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Racsa Close To Breaking Away From Its Parent ICE

The possibility of the Radiográfica Costarricense S.A. (Racsa) breaking away from its parent, the Instituto Costarricense de Electricidad (ICE), may be around the corner, with the call by Presidenta Laura Chinchilla, to a meeting of representatives of bot companies for next week.

Racsa has been and continues to be an arm of ICE, providing internet services with more than 100.000 customers. But, it does not have its own board of directors and the direction of the company is entirely up to the ICE board of directors, which owns 100% of the company's shares.

With the existence of Racsa, ICE is competing with itself, a it also offers internet services, although it restricts its activity to ADSL and mobile internet, while Racsa offers dial up internet and in partnership with cable companies, cable internet.

A decade ago internet services in Costa Rica was only available through Racsa, as ICE concentrated on telephone communications and energy.

In the decade and with the growth in internet demand and capacity, Racsa has grown. Recently the ICE owned company announced an investment plan of us$360 million dollars to improve its internet network, offering high speed connections at low prices and will soon be breaking into the "virtual cellular network" market.

If Racsa's plans for the Virtual Cellular Network become a reality, it would make it a clear competitor to ICE.


A Virtual Cellular Network allow many terminals with bursty traffic to access a fixed communications infrastructure, using radio communication. A VCN does not use a conventional cellular frequency reuse concept. In a VCN, each terminal sends packets using the entire system bandwidth while any nearby port can pick up the signal. Then, the ports relay the packets to the port server (PS) over a fixed (wired) network.

 Ports can be simple radio receivers as they do not have to support the same functionality as conventional cellular base stations. The performance is investigated in terms of probability of capture, throughput and delay. Despite its simplicity this network has a larger user capacity than conventional cellular reuse patterns.







 
 
 
 
 

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