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The Costa Rican Experience in IT Sectors: The Case of Intel: 

The Costa Rican Experience in IT Sectors: The Case of Intel Emmanuel Hess, Director ISS

Contents: 

Contents

1. The ITA and trade in IT products for CR: 

1. The ITA and trade in IT products for CR FTZ Exports composition

1. The ITA and trade in IT products for CR: 

Total ITA exports accounted for 24% of all country exports in 2006, a 15% increase since 2000. Digital monolitic IC makes for half the share of total CR IT exports 1. The ITA and trade in IT products for CR

2. Intel CR Timeline: 

Site selection Intel Pentium® II Processor Construction Intel Xeon Processor LAES launched National Safety Award National Safety Award Intel Celeron™ Processor Intel Chipsets Start of operations CR1 Start of operations CR3 Intel Pentium® Processor National Safety Award Community Service Award Intel Pentium III Processor Intel Pentium 4 Processor Intel Pentium 4 Processor with HT Technology CR site ISO 14001 certified National Safety Award Community Service Award 2. Intel CR Timeline CSR Award National Safety Award Community Service Award Shared Services

2. Economic benefits of Intel in CR: 

Proportion of Intel GDP with respect to the Industrial GDP 2002-2005, with direct and indirect effects Direct and indirect effects of Intel on real GDP 2002 – 2005, percentage participation Intel generates one twentieth of The total country GDP. The indirect impact is equivalent to 15% of the direct effect. The sum of direct and indirect effects is significant in the economic area of activity. In 2005 it reached over 25% of the entire manufacturing industry. 2. Economic benefits of Intel in CR

2. Economic benefits of Intel in CR: 

Intel exports have represented an average of 20% of total CR exports 2. Economic benefits of Intel in CR

2. Economic benefits of Intel in CR: 

Consistent growth in Unit exports 2. Economic benefits of Intel in CR

3. The CR Wi-Max project: 

3. The CR Wi-Max project Wireless technology for greater speed & reach Evolution means convergence: Outdoor CPE deployment (2005) Indoor CPE deployment (2006) Integrated portable (notebook) solution (2007) Integrated mobile 3-play (handset) solution (2008)

3. The CR Wi-Max project: 

How does this benefit DC citizens? Last mile infrastructure limitations, especially in rural areas. Reliable redundancy to Cable, ADSL in urban areas. Telecommuting provides more productivity, increased working hours and less traffic & environmental problems. Intel partnership provides in-country project management, technical training & technology stabilization. 3. The CR Wi-Max project

3. The CR Wi-Max project: 

Pilot project (1 base station) launched by RACSA, which provides licensed spectrum. Intel as first customer; 500 connections in total. “Costa Rica currently has a high level of ability associated with extending the reach of broadband services using wireless and particularly WiMAX technology” 3. The CR Wi-Max project

4. Future developments: 

Wi-Max: 2007: RACSA building 11 base stations around San Jose. 2007: ICE investing $7MM to aim at 2,000 corporate connections ICE developing IP network to migrate the national telecom system and converge voice, data and TV (the only current convergence in CR is CATV & broadband Internet) 4. Future developments

4. Future developments: 

4. Future developments

End-to-End IPL Pricing Comparison(Updated March 2007): 

End-to-End IPL Pricing Comparison (Updated March 2007) * Premium = % higher priced than Panama

5. Final remarks: 

5. Final remarks For an FDI, knowledge, export-oriented DC like CR ITA access is and has been vital. Intel´s development and its associated benefits have been a clear example. ITA needs to reenforce convergence, where the same ITA products (such as Wi-Max-related) will constantly incorporate new technologies and features for the benefit of large populations in emerging and developing countries.