Municipalities
In Costa Rica To
Cash In On
Opening Of
Mobile
Telecommunications
Market
Municipalities
in Costa Rica
are looking to
cash in on the
opening of the
telecommunications
market by
charging
operators a tax
or license fee
to erect and
maintain radio
towers. This
would be the
first time that
municipalities
would be allowed
some control on
the location of
the radio base
towers and a new
source of
revenue.
The change comes
with the move
forward in the
opening of Costa
Rica's mobile
telecommunications
market with the
expected three
new operators to
be approved to
operate separate
cellular
networks later
this year.
In addition to
the license fee,
mobile operators
will also have
to pay for
building permits
to erect the
towers.
The tax or
license fee
would also apply
to the Instituto
Costarricense de
Electricidad
(ICE) - the
state telecom -
that currently
has more than
1.100 towers and
without paying a
"colon" to any
municipality.
The
Superintendencia
de
Telecomunicaciones
(Sutel) will
begin the
bidding process
for three
operators in
addition to ICE
later this month
and it will be
up to the Sutel
to allow or not
allow
municipalities
to charge for
the towers.
Of course, the
cost of any tax,
license fee
and/or permit
will be end up
being passed on
to the end user,
which will
undoubtedly
increase
cellular
telephone costs
in Costa Rica.
Compared to most
other countries,
Costa Rica's
cellular use is
inexpensive.
The basic rate
for a TDMA, GSM
or 3G line is
˘4.000 colones
or us$8 per
month that
includes 60
minutes of call
time (no charge
is made for
incoming calls).
Additional
minutes run as
high as ˘35
colones at peak
times, much less
evenings and
weekends. And,
users of 3G data
services pay a
maximum of
˘15.000 colones
or us$30 per
month for the
maximum
connection speed
and unlimited
data transfer.
Those costs are
pale compared to
US and Canada
and other Latin
countries where
the same service
runs to us$75 or
more per month.
The initiative
is part of the
proposal by the
Federación
Metropolitana de
Municipalidades
de San José (Femetrom)
that brings
together the
Central
Government and
more than 35
local
municipalities.
The president of
Femetrom and
mayor of Montes
de Oca (San
Pedro), Fernando
Trejos, says
that
municipalities
are within their
right to charge
for the radio
towers, as this
is a
"commercial"
activity for the
operators.
Some of the
private
operators do not
see a problem
with paying a
tax or license
fee for the
towers. But,
that may be
another thing
with ICE.
A meeting later
this month is
scheduled for
talks on the
subject with ICE
president,
Eduardo Doryan.
The Sutel has
yet to define
how many radio
towers will be
required and it
will required
companies to
share towers.
George Miley,
president of the
Sutel, says that
90% of the
towers could be
shared by the
various
operators.
Miley added that
the majority of
those companies
interested in
setting up shop
in Costa Rica
have expressed
an interest in
sharing with
their
competitors.
If that were to
be case, experts
conclude that
some 2.000
towers are
needed or 900
more than what
ICE has already
installed to
fully cover the
country.
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