STAR Businessweek - ICT Edition - 31 March 2018 by STAR Publishing

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SUN, SAND AND SMART CITIES CITIES ARE GETTING SMARTER, THANKS TO A DIGITAL TOOLBOX THAT CAN HELP URBAN CENTRES IN THE CARIBBEAN OVERCOME SYSTEMIC CHALLENGES BY CATHERINE MORRIS, STAR BUSINESSWEEK CORRESPONDENT

IoT drives progress towards low-power technology

The Internet of Things (IoT) is growing rapidly, as huge numbers of connected meters and machines come online, all bristling with sensors to measure the world around them Page 3

Holograms are changing the way we interact with computers Until recently, delivering hands-on training to aircraft mechanics meant bringing trainees into a hangar to see a plane under maintenance and removing the engine’s cover to allow them to look inside Page 7

Imagine a city that talked to itself. Garbage bins that alert the council when they need to be emptied, road sensors that tell drivers about available parking spots or suggest ways to avoid traffic, digital kiosks that sync with phones to rate nearby restaurants, LED streetlights that brighten when there’s a crowd, and dim if no-one’s around. Continued on page 2

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The STAR Businessweek BY CHRISTIAN WAYNE – EDITOR AT LARGE

The telecommunications sector in the Caribbean remains a key area of growth for both global and regional operators wishing to harmonize their services in more markets throughout the Caribbean and Latin America. According to leading telecom industry research firm BuddeComm, due to the Caribbean’s lack of economic diversity and high dependence on tourism and offshore financial services, the telecom sector has historically provided a sizeable contribution to the region’s GDP and has also played an important role in the economic development of many Caribbean nations. Despite our small size, Saint Lucia and much of the Caribbean’s markets are highly liberalized economies that provide an environment conducive to competition amid local and global players such as Digicel Group and Liberty Global. Beyond telecoms, however, Information and Communication Technology (ICT) and the internet are reshaping many of the norms we in the Caribbean have already accepted as our reality. Digitally distributed, borderless technologies and the Internet of Things represent a paradigm shift in the way previously isolated markets, like ours, can conduct ourselves in the global marketplace. In this Special Edition of The STAR Businessweek, we’re taking a broad look at the massive disruptions that are taking place in the ICT industry and what they mean for business in Caribbean nations, like Saint Lucia, and for our digital futures! The STAR Businessweek Nothing Personal. It’s Just Business. Stay connected with us at: Web: www.stluciastar.com Social: www.facebook.com/stluciastar Email: starbusinessweek@stluciastar.com

Through its Emerging and Sustainable Cities project, the IDB is working with Jamaica to develop Kingston’s technology and infrastructure Continued from page 1

This futuristic vision has become a reality around the world as population growth and technological advances combine to make cities smarter. More than half of the world’s population live in urban areas and, by 2070, that figure will rise to 70% according to the United Nations. As people flock to these population centres it becomes more challenging to balance their interests with that of the natural environment, and maximise space while minimising environmental footprint. To ensure sustainable growth, city planners now have a range of digital tools at their disposal and have been putting those tools to use to develop so-called ‘smart’ cities where urban data is collected and processed in order to improve the city’s operations and ultimately the lives of its citizens.

MAKING THE CARIBBEAN SMARTER

So far most of the innovation in smart cities has been around traffic technology and energy use, but the potential is limitless. In the Caribbean, smart technologies can help urban areas deal with challenges that are unique to the region such as high crime rates, poor waste management, high energy costs and inadequate transportation infrastructure. The Caribbean has been undergoing rapid, uncontrolled and disorganized urbanisation since the 1970s, which has put strain on basic services such as sanitation, housing, drinking water, health and education. Traditional city management models need an upgrade if they are to address these lingering problems. The first, and most vital component, of becoming a smart city is developing the necessary digital capability. Data collection and communication is paramount, and the

most integrated systems are those which use a combination of broadband networks, cloud computing, smart mobile devices, analysis software and sensors to collect that information. Investing in ICTs paves the way for one of the early steps in developing smart cities — digitization of public services. Caribbean governments can look to publicprivate partnerships to bring onboard the necessary expertise to achieve this, and will not only improve the lives of citizens with better bureaucracy but also lower costs, reduce environmental impact and create jobs.

SMALL STEPS

The Inter-American Development Bank (IDB) estimates that turning a medium-sized city (with 250,000-500,000 inhabitants) into a smart city would cost between US$20m and US$30m. However, it further projects that a successful pilot project could be run with a budget of US$7m. Either way, these are big numbers which can easily intimidate small island nations. Proponents of smart cities argue that the cost savings more than cover the initial outlay. Energy consumption could be dramatically reduced through smart grids that turn off lights and other appliances when not needed; sensors can identify leaks in water distribution networks to minimise waste; more effective disaster alert and forecasting services to minimise the economic impact of hurricanes, flooding and other natural crises. Taken together, these and other cost-cutting services can result in significant savings for cities. While taking the leap to getting smarter is daunting, some Caribbean states have seen the necessity and are making moves in that direction. Kingston, Jamaica, is on its way to

becoming the Caribbean’s first smart city with an innovative energy project launched last year. The initiative fitted over 300 LED smart streetlights in the New Kingston area that can report bulb failures, monitor energy use and schedule maintenance checks. Montego Bay has also been identified by the Jamaican government as a pilot smart city. Through its Emerging and Sustainable Cities project, the IDB is working with Jamaica to develop the city’s technology and infrastructure. The country has developed a roadmap that aims to tackle issues such as crime, transportation and sanitation by 2030. Another Caribbean city identified by the IDB as a possible smart hub is Nassau in The Bahamas. Last year, the Bahamian government joined forces with the International Telecommunications Union to draw up the BSmart Bahamas Initiative, a masterplan for incorporating technology into the provision of public services. Earlier this year, Guyana’s National Centre for Educational Resource Development (NCERD) officially launched its first SmartRoom - a digitally integrated space where technology is used to coordinate meetings, link up with remote workers and record and share documentation. Touring the facility in January, the CARICOM Secretariat praised NCERD’s efforts and heralded the SmartRoom concept as one of the first steps towards smart cities. They also spoke of their hope that the model would be extended throughout the region.

PUTTING PEOPLE FIRST

To quote former IDB President Enrique V Iglesias: “It is not enough to have smart cities; smart citizens are also necessary.” People are at the core of smart cities — managing, leading and innovating to create an environment that benefits everyone in the community and allows for sustainable growth. Smart cities offer opportunities for collaboration on a wide scale, between the public and private sector, between government and citizens. In terms of funding, the IDB urges Caribbean states to make use of local, regional and international partners as well as developing innovators within their own communities that can contribute. Urban transformation on this scale can only be achieved through sound governance, ongoing dialogue and a clear vision for the future.

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IoT DRIVES PROGRESS TOWARDS LOW-POWER TECHNOLOGY

Wake-up receivers, and energy harvesting, offer electricity for billions of ‘smart’ things BY FT CORRESPONDENT

Solar cells, piezoelectric elements and thermoelectric elements could be used to turn sunlight, vibration and heat energy, respectively, into power

The Internet of Things (IoT) is growing rapidly, as huge numbers of connected meters and machines come online, all bristling with sensors to measure the world around them. But what will power all this electronic gadgetry? It is this kind of question that is driving the Towards Zero-Power Electronics initiative at Fraunhofer-Gesellschaft, Europe’s largest institution for applied research. “The way we tackle electric power consumption in the internet of things has got to change,” says Erik Jung of the business development team at the Fraunhofer Institute for Reliability and Microintegration (Fraunhofer IZM) in Berlin. The term ‘zero power’, he adds, denotes a direction of travel in this research, and remains a distant prospect today. The real focus is on low-power electronics and on

achieving incremental improvements in energy efficiency. “Whenever you rely on electronics to do some number crunching or to transmit some data, energy will be consumed. There is no escaping that fact, but there is still much we can do to minimise power needs in the IoT,” he says. According to the US National Science Foundation, the IoT will comprise 50bn smart ‘things’ by 2020 and one trillion sensors shortly after. For some sensors, attached to machines with their own power supplies, power is not a problem. Where wireless sensor terminals are deployed over wide areas and in remote locations, as in agricultural or smart grid applications, concerns over battery life and maintenance costs quickly arise. One area of Fraunhofer’s research, focuses on the development of ‘wake-up receivers’. These devices use ultra-low currents to

monitor wireless sensor networks and only fire up components from a sleeping state when they are required to handle an incoming request or instruction. When used in sensor-heavy IoT applications such as building automation, intelligent lighting or remote maintenance, these wake-up receivers can make such systems around three times more energy efficient, says Mr Jung. Another Fraunhofer focus is the development of on-chip batteries; this looks at using nanotechnologies to etch minuscule cavities on the back of semiconductors or microcontrollers, capable of holding an electrolyte or a capacitor to power that component. A third area of interest for Fraunhofer, and for a number of other organisations worldwide, is energy harvesting, whereby power-generating elements are incorporated into electronic systems. These might include solar cells, piezoelectric elements and

thermoelectric elements, for example, to turn sunlight, vibration and heat energy, respectively, into power. The hope here is that energy harvesting could help to extend battery life, where it is used in conjunction with batteries — or potentially, to eliminate the need for batteries entirely. The problem is that the amount of energy ‘scavenged’ from the environment can be variable, if temperatures drop or the sun does not shine, making this unsuitable for IoT systems which need to gather and transmit large amounts of data frequently. At Fraunhofer, work is under way on investigating materials that offer the best power conversion rates for use in energy harvesting. Energy harvesting might soon be seen in a number of everyday items. In the UK, for example, Drayson Technologies has developed Freevolt, an energy harvesting technology that harvests the ambient radio frequency (RF) energy created by mobile phones and WiFi transmissions. Drayson has already used FreeVolt to power its Cleanspace tags for monitoring environmental pollution, but now it’s working on bringing the same technology to credit cards. “Smart cards are becoming more secure, but like many technologies, they need more energy to achieve the increased levels of security and privacy demanded by the market,” explains company founder Lord Drayson, a former Labour government science minister. A credit card equipped with Freevolt, for example, could capture RF energy when placed on card readers and smartphones, and then use that to run on-card security functions such as biometrics, he says. Similarly, researchers at the University of Washington in the US demonstrated a batteryless smartphone this summer, which can run on power harvested either from ambient radio signals or light. According to Shyam Gollakota, associate professor in the university’s Paul G Allen School of Computer Science & Engineering, this could be the first functioning mobile phone to consume almost zero power: “To achieve the really, really low power consumption that you need to run a phone by harvesting energy from the environment, we had to fundamentally rethink how these devices are designed,” he says.

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JULIAN WILKINS

As the Caribbean ICT space evolves and expands, CANTO Chairman Julian Wilkins shares his thoughts on net neutrality, the dangers of over-regulation and his role as an advocate for the industry. BY CATHERINE MORRIS, STAR BUSINESSWEEK CORRESPONDENT

When Julian Wilkins, Chairman of the Caribbean National Telecommunications Organisation (CANTO), first began his career, the ICT landscape was a very different place from today’s world of ubiquitious mobile phones and lightning-fast broadband. “I was an apprentice at the age of 16 and I was climbing telephone poles, working in the telephone exchange, rewiring landlines. They didn’t have any mobile phones back then.” Fast forward a couple of decades and the CANTO Chairman and Digicel Group Director is now grappling with issues such as net neutrality, upgrading to 5G networks and making the Caribbean’s ICT regulatory environment more conducive to investment. Although the sector faces many challenges there is cause for optimism, according to Wilkins who believes that collaboration and cooperation are key to building a sustainable and profitable industry.

MARKING MILESTONES

Originally from Antigua, Wilkins was educated in the United Kingdom, receiving a telecommunications City & Guilds qualification and an MBA from Henley Business School. He began his career with British Telecom but returned home to Antigua in 1994 to take on the role of Operations Engineer at the Antigua Public Utilities Authority (APUA). It was during his time at the APUA that Wilkins oversaw an important milestone. In 2000, while at the helm of APUA’s mobile telecommunications company, Wilkins successfully launched the first GSM mobile network in the English-speaking Caribbean. It was a proud moment. “That is one of the standout moments of my career. It has really stayed with me, it was a lot of fun.” From there, the pace of change rapidly accelerated — along with Wilkins’ career. He was lured to the private sector, joining Digicel Trinidad & Tobago in 2006 before transferring over to the Digicel Group two years later where he found himself working in the legal and regulatory niche. His current position is Group Director of Government Relations and Public Affairs — a role he juggles alongside his work with CANTO where he is kept busy overseeing working committees, setting the Board’s agenda and delivering on the group’s mission statement.

“The mission has evolved over the years by focusing more on inclusiveness: that is, embracing all ICT stakeholders in the region. We advocate on key issues of the day more often than we did in the past, and we try to create an environment that encourages investment and innovation,” he says. Wilkins and CANTO have a long history. He first joined in 1996 but his position shifted throughout the years — representing both the APUA and Digicel as a Board Member in two separate terms before being elected to the Chairmanship in 2015. Last month, he won a second two-year term as Chairman and says he wants his tenure to be characterised by an atmosphere of inclusivity, where everyone in the industry has a seat at the table regardless of their market share. “As Chairman you try to think about your smaller members. Whenever we are making decisions we need to make sure we are considering them. I try to listen to everybody and get their point of view.”

INDUSTRY INCLUSION

Wilkins is in a unique position. His varied resume, and dual role as industry spokesman and private sector professional, give him an insight into both the public and private components of the sector. He is well versed in balancing the often competing concerns of regulators, industry and international bodies and says: “It is difficult at times; you are trying to look for common ground and that can be challenging but more often than not, you can find a common position.” The most pressing concerns on the horizon include the thorny issue of internet freedom. In 2016, CANTO introduced the Code of Practice for Safeguarding the Open Internet, an industry-driven agreement signed by operators who support the open internet. With the recent debate over net neutrality arising in the United States, the issue has also come under scrutiny in the Caribbean but Wilkins says a ‘one size fits all’ approach will not do the region any favours and wants to see a more thoughtful solution. “Regulators have different opinions on net neutrality [but] you cannot just adapt something to the Caribbean because it was done elsewhere. We need to do our own research before introducing it to the region and we need to think about our own market. If you have too much regulation,

Wilkins successfully launched the first GSM mobile network in the English-speaking Caribbean

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that can hold back investment. There needs to be a balance.” An open internet may foster innovation and competition, but it also allows for international players to exploit the market. Wilkins says one of the biggest threats to the region’s industry in recent years is Over The Top (OTT) media services such as Skype, FaceTime and What’s App that offer free services over the internet, bypassing local operators and domestic regulatory requirements. This has led to a 30-40 per cent drop in voice revenue for Caribbean providers. “This is a significant challenge for Caribbean network operators who conduct business in a regulated environment but compete with unregulated OTTs offering the same services. There should be an equal playing ground: the same rules for the same services,” says Wilkins who would like to see the Caribbean following the example set in some South American countries and the UK, where international providers are taxed on digital services. “The solution is a system where the OTTs are regulated and taxed, and are contributing to the local society.”

INNOVATION ERA

“New and exciting developments are ahead in our industry,” according to Wilkins who says some Caribbean countries should be ready to roll out 5G services by 2020. Transitioning to fifth generation networks will mean better data rates, higher capacity and faster broadband, but it’s not just good news for customers. The new technology has the potential to revolutionise every aspect of life in the region. “5G will offer the opportunity for much more innovation, bringing forward the Internet of Things, connecting devices to the internet across multiple networks to allow them to communicate with people, applications and each other,” says Wilkins. “It will also impact the development of virtual/augmented reality, driverless cars and factory automation, amongst others.” The next generation of telecommunications professionals will be the ones ushering in this new era of creativity and innovation, and CANTO is keen to support them. Each year, at CANTO’s annual conference, the organisation hosts a ‘Hackathon’ where young entrepreneurs compete to create the best apps. Last year the winning team was a group from Belize who pioneered ‘Sonar’, an app that can be used in disaster recovery efforts to create a single point of communication between disaster agencies

An open internet may foster innovation and competition, but it also allows for international players to exploit the market

and the public. Wilkins says there is a lot of talent in the industry and he’s encouraged by the buzz around the Hackathon, which is now in its fourth year. “The Hackathon is one of our proudest achievements at CANTO. When you see these kids produce these things, it is just amazing. We know we have gifted young people in the Caribbean but we need to get them to ICT events and get them to that level.”

LEAVING A LEGACY

CANTO’s next annual conference (its 34th) will take place in July. Over 500 delegates are expected to attend the event, which takes place in Panama. It’s a huge undertaking, and Wilkins is hoping it will be the best yet, putting the emphasis firmly on his core message — inclusion. “Our conference has evolved over the years from one which was simply geared towards network operators and industry suppliers, to one which is far more inclusive. [It’s] a conference where discussion by the experts is informed and interactive, where decisions can be made and action taken with the involvement of all stakeholders.” Going into his second, and final, term as CANTO Chairman, Wilkins hopes this message of collaboration will be his lasting legacy. “I want to include more ICT stakeholders to move the Caribbean foward. If I can achieve that, I will be quite happy. “At the end of the day you have to ask: Is this good for the Caribbean? That is the bottom line.”

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THE INTERNET OF THINGS BY STAR BUSINESSWEEK CORRESPONDENT

In 2015, there were about 15.4 billion connected devices. According to IHS, this number will grow to 30.7 billion in 2020 and 75.4 billion by 2025

The Internet of Things promises a “smart” world where devices connect to share data — technology that could deliver significant economic and social benefits to Caribbean countries We live in a communication age and, in today’s world, even machines can talk to each other. Televisions that connect to your computer to play your favorite clips. Phones that talk to your car’s operating system so you can get your messages on the road. A home security system that syncs to your laptop so you can turn on lights and view your property from afar. These are all examples of the” Internet of Things” (IoT) — a vast network that

connects enabled devices so they can communicate and share data. Analyst firm Gartner predicts that by 2020 there will be over 26 billion connected devices. As the technology improves, the buzz around the IoT has grown and more and more ‘smart’ cities are springing up. Opportunities abound in this cutting-edge space, but is the Caribbean ready?

A LONG ROAD

The IoT has not generally been at the forefront of telecom discussion in the Caribbean, as regulators are preoccupied with more pressing concerns such as ensuring reliable service provision, customer protection, competition and data security.

Most would acknowledge that the region falls behind when it comes to global innovation. “We are lagging behind and that is because we do not have the sort of regulatory environment in a number of places that encourages investment,” says Julian Wilkins, Chairman of the Caribbean National Telecommunications Organisation (CANTO). “If you want stakeholders to invest, you have to have an environment that is right for investment. We are somewhat behind from a technology perspective.” As Caribbean countries work to upgrade to 5G networks, however, this could pave the way for IoT applications. Providing the Continued on page 6

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Continued from page 5

“Everyone having a phone or some type of connected device today allows the cruise experience to become integrated into the Internet of Things,” – Richard Fain, Chairman and CEO, Royal Caribbean Cruises Ltd

“The Internet of Things is still pretty new; it is in a hype cycle phase right now,” - Scott MacKenzie, CEO of cloud computing firm Cloud Carib

necessary infrastructure and support for the technology could bring significant social and economic benefits to small Caribbean states. “The Internet of Things is still pretty new; it is in a hype cycle phase right now,” says Scott MacKenzie, CEO of cloud computing firm Cloud Carib. MacKenzie, who has over 25 years’ experience in the IT industry, offers cloud computing services to businesses throughout the Caribbean and says that as awareness of the cloud grows, so too will the uptake of IoT. “There is nothing stopping people from leveraging the IoT as they are leveraging the cloud.” Agriculture, health care, transportation, environmental management and manufacturing are just a few of the industries that can be transformed by the IoT. Wilkins believes the technology could be especially useful in the tourism and agricultural sectors — both of which are bigearners for most Caribbean nations. “There are so many different types of services [available through IoT]. Tourism seems to be the focus in most of the islands and the IoT could do great things for tourism. There are so many benefits that would come from that. It is endless.” Several cruise lines are already making the most of the technology. Towards the end of last year, Royal Caribbean Cruises Ltd embraced the IoT with new services that can be accessed from guests’ smartphones. These included virtual reality experiences and an ‘x-ray’ feature that allows guests to peer through walls on the ship using their smartphone, to see the inner workings of the boat. In November 2017, the region’s first Internet of Things Lab was established in Puerto Rico. It will work with international and local universities to offer workshops and seminars, and act as an incubator for new talent and entrepreneurs.

CHALLENGES

As technology creeps into more and more of our daily life, however, the corresponding risks grow. The IoT represents a unique threat because the more integrated the system, the more vulnerable the user. Having financial details, home security systems, computers, phones and personal records all on the same network can leave customers extremely exposed. Regulators, policymakers and manufacturers must therefore ensure they stay ahead of the technology, educating themselves on possible loopholes and vulnerabilities so they can offer a high degree of consumer protection. A vast network like the IoT is only as strong as its weakest link and a collaborative approach to security is crucial. In an integrated network, there is also a need for consistent standards. One poorly-functioning device can negatively impact the entire system so best practices must be developed, disseminated and followed to allow for full interoperability.

CATCHING UP

Global adoption of IoT is in the early stages. The technology is still finding its feet which presents an opportunity for the Caribbean to catch up with the rest of the world. MacKenzie, who has years of experience in the global market, estimates that the region is around 10 years behind its more developed competitors but adds that the pace of change is such that it won’t take long for the playing field to level. He believes that much of the work has already been done, saying: “[The infrastructure] is already there. There are leapfrogging opportunities for people to take advantage of the IoT.” It is up to the private sector to push through change, according to MacKenzie, who says technological advances require innovative public-private partnerships to help the industry develop. He wants to see the younger generation, in particular, push through more innovation and adds: “There are a lot of very talented people that will have creative ideas we haven’t even thought of yet.” Innovative ideas, combined with a robust and well-structured regulatory framework, can help the Caribbean move with the times and prepare for the inevitable explosion of IoT applications. MacKenzie is optimistic about what’s ahead, saying: “This is a very exciting time, which is creating a great opportunity for the region.”

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HOLOGRAMS ARE CHANGING THE WAY WE INTERACT WITH COMPUTERS 3D images that can be manipulated with hand gestures blur the digital and real world BY FT CORRESPONDENT

A HoloLens headset projects a 3D image of a motorcycle on to a desk

Until recently, delivering hands-on training to aircraft mechanics meant bringing trainees into a hangar to see a plane under maintenance and removing the engine’s cover to allow them to look inside. At Japan Airlines, however, trainees using HoloLens, Microsoft’s “mixed reality” headset, can observe the different parts of an aircraft engine virtually. Because the training can be conducted at any time from anywhere, it is more efficient and cost-effective, says Greg Sullivan, Microsoft’s director of communications. In addition, technicians can get up close to moving engines safely, with the ability to place their hands on virtual engines and parts. “Mechanics can be inside the digital engine while it’s running and can see how the system interacts,” he says. Whether applied in an industrial setting, in gaming or by consumers — for example to see how a new kitchen might

look in their home — use of holograms in augmented reality (AR) is being pursued by a growing number of companies. Florida-based Magic Leap, for example, is developing a device for designers and developers that mixes digital graphics with the physical world, while Looking Glass, a start-up based in Brooklyn and Hong Kong, is developing HoloPlayer One, a portable device roughly the size of a laptop that displays interactive 3D images that can be manipulated with hand gestures. “What we’ve been seeing with Magic Leap and Microsoft is this desire to figure out the next shift in how human beings interact with information,” says Shawn Frayne, co-founder and chief executive of Looking Glass. Not all the AR devices being developed use holograms, in the technical sense — photographic recordings of a light field. “Most of what you’re seeing are not actually holograms,” says Michael Bove, principal research scientist at the object-

based media Group at MIT Media Lab. “Hologram has a specific meaning to people in the 3D display community, while to people in the marketing community, it means any three-dimensional image.” Leaving aside such distinctions, the effect of 3D virtual images can be powerful, as demonstrated by the success of Nintendo’s Pokémon Go. The game uses smartphone cameras to superimpose digital imagery across players’ views of the real world, sending them to parks, streets and landmarks to find and capture virtual creatures. Other forms of AR are based on similar principles. “It combines computergenerated graphics with what’s going on in the real world,” says Paul Merritt, a technology specialist, based in PA Consulting Group’s Cambridge Technology Centre. This is what distinguishes AR from virtual reality (VR). While users of VR wear goggles or headsets to become immersed in a 3D world, AR technologies place 3D virtual objects in real physical

space and allow groups of people to interact with them, opening up the potential for collaboration. Moreover, users of the technology can do more than view the virtual objects. They can also manipulate them, using hand gestures or voice commands. Many AR devices or systems are equipped with an array of cameras and sensors that enable them to understand the physical environment and the people in it. “The real magic is the algorithms that fuse the data from all those inputs,” says Mr Sullivan. Applications of AR range from industrial design to architecture. In medicine, it could increase accuracy, speeding up diagnosis and reducing error rates. It could help surgeons look inside a patient’s body, reducing the need for large incisions. Prof Bove believes there is more work to be done in developing AR applications. “As of now, there are many fascinating demonstrations but no killer app,” he says. “Everyone is throwing everything into the space and seeing what sticks.” Meanwhile, when it comes to devices, different approaches are emerging. While some are focusing on developing headsets, others are trying to avoid the use of wearable equipment. At Looking Glass, this drives the company’s approach. Its HoloPlayer One device displays interactive 3D images without the need for goggles or headsets. “We have a philosophical belief that the real world should be prioritised over going into 3D digital space,” says Mr Frayne. Regardless of the type of device used, the ability to manipulate virtual objects using voice or gesture will change the way people interact with technology, freeing them from the need to use screens, keyboards and mice. “If I can use gesture and touch, it’s not so much a computer any more, it’s a whole system,” says Mr Merritt. For Mr Sullivan, the ability to interact with holograms in the same way as with other physical objects will bring people closer to their natural instincts for communication. “Bringing computing into the threedimensional world that humans have always existed in is the next step in making computing more personal,” he says.

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THE BUSINESS OF BPO

Saint Lucia has the potential to become a regional leader in Business Process Outsourcing BY STAR BUSINESSWEEK CORRESPONDENT

Cost-effective, streamlined and efficient — it’s no wonder companies are looking to Business Process Outsourcing (BPO) to maximise their resources and increase capacity. With the BPO market rapidly expanding, Saint Lucia is looking to grab its share thereby boosting the nation’s economy, creating jobs, improving infrastructure and delivering sustainable growth.

CAPTURING BPO BUSINESS

BPO is the practice of subcontracting business operations to a third-party provider. Regionally this can be further defined as a foreign company outsourcing certain services to Caribbean providers, usually Information and Communication Technologies (ICTs). Globally, the BPO market is worth US$1 trillion and the Caribbean is keen to become a player. The Caribbean BPO industry has been growing since the early 2000s. BPO and other professional services generated over US$2bn in 2014, according to Caribbean Export, and have been growing at an annual rate of 17%. Saint Lucia has made inroads into this

profitable market. “Saint Lucia has a demonstrated track record in supporting call centre, business process and knowledge process outsourcing,” says Alana Lansiquot-Brice, Investment Promotion and Fulfilment Manager at Invest Saint Lucia (ISL). “Saint Lucia provides all the attributes that are critical for a successful BPO business including economic and political stability, cost effectiveness, low market penetration, sound infrastructure and outstanding talent.” Saint Lucia currently has four major call centres that focus on outsourcing: KM2, Ark Teleservices, Velox Performance and Ojo Labs, with the latter specialising in AI technology. To grow the industry further, ISL is looking to zero in on specific niches that can attract high value clients.

PEOPLE POWER

In a report published earlier this year, BPO analyst firm Nearshore Americas suggests that Saint Lucia zero in on knowledge-focused activities such as legal services, FinTech, web

services, real estate, medical services and architecture. Proficiency in knowledge niche industries calls for an adaptable, willing, competent and stable labour force. Positioning itself for future investment, Saint Lucia is taking steps to improve its educational capacity. Both Lynchberg College and the UWI Open Campus are integrating online learning into their curriculums, hoping to produce a more digital-friendly labour force.

COMPETING FOR BUSINESS

Competition is fierce in the nearshore BPO space and if Saint Lucia wants to stand out from the Caribbean crowd it has to ensure it is meeting the needs of prospective investors. Nearshore Americas ranked Caricom countries in benchmarks such as scaleability, infrastructure, wages and niche knowledge services, and says Saint Lucia scored high in comparison to its island neighbours but still has some obstacles to overcome. Inconsistent government services, particularly in relation to the land registry, are off-putting to investors who expect streamlined processes and efficient bureaucracy, according to Nearshore Americas’ report. “There is always room for improvement and we believe that the National Ease of Doing Business Task Force, along with Government’s recent approval of the Services Policy, will bring improvements in efficiency and service delivery,” says Lansiquot-Brice. Another challenge identified by Nearshore

Americas is lack of space, especially in the north of the island where businesses could find it difficult to scale up their physical operations. “The lack of space is a perception and not a reality,” says Lansiquot-Brice. “The south of the island, particularly Vieux Fort, provides an excellent opportunity for a company seeking to establish. This is due to the proximity to the international airport, proximity to other businesses, the projected economic growth due to other investment projects, availability of ISL factory space and available labour.”

FAR-REACHING BENEFITS

ISL has identified BPO as one of the key components of the country’s growth strategy. Renewed investment in infrastructure projects such as upgrading the Hewanorra International Airport and developing the Northeast Corridor Highway will enhance the country’s ability to attract FDI, as will the continuing efforts of the Ease of Doing Business Task Force to modernise and simplify government services. Lansiquot-Brice says: “We see the sector’s growth as extremely important, as a signal to the international investment market. A successful industry will widen Saint Lucia’s appeal . . . It would further diversify our economy, minimizing reliance on tourism and agriculture. Most importantly, this sector will provide new opportunities for youth employment, [to develop] a more qualified ICT labour pool to meet required demand and increase the cadre of local talent.”

FINANCIALLY SPEAKING Financial Literacy 101 presented by Bank of Saint Lucia

INVESTING IN FIXED INCOME SECURITIES IN THE ECCU A fixed income security is a financial security that provides returns in the form of fixed periodic payments/coupons with the principal being paid at maturity. Fixed income securities range from a tenor of 91 days to one year (Treasury bills), one to five years (Treasury notes) and from 5 years and beyond (bonds). On a monthly basis there are a number of fixed income securities available to both institutional as well as individual investors in the region.

of notes and bonds). However these rates are normally driven downwards as priority in the auction is given to investors who are willing to accept the lowest rates on the security. At close of the auction, the rate at which the security is fully taken would be the closing rate of the security. The auctions are uniformly priced which means that successful bidders will get the closing rate even if the initially bid rate was lower. Investors who bid above that closing rate would not be successful. Sounds complicated? It really is not. All you need to do is provide your licensed broker with your minimum acceptable rate.

The Eastern Caribbean Securities Exchange (ECSE) through its Regional Government Securities Market (RGSM) makes investing in various Eastern Caribbean Currency Union (ECCU) government fixed income securities seamless. One can stay in any of these jurisdictions and easily purchase securities of member states governments such as Antigua, Dominica, Grenada, St. Lucia and St. Vincent and the Grenadines. These are done through competitive bidding auctions for these securities on the RGSM.

Fixed income securities are also available through private placement issues. These are issues done via a licensed broker instead of through the RGSM. Unlike on the RGSM where the rate is decided through an auction, with the private placement securities the rates are known beforehand. The securities are sold on a first come first served basis.

How do these auctions work? These auctions normally start with a maximum discount (in the case of Treasury Bills) and maximum coupon (in the cases

A secondary market exists for all fixed income securities whether purchased through an auction or via private Faster, safer, more convenient

placement. One does not have to hold the security until maturity. There is no penalty for selling before maturity as interest will be paid to the security holder up until the day of the sale. To take advantage of these investment opportunities one firstly needs to establish a brokerage account with one of the many licensed brokerage houses located in various jurisdictions in the ECCU. BOSL Investment Banking Services is one such Licensed Broker Dealer firms.

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