The second is GSM and truly  is lousy, but requires a more expensive phone that is more sexy, and everyone knows, women go for a guy with a sexy phone even if it does not work. The GSM system was installed by Alcatel a French company, apparently after they paid a few bribes to various government and ICE officials.  As a matter of fact, January marks the month for the trial of still another ex-president of Costa Rica who alledgedly accepted the chorizo (bribe).  Costa Rica seems to routinely send ex-presidents to jail, the last one just a few weeks ago!

So what is happening? If this topic interests you, read on!

ICE has been threatening to discontinue the TDMA system for a long time but has now backtracked.  This is because, as a result of the Central American Free Trade Agreement (CAFTA), they have lost their monopoly and now face the possibility of having competition, a dirty word for sure.

ICE’s president, Pedro Pablo Quirós stated that cancelling the TDMA service might give people the option to move to a competing network.  WOW!  Nothing gets by THAT guy!  Imagine anyone considering switching from ICE after so many years of superb customer service!  Why… the mind fairly boggles… but this is true.

He also states that customers currently using TDMA will be able to choose to stick with the service or move to the 3G when it is available in December and they will be able to keep their numbers.

That brings up the new Third Generation (3G) system rolling out next month with 950,000 lines. Well, it seems there are a few problems!

1. ICE is already hedging by complaining that “someone” is buying up all the good tower sites.  Imagine! Someone apparently got their hands on the list locations ICE needed and made deals with the owners of the land making ICE search for alternate spots and negotiate a purchase. Oh the PAIN. It seems clear ICE has not yet gotten clear on what it means to be in a free market!

and

2. When the 3G system does roll out, it will only have calling, text messaging, Internet (sort of) and voicemail. All the cool goodies will be rolled out “at a later date”.  Hmmmm!

So to all the many folks who have asked my advice on this topic, I would suggest you wait.

Wait to buy those new and much more expensive 3G phones.

Wait to see who else enters the market for cell service.

Wait to see if THIS system works better than the old 2G GSM system.  If ICE has not solved the tower issue, you might be a very unhappy camper.

Wait to see who DID buy up all those “good” tower locations and see what they will offer.

Wait for some sucker (maybe me) to buy a 3G and thoroughly and honestly review it… probably in six months IF the new goodies become available.

A lot of people think that now there will be wholesale changes now that ICE will face competition.  I am not so sure… at least in the short term.  Let’s examine what has been happening. If this topic interests you, read on!

First,  ICE states that it will close or at least restructure Radiográfica Costarricense  (RACSA), its 245 employees, and move all those  Internet customers from Racsa, its wholly owned subsidiary, to its own network, affecting maybe  80.000 users.  RACSA customers would therefore be serviced by ICE and the rates would be unified.  Sound easy?  Nothing is so easy in Costa Rica.  Two issues here… and this gets a little screwy, so take notes!  Remember that RACSA, while owned by ICE, runs its own show.  RACSA customer service and in fact their overall service has been improving over the past several years  to the point where I now tell people they are quite good! RACSA also sells only Internet services (high speed and modem) but not communications.

ICE, however, is renowned for just terrible customer service and doing everything even remotely possible to inconvenience the customer base.  This is something that should not surprise anyone as most monopolies never have to compete and therefore do not have to deal with the concept of making the customer happy.   Further, the technicians at RACSA are clearly more knowledgeable, or perhaps they are more accessible.  Hard to tell… but either way, they solve issues whereas ICE techs often blame the problem on you or deny there is a problem.

OK… so with the existing structure, RACSA can re-sell Internet  service (i.e. wholesale it) and they do.  Two of their customers are Cabletica and Amnet both distributors of cable TV services. Both of those companies sell cable TV with optional Internet (cable modem Internet).  You can buy cable TV with no Internet connectivity, but you can not buy Internet service from them without buying the cable TV service as well.

Now when ICE restructures RACSA, Amnet and CableTica customers will be moved to ICE.  ICE though, does not sell cable services so far as I know… so that means if I am getting this correctly,  AMNET and CableTica customers will have to all have new DSL installs, new equipment, etc.  UGH! This will effectively put Amnet and CableTica out of the Internet business.  Why do we (or at least I) care?  Because CableTica has  hands down the best customer services of all the companies in my opinion. Those businesses using cable modem service from either company may therefore have some serious issues ahead of them. But…. now we have this:

THIS week,  Amnet has announced they will cut the umbilical with RACSA and sell Internet services directly.  How?  They must, of course, buy services and connectivity directly from ICE and must also arrange to connect to the two underwater international cables in Parrita and Limon that connect to the Internet backbone.

Sounds simple… huh? Oh, did I forget to mention that Amnet also announced that they will compete with ICE for the cell phone business in Costa Rica?  Amnet was purchased last year by cellular service provider Millicom International Cellular, S.A. .  Gee!  I wonder if ICE is happy about that! I betcha not!

Nothing so far from CableTica.

So why am I writing all this? Well for those of you old enough to remember, once upon a time in the giant country to the North, there was a pretty GOOD communications monopoly called American Telephone and Telegraph (AT&T). Their service was just about as good as you an get anywhere.

Well one day, the mean old US government said, “NO MORE MONOPOLIES”  and broke apart AT&T.  The problem was that AT&T owned all the land, all the infrastructure, all the wiring, all the central offices… well you get the point. Startup company MCI just did not open the doors.  AT&T made life VERY difficult with major issues as regarded setting wholesale rates to providing access to all the above infrastructure. On the surface, they seemed cheerful enough about having the competition… but that was on the surface.  It took years and a zillion law suits and more zillions or dollars before MCI truly entered the US communications market.

ICE has kind made it clear they have no plans to go peacefully into the night…. so I asked myself, “I wonder who in Costa Rica  owns all the land, all the infrastructure, all the wiring, all the central offices, routers, contracts with backbone providers….”.  Things that make you go… hmmmm.

I have no idea how communiations and Internet services in Costa Rica will be affected.  Maybe everyone will just get along and overall, services and customer support will reign supreme with many happy and properous companies each providing these better services at lower prices.  Or not….?  Comment welcome~!

I received another comment yesterday and again I have decided to reply here as I think more people read the posts than the comments. OK OK… it is sort of another rant and probably should have been posted on July 4th, but here it is. It started out as a simply enough reply… then grew. However as my readers know, at times my self control fails me…which might be why I am not exactly thin!

Ohhh. Haters of the USA or those embarrassed to be an American will probably find this post not to their liking.

Below is a comment sent in yesterday and the stimulous for this reply. If my response might interest you… read on!

I don’t want to come off as a conspiracy theorist, but I do find it to be interesting that this is a problem for you now. My point, a lot of people are disenchanted, to say the least, regarding the current political, economic, etc… here in the US, and are hoping to relocate. Well maybe the powers that be prefer this not to be so easy to do. And therefore prefer not to have someone help make this possible, meaning you. You provide us with the much appreciated, and needed info. Seems as though with the recent CAFTA activity, that Costa Rica wanting to do trade with the US, is going to be pressured to do whatever Uncle Sam asks of them. Remember the disintegration of the middle class, means the corporate big wigs need all the slaves to stay here and consume in order for them to continue to make a profit. Now if we want to live elswhere, we are not here to keep them nice and fat. Ok, after previewing my post, I have to admit I do sound like a nut, or do I? (twilight zone music plays in background).

Yeah… a bit

But I think you are a little confused… at least about me and my status. My permanent residency renewal is not dictated by the US government and the renewal process seems to be going exactly as it should. I doubt there will be issues, but I thought I’d post my experiences so others could follow along to see how it goes. I expect it to go smoothly.

The USA has serious issues for sure, but to blame the current administration is just naive. The fault lies with every administration and congress for the past 20-30 years that exhibited not one modicum of leadership and a complete failure to deal with unpleasant problems like the current oil crisis, social security and numerous other issues.

The current Democratic congress does nothing… no leadership at all… preferring to blame the woes of the world on Bush.

Bush does nothing to demonstrate his leadership preferring to fall into stupid disagreements with congress about Iraq. The result is that nothing gets done on critical domestic issues. What people seem to forget is that either congress or the administration can take a leadership role and begin an initiative. Neither does and neither has for many, many years, preferring to pander to the George Soros’ of the world and to the other big campaign contributors and lobbyists. Want an example? In almost eight years neither Bush NOR congress has made even the slightest real attempt to ween the populace from being just plain pigs when it comes to using fossil fuels… nor did the administration before that nor the one before that… ad nauseum.

The US has about 4% of the world’s population yet uses 20% of the worlds oil. What is wrong with THAT picture?? Now we are at the mercy of high oil prices as China and other countries bid up the price of oil. Everyone blames big oil but they just don’t get it. Oil is a commodity… nothing more. Simple supply and demand. We now buy a ton of oil from the Saudis who then use their profits to fund terrorism and anti-American activities. Really intelligent! I like to think that every time you fill up, you are paying a nice little terrorist tax. We buy from the Saudis because we cannot seem to develop our own oil supplies or better yet, cut back on the use of oil completely. No leadership… again!

This current scenario was clearly visible decades ago, and MANY people warned that this would come to pass. EVERY administration and congress did NOTHING to keep us from being in this position… and they could have! We could have built refineries, encouraged or even forced the use of alternative fuels… Can’t be done? Pottywash! Take a look at Brazil if you want to see how it could have been done!

Now everyone bitches about the $4.00 per gallon gas prices. How silly. If you live in the Netherlands, you pay $12.00 per gallon. England? $11.00 last time I checked. Costa Rica? Over $6.00 probably starting this week! $4.00 fuel is nothing.

People have to leave the USA every day because they can no longer afford to live in their own country. My sister is in the process of moving here as she is in the same position. She gets a nice social security check and has savings, but is living hand to mouth… no room for anything unexpected and she is scared to death. Now she must leave her country.

She and many others will have no choice… but be aware it is not the rich and famous coming here. The ones with money might buy a vacation OR rental home here, but they have no intentions of moving. The ones that are moving here (not all of course) tend to be the less conspicuous consumers e.g. the middle class. I can promise you that a few tens of thousands of people planning to try ex-pat living and who are not at the top of the spending food chain, will not affect the economy of the USA one iota!

CAFTA is enormously complex and I am sure it will both help and hurt some Costa Ricans. Time will tell. In general, I think it will help more than hurt, and clearly the Costa Rica people agreed as it was they who voted YES to the TLC though admittedly not by a huge margin..

I would urge you not to fall into the trap of thinking that anything done by the USA is automatically bad. Those big (and sometimes small) businesses that everyone loves to hate is why the USA is by far and away the greatest country in the world. They were and are the engine. People forget, in the face of the all the recent anti-American press, just how wonderful IS the USA.

I believe the USA has serious issues and is broken. I believe we have wandered away from the basics that made us great. I also believe that it can be fixed, but not with the current lack of leadership in the congress and the white house. Nobody wants to rock the boat, and for sure, the boat needs some serious rocking.

The person who seems to be the forerunner in the US elections has 143 days of experience in the senate and it seems likely he will be soon be in the most important post in the world. To ME this is incredible! Talks nice though. He is, however, sadly lacking in experience and woefully ignorant of world affairs… but there you have it. The system continues.

We elect people simply not up for the job or simply not qualified. Many of those who could do the job want nothing to do with politics. Go figure! Obama will be surrounded/supported by a completely useless democratic congress that has already demonstrated that it is incapable of doing anything positive on behalf of the people they represent, and like all the congresses before, is totally lacking the leadership to make tough and unpopular decisions to save our country. They are far more interested in kowtowing to their monied supporters than in doing what is necessary to save our country.

The once honorable press distorts or fails to report the news unless it serves their own interest. They feed a never ending stream of untruths and encourage Americans to hate their own country. I mean can you IMAGINE actually working for The New York Times or CNN?? How embarrassing! How can they face their children at night?

I do not have a solution. I’d like to see people elected who care about the USA and will take strong and decisive action to lead and protect the USA. Ain’t gonna happen this election year I fear, and soon, I think the USA will soon become vulnerable once again to terrorism and attack as Obama tries cut the military and to placate an armed force whose only interest is the total destruction of the United States.

In summary, I love the USA and I am very proud if its accomplishments and forgiving of its failures.

Every once in a while I like to listen to a broadcast from back in 1973. Thirty five years have passed, but listening to and reading it still makes me want to just stand up and cheer. Thanks to our press and the naysayers, we can easily forget just how great is our country.

Thirty five years have passed, but the intelligent reader/listener will still see amazing similarities to our world today. Listen, read and think.

To read and listen to this broadcast and learn the background, click here … or you can just listen here to the The Americans

I listen to it a couple of time a year. Every time I do, it make me feel very proud to be American with all the good and bad that comes it.

For sure we are not perfect. We stumble and fall… but wow. What an honor to be called American.

Stand Proud America

Here is her email, and if the topic interests you (and you can deal with my rant)… read on!

My family plans to relocate to Costa Rica, and I would like to know what your thoughts are regarding the recent activity by the Costa Rican Congress ending it’s 84 year old insurance, and telecom monopoly (CAFTA). How do you think this is going to effect the citizens of Costa Rica that have enjoyed a universal health care system, and what do you think the implications are for Americans residig in Costa Rica, that have been able to partake in this system?.

From the tone of your comment, and I get a LOT of these emails/comments, you are one of those believing anything having to do with CAFTA and the big bad horrible USA must be bad for everyone else. If I am wrong, I apologize in advance.

But you got some words right.. just not the facts which are more obscure… so let me explain.

1. The telecom monopoly, like the vast majority of monopolies is a huge, cost wasting enterprise, employing tens of thousands of workers, and is roughly 7 years behind the rest of the world in providing the things over which they have responsibility (technology).

In addition, as with most monopolies it gives awful customer service at ridiculous prices (for Internet and power, not for cell service). The “high speed Internet”, when it DOES work, is painfully slow, and the vast majority of Costa Ricans have access only to dial-up modem service in their homes. It has held the country back economically. strategically, and educationally.

The cell rates ARE well priced, but of the two systems here, the only one that works at ALL is the old TDMA system popular in the USA back in the 1990s. It works great!!

The “new” GSM system is absolutely horrible, works at best only 90% of the time and does not work at all in many locations… yet the monopoly is telling many, many thousands of Ticos to turn in their old working cell phones and buy the new GSM phones. For many Tico families, this is a MAJOR expense. Gotta LOVE those monopolies! In 2009, they will discontinue the only system that works.

This telecom also controls the electric power. Last year we went days and weeks suffering brownouts and blackouts. This was the result of an astonishing lack of simple population planning, and numerous families and businesses suffered greatly. The president had to spend a TON of money buying emergency equipment just to keep the lights lit.

In the history of the world, there have been good monopolies I am sure, but the vast majority provided lousy customer service, a crummy product, at unfair prices… This is why monopolies were outlawed in the USA about 50 years ago.

This model fits here… because there is no competition, they do as they please while giving the customers the one finger salute.

Insurance

You wrote …”the recent activity by the Costa Rican Congress ending it’s 84 year old insurance… monopoly” and “How do you think this is going to effect the citizens of Costa Rica that have enjoyed a universal health care system”

You have things pretty mixed up. First, the congress had absolutely nothing to do with any of this.

The Central America Free Trade Agreement (CAFTA) was voted through by referendum…and was voted on by all Costa Ricans. The PEOPLE passed this treaty… not the congress. Hmmm. I wonder if the overwhelmingly super service provide by their telcom monopoly had anything to do with that vote!

After CAFTA passed, the congress had to alter existing laws to bring them into concordance with the terms of CAFTA that the PEOPLE OF COSTA RICA approved.

This is something that sorta grinds me in emails I receive… the perceived arrogance of those who think THEY know more than the Costa Rican people. I am not saying the writer said or implied this, but others have many times. The Costa Rican people are bright, intelligent, well educated people and right or wrong, they made their will known. Time will tell if it was a good decision, but I can assure you that never in my life have I EVER seen a more informed public on a topic up for referendum. Costa Rica could give civics lessons to any country in the world after the manner in which they handled the TLC (CAFTA).

So now there will be other insurance companies offering policies with wider coverages with larger groups and therefore possibly lower rates. There are dozens of huge international insurers who can now legally sell their products to those of us who live in Costa Rica. Now, perhaps a 50 year old women driver will not have to pay $1,400 per year for car insurance the same as her 19 year old son.

Oh… that’s right! There IS no compulsory insurance so only a very few people ever buy insurance because it can represent more than 10% of their annual income! Enjoy your next trip here! Drive defensively!

Your email implies that the “Universal Health Care” is going away. It is not. THE CCSS (CAJA) is alive and well. Good thing as my wife works for a CCSS hospital!

Oh… and to be clear… “Universal Health Care” is just socialized medicine… and just as in Sweden, Canada, England and other places, the system does not work for anyone except the very poor and seldom works well for them. Lines are huge. Several hours is common at my wife’s hospital. Generic medicine are prescribed to save money, but sadly they are purchased from a variety of countries and there is no quality control and therefore many medicines just do not work. I can vouch personally that that is true.

Waits for a doctors visit can take months and often DO. Waits for major surgery or even some minor surgeries can take years. The poor suffer with this crap as they have to… same as they will soon in the USA. Everyone else buys private insurance so they can see the doctor of their choice at the hospital of their choice a the time of their choice. For those of you who are “Universal Health Care” fans… I wish you well. It looks great on paper, but I have yet to see it work well. I can assure any middle class Gringo tht moves here that you will eventually get CAJA and buy private insurance in case you get sick.

So what do I think the implications are for Americans residing in Costa Rica, that have been able to partake in this system?. Not much… Nothing has changed, just more offerings and some of those are years away. If they use CAJA now, they will continue to use CAJA. If they buy private insurance now, they will soon have other options and perhaps better prices. If they are tired of paying car insurance as though they were an 18 year old male overdosed on testosterone… they will likely be happy with premiums that reflect their age, driving history and experience! Someone may come in and actually offer true hi speed Internet for less than $80 per month WITH reliable service and connections that actually do not die every day at 3 PM. Note I am referring here to TRUE high speed as you would find in most developed countries.

Costa Ricans will benefit I think by better services lower prices (or more for the money they do pay).

Even now, with the arrival of those big awful businesses from the bad ole USA, (like Walmart), customer service policies are changing country wide! Why imagine a Tico who can actually exchange a brand new and very costly TV (but one that was totally DOA right out of the box), instead of having to wait 3-4 months while it gets returned to the factory in Korea for repair!

Can you imagine?

And again… if I misread your email, I apologize… but that’s the problem with email… no visual or aural clues to clarify.  Also, enough others have written about how they hate the USA, big business, Bush, Obama, and God that I am just getting fed up with it.  As a famous bird once sang… Get Over It.