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INSIDECOSTARICA.COM
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EDITORIAL
| Monday
17 January 2011 |
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Chasing
Clients
Before
the end
of this
year
Costa
Ricans
will
have an
opportunity,
for the
first
time
ever, to
choose
who
their
cellular
carrier
will be.
So, what
is in
store
for
them?
All
indications
point to
new and
more
dymanic
services
and
lower
prices,
as
competition
for
clients
heat up.
As early
as
September,
Costa
Ricans
may
choose
from
Movistar,
Claro or
the
state
telecom
and
former
monopoly,
the
Instituto
Costarricense
de
Electricidad
(ICE).
The
question
by many,
looking
outside
of Costa
Rica
post
monopoly,
is how
long
will the
honeymoon
last
before
prices
go up?
For now
that is
not
important.
What is
important
is that
for the
first
time in
Costa
Rica's
history
the ICE
will
face
competition
and
customers
voice
their
opinion
by
choice
of
carrier.
ICE
currently
has some
2.5
million
customers,
both of
the
postpaid
(subscription)
and
prepaid
services.
Stalling
for
almost
two
years,
by legal
means
and
otherwise,
ICE has
been
positioning
itself
to
maintain
the
market
share.
And now,
according
to
Elbert
Duran,
communications
director
for the
state
telecom,
the
focus
will be
on
promoting
"quality"
or
service
to
maintain
its
customer
base.
Although
Duran
and ICE
president,
Eduardo
Doryan,
were
short on
details,
they
both say
"we are
ready".
At the
beginning
it will
be a
tough
sell for
both
Movistar
and
Claro,
who
promise
to
overtake
ICE in
little
time,
with
attractive
products,
prices
and
services.
For one,
the band
purchased
by
Telefonica
(Movistar)
will
allow it
offer
the
fourth
generation
of
cellular
services
or 4G,
which is
just now
taking
force in
other
countries.
This
newer
technology
allows
better
transmission
of voice
and data
and
interactivity
between
users.
America
Movil
(Claro)
on the
other
hand is
expected
to
continue
its
promotional
plans of
allowing
friends
connected
to its
network
to enjoy
lower
rates,
similar
to its
promotions
in other
countries.
The two
operators
also
have a
lot of
experience
in other
markets
and
concentrate
on
customer
service,
two
things
ICE is
short
on.
Americal
Movil
(Claro),
based in
Mexico
has been
operating
since
2000 and
serves
customers
in 18
countries
in Latin
America
and the
Caribbean,
with a
customer
base of
207
million.
Telefonica
(Movistar)
is based
in Spain
and has
operations
throughout
Europe
and the
Americas
with 202
million
customers.
while
ICE has
more
than 50
years in
the
telecommunications
market,
more
than a
decade
in
cellular
services,
it can
be said
that it
has been
only in
the last
18
months
that the
state
institution
has
really
been a
"telephone
company",
when it
began
changes
in its
marketing
and
customer
service
strategies.
And it
is clear
it still
has a
long way
to go.
Like in
many
other
countries
where
there is
competition,
customers
choose
to
connect
with
more
than one
operator
at the
same
time and
are
clearly
the
winner.
But,
that is
based on
large
markets
like
Colombia,
Brazil,
Argentina,
etc.
Costa
Rica is
a small
market,
1/10th
or less
of those
markets.
One
thing is
for
sure,
the
coming
year
will be
an
interesting
on in
terms of
cellular
telecommunications
in Costa
Rica. |
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