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LOWTAX OFFSHORE

BERMUDA: INTERNET AND E-COMMERCE FACILITIES


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In this Section:

- BERMUDA BUSINESS ENVIRONMENT
- BERMUDA TELECOMMUNICATIONS

- BERMUDA PROFESSIONAL SERVICES
- BERMUDA BANKING AND FINANCIAL SERVICES
- BERMUDA TRUST MANAGEMENT
 
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Bermuda Internet and E-Commerce Facilities

The main telecoms providers in Bermuda have opened e-commerce support centres which provide hosting services.

TeleBermuda International opened its centre in December, 1999. The TBI centre is staffed 24/7, and provides secure website hosting services for companies wanting to conduct e-commerce from Bermuda; Cable & Wireless shortly afterwards opened its sixth world-wide 'platform' offering web-hosting, e-commerce and other Internet services in Devonshire, Bermuda - the other five centres are in London, Washington, Bahrein, Sydney and Hong Kong.

There are a number of other local Internet Service Providers offering varying levels of support to offshore businesses. 'Partial hosting' involves the provision of payment pages on secure facilities in Bermuda, saving the expense of purchasing and maintaining a secure server, routers, firewalls, and transaction gateway. 'Total hosting' involves the supply of secure facilities to co-locate a client’s own technology solutions, or provision of a complete e-commerce package including access to the Internet and transaction processing. Local providers can also assist with the procurement, importation, and installation of client hardware.

Several of the e-commerce service providers rent “electronic stores” to allow digital businesses to operate from Bermuda without incorporating a company on the island. Each “electronic store” has separate assets and liabilities, as well as separate bank accounts, and must operate under the terms of a user agreement.

Long-distance call costs in Bermuda have fallen substantially since 1997.

The Bermuda government is also in the process of fully implementing a new regime for Internet telephony and broad-band services.

In 2004, the Bermudian government continued its support for the jurisdiction’s technology capabilities at an international e-commerce seminar in London. Jonathan Koshar, general manager of AT&T Wireless in Bermuda, said: “AT&T Wireless has been able to establish itself and make great progress in a relatively short space of time thanks to the supportive government and business environment in Bermuda.”

“We are among the first three countries in the world to have EDGE data technology, giving the Bermudian business community access to state of the art wireless communications products and services,” noted Mr Koshar.

In April 2007, Cable & Wireless Bermuda Limited announced a US$22 million investment in a next generation fibre optic cable and associated infrastructure over two years, which promises to enhance the telecoms services it provides to Bermuda's international business community. The investment includes a new 800-mile long cable linking Bermuda to the United States. The cable, which was due to be operational in October 2007, has 700 times more capacity than the PTAT-1 cable it replaces and will provide Cable & Wireless Bermuda and Quantum Communications Limited customers access to the Cable & Wireless global network.

"The new undersea cable will satisfy the growing demand for diverse, reliable high-speed data and broadband services, which cannot be provided by the restricted capacity of the current cable," commented Eddie Saints, Chief Executive of Cable & Wireless Bermuda during the Bermuda International Business Association annual forum in London.

"This investment will also enable us to provide direct international access to all three diverse fibre optic cable systems serving Bermuda from our Teleport facility in Devonshire parish on Main Island, benefiting Bermuda's international business and residential community," he added.

 

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