From Partners to Competitors: Amnet and RACSA Split

July 17, 2009

Ten years since they joined forces in Costa Rica, Amnet and RACSA have announced they intend to split in the coming months. Amnet Telecommunications Holding Limited, a leading Central American provider of broadband Internet and cable television, will break from Radiográfica Costarricense, RACSA, to become a competitor in providing Internet services.

During their decade-long partnership, RACSA provided the Internet signal and Amnet carried the service to homes and businesses through a cable modem. RACSA and Amnet provide Internet and cable service to 55,000 customers. When the two split, customers will have to choose between the two Internet providers, or search for Internet service from another competitor.

“What will happen when Amnet has the capacity to provide the (Internet) signal?” Alberto Bermúdez, general manager of RACSA, told the daily La Nación on Wednesday. “It will enter the market and say, ‘We are ready to offer Internet.’ What will happen with the 55,000 customers? This matter doesn’t affect the client. They can choose who they want to stay with. That is where we are going to compete.”

The separation the companies began last month, when Amnet was authorized to be the first private firm to offer Internet as an independent company. According to Mario Zanotti, Latin American director for Amnet, the company has already designed its own network to provide Internet throughout the country. Amnet will continue to provide cable television service and aim to offer the fastest Internet service available.

Zanotti said Amnet would consider maintaining commercial relations with RACSA but indicated that, for the two companies to stay together, RACSA would have to make an excellent offer to keep Amnet as a partner.

The official contract between RASCA and Amnet will not terminate until the end of the year.

–Adam Williams

 

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