Growing Nfld’s IT capability, the Irish way

As many of you would probably expect, the majority of our (company’s) revenue comes from the telecommunications side. But this is changing very quickly. Although this business line will continue to grow, we are forecasting that it will only represent half of Aliant’s total revenue by 2003. That means that our IT, remote communications, and e-business assets will make up the other 50 per cent of revenue – revenues that will come from outside Atlantic Canada – from the global economy. The size of the industry is growing daily. There are over 600 million consumers worldwide who are connected to the Internet. Nortel Networks released a study that forecast the global Internet economy to grow to US$2.8 trillion by 2003. That would account for 7% of the world’s GDP. But that’s on a global scale. There are clear signs here in Newfoundland that technology is having a growing impact. Look at Operation Online. This not-for-profit organization was established in 1996 to help Newfoundland capitalize on the growth in IT. Four years ago this was a very progressive idea. Today it is an essential tool for business. Size not an issue in new economy Fifteen years ago Ireland was the recipient of massive transfer payments and had a GDP that was two and a half times smaller than Canada. It wasn’t until the Irish government cut taxes and created a prosperous environment for business that the economy began to turn around. Today, this island has a GDP greater than our entire country. It’s a compelling success story and one that I understand this Board of Trade will learn more about as it is sending a trade mission to Ireland next month. One of the ways we can all help build Newfoundland’s IT industry is to support what I like to call "Internet clusters." Silicon Valley in southern California is a great example of this ‘clustering’ trend. There’s also Seattle, Boston, even Ottawa. Areas like this have repeatedly set the pace for the advancement of technology and are always ready to embrace changes in the new economy. Internet clusters are the result of three distinct factors. There is early stage investment capital available. All of these cluster areas have strong education systems which produce IT and e-business talent. And three, the areas have established anchor companies investing in R&D and spinning off new companies. We can create this kind of cluster in Newfoundland and Atlantic Canada. A virtual cluster…connected through space … not limited by geography. In northern Finland there is a small city called Oulu, with a population of less than 100,000. Isolated in Scandinavia, this city offers a shining example of the irrelevance of geographic isolation in fostering IT success. It is only 100 miles south of the Arctic Circle!Of the 100,00 people in this town, 5,000 of them are employed by Nokia in research and development on their 3G systems. They communicate electronically with the rest of the world. The R&D community of Technopolis in Oulu boasts some 130 firms employing greater than 10,000 people. And yet they share ideas, marvel in discovery, and advance technology as if they were at the end of the block in a Silicon Valley business park. They are fighting the conventional wisdom that business must be done in a boardroom. Newfoundland has a strong model to work from in Ireland. It has strong business leadership. It has the educational infrastructure to supply skilled professionals. And it has a world of opportunity. IT and e-business can provide the economic engine this province needs. In this new global economy, anyone can play, anywhere. Just as IT and e-business can bolster a provincial or even a national economy, they can help the little guy too. The full text of his speech can be found at: http://www.aliant.ca/english/download/gateway/GPond_Speech_Oct27.docGerry Pond is executive VP of Aliant Inc, and president of the telco’s IT and Emerging Business. The above is an edited excerpt from his Sept. 27 address to the St. John’s Board of Trade.

Growing Nfld’s IT capability, the Irish way

News | October 11, 2000

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us