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« Obviously Chris still isn't reading... | Main | The Toy I MUST have! » August 18, 2005
Why Costa Rica needs the CAFTA (TLC in Spanish)
I have worked in Customer Service most of my adult life. I was responsible for founding the first Call Center in Costa Rica. To me, Customer Service is a religion! In the debate over the TLC, the most Vocal opponents are Costa Rica's Trade Unions. The Trade Unions have used a Combination on Nationalistic Jingoism and fear tactics, to convince the Majority of Ticos that the TLC would be bad for them. The truth is that these Unions are terrified of the idea that they will have to compete! They are not so concerned about price. The fact that ICE has existing telecommunications infrastructure, While any newcomer would have to invest in new infrastructure Or lease it from ICE, gives ICE a long term advantage in operational cost, which can in turn be used to provide them with a competitive price advantage! So they are not concerned about being able to compete on price. What they and their fellow Union members in INS ARE concerned about, is Service. Last year I contacted an INS agent to buy some insurance. I spent over an hour answering a questionnaire and after the meeting waited a week for a quote. Despite repeated phone calls, and a desire on my part to spend money, NO one ever got back to me! I was One of the first people in Heredia to get ADSL. For the first year I had a few problems, but for the most part, they were quickly resolved, probably more than anything because there were few customers to service. This year I have been without service on my DSL line for a cumulative total of more than TWO MONTHS. I also mysteriously had my ADSL velocity cut to 128k for two weeks, despite paying for a Megabyte. I actually had to argue with ICE that I was paying for one Megabyte, despite the fact that I had had such service for well over a year. For the last two weeks I have been dealing with an intermittent problem that result in me losing my connection constantly during the day, while the connection is fine in the evenings. Dealing with ICE Customer Service is a nightmare of busy signals, unanswered phones, and being bounced from one person to another, with NO ONE taking responsibility for your problem. I have repeatedly been told that a Technician will come to my home office to check the problem, and they don’t show until we have made repeated phone calls. Saturday morning I got a call from a technician asking about my most recent problem. I told him that it was intermittent and at that moment I was not experiencing problems. I explained that the problem came and went, and that I could not maintain a reliable connection. He assure me that he would look into the problem and get back to me. Fifteen minutes later, the connection went down again and remained down for most of the day. On Sunday, I had a more or less reliable connection all day, but my troubles returned promptly on Monday morning. After more phone calls, more busy signals, more passing the buck, I was informed that my DSL modem is likely bad and will be replaced on Friday (The END of the Week). Despite having my connection down or impaired for 25% of this year so far, I have never received a credit from ICE for downtime, and currently receive a bill for over $100 a month for the service, about every three weeks. In the US, where there is competition, I would pay about $75 for the same velocity connection, and if dissatisfied, I would simply change my service provider. In Costa Rica, changing providers is not an option, but with competition Posted by David A at August 18, 2005 02:15 PM
Filed Under Life in Costa Rica | 670 Words Trackback Pings
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You must know that the ICE will *HAVE* to lease its (or Costa Ricans) infrastructure by force, which has cost billions to us and lot of effort to build during decades. Do you really find the sense for any company in leasing its own infrastructure to the competitors ? Think in Intel leasing its plants to AMD for life for I understand your complains and people are conscious about the need of improving that area but it's way easy to blame ICE. You must know that all projects about telecommunications and electricity must go through an endless bureaucratic process and contests which usually delay everything for months or even years. A private company don't have to face such inconveniences so there wouldn't be a fair competition, starting by leasing and maintain its own infraestructure for others. Nobody won't be able to condemn any U.S. company for monopolistic practices because the "agreement" protect them. You must know too that telecommunications represent a subsidy for fix telephony and electricity, that's why we have cheap electricity too and public phones everywhere with one of the most extended coverage in L.A. A very dangerous one: our laws are under the TLC, but only ours. In the US the 'agreement' is a peanut worth. If eventually there is a conflict between our government and any U.S. company, the fight must be seen in an international court BUT if it happens in the U.S. the thing is seen in the U.S. And anyway such fights would take probably years and would cost $ millions, which we don't have, no matter if we win or lose. But really this is just one of the many inconveniences of the TLC. Where the US imposed very hard conditions for a small country like ours. I'll comment the case of medicines, we have a medical institution or CCSS which works under the concept of social security where a insurance is obligatory. So all workers pay a small percentage of their salary to it. It has lots of financial difficulties too but it works. Well, the CCSS buys the most of the medicines of generic brands and the rest of original brands which are very expensive. With the TLC it would have to buy the all new formulas of original brands for a period of 20 years paying the high prices even if there are generic ones in the market. In other words if today appears a medicine which cures the cancer or AIDS and it costs whatever the pharmaceutical companies want to charge, the CCSS will have to buy only to those companies, EVEN if there are generic ones 10,20 or whatever times cheaper, during 20 years. The first reason which comes to mind to doubt about such "agreements" (which really it's not since US wrote the rules and we have just a translation) is the case of Mexico. Have really things changed positively for Mexico during 12 years of NAFTA ? Trade has grown enormously in Mexico, but all that richness reaches the people or only some ? Why illegal immigration has grown as well ? so much, that the US will build a wall to stop Mexican immigrants. There are many more objections to the TLC, much more than I can recall or suspect now, much more to lose. So as you can see David, it's much more than a Customer Service complain. Jose Posted by: jalm Really good comments Jose, but until people stand up and insist on better service from ICE, there will be no improvements. I have many horror stories about dealing with them. Posted by: David Scott Anderson The TLC (CAFTA) for Costa Rica is not good. Some will make money, a few will make even more money, and the rest will sit scratching their b@ll5. However, ICE, INS, AyA, CNFL, CableTica, Amnet, Banco Nacional, Banco de Costa Rica, and the Costa Rica Government and its institutions are in need of dire improvement. It is sad that the Costa Ricans have to be proud to be the best country in Central America. It is like Somalia and Zimbabwe saying that we are the best country in the "this" part of Africa. Costa Rica should be a good country in the world. I came to this country 6 years ago because my family is Costa Rican. I liked the country so I stayed. There are ups and down here, like any other country in the world, even the US. But if you are looking for a consumer-based society, a customer-based lifestyle, etc. this is not the place for you to live. All that said, I can well say that Costa Rica will vote in favor of the TLC. They are just too dependent on the US and not patriotic enough to stand up for the sacrifices that not signing the pact will cost. So, until they tie up with the EU, China, India, or other such markets, Uncle Sam will call the shots. Posted by: paras The original poster has this issue pretty much nailed. These unions are terrified that they will have to compete. I am a tico who studied business and economics at an elite private university in the U.S. and am baffled at how poorly most Costa Ricans understand basic economics. Jose is so backward, that if he represents the general consensus of Ticos, then I fear for the future of our nation. His argument was basically that since ICE is a mire of innefficiency they will essentially be unable to compete if we introduce competition. Why is he defending ICE's mistakes so much? He sounds like the spokesperson for Socialism... and experience tells us where that will lead. Competition is good for society, and it is the people who benefit. They will benefit through a higher quality of goods and services provided at better prices. And don't even get me started on what the tariffs are doing to the Tico economy. Just visit Office Depot or GNC and check the price tags. Goods cost nearly double what they are in the U.S. It's like the government doesn't understand by lowering tariffs they will promote more consumption, effectively creating more jobs, more tax revenue through higher volume, as well as a higher standard of living. This alone is madness to me. I beg the Ticos to educate themselves a bit more and pray that enough of them understand economics to see why this is good for Costa Rica. Posted by: Juan Daniel Post a comment
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