Competition To ICE Approved
The
Instituto Costarricense de Electricidad
(ICE), currently the sole provider of
cellular and internet telecommunications in
the Costa Rica, will soon have competition,
as the process of opening the telecom market
continues.
Yesterday the newly created Superintendencia
de Telecomunicaciones (Sutel) - telecom
regulator- approved the first six companies
that will go head-to-head with ICE in an
open market.
For now the competition will be solely for
internet services and IP telephony.
The companies, Dodona SRL (Amnet); R&H
Internacional Telecom Services S.A.;
Worldcom de Costa Rica S.A.; Jasec,; Call my
way NY S.A.; and, Redes Inalámbricas de
Costa Rica, all received Stuel approval.
With the approval, ICE and Racsa will not
compete with Dodona and Worldcom and Junta
Administrativa del Servicio Eléctrico de
Cartago (Jasec) in the wide band internet
connections similar to what ICE and Racsa
are currently offering today.
In the Internet Protocol (IP) sector, R&H
will be offering IP lines (calls made over
the internet), while Call My Way will be
offering prepaid calling services.
Redes Inalámbricas will be focusing on
commercial accounts for internet networks
and connections.
The approval of the six is the first phase
of the Sutel's approval, while another 32
companies are waiting in the wings for
Sutel's second phase of the process, which
is expected to approve cellular telephone
operators. That approval is not expected
until next year.
The approval means the six companies can
begin operations whenever they are ready to
do so.
However, that may not be for some time yet,
as the Sutel has yet to approve the
regulations of interconnection between the
operators.
Valentin Horvilleur, general manager of
Worldcom, stated that ICE is currently the
soure provider of the internet backbone and
they are forced to negotiate with the state
telecom and the competition, while competing
for customers.
Miguel Solís, general manager of Redes
Inalámbricas, said they have an offer from
Panama's Cable & Wireless to supply
connection to the internet.
George Miley, president of the Sutel, said
that the operators are free to negotiate
with ICE and Dodona, both of which have a
significant public infrastructure already
set up.
Miley added that the approval of competition
is a positive sign to attract investors.
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