Computing and Internet Difussion

 

Overview 9,10

Internet access in Costa Rica is the most advanced of the Central American countries and the Government is prompting development of high-speed Internet networks.

RACSA was established in 1921 by the Costa Rican government to offer basic national and international telecommunications services for the people of Costa Rica. It remains the monopoly national provider of data and IP services for the general public and corporations based in Costa Rica.

RASCA introduced Internet service in 1995. In 2001, it provided Internet connection to approximately 800,000 users, as well as over 100 clients with dedicated lines, most of which are branches or subsidiaries of foreign companies. The company’s Internet lines have a capacity of 64Kbps and fiber optic cables are used in Free Zone areas.

RASCA signed an agreement with cable TV operators, Cable Color SA and Cable Tica, to explore the possibility of using their fiber optic rings to expand its network capabilities, and in 1995 installed backbone multiplexers to complete the ring for voice and data transmission.

Fiber optical ring connections totally cover the territory transporting Internet at high-speeds and at low cost. Users have permanent and fast 24-hour access to this service. The plan was designed by the Ministry of Science and Technology and the Costa Rican Institute of Electricity.

In June 2000 a six-month pilot project of free e-mail access was inaugurated for the entire population. Internet access is free of charge for 10 minutes. The program called Punto.com will also install public terminals in city buildings and other public institutions for Costa Ricans who do not have computers. This is part of the commitment by the President to convert Costa Rica into a high-technology country, with a new economy based on knowledge and technological development.

RACSA offer home Internet users in Costa Rica access to the world’s cheapest Internet rates - US$15 per month for unlimited hours. The rate is available only to home dial-up clients whose phone lines are classified as ‘residential’. The offer which commenced at the end of 2000 is provided under the name ‘Internet para el Hog@r’ (Internet at Home).

In June 2001 the Maya cable became fully operational allowing sending and receiving capacity to almost triple to 155Mb/s. Previous to this, Internet infrastructure had the capacity to receive 55Mb/s of information and to send 22Mb/s. It is anticipated that this will swell the existing 800,000 users to 1 million by the end of 2001. The Maya cable diminishes the country’s dependence on slow and costly satellite communications for Internet transmissions.

SoftNet’s Intellicom, Inc, (a leading provider of two -way satellite-based Internet services for Internet service providers) and Tricom, have formed an alliance to distribute Intellicom’s products and services to private companies to establish corporate Intranets and also offer high-speed wireless Internet services via Intellicom’s two-way satellite technology to Costa Rica.

This satellite technology provides a powerful alternative to the existing landline infrastructures in the Caribbean and Central and South America. The primary companies that will benefit from Tricom’s high-speed, cost-efficient services are Internet Service Providers (ISPs), educational institutions, multiple dwelling units and large single site or multi-site businesses such as banks, insurance companies and hotels.

Internet and PC Statistics

ISP

Radiográfica Costarricense S.A. (RACSA)

Internet Users (2001)

800,000

Internet Penetration

9.3%

Internet Host Computers (2001)

8551

Number of PC’s

700,000

PC Penetration

17%

Sources: Inter-American Development Bank; RACSA

Internet Users – 1997-2001

Year

Users

1997

60,000

1998

100,000

1999

150,000

2000

250,000

2001

800,000

Source: RACSA

Internet host computers – 1993-2000

Year

Hosts

1993

256

1994

1,001

1995

2,161

1996

4,988

1997

7,463

1998

10,244

1999

13,329

2000

16,120

Source: ITU

Internet Subscribers Annual Growth – 1994 -2001

Year

Subscribers

1994

300

1995

3,500

1996

7,127

1997

12,050

1998

19,500

1999

29,265

2000

41,542

2001

55,937

Source: ICE

Internet Subscribers by Province – 2001

Source: ICE

Domain Names

Registration
Domain name registration in Costa Rica is done through the Network Information Center (NIC) – Internet de Costa Rica. The number of domains registered in Costa Rica as of November 23, 2002 is 3944. This does not include web pages of Costa Rican companies that are hosted outside of the country (companies with a .com or .net extension, such as
Teletica; Costa Rica’s main TV broadcasting company). 12

Number of Domains by Type

Type

Extension

Number

Academic

ac.cr

80

Business

co.cr

3391

Non-University and non- Formal Education

ed.cr

37

Financial

fi.cr

112

Government

go.cr

124

Organization

or.cr

179

Health

sa.cr

21

Source: NIC - Internet de Costa Rica

Registration Costs

Second Level Domains

Years of Registration or Renewal

Costs

.co.cr .or.cr, .fi.cr, .ac.cr*, .ed.cr*, .sa.cr*

1

$30

2

$56

5

$130

Source: Internet Domain Name Administration of Costa Rica
*Domains reserved for institutions or public entities. Second level domain go.cr is free of charge and is reserved for government entities or institutions

Internet Access Types Available

RACSA Dial-Up

The sole provider of Dial-Up Internet access in the country is RACSA. The quality of the service is relatively good, although it is not unusual to get disconnected at peak times. Prices in the last two years have dropped significantly from a flat rate of $30 per month for 30 hours plus $1 per additional hour, to a flat rate of $15 unlimited access for home users. However, it is important to mention that these prices do not include telephone call costs, which are about $0.01 per hour. 10,13

Costs

Name

Monthly Cost

Number of Hours

$ per Additional Hour

Cyberpack 25

$25

25

$0.90

Cyberpack 20

$20

20

$1.25

Cyberpack 15

$15

15

$1.50

Cyberpack 9.90

$9.90

10

$1.00

Flat Rate

$35

90

$1.00

Internet H@gar

$15

Unlimited

-- --

Source: RACSA

1. Cyberpack 25 permits internet access to two users simultaneously and provides two e-mail accounts.

2. The 35, 20, 15 and 9.90 packages permit access to one user at a time and provide one e-mail account

3. For all packages a deposit equivalent to the cost of one month is required.

4. Internet H@gar is for residential users only


Source: RACSA

900ENLINEA (900ONLINE)
This service does not require any subscription and can be accessed from anywhere in Costa Rica. The cost is $0.021 per minute plus the cost of the telephone call which is $0.01 per minute.
10,13

INTERNETXPRESS (Prepaid Service)
With this service users can access the Internet for the number of hours they have purchased. However users have to use up the time they bought within a specific range of time. (Source: RACSA)

Broadband

Cable Modem
RACSA, in partnership with the two main cable TV provider of the country (AMNET and Cable Tica), began offering Internet access through the use of cable modem technology three years ago. Currently the service is offered only in some areas of San José and in some cases a Dial-Up connection is required for the upload of data (known as “one way”)
10

Amnet - Residential Prices

Speed

Cost

One way

64Kbps

$30

Two Ways

128/32Kbps

$40

256/128Kbps

$80

Source: Amnet de Costa Rica

Amnet - Business Prices Plus (One or Two Ways more than 20 Computers Connected)

Speed

Cost

64/32 Kbps

$100

128/64 Kbps

$190

256/64 Kbps

$260

256/128 Kbps

$360

512/128 Kbps

$500

512/256 Kbps

$560

Source: Amnet

Amnet - Business Prices (One or Two Ways with a Maximum of 20 Computers Connected)

Speed

Cost

128/128 Kbps

$220

256/256 Kbps

$440

512/512Kbps

$800

768/768 Kbps

$1,180

1/1 Mbps

$1,500

Source: Amnet de Costa Rica

The prices do not include installation and equipment costs which are not provided on the website of the company

Internet Access via Satellite
In 2001 RACSA started offering satellite Internet access through the use of VSAT antennas. Through this technology the Internet can be accessed from any part of the country and many computers can be connected to the Internet simultaneously through the use of a Hub. Currently there are 85 antennas installed throughout Costa Rica.
10

Topology of Service
Source: RACSA

Cost of Service

Type of Service

Installation Cost

Deposit

Monthly Cost

Residential

$300a

$320

$320

$500b

$320

$320

Business

$300a

$500

$500

$500b

$500

$500

Source: RACSA

The cost of installation is $300 if it is done within the metropolitan area. If it is outside of the metropolitan area the cost is $500.

Leased Lines (Business Use Only)

Up until the MAYA-1 cable came into service prices on leased lines were astronomical and the reliability was relatively bad. However, now that the MAYA-1 cable is in service, the reliability has improved dramatically and prices have dropped up to 40%. 10

Speed

Price

 

No Commitment

 Three Year Commitment

64 Kbps

$350

$260

128 Kbps

$455

$350

192 Kbps

$595

$450

256 Kbps

$775

$530

384 Kbps

$1010

$700

512 Kbps

$1290

$950

768 Kbps

$1565

$1150

T1 (1.544 Kbps)

$2600

$1750

E1 (2 Mbps)

$3000

$2000

Source: RACSA

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