Plans for state-owned Radiografica Costarricense (RACSA) to roll out fibre-to-the-home (FTTH) broadband services to more than 80,000 households in San Jose have been scaled back, after the telco failed at the eleventh hour to secure an agreement with its intended partner, Sweden’s Via Europa. According to Inside Costa Rica, the president of parent company ICE, Teofilo de la Torre claimed that negotiations with the Swedish vendor were complicated, and that an agreement could not be reached, but did not specify the source of the difficulties.
Without the financial backing or assistance of Via Europa, RACSA has been forced to abandon its plans and fall back to a more cost-effective strategy of rolling out mixed infrastructure. 100,000 connections will be composed of a mixture of fibre-optic cable and copper wire, whilst a further 20,000 will be solely fibre-based. Acknowledging the drawbacks of the low capacity of copper-based networks, Torre explained that whilst RACSA plans to replace the copper elements in the future, it is not yet ready to do so.