Software boom depends on free trade, telecoms competition

Costa Rica's software exports could rise sevenfold if a free trade agreement between Central America and the United States is signed, according to Costa Rican software chamber Caprosoft. However, this growth also depends on liberalization of Costa Rica's telecoms sector to make the software sector more efficient and competitive, local paper La Prensa Libre quoted Caprosoft president Alexander Mora as saying. "Without efficient telecommunications we are not going to do anything," Mora said, adding that competition would make ICE a stronger and more responsive company than it is today. The countries of Central America are collectively negotiating a free trade agreement with the United States, but Costa Rica's government is balking at US government insistence that it partly liberalize its telecoms sector. The US wants private virtual networks, mobile telephony and other wireless telephony services to be freed to competition. ICE controls the mobile sector, while state data transmission company Racsa runs all datacoms networks. Costa Rica is the only country in the region with a mobile sector that remains completely in state hands.