Overview Analysis of Costa Rican Readiness for the Networked World
Network Access Information Infrastructure Internet Availability Internet Affordability Network Speed & Quality  
Readiness Stage Stage 3 Stage 4 Stage 3 Stage 4  
Overview Analysis ICE provides a sizeable part of the Costa Rican community with good access to an Information Infrastructure.  In 2002, the teledensity was considered to be at 27 fixed telephone lines per 100 inhabitants.  In the past 6 years, Wireless services have experienced an increase of 750% in teledensity reaching a level of 15/100 (GrupoICE).    A recent study provided by CID Gallup indicates that about 800 thousand Costa Ricans currently access the Internet, at home, work, or internet cafes, although the capacity exists to provide real access to about half of the population.   According to this study, Internet Affordability, 53% of the population considers the prices for Internet service are low and acceptable (RACSA).   53% of the population considers Internet service prices as low and acceptable.  Prices are set by governmental agency Regulatory Authority of Public Services.   The backbone of the countries telecommunications network is a fiber optic based, with wireless access in remote areas.  This is further supported by digital switches which provide voice, data, and video service links via satellite, microwave, and fiber optic lines. 
 
Networked Learning Schools' Access to ICT's Enhancing Education with ICTs Developing the ICT Workforce Analysis Complete
Readiness Stage Stage 3 Stage 3 Stage 3
Overview Analysis Computers are available in primary and secondary schools.  Up to 10 to 15 computers can be found in labs for classroom group work.  Computer labs are generally open for computer studies during the day and closed after school.  Computers tend to be older generation models.  The lab achieves connectivity through a dial-up connection to the Internet.   Teachers and students use computers to support traditional work and study.  Teachers who use computers are generally proficient with word processing applications and may access information offline from CD-ROM's.  In some cases, teachers access and organize information from the Web.   Technical classes and programs on ICT related subjects are available from some pubic and private centers.  Some limited online access to training is available.  Some employers offer training in the use of information and communications technologies to their employees.  
Networked Society People and Organizations Online Locally Relevant Content ICTs in Everyday Life ICTs in the Workplace  
Readiness Stage Stage 3 Low Stage 3 Low Stage 3 Low Stage 3  
Overview Analysis A March 2003 poll conducted by CID-Gallup and posted by RACSA (the division of Costa Rica’s telecommunication monopoly in charge of Internet access) suggests that Internet penetration may have reached 22% of households (RACSA).  If this polling represents a true sample set, it would suggest that the efforts of ICT education have begun to work their way into the broader societal fabric.      From the Costa Rican Government’s perspective the lack of local content is apparent and problematic: “…there are not enough Internet Content Providers (ICPs) in Costa Rica…In fact, most Internet content is in English and it is developed by ICPs in English-speaking countries.” (Monge xli)  Here, the author, who chairs CAATEC, may simply be missing the relevance of offshore domains that ultimately provide for local content.    Costa Rica’s telecommunications authority (ICE) has been ineffectual in its inability to meet user demand; this has created a deterrent effect on more widespread ICT usage “A one-year or longer waiting list for cellular telephone connection is indicate of the public sector’s inability to keep pace with the demand for new technology in the telecommunications sector” (USCSE Trends and Outlooks 5).   Here, the record points to a low overall penetration of computer use and Internet access/content.  The most basic platform for business communications –the fixed-line phone—is high at 91.8% (Monge 187), but from here the modernity of the business place is less apparent.  In fact, it is reported that 59.7% of MSME businesses do not employ the use of computers in their work process (Monge 186).  
Networked Economy ICT Employment Opportunities B2C Electronic Commerce B2B Electronic Commerce E-Government  
Readiness Stage Stage 3 Low Stage 3 Low Stage 3 Stage 3  
Overview Analysis There is a plentiful supply of skilled workers in the workplace.  But, employers seeking specific education levels may come up slightly short depending on the area and job.  Overall, offshore outsourcing in Costa Rica is popular because of the cost of labor.  Adjustments to the supply more highly educated workers will need to be made in order for there to be long-term stability in outsourcing. Few businesses are actively using Web-site for transactions (mainly key information) because of the heavy reliance on cash and check payments.  Most businesses do not want to invest into the Internet because less than 5% of households have Internet access.  Though, a percent of current sales can be counted as Internet sales because of the information provided on the Internet for comparison shopping. Few businesses are gaining efficiencies through B2B.  Larger businesses in Costa Rica are venturing into the Internet usage for everyday transactions more than small and medium size businesses.  Paper-based methods still seem to be entrenched in the culture.  As the government adds more of its service to the Internet, business will be forced to adopt this approach, we will see more B2B transactions and B2B investing. The government leads the way in transactions & investing over the Internet.  Although, only 31% of those that have Web-site take advantage of the technology available to them.  100% of the institutions with Web-site use the Internet to provide general information.  E-Government is the driving force behind the development of Costa Rica through the many programs investing in the Internet.  
Network Policy Telecommunications Regulation   ICT Trade Policy   Analysis Complete  
Readiness Stage Low Stage 2 Low Stage 3  
Overview Analysis There are no plans for the liberalization of the telecommunications sector.  There are provisions to promote universal access to telecommunications services.  All services are provided by a single operator.    ICT equipment is not restricted through unnecessary standards or licensing requirements and tariffs are low and uniform.  There are no disproportionate tariffs on electronically delivered products.  There are not significant opening in services that facilitate electronic commerce.  Foreign direct investment in the ICT sector is encouraged with some restrictions.    
Overview Analysis of Costa Rican Readiness for the Networked World (continued)
Network Access Hardware and Software Service and Support Analysis Moves to Summary Finding Summary Finding  
Readiness Stage Stage 3 Stage 2 => Stage 3  
Overview Analysis There are 150 software development companies providing for applications development in multiple market areas.  An estimated 85% of these companies export their products to European and American continent markets.  The hardware market is mainly supplied by computers assembled in the country but brand names laptops and desktops are also sold and service. As of October, 2001 there were a list of 130 thousand pending requests for fixed telephone lines, most of them with over 6 months of waiting time.
For wireless telephone services, 296 thousand users have to wait the agonizing time of well over 6 months and in some cases over a year.
There are an extensive list of companies that provide Web-site design, technical, and administrative services.
Despite other difficulties, the Costa Rican telecommunications monopoly provides an  extensive range of services at a reachable price for the majority of the population.  However, this monopoly must readjust its policies in order to gain greater popular support and service penetration.   
Networked Learning Analysis Complete   =>   Summary Finding  
Readiness Stage Low Stage 3  
Overview Analysis The urban areas generally meet stage 3, while more rural areas are a stage 2.  There are not as many students that are graduating with high tech degrees, a major part of this is the lack of quality educators.  
Networked Society Analysis Complete   =>   Summary Finding  
Readiness Stage Low Stage 3  
Overview Analysis Judging by the Framework Costa Rica currently appears to have achieved a Stage Three level of “Networked Society.”  Despite its interference with private telecom development the central government’s role in analyzing, directing, and fostering the spread of ICT use throughout Costa Rica’s various societal enclaves appears to have  been a success.   
Networked Economy Analysis Complete   =>   Summary Finding  
Readiness Stage Stage 3  
Overview Analysis With the government leading the way in the Internet revolution, Costa Rican's need to embrace the Internet in the home in order to urge businesses to provide not only online content but complete services.  B2B and B2C are currently reaping a minute amount of the rewards available to Internet users.  Overall, Costa Rica has successfully recruited foreign investment with some business friendly policies/laws.  
Network Policy Analysis Complete   =>   Summary Finding  
Readiness Stage Low Stage 3  
Overview Analysis     Liberalization of telecommunications sector is key to the countries ability to continue to develop its ICT readiness.  The government has success in trying to achieve access for a broader class of Costa Ricans but it must consider coordinating with foreign telecom providers in order to boost capacity.