La Nación reports that the Legislative Assembly yesterday voted decisively in favor of opening up Costa Rica’s telecommunications sector, currently monopolized by ICE (Costa Rican Institute of Electricity) and RACSA (Radiográfica Costarricense), both state-owned.
There has been talk of privatization for years; I once worked for a company that was hoping to become an ISP once the market opened up. That was over ten years ago. A privatization initiative in 2000 was tabled after being challenged in court and meeting with the disapproval of many private citizens.
Both the US-Central American Free Trade Agreement (CAFTA), and the telecom privatization it calls for, remain controversial topics but it seems clear that, this time, things are in fact going to move forward.
Of course plenty of steps remain to be taken between yesterday’s vote and the actual appearance of third-party Internet and cellular service providers, but those of us here in Costa Rica are already wondering how soon the effects will become visible to the end user.
My experience with Costa Rica’s telecommunications services has been very good. Phone service–what’s more, reliable phone service–does extend even to the remotest towns, and high-speed Internet is increasingly available as well. One of the goals of privatization is that competition in the marketplace will result in a greater range of services and options for the end user, and maybe even lower prices.
This blogger is looking forward to seeing how it all plays out.
(This Reuters article on Costa Rica’s telecom changes, dated April 3, provides some additional information on the issue.)
