ICE Forced To Cutback Due To Competition Strength

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For the competition in the cellular phone market, the Costa Rican Electricity Institute (ICE) has been forced to cut costs as overtime payments and some travel expenses.

This was confirmed by the leaders of the organization who acknowledged that last year they were at a deficit for the first time in its history. That year was precisely the preparation for market opening.

According to Martin Vindas, Finance Manager of ICE, it was a deficit “mild”. However, he refused to give figures, claiming that its disclosure could affect the Institute in the context of competition.

The goal now is that austerity measures allow not close in 2012, with the red numbers.

According to the manager, the missing last year due to the need for a number of expenses related to the cellular market opening impacted their finances.

The payment to the Telecommunications (Sutel), changes in the management system, changes in technology and to purchase the phones are delivered to the plans offered by the ICE, which has not happened until recently.

In spite of this deficit, Vindas insisted that the future status of the institution is not committed, nor is it limited the ability to face competition.

Trying to “compensate” for the purposes of entry in competition, is what led the leaders of the ICE to take actions that qualify as “cost optimization”, but in practice, are cuts.

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