Digital pioneer makes the hi-tech connection

The state-owned enterprise, Servicio di Telecommunicacion di Aruba (Setar), has come a long way since the island gained independence in 1986. It was the first telecoms firm in the Caribbean to introduce a digital cellular network, and one of the first to operate ISDN (integrated services digital network) for subscribers on the fixed-line system, says Setar director J. Ludwig Jansen. Aruba’s telecoms system took off in 1988, when the first earth station began operations. A second one was installed four years later, and a mobile network (Setarnet) was established in 1994. Internet services were introduced the following year. “Setar is prepared for the future competitive environment of the Caribbean,” says Mr Jansen. “We need to make sure that we maintain the most modern digital network, with the latest technology at a fair price, for us to compete in this area. “Telecommunications play an important role in the development of any country, especially an island such as ours that is diversifying its economy and attracting international investment. We are determined to do whatever it takes to ensure that Aruba is at the top in terms of the services we provide.” Another objective for Setar is to create new hi-tech jobs, particularly for young people who normally seek work abroad after completing their education. “We need to create a competitive marketplace to bring these students back, so they can contribute to the development of Aruba,” says Mr Jansen. “The island is excited about Setar’s commercialisation by becoming a private association.

With this change, we know that we will become more market-driven and connected to our customers.” He expects cellular telephony to grow by 300 per cent over the year, particularly after GSM (global system for mobile communications) is introduced. This is the standard for mobile communications that enables the adoption of WAP (wireless application protocol) and GPRS (general packet radio service, which allows data to be compressed and transmitted at higher speeds) technology. E-commerce is an area that Mr Jansen believes has growth potential and the US is its target market. With GSM, however, it is possible to forge roaming agreements throughout Europe and, in particular, with Dutch companies. “You can benefit from a number of tax breaks on the island,” he says. “The good bit about GSM is that it is better regulated than the American system. Once you are part of the GSM network, you already have roaming agreements and it’s easy to deal with the operators.” Most of the businesses on the island are tourism-related, he adds, so inevitably visitors make a major contribution to the telecoms industry. “Tourism plays a big part, but we are not only targeting that sector. There will also be strong growth in e-commerce, as companies start to establish themselves on the island.” Setar is preparing for full privatisation. “It is a must,” says Mr Jansen. “The only way to survive is to become a commercially-minded, private enterprise that is part of the global economy. “I am running the company knowing that there will be competition, but we will always be the biggest. We will keep at least 80 per cent of the market.”