VZCZCXYZ0029
RR RUEHWEB

DE RUEHSJ #0426 0642018
ZNR UUUUU ZZH
R 052018Z MAR 07
FM AMEMBASSY SAN JOSE
TO RUEHC/SECSTATE WASHDC 7411
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE

UNCLAS SAN JOSE 000426 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ETRDEINVTINTCS
SUBJECT: COSTA RICAN TELECOM UPGRADE ON TRACK 
 
¶1.  Summary.  Costa Rica's parastatal telecom monopoly, Instituto 
Costarricense de Electricidad (ICE), announced plans to invest 
US$59.8 million for installation of a nationwide fiber optics 
network upgrade to improve its broadband internet capacity and 
coverage.  This investment is being made so ICE can better compete 
under CAFTA.  End Summary 
 
¶2. ICE signed an agreement with ECI Telecom, an Israeli network 
provider, in October 2005, which just gained final contract approval 
from the GOCR comptroller's office.  Utilizing ECI's design, ICE has 
already completed up to 40% of the network which will comprise a 
total of five separate rings covering border to border and sea to 
sea creating improved international interconnection for its network. 
 The backbone network will provide ICE with additional capacity to 
deliver voice and data services to fixed and mobile subscribers. 
The project completion date is set for mid 2008. 
 
¶3.  The project includes the delivery and installation of ECI's XDM 
converged SDH and DWDM optical platforms, which enable up to 40 
channels and 10 Gigabits each, meeting the long-term bandwidth 
capacity needs of ICE.  In addition, the project will give ICE an 
advanced network architecture for future services and expansion to 
meet the needs of both residential and business communities. 
 
¶4.  Under the terms of the contract, ECI Telecom has provided all 
aspects of the network design and installation for over 1,000 km 
across urban and rural areas of Costa Rica.  The total project cost 
is $US59.8 million.  ICE will contribute US$28.6 million and the 
Central American Bank for Economic Integration will provide a loan 
for the remaining US$32.5 million. 
 
¶5.  Most industry observers think ICE would not be making this kind 
of investment without the competitive environment created by CAFTA 
looming on the horizon.  In that sense CAFTA is already spurring 
investment that will benefit Costa Rican telecom consumers. 
WEITZENKORN