Instituto Costarricense de Electricidad is evaluating the Salvadoran market to determine if there is an opportunity to establish itself as a new broadband operator.
The state telecommunications company already has a presence in Nicaragua, where in conjunction with the state company Enatrel, it operates the company Telecomunica, which provides internet and television services.
A plan is being worked on in Costa Rica to implement a broadband internet network for 2,500 educational centers in different areas of the country.
The proposal which is being worked on by the government and Fonatel is in the planning stage, and aims to develop a broadband internet network with different speeds and capacities, which would be defined according to the number of users in each educational center.
The only countries in America where mobile phone prices are still regulated are El Salvador and Costa Rica. It is no coincidence that these countries are among the last in the rankings for speed of mobile internet services.
EDITORIAL
And it is no coincidence that these two countries also suffer from the existence of the heaviest controlling bureaucracies in the Central American isthmus, with clear consequences for the slow adaptation to changes experienced by the global economy, particularly globalization.
Using a World Bank loan coverage and internet telephony will be expanded in the North Caribbean Coast, the South Caribbean Coast, the Autonomous Region, and Rio San Juan and Managua.
From a statement issued by the World Bank:
MANAGUA, August 17, 2016 – The World Bank (WB) and the Government of Nicaragua signed today an agreement to implement a project aimed at increasing broadband access and make further progress in the development of Information and Communications Technologies (ICTs), especially in the Caribbean region of Nicaragua.
Improving infrastructure and increasing competition from internet providers not only helps increase coverage and improve the service but also reduces its cost.
The fact that Nicaragua is the most expensive Central American country in terms of connecting to the internet means there is a need not only to improve basic infrastructure, but also to increase competition, thereby improving prices and services provided.
"In 2001, Costa Rica was near the top of the list of countries with the best connections together with powers such as South Korea".
Now, the State of the Internet report, by Akamai Technologies, reveals that from 2014 to 2015, Costa Rica continued to lose position in the global ranking of average connection speed, and from a poor 94th place has become worse, listed at 102, according to an article on Nacion.com
The state run telecommunications company has announced it will be investing $100 million in internet infrastructure to offer broadband and fiber optics services.
The general manager of the Honduran Telecommunications Company (Hondutel), Jesus Mejia, said in remarks published by Latribuna.hn that they will be investing approximately $100 million, about 2,200 million lempiras to increase supply in two market segments.
The IDB's Broadband Development Index places the country in the 3rd. place in Central America, 12th. in the Americas, and 48th. among the 63 countries in the global ranking.
The four pillars are defined, according to the broadband ecosystem (see Annex II). (1)
Public policy and strategic vision. (2) Strategic Regulation, (3) Infrastructure (measuring the access elements), and (4) Applications and Training (measuring the adoption and use).
From a report by the Inter-American Development Bank (IDB):
In Costa Rica contracts have been awarded to the Instituto Costarricense de Electricidad and Claro to provide telephony and broadband Internet services in six cantons in the south of the country.
The Costa Rican Electricity Institute (ICE) will be responsible for developing projects in Buenos Aires, Osa, Corredores, Coto Brus and Golfito. Meanwhile Claro de Costa Rica is in charge of projects in the area of Perez Zeledon.
The Superintendency of Telecommunications in Costa Rica is putting out to tender the service to provide access to Fixed Voice and Broadband Internet Services in the south of the country.
SUTEL-BNCR Competition No. 010-2014
Contract to provide access to Fixed Voice and Broadband Internet Services to all communities in the districts of Biolley, Brunka, Buenos Aires, Chánguena, Colinas, Pilas, Potrero Grande and Volcan, in the canton of Buenos Aires, Puntarenas province and the provision of these services to Public Service Delivery Centers located in these communities, with support from the National Telecommunications Fund.
According to the Inter-American Development Bank, broadband access increases company productivity and allows access to more and better information helping decisions to be made efficiently and at less cost.
From a statement issued by the Inter-American Development Bank (IDB):
Companies that have adopted broadband operations have increased their productivity by 10 percent on average, according to the McKinsey Global Institute.
In Panama it is up to 5.12 Mbps, in Nicaragua 3.53, in Honduras 3.43, Guatemala 3.32, in El Salvador 3.10, and in Costa Rica up to 2.81 Mbps.
The data has been provided by Speedtest.net, which based on download speed controls made by million of users, maintains a ranking of 188 countries according to the average download speeds in Mbps over the past 30 days where the average distance between the client and the server is less than 300 miles.
The National Authority for Government Innovation has launched a program to encourage connectivity and the use and adoption of fixed and mobile broadband services in the country.
From a press release by the National Authority for Government Innovation (AIG ):
In the presence of representatives from telecommunications companies, national government authorities and representatives from the Inter-American Development Bank (IDB) , the National Authority for Government Innovation (AIG ), introduced the Strategic Broadband Plan of the Republic of Panama, which seeks to establish mechanisms and encourage connectivity, the use and adoption of fixed and mobile broadband services in the country.
A study by the Inter-American Development Bank estimates that an increase of 10 % in the coverage of high speed internet would increase GDP by 3.2% .
Despite being one of the countries in the region that has shown significant growth in internet penetration, Panama is limited by low speed and high service costs, prompting the Bank to conduct a study on the options of the Panamanian government to expand its broadband network.
There are five projects in Costa Rica attempting to set up truly fast internet networks, and all of them are hampered by bureaucracy.
An editorial in Elfinancierocr.com explains that in Costa Rica "the five projects designed to bring high speed internet to businesses and homes are stuck."
"... First of all, it begs the question, why have five projects that are so similar? The plans by Racsa, Jasec, ESPH, Curridabat, all offer an open network (available to all service providers) using optical fiber to connect households (known as Fibre To The Home or FTTH), while the ICE is planning to use fiber combined with copper to provide it's services. "