net *doubles* GDP for small Pacific island (fwd)

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From: Justin Mason (jm@mail.netnoteinc.com)
Date: Wed Dec 13 2000 - 08:00:11 PST


http://news.bbc.co.uk/hi/english/sci/tech/newsid_1067000/1067065.stm :

  Tuesday, 12 December, 2000, 16:07 GMT
  Net gains for Tuvalu
  By BBC News Online internet reporter Mark Ward
  
  Demand for internet domain names is improving the lives of the
  inhabitants of the tiny pacific nation of Tuvalu.
  
  In 1998, the country signed over the rights for its .tv internet name
  to Canadian company Idealab. The deal has seen millions of dollars
  flow into the nine islands that make up the nation from organisations
  desperate to have the two letters round off their web address.
  
  The influx of money is paying for a new school and other
  infrastructure works.
  
  But Tuvalu is only one of several countries cashing in on the
  resemblance between their internet suffix and common words or phrases.
  
  
  Island life
  
  Many nations have been assigned a two-letter suffix used to identify
  websites run or used by companies, organisations and people from that
  country. Britain's country code suffix is .uk.
  
  Tuvalu's islands
  Nurakita
  Nukulaelae
  Funafuti
  Nukufetau
  Vaitupu
  Nui
  Niutao
  Nanumanga
  Nanumea
  By coincidence some of the country codes resemble common
  abbreviations, perhaps none more so than .tv which is owned by Pacific
  island nation of Tuvalu.
  
  After repeated enquiries from speculators and companies, the
  government of Tuvalu auctioned off the rights to the .tv domain name
  to a Canadian entrepreneur. In return for permission to use the name,
  Tuvalu was guaranteed $50m over 10 years and a 15% stake in the
  company selling rights to domain names ending .tv.
  
  Now, the $1 million per quarter being given to the Pacific nation is
  starting to change the lives of its 10,600 inhabitants. The nine
  islands making up the country cover only 24 square kilometres of land
  but are scattered throughout 1,060,000 square kilometres of the
  western Pacific.
  
  Food exports
  
  Craig Frances, chief executive of the dotTV company, said the deal had
  effectively doubled the GDP of Tuvalu. Roads are being laid, outlying
  islands are being wired up to give them electricity, and a school is
  being built on the main island.
  
  "Right now all the kids have to go to school on another island and
  they come back at the weekends," said Mr Frances.
  
  The next big change will be to make it easier to get to and from the
  main island. Mr Frances said the runway of the Tuvalu's airport was
  being extended so a 737 could land and take off. This will allow
  Tuvalu to export food for the first time.
  
  "The land is not fertile at all," he said. "The only way they can make
  money is through fishing and fishing licences."
  
  UN membership
  
  The deal with dotTV also allows Tuvalu to end links with the phone sex
  services that it previously used to make money. In return for a cut of
  profits, Tuvalu used to lease its 688 phone code to phone sex
  companies, a policy that troubled its Christian population.
  
  The money has also been used to fund Tuvalu's membership of the UN
  which demands annual fees of $20,000. Tuvalu became the 189th member
  of the UN on 5 September this year.
  
  Tuvalu is just one of many nations cashing in on the fact that its
  country code resembles a well-known phrase.
  
  Others include Moldavia (.md), Turkmenistan (.tm), Niue (.nu),
  Philippines (.ph) and Tonga (.to). So far .tv is proving the most
  popular and around 170,000 organisations have registered a domain name
  with dotTV.
  


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