Dominican republic Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in dominican republic, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Information and Communication Technology
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Overview

The information and communication technology (ICT) sector in the DR has experienced significant growth in recent years.

The GODR has been focused on the digital transformation of the country through the national strategy “Agenda Digital 2030’’ which seeks to raise national competitiveness, improve the standard of living of the population, and make efficient and transparent public administration.

The agenda follows five strategic and two transversal axes: governance and regulatory framework, connectivity and access, education and digital skills, digital government, digital economy, cybersecurity, and technological innovation. By the end of 2021, the GODR had implemented numerous projects to boost the digital economy and promote cyber-security in government and commercial institutions.

There has also been an important surge in the use of teleworking and the digitization of education with a radical change in methods and content, which has increased the use of computers and other IT services in the DR (although the use of digital technologies by the general population is still very basic or limited).

As a result of GODR’s efforts to promote Agenda Digital 2030 coupled with decreasing prices, the availability of attractive financing packages, and constant changes in technology, opportunities in the ICT sector will continue to expand in the years to come.

Leading Sub-Sectors

The most promising sub-sectors within this sector are:

Cloud storage: Dominican companies and the government are in the early stages of adopting this technology. The biggest challenge to market entry is convincing IT executives and company owners that the cloud is just as safe (if not more) as having physical storage on their premises.  Local businesses are wary of placing sensitive information on the cloud, so it is essential to inform them of security measures offered so they can become familiar with the advantages.

Internet of Things (IoT): With the rise of IoT in international markets, Dominican companies are beginning to adopt this technology to optimize their performance and create new business models. The technology is not completely unknown thanks to the influence of the United States in home automation.

Big Data: Opportunities exist for companies offerring Big Data services in the DR as theses services would contribute significantly to strengthening the decision-making process both in the public and private sectors.

Peripherals (power supplies, keyboards, card key, and magnetic media entry devices): The Dominican market for computers and peripherals has experienced continuous growth over the years and is expected to continue to expand in the coming years. U.S. brands dominate the market, and this trend will likely continue due to CAFTA-DR, which allows for duty-free imports of computers and peripherals. There is also a market for used/refurbished equipment in the market.

Other Sub Sectors

  • Software
  • Enterprise Software (payroll management, IT Service Management, etc.)
  • Middleware

Opportunities

The key to sustained sales is a partnership with a local distribution company that is familiar with the market and has access to contacts in the industry. A local distributor is invaluable for after-sales services and maintenance.

Specific to cloud services, it is important to show potential customers that their data is safe, confidential, and encrypted. Some companies may still want to have a physical means of storage at their premises and only use the cloud for non-sensitive data.

The three most important factors for selling computer hardware and peripherals in Dominican Republic are price, service support, and timely supply of spare parts.

U.S. manufacturers of computers and peripherals interested in the Dominican market need a competent local agent, distributor, or representative unless they plan to open their own branch office or subsidiary. A good agent should be able to provide technical assistance and local servicing, and be well acquainted with local political dynamics and business customs.

Due to the COVID-19 pandemic, many companies and schools implemented teleworking, virtual conferences, and virtual classrooms, which are still being utilized to a degree.  Programs like Zoom, GoToMeetings, and Microsoft Teams are widely used in the country.

Connectivity

  • Mobile phone connections: 10.22 Million
  • Fixed lines in operation: 10.89 Million
  • Internet users: 10.11 Million
  • Fixed Internet Accounts: 1.1 million
  • Active Mobile Internet Accounts: 8.9 million
  • Top mobile vendors as of July 2023: Apple (35.43%), Samsung (28.56%),  Xiaomi (10.56%), LG (4.76%), Huawei (2.98%)

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