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ARUBA: E-COMMERCE

BACK TO ARUBA INFORMATION: BUSINESS, TAXATION AND OFFSHORE

However, the market for telecommunications in Aruba has been liberalized. Besides SETAR N.V. (Servicio di Telecomunicacion di Aruba), as the first provider of telecommunications there are two private companies that have obtained a licence to operate a mobile phone network. SETAR N.V. being the first provider on the island, provides most of the telecommunications services.

There are also additional internet service providers and high speed internet is available. However, broadband is expensive compared with other countries; at the time of writing an ADSL service with a 3mbps download capacity costs about 160 Af per month.

Nonetheless, the telecommunication infrastructure of Aruba has advanced in recent years and the island has both a fibre optic and digital microwave network. Aruba is also a landing point of the Pan American Submarine Cable System, and is connected with the world fibre optic network. International calls can be made to all countries in the world directly or via international operator service.

SETAR N.V. has a packet switching node for credit card validation purposes and additional data communication services. In addition SETAR N.V. offers a mobile communication infrastructure and a city-paging system for tone, voice (mail), numeric and alphanumeric options. A cellular telephone and trunking system (public mobile radio system) is also available.

Aruba Offshore Activities

The natural bonding of the Internet and Offshore stems from the fact that both, of their nature, manage to avoid tax. Businesses which can operate on the Internet without, so to speak, touching ground in a high-tax jurisdiction will naturally migrate to offshore jurisdictions; while business that already have offshore existence will find it highly convenient to be able to use the Internet to trade with their high-tax customers without having to make a landing in their countries.

As a major offshore jurisdiction with more than ten thousand of offshore enterprises already installed, including many trading companies, it is only a matter of time before Aruba becomes a centre of e-commerce activity. The island's geographical location, its good telecommunications links and sophisticated business infrastructure add to the inevitability of an e-future for Aruba.

In May 2008, Mio, a fast growing provider of broadband mobile communication services in the Caribbean Islands, has announced that it would soon be launching mobile voice, broadband Internet access and WiMax services in Aruba, Bonaire, and Curacao.

Mio claimed that it would be the first in the Caribbean to offer affordable unlimited wireless broadband Internet access and voice plans.

High Speed Wireless Broadband will further enable new IP (Internet Protocol) services such as static IP addresses, VoIP (Voice over IP), hosted and managed services, video on demand, video conferencing, web hosting, and many other services to be offered. Additionally, it does not require a landline as ADSL does.

Marc Dinee, VP of Sales and Marketing at the Mio Group, stated at the time of the announcement that: "Mio is determined to meet the needs of the various segments in the Caribbean market and, in that vein, we will be unveiling a number of other new products and services targeting these segments over the next several months. We are very excited to introduce our offerings of mobile voice, data, and broadband services to consumers and businesses in these islands. Our services provide our customers with always-on connectivity and high quality reliable services."

For information about the impact of e-commerce on a number of the main offshore activities which take place in the Aruba, click on a link below to go to our specialist E-commerce site Offshore-e-com.com

Sales and Distribution of Physical Products
Sales and Distribution of Digital Products
Banking and Financial Services (including Investment Funds)
Corporate Support Functions

To see an analysis of the current state of legal and tax issues surrounding offshore e-commerce, click here.

Aruba Case Studies

This section will contain case studies of e-commerce solutions applied to offshore business activities carried out from Aruba.To be kept updated as to our progress click here.

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BACK TO ARUBA INFORMATION: BUSINESS, TAXATION AND OFFSHORE

ARUBA: E-COMMERCE

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Aruba Case Studies