Costa Rica's state run telecommunications provider has signed a deal with Global Crossing, the US internet and telecommunications firm, that will significantly enhance the Central American country's internet capacity.
At a signing ceremony last week hosted by Costa Rica's Instituto Costarricense de Electricidad (ICE), and the national Internet Service Provider Radiográfica Costarricense (RASCA), Global Crossing announced plans to extend its core network to Costa Rica through the extension of its Pan American Crossing (PAC) system via the Unquí cable landing point in Esterillos.
Costa Rica's connection to PAC, which runs along the west coast of Central America from Panama to Los Angeles, will give the country access to Global Crossing's global IP network delivering services in more than 600 cities in 60 countries.
Construction is expected to be complete as early as fourth quarter 2007, although the project is subject to additional government approval.
Following the signing ceremony for the landing agreement, ICE and RACSA immediately announced that they will purchase 24 STM-1 Private Lines, the equivalent of 3.732 Gbps of bandwidth, from Global Crossing. One STM-1 is equivalent to 155.52 Mbps of bandwidth.
"Latin America continues to be an integral part of our global strategy, and we're building on our successes in this region by extending our core network to Costa Rica," commented John Legere, CEO of Global Crossing.
"This agreement provides ICE/RACSA with a robust solution for worldwide connectivity from the Pacific coast, and enables the delivery of seamless, premier IP solutions to Costa Rican based businesses and end users taking advantage of all the benefits of world-class Global Crossing network," he added.
Global Crossing says that it is currently seeing "explosive demand growth" for converged IP services around the globe as well as in Latin America. In 2005, the number of Global Crossing's converged IP customers tripled, while IP VPN traffic grew more than 300 percent. The number of Global Crossing's IP customers in Latin America grew by 80 percent in 2005.
Global Crossing already has a significant presence in Latin America and the Caribbean with offices and operational facilities in 12 of the region's major cities. Its sub-sea and terrestrial cable systems connects South America, Mexico, Central America and the Caribbean to the rest of its global network
The company has also announced that it will be making upgrades to its Mid-Atlantic Crossing (MAC) system, which connects North America to Latin America through the Caribbean.
"We are committed to providing quality telecommunications and IP services that will give Costa Rica's residents and business community the competitive edge we need in the world economy," commented Pablo Cob, president of ICE.
"We expect the direct national connection of Global Crossing's global network to enhance Costa Rica's position as a premier location for manufacturing facilities and contact centers of multinational corporations," he added.
The improved Internet structure is expected to bring increased direct investment to Costa Rica within a year of implementation.
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