Telecommunication Infrastructure

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Internet Diffusion and E-Commerce

Globalité Electronique Sud (GlobelSud) first introduced the Internet in Haiti through the installation of a Bulletin Board System (BBS). In 1990, the Latin Union, which had already succeeded in setting up a network in Peru, carried out a feasibility study on the establishment of a telematics network for research in Haiti. This network later became the Haitian Telematic Network for Research and Development (REHRED). In 1992, Alpha Communication Network (ACN) offered the first e-mail service in Haiti; and by 1993 more than 300 people, companies and institutions were connected to ACN.

Led by a dynamic private sector, the Internet has gotten off to a relatively good start. Its development over the past five years contrasts with the continuing deterioration of the wire line infrastructure of the state-owned monopoly, Teleco. Two Haitian firms, ACN and Netcom, have installed their own satellite gateways and used spread spectrum radio-communications technology to transmit the Internet to servers, thus bypassing the Teleco system. ACN and Netcom also provide dial-up access to other customers as well as Internet access for two other ISPs, Globelsud and Companet. A fifth ISP, Hintelfocus, uses the MCI gateway to connect to the Internet. It is estimated that there are 3000 users of the Internet in Haiti. Nevertheless, wireless bypass of Teleco can only go so far. The ISPs concur that the main obstacle to further development of the Internet is the lack of reliable telephone lines to provide dial-up access. Moreover in a desperate attempt to protect its plummeting earnings from international calls, Teleco has cut lines to at least one ISP for providing international voice service over the Internet, thus bypassing the phone gateway of Teleco (and its high international tariffs).

Negotiations have been difficult between the managers of ACN and the National Council on Telecommunications (CONATEL) regarding the establishment of a true data transmission network by satellite. In November 1995, an authorization was finally granted to ACN to create a data transmission network in Haiti, thus providing access to other international networks. This contract binds the company to CONATEL - a public organism in charge of concession of licenses and of control in the telecommunications sector - and further stipulates that the local company turns over to the government a 20% tax on its global sales and pays an income tax as well. Additionally, the government imposed that the company would provide Internet access to academic centers and research institutions free-of-charge.

The Internet became a very fashionable word in July 1996, when ACN started giving access through a simple local telephone call. The company charged the equivalent of US$130.00 in local currency as installation fee and a monthly cost of US$16.30, which includes 20 hours of connection time. There is an additional cost of US$1.63 per extra hour. In June 1999, in support of the decentralization of communication and information, ACN through the company Biznet, linked the city of Jacmel to the Internet. Biznet opened a cyber café with 4 computers (2 for electronic mail and 2 for accessing the Internet) and expects to offer dial-up access soon. Biznet is also about to develop Internet access in Les Cayes. Several companies, among others ACN, Netcom and the Ilsi Consortium, GlobelSud and Compucas, are exploring the possibility to link Cap Haitian and Gonaives (second and fourth town of Haiti respectively) by the end of the year. REHRED is developing initiatives for cyber centers in Port-au-Prince and the provinces, aimed at creating and promoting research interests.
The number of sites hosted within Haiti is negligible; the few sites hosted in Haiti are serviced by the ISPs. Most of the Haitian web sites are serviced by hosting companies located in the US and Canada. Usually a site can be hosted in Haiti at a cost of 750 Gourds ($34) per month. The extension .ht, which identifies the domain Haiti, is still inactive due to a conflict regarding the management of this domain. The various Haitian sites that are on the Web are registered within first level domains (.net, .com, .org). The Haitian office of the United Nations Development Program (UNDP), within the framework of sustainable development, is putting the finishing touch to a collaborative network that should unblock the situation regarding .ht. Because of the absence of this domain, which can help centralizing Internet traffic from Haiti, all local Internet operators must first find a connection through Miami, where the link will be made with another company that provides Internet access in the United States, which will return the signal to Haiti.

E-Commerce

E-commerce is existant in Haiti only through financial institutions. The three largest banks in Haiti, SOGEBANK, UNIBANK, and CITIBANK have introduced electronic banking in the last two years. To the infrastructure and the services offered, we will take a closer look at Citibank's network.
Citibank's network operates on PANAMSAT and IMPSAT platforms. PANAMSAT's infrastructure is as follows: The GCB Telecommunication offers a 64 KB Satellite link between Port-au-Prince and Silver Springs and other devices such as DIGITAL Multirate satellite modems, a GDC-Multiplexor, CISCO 2500 Series Routers, Cable Tron Hubs (SEHI-22 & 24), Data Encryption Devices (Cylink Cidec-Lsi and NRZ-L) , TP 8000's GTN access, Baystack 450-24t switch, Baynetworks model 5000, Terminals and line printers, and GRN global access. The IMPSAT platform is similar except that the link goes to Tampa, FL instead.

For its e-commerce platform, Citibank uses CGTI (Citigroup Global Technology Infrastructure, which also services Hewlett-Packard France, Microsoft, France Telecom, IBM, among others) and uses CISO standards for network and firewall architecture, routing and addressing policies. CGTI supplies telecommunications products and services to the staff and clients of Citigroup. CGTI operates 9 major networks and offers voice, Email, Internet, data processing, and desktop services worldwide in over 100 countries and 23 time zones. The Development Web Server provides the environment to architect, design and develop Web sites by the different Citibank businesses. It contains Web infrastructure components, Web applications, Web development tool kits, sample HTML templates, CGI scripts and graphic libraries. The company uses a UNIX operating system. The service offers clients remote access to their accounts and allows them to do transactions.

It has always been customary for emigrants to send money back to their relatives still living in Haiti. Lately, Western Union has entered the game of money transferring by setting up branches in Haiti and developed alliances with certain shops or bureaus where the money could be transferred. Point-Transfers is a Haitian company based in Miami that offers transferring of money, food, and other items from the US and Canada to Haiti. People can place their orders over the counter, by calling an 800 number, or by visiting their web site. For transfers other than money, the company takes care of the purchasing and shipping of items. The company has an alliance to a company in Haiti called Point Rouge. This store is located in twelve cities in Haiti and serves as the final destination of transfers to be collected by the designated parties.
The Diaspora having a tremendous impact on Haitian culture makes it necessary to mention the Haitian e-commerce companies based over seas. There are a few web sites that sell art and music. One of them, CEEPCO.com, is a Virginia based company operated solely by its owner Harold Charles. The company was established in 1999 and sold a few Haitian CDs online but didn't gain much success until it allowed payments to be made by credit cards, and added a banner on Haitionline.com, a popular Haitian news site. Sales have stretched from the US, Canada, and Haiti to Europe and even Japan. Apparently a large number of Haitian-Americans in the military represent a considerable portion of CEEPCO's customer base. The site includes clips from the albums listed and information on upcoming Haitian concerts. Lately, the site has added the sale of Haitian art, what the owner estimates will represent 30% of his total sales. Competition for CEEPCO only comes from another Haitian small website in Florida that does not offer nearly as many selections.


Computer Hardware and Software

Hardware Manufacturing
Haiti's assembly sector employs approximately 20,000 skilled and semi-skilled laborers, making it the largest non-agricultural private sector source of employment within Haiti. In the electronic assembly domain, a few companies manufacture conductors. One of these companies, MANUTECH ASSEMBLY, INC, a U.S. manufacturer of transformers and other wound components has been active in Haiti since 1981 and presently employs well over 500 people in two Haitian plants. Apart from conductors and small wound magnetic parts, there are no other electronic manufacturers. In the 80s, there used to be chip manufacturers, but they all closed due to hard economic times.

Software Development
Even though the Haitian economy has suffered from very hard blows in the past 10 years, companies have still managed to venture into the technological age. There isn't a major software development industry in Haiti, but there are a few individuals who offer their services to companies in order to accommodate their IT needs. One example is PROVALSA, a gross food products distributor located in Port-au-Prince.

The company is one of the oldest of its kind and has always relied on pen and paper in order to upkeep its books. Four years ago, the company bought a laptop and experimented with a few existing programs for their inventory management. Not able to meet their specific needs, the software had to be personalized. PROVALSA decided to contact a local programmer who designed a new program for the company and offers them his services for updating and troubleshooting. Freelance programmers are in demand in Haiti for businesses such as PROVALSA, which I think will lead to the formation of organized groups and even companies that will offer these services.


IT Usage

IT usage in Haiti has dramatically increased in Haiti over the past 10 years. The exact number of people usind technology is hard to find but the areas of use are very clear. The business sector is the biggest user of IT including banks, stores, shipping companies, ports, manufacturing companies, retailers and wholesalers, and others. Government is also a major user of IT, representing more than 10% of ACN's (local ISP) revenue. Personal use of IT is somewhat significant as people who can afford it in the poorest country in the Western Hemisphere only use it.

Not surprisingly, the need for communication and information has leaded the way for the significant growth in cyber cafés. Community access/cyber café is offered by more than a dozen companies (examples: Labonet in Port-au-Prince, Computer world in Petion-Ville). Each company has a park of a dozen computers placed for public access, and charges members and other users between 50 and 75 Gourds per hour, or between 300 and 650 Gourds per month for 20 hours of use in some cases and unlimited access in others. These enterprises ask between 3 and 5 Gourds per page printed. This market represents an average turnover of 37 thousand Gourds per month, or 450 thousand Gourds per year. Another interesting aspect of this new phenomenon is that people mostly use these services in order to access web pages like dialpad.com where they can make free telephone calls to the US. Observation has shown that people talk on Dialpad while surfing other sites of their choice. Clearly, the Haitian people, even through the difficulties of daily life, have shown readiness to immerse themselves in the 21st century.

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