The state-run telecommunications monopoly ICE (Costa Rican Institute of Electricity) has big plans to modernize its services for the year 2008 with the addition of 1.5 million GSM cellular lines. By the end of this year they hope to have 3.5 million cell phone lines, or 70 for every 100 residents.

The new lines, which should be available in the second semester of 2008, are third generation (3G) lines that have a better band width and allow new functions such as video conferences, internet access and a faster connection.

Current ICE phone lines only allow users to send simple text or pictures even if their phone has the technology to do more. ICE promises that other phone lines will be able to connect to the network like SmartPhones and the iPhone.

ICE also promises to improve access to its yellow pages by setting up a 3-digit number for people to call or text to request a phone number. Phone numbers will also be gaining an eighth digit to allow for the influx of lines since Costa Rica only has one area code.

The Central American Bank of Economic Integration (BCIE) released a letter of intent saying it will help ICE by buying the new lines that have an initial cost of $200 million. ICE will then lease the network with the option to buy. A final approval is still necessary by the Comptroller’s office and the bank.

ICE’s sudden plans for modernization are a direct response to the approval of the Free Trade Agreement with the United States. The lines are being offered in an effort to saturate the cellular market in Costa Rica to dissuade competition from the United States from entering when the supply may already be higher than the demand.

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Filed under: Business on November 6th, 2007