Competition In
Costa Rica Cellular Service Next Year, Says
Sutel
If all goes well, Costa Rica will have more
than one cellular provider as early as May
or June next year, according to George Miley,
president of the Consejo de la
Superintendencia de Telecomunicaciones (Sutel).
The telecom regulator said that the plan to
allow competition in the communications
sector is moving ahead as planned and that
the Instituto Costarricense de Electricidad
(ICE), although it does no longer have a
monopoly, will have competition in the early
part of 2010.
One of the items of concern by many are the
rates.
ICE now offers a base monthly rate of ¢2.900
colones (us$5) , that includes 60 minutes of
calling time. The question before the Sutel
is will the competitive rate be equal,
higher or lower than the ICE rate today.
Miley explained that the rates have yet to
be set and is one of the phases of the
process.
What is probable is that the Sutel may place
a high rate limit on cellular service and
then will be up to the individual operators
to establish their own rates and offers to
the public.
However, before the rate issue can be
settled, there is still the question of
alloting radio frequencies.
Costa Ricans are accustomed to dialing a
number, either to another cellular or fixed
line phone, and knowing the cost of each
call. However, when the competition begins
operating, that will all change.
Costa Rica could use the same method used in
many other countries, where the calling
rates between cellular phones within the
same network are priced different when calls
are placed to cellular phones or a nother
network or competitor.
The opening of the cellular telephone market
could also eliminate the current
restrictions by ICE that only a citizen or
legal resident can subscribe to cellular
service and then is limited to a maximum of
three lines per person.
The changes in 2010 could be drastic, as up
to three operators or more will be be
competing for customers.
Digicel, Telefonica, Cable & Wireless and
Tigo are some of the foreign cellular
operators looking closely at the Costa Rican
market.
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