
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.
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