platform

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The Bahamas Government has committed a “significant sum of money” to launch its new e-Government platform that will go live in July 2011. The platform revamps the public service, enhancing efficiency of operations and service delivery. When govnet.bs launches, Bahamians will be able to pay business license fees, fines, real estate property taxes, renew drivers’ licenses and apply for business licenses online. Director of Information Technology June Collie said The Bahamas intends to catch up in e-government operations, following the same model as Singapore, which is now U.N. ranked 11th in e-Government development. Ms. Collie says, *“We feel that Singapore has a model that has really worked and improved the lives of their citizens. They are now a technology-driven economy and the government pushing e-Government in Singapore was the catalyst for that.”* She feels The Bahamas is well positioned to adopt their model, learn from their lessons and apply their best practices; even positioning this nation to surpass some of the earlier regional implementations for e-Government. Minister Laing adds, *“The Bahamas’ special geographical lay out as an archipelago really makes e-Government perfect for us. We have to replicate so many things in order to deliver services in our Family Islands and an enhanced e-Government structure can help us do that so wonderfully.”*

E-Business & ICT, Industry News

BTC and Cable and Wireless Communications Sign MOU

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The Government has announced the signing of a Memorandum of Understanding with [Cable & Wireless Communications ](http://www.cwc.com)(CWC) for the sale of a 51% interest in the [Bahamas Telecommunications Company](http://www.btcbahamas.com) (BTC). CWC is a global, full-service communications company which operates leading communications businesses through four regional units – the Caribbean, Panama, Macau and Monaco & Islands. Its services include mobile, broadband and domestic and international fixed line services in most of its markets as well as pay-TV, data centre and hosting, carrier and managed service solutions. CWC is a FTSE 250 communications company with $2.5 billion revenues, operating in 37 countries in Landline, Mobile, Broadband and Entertainment (13 of which are in the Caribbean). It has 8.3 million mobile, 1.8 million fixed line and 600,000 broadband customers. CWC has been in the telecoms business for 140 years, and is a trade buyer with a long term strategy and interest. CWC is expected to bring synergies to BTC in terms of procurement savings, administration savings, IT implementation and support, network operations support and others. According to the release, the CWC and the Government will work together to finalize contractual terms and obtain necessary consents and other regulatory clearances in order to complete the transaction in the first quarter of 2011. CWC proposes to work with the Government and the management of BTC to finalize a business plan for BTC, addressing its plans for the modernization of telecommunications throughout The Bahamas, for the development of BTC following privatization, and how service rates charged to Bahamian consumers could be reduced the period leading up to the liberalization of cellular services. It is also the intention under the MOU that BTC will become a significant part of CWC’s Caribbean business and strategy, that there continues to be substantial Bahamian participation in the management of the company, and that CWC affords Bahamians meaningful opportunities to work within CWC’s regional operations. It is expected that being part of a telecoms group such as CWC will create a variety of opportunities for Bahamians to succeed in a global organization. As a result of the privatization of BTC and liberalization of the cellular market, it is expected that consumers will benefit from more affordable access to higher quality services across all regions of The Bahamas. As a result of improved communications services, The Bahamas is also likely to become more competitive as a business and tourism destination. A privatized BTC can be expected to continue a policy of outsourcing non-core functions, thereby supporting the large and growing small business community which depends heavily on BTC today. It is expected that there will be a significant degree of new entrepreneurial opportunity available to Bahamians as a result of the privatization of BTC, and liberalization of the market.

E-Business & ICT, Industry News, International Issues

ITU World Telecommunication Development Conference Adopts Hyderabad Action Plan

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The concluding day of the fifth World Telecommunication Development Conference (WTDC-10), held from 24 May until 4 June, adopted the Hyderabad Action Plan. The Hyderabad Action Plan outlines a road map to foster the global development of information and communication technology (ICT) networks and services over the next four-year cycle. The roll out of next-generation networks (NGN) and increased access to broadband services, wireless technologies and the internet were recognised as catalysts to achieve the broader development goals. The Hyderabad Declaration states: “*Broad access to telecommunications and ICTs is essential for the world’s collective economic, social and cultural development, and the building of a global Information Society. This access brings new opportunities for interaction amongst people, for sharing of the world’s knowledge resources and expertise, for transforming people’s lives, and for contributing to the global development agenda.”* The fifth WTDC was attended by 924 delegates, including 758 government delegates from 138 countries and 6 representatives from Palestine, 88 public and private sector representatives from 28 companies, 16 representing telecommunication-related entities from 7 countries and 56 representatives from 25 regional and international organisations. P J Thomas, Secretary, India’s Department of Telecommunications and Chairman of the Conference, says the increasing role of ICT in the life of the common man could not be over emphasised and keeping in view the latest technological developments in ICT, the Hyderabad declaration adopted by WTDC-10 *”will play a decisive role in the development of the ICT sector across the world, especially in developing countries.”* Policy makers and regulators pledged to promote affordable access to telecommunications and ICTs aimed at fostering sustainable development worldwide, with attention given to least developed countries (LDCs) and countries with special needs. New opportunities arising from the widespread use of ICTs were also cited in improving e-government services such as healthcare and education and to step up the drive to alleviate poverty and create jobs, especially among poor and marginalized populations, including women, children, indigenous peoples and persons with disabilities. ##Setting the Pace for ICT development## *“With a true spirit of collaboration among Member States, this landmark conference has achieved consensus in many important areas,”* said Mr Sami Al Basheer Al Morshid, Director of ITU’s Telecommunication Development Bureau. *“The decisions we have reached here in Hyderabad have provided a compelling vision and plan of action for the next four years, in addition to laying the groundwork for ICT development across the world for many years to come.”* The WTDC-10 Hyderabad Action Plan is the culmination of a series of regional preparatory meetings that took place in Kuala Lumpur, Malaysia (for Asia-Pacific); Kampala, Uganda (Africa); Santa Marta, Colombia (Americas); Minsk, Belarus (CIS); Andorra La Vella (Europe); and Damascus, Syria (Arab States). The preparatory meetings outlined initiatives from each region based on agreed categories among all stakeholders and region-specific priorities, such as: • Development of broadband infrastructure • Transition from analogue to digital broadcasting and management of spectrum • Harmonizing policy and regulatory frameworks to foster an enabling environment • Reduction of Internet access costs • Human and institutional capacity building • Strengthening cybersecurity and building confidence in the use of ICTs • Emergency telecommunications • ICTs as a solution to combat climate change • ICT applications for economic and social development, such as e-Health • Improving regional interconnectivity • Achieving universal access The International Telecommunication Union, through the Telecommunication Development Bureau (BDT), organizes the World Telecommunication Development Conference (WTDC) every four years as well as a number of Regional Preparatory Meetings (RPMs) within that same period. The Telecommunication Development Conferences serve as forums for free discussion by all concerned with the Development Sector. In addition, they review the numerous programmes and projects of the Sector and BDT. Results are reported and new projects are launched. The World Conferences set the agenda and the guidelines for the following four-year cycle, while the Regional Conferences review “work-in-progress” towards the overall objectives and ensure that goals are met.

E-Business & ICT, Industry News, Members in the News

IPBS launches new e-Banking module

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##Latest version exploits web based technologies to deliver greater banking functionality## [International Private Banking Systems](http://www.ipbs.com) (IPBS), the specialist provider of wealth management software for the private banking sector, today announced the launch of an enhanced e-Banking module. The software allows wealth management providers to deliver a superior user experience to their customers with enhanced banking and investment facilities using state of the art secure online access to data. The platform supports a wider range of transaction types and features fully revised comprehensive online reporting. Bruce Raine, Founder and President of IPBS said, “*We have invested a significant amount of development work into the new e-Banking module. The resulting product delivers powerful and flexible ebanking functionality allied to ease of use and the highest levels of user security to meet the demanding needs of today’s banking industry. The e-Banking module enables our customers to offer their end-clients a more functionally rich online banking platform that supports a wider range of transaction capabilities. The reaction from the market has been extremely positive and we are already working on client implementations.”* Transactions may be entered by users and held for review and authorisation under the ‘four eyes’ principle for greater security. All orders are automatically interfaced to the back office systems for updating, with additional user alerts triggered to ensure orders are acted on. This minimises manual intervention and increases straight-through processing (STP). Orders may also be confirmed via email to one or more parties. The introduction of templates which may be stored for different types of transaction cuts down the time required to perform similar transactions in the future. The range of transaction types has also been expanded and the e-Banking module now includes support for: • Payments – in SWIFT ready formats • Foreign Exchange • Deposits • Securities trades IPBS has made significant improvements to the power and sophistication of the reporting functionality that is available. Users have instant visibility and control over their portfolios and may access a wide range of reports which may be downloaded to external applications such as Excel with a click of a button for further analysis. Security features have also been upgraded, with the addition of a virtual keyboard for use during the sign-on process which prevents key-click tracking of passwords. The e-Banking module allows relationship managers or end-user clients to log in securely and remotely to access reports for designated entities. Mr. Raine concluded, *“We have used the latest web-based technologies to ensure the e-Banking module delivers greater user access and convenience combined with improved flexibility. It forms part of the modular and integrated IPBS private banking and wealth management system, which enables all relevant accounts and journals to be updated once a transaction has been executed, thus increasing STP and minimising operational risk.”*

Business, E-Business & ICT, Industry News, The Economy

BACH Goes Live

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The Bahamas Automated Clearing House (BACH) went live on January 22. *“The advent of the Clearing House will affect every single person who deposits money to a chequing account, writes a cheque or wishes to pay a bill online,”* said Brian Smith, BACH Business Manager. *“By speeding up the time it takes for deposits to clear, it will provide a boost to businesses, particularly those that depend for much of their revenue on cheques from customers. Individuals will benefit as well because they will have access to the B$ cheques they deposit on Monday as early as Tuesday.”* Effectively, the system allows next day clearing of Bahamian dollar cheques through confidential, automated clearing. Capacity and functionality of businesses and individuals who conduct their business through the clearing banks will be enhanced, and employers will be able to directly deposit funds into employees’ accounts at any clearing bank. All seven clearing banks are participating in the system: Bank of The Bahamas Limited, Citibank, N.A., Commonwealth Bank, Fidelity Bank (Bahamas) Ltd., FirstCaribbean International Bank (Bahamas), RBC Royal Bank of Canada and Scotiabank. In addition to reducing deposit clearance time from up to five days down to one, BACH will expand online bill payment and commerce. According to Mr. Smith, *“Within three months of the ACH going into effect, banks will be able to accommodate interbank transfers as easily as they do intra-bank transfers now.”* In addition to direct deposits being made to any account in the system, even if the employer and employee bank at different institutions, the same principle will apply to bill payments. The secure interbank settlement system is owned by the Clearing Banks in The Bahamas, with regulatory oversight provided by the Central Bank. *”The Automated Clearing House will revolutionise and modernize banking in The Bahamas,”* maintains Mr. Smith.

E-Business & ICT, Industry News

New Utilities Regulation and Competition Authority

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The Public Utilities Commission (the PUC) has transitioned to the Utilities Regulation and Competition Authority (URCA) as the regulator for the electronic communications sector in The Bahamas. The Communications Act 2009, which gives URCA full powers of regulation and of oversight of the sector, came into force on 1 September 2009. This signaled the start of a new regulatory regime. A release from URCA points out that greater competition will be introduced in the electronic communications sector, to the benefit of the economy and of all persons in The Bahamas. During the transition, URCA was required to act to ensure maximum continuity. For this purpose, the functions and powers previously vested in the Public Utilities Commission and the Television Regulatory Authority were transferred to URCA by law. Firms and individuals authorised to provide services and to operate networks under the Telecommunications Act and the Broadcasting Act will be able to apply for a licence under the Communications Act. To facilitate a smooth transition to the new licensing regime as possible, a number of new documents were published and are available at URCA’s [website](http://www.urcabahamas.bs). These include: * Preliminary Determination covering several Class Operating and Spectrum licences, Exemptions, and Types of Fees * Individual Operating and Spectrum licences * Draft Class Operating and Spectrum licences * Licensing Guidelines * Fee schedule * Radio Spectrum Statement (Existing Allocation and Assignment) * Various forms – Full Details Form and Notice of Objection Form for the transition, and an Application Form for a licence. The new regime encourages participation by all – the website also provides the opportunity to learn more about the new regime with updates on Competition Policy, Consultation results and determinations and latest news of the regime. **Legislation** To promote the new regulatory regime and achieve the goal of liberalisation, a package of new legislation was drafted by the Government of the Bahamas and submitted to Parliament for approval in May 2009: • The Communications Act, 2009 • The Utilities Regulation and Competition Authority (URCA) Act, 2009 • The Utilities Appeal Tribunal (UAT) Act, 2009

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