Tiny nation aims to be 1st `cyber-island'
  Mauritius envisions wireless Internet from coast to coast

  By Laurie Goering
  Chicago Tribune | June 19, 2005
http://www.chicagotribune.com/technology/chi-0506190237jun19,1,3626111.story?page=2&cset=true&ctrack=1&coll=chi-techtopheds-hed

EBENE, Mauritius -- This tropical island off the east coast of Africa
is best-known for its white-sand beaches, its designer clothing
outlets and its spicy curries.

But tiny Mauritius is about to stake a new claim to fame. By year's
end, or soon afterward, it is expected to become the world's first
nation with coast-to-coast wireless Internet coverage, the first
country to become one big "hot spot."

"If there's anyone who can do it, it's us," said Rizwan Rahim, the
head of ADB Networks, the company installing the wireless radio
network across the 40-mile-long island. "It's a small place, so for a
wireless network it's manageable. For us, it's a test. If it's
successful here, we can island-hop to [mainland] Africa."

Like many African nations, this modest country has struggled
economically as the industries that underlie its economy--particularly
sugar production and textile manufacturing--have run into tough global
competition and declining prices. Looking for alternatives, the
government has settled on a new and ambitious vision: Turning sleepy
Mauritius with its endless sugar cane fields and tourist beaches into
a high-tech computer and telecommunications center.

"It is our vision to transform Mauritius into a cyber-island," said
Deelchand Jeeha, the country's minister of information technology and
telecommunications, in a speech last year. The nation, he said, "is
confident in the potential of [the industry] as an engine of growth
which can generate jobs and wealth creation."

Remote Mauritius is in many respects well-placed to win the high-tech
investment it wants. An undersea broadband fiber-optic cable,
completed three years ago, gives the island fast and reliable phone
and Internet links with the rest of Africa and with Europe, India and
Malaysia. Many of the country's 1.2 million people--a mix of French,
Indian, Chinese and African descendants--are bilingual or trilingual,
speaking French, English and either Chinese or Hindi. The country is
democratic, peaceful and stable.

In Ebene, just south of Port Louis, the capital, the government has
built the first of three planned high-tech parks. It also has stepped
up training programs to turn out tech-savvy workers and has rewritten
its business rules in an effort to create an attractive investment
climate. The changes are aimed at luring call centers, remote data
backup facilities for companies worried about terrorist attacks and,
eventually, software development companies.

`It's the future'

The government's efforts have brought in investment by players like
Microsoft, Oracle, Accenture and India's Infosys Technologies and
created about 2,000 jobs in the past two years.

"It's the future," said Satyam Gutty, a taxi driver in Port Louis
whose daughter just graduated with a university degree in information
technology. "It's a big chance for Mauritius."

That's evident at evening computer courses set up around the country
by the private National Productivity and Competitiveness Council. Even
in rural areas, housewives, businessmen, schoolchildren and
agricultural laborers are getting their first chance to use computers,
part of the government's aim of making its entire society
computer-literate.

"It's something extraordinary to see people with rough hands from
manual labor holding the mouse," said Oomme Narod, a senior analyst
with the council. So far, 37,000 people have been trained in computer
basics, she said.

That doesn't mean, however, that Mauritius is suddenly flush with
skilled high-tech workers. Many of those emerging from information
technology training courses are prepared to work as call center
operators--but not software engineers.

Despite the government's effort to provide an inviting investment
climate, regulation also remains a problem. Rahim, who applied for a
license for his wireless Nomad Internet network last December, got
approval only three weeks ago, three months later than expected.

The main problem, he and others say, is that the government holds a
substantial share in Mauritius Telecom, the island's only fixed-line
telephone operator, as well as one of its Internet providers and the
company that controls the submarine fiber-optic cable that provides
all of the country's phone and Internet bandwidth.

Because the government makes so much money from the company and its
cable, it has been reluctant to open the market to competitors that
might reduce Telecom's profits, even though the country's National
Telecommunications Policy, passed in 2004, calls for "positive
discrimination" by regulators in favor of start-up companies facing
off against established firms like Telecom.

Threat from competitors

The government "wants to create a cyber-island but they haven't
changed their regulation and infrastructure enough to create the
climate," Rahim said. If Mauritius doesn't act quickly, he warned, it
may well see its cyber-island idea stolen by competitor countries.

"There are policy decisions that still need to be taken," agreed
Narod, of the competitiveness council. Right now, "there is
improvement, but at a slow pace."

Still, Mauritius' courts have shown signs of holding the government to
its competitiveness policies, which may ease the way for future investors.








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