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Plugging into Global Opportunities

Information Technology

The Information Technology (IT) sector has experienced solid growth in recent years. Investment in local infrastructure (e.g., high speed networking, advanced fibre optic systems) by the major IT players has been strong in recent years providing consumers and businesses with access to reliable, high quality services and products. The IT sector is expanding with proven strengths in areas like distance education, telemedicine, new media and marine information services. Operation ONLINE Inc. continues to advance and promote the IT sector by accessing national and international markets, creating strategic partnerships and building human resources.

Two significant segments of the IT sector, computer and related services and telecommunication activity, have recorded strong growth in recent years. Real GDP in the computer and related services industry averaged growth of 10.4% per year between 1992 and 1997. Telecommunication carriers also expanded rapidly, by 6.1% per year. Network usage has risen exponentially in recent years particularly as it relates to the proliferation and use of personal computers and activity on the internet. The IT sector has also grown in terms of job opportunities. A survey of employers conducted in Spring 1998 indicated that employment in the 12 preceding months grew by approximately 23% or 500 jobs, most of them permanent, well paying, full-time positions.

Some Recent Developments

• Recently, a new company xwave solutions was created through the combination of three subsidiaries of NewTel Enterprises and the IT division of Nova Scotia based MT&T. It is now one of the five largest Canadian owned IT services companies with over 1,000 employees, including over 500 in St. John's. xwave solutions plans, designs, builds and runs corporate IT solutions.

• Stratos, an international satellite service provider with its Operations and Customer Care Center located in St. John's, grew significantly in 1998. Stratos acquired Teleglobe Canada's Inmarsat assets, the marine distributorship of MCN, American Mobile's marine services business and Nova-Net Communications, Inc. - a VSAT (very small aperture terminal) service provider.

• Regional Cablesystems Inc., has more than doubled in size during recent months. The company now operates 620 cable TV systems in seven Canadian provinces making it the sixth largest cable operator in the country, with additional acquisitions currently being pursued. Regional's corporate head office is located in St. John's.