Costa Rica To Approve
Cellular Competitors By April
The process of opening the cellular
telecommunications sector in Costa Rica has
been a slow one, with setbacks and
postponements, all the time giving the state
telecom, the Instituto Costarricense de
Electricidad (ICE), time to regroup and
prepare to operate in a competitive market.
But, things are moving ahead.
This week the Superintendencia de
Telecomunicaciones (SUTEL) began public
hearings on the process of approving up to
three additional operators to compete in
Costa Rica.
The SUTEL has outlined a timetable and
explained the rules of the tender process.
The meeting was held at the Intercontinental
hotel in Escazú.
Companies like Digivel, Millicom, Telefonica,
Cable & Wireless and America Movil are all
interested in entering the Costa Rican
cellular telephone services market,
according to SUTEL.
The three winning bidders will be announced
by April and start setting up their networks
by September, to begin offering services by
the first quarter of 2011.
Following the approval of the Ley General de
Telecommunicaciones, the SUTEL was created
to establish and regulate the telecom
sector, setting up guidelines and rules for
the next era of mobile telecommunications in
Costa Rica.
George Miley, president of the SUTEL, said
that bids will begin to be accepted on
February 5, which will each then undergo a
thorough review of the techinical and
financial plans. The three approved
companies will be announced by April 20,
which will then require the signature of
Costa Rican president, Oscar Arias, which is
expected before he leaves office on May 8.
Miley said only four cellular service
companies will be permitted to operate in
the country, at least in the early years of
the free market.
Once approved, the three companies will
enter into an agreement for a 15 year
license.
Costa Rica was obliged to open its telecoms
market to competition as a condition of
entry into the Central American Free Trade
Agreement (CAFTA) or the Tratado de Libre
Comercio (TLC) as it is known locally.
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