Racsa To Continue With Internet Services Without Its Very Own Network

Racsa - the Radiográfica Costarricense (Racsa) - has been the provide of internet services in Costa Rica for more than ten years and now faces a unique problem with the opening of the telecommunication sector - it has no internet network of its own and will have to rent space on competing networks to be able to survive.

Racsa is a subsidiary of the state telecom ICE - the Instituto Costarricense de Electricidad - and at the beginning was the only source of internet service in Costa Rica, providing connection to the world by dial-up modem and then by cable in partnerships with cable operators like Amnet and Cabletica.

Racsa would provide the cable companies the internet connection which would be sent over the cable to the customer, splitting the consumer charge 50/50 with the cable company. ICE, on the other side of the internet services sector would provide dial up and DSL service over its telephone network.

That is the way of the internet in Costa Rica and Racsa's way of providing internet service to some 85.000 customers by way of five commercial partners.

However, that is all changing as the "Ley general de telecomunicaciones" passed last year now allows competition in internet and telephony services, with companies like Amnet, with 55.000 customers, linking up customers directly to its network of internet cable.

Alberto Bermúdez, Racsa's general manager, says it will participate in the new competitive market by taking advantage of a clause in the new law that forces competitors to share their network infrastructure.

What happens now, in the particular case of Amnet, Racsa will now be the buyer of services of Amnet to provide connection to its clients, which may be fed back to Amnet shared customers.

Let us explain. The 10 year old Amnet/Racsa relationship has come to an end, however, Amnet customers aren't automatically cut from their Racsa account and as such may continue to pay Racsa for providing a service that is now provided by the cable operator to Racsa and back to the customer.

The negotiations are underway for a deal that will allow Racsa to rent services over the 3.500 kilometres of Amnet network until Racsa can install its very own network.

The other option for Racsa is to negotiate a deal with its parent company, ICE. But, that leaves a sour taste in the mouth of Racsa, according to Bermúdez, after ICE tried to swallow up Racsa and its complete customer base.

The move by ICE at the beginning of the year was shelved by ICE officials without any reason. As well ICE put the brakes on Racsa's to invest in a fibre optic network, which will now be a priority for the Racsa to install allowing it to provide up to 360.000 internet connections up to 1GB. The first 100.000 connections could be available as soon as next April.

In the meantime Racsa has to try to make the best deal it can to survive the dawn of a new era in telecommunications in Costa Rica.

 
 
 
 
 


 

 

2002 - 2009  INSIDECOSTARICA.COM   2133-1000 San José, Costa Rica  -  Subscribe to our newsletter!
E-Mail: [email protected]  Telephone: (506) 8845 5800  / (506) 2231 3205  Fax: (506) 2232 6337