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INSIDECOSTARICA | Sunday 05 September 2010

Cellular Competition Will Be Countrywide Within Five Years

By the first week in November we will have a good idea of who will be competing with the Instituto Costarricense de Electricidad (ICE) in cellular telecommunications in Costa Rica as the Superintendencia de Telecomunicaciones (Sutel) gets ready to license three operators.

However, although the new operators must be up and running by September 2011, they will have up to five years (60) months when they have to offer a cellular signal across the country.

That is the SUTEL will allow coverage in three phases, the first to be completed within 12 months of licensing operator must provide service only to 132 districts of San José, Alajuela, Heredia and Cartago - the Central Valley.

In the second phase, which is to be completed within 36 months, service coverage area must include another 185 districts that include Puntarenas and Guanacaste and the third and final phase to be completed within 60 months must include the entire country.

What this means is that operators can get a quick start on signing up customers and slowing develop their coverage areas.

George Miley explained the reasoning behind the phased coverage, making it attractive for new operators to centre on high volume areas.

Miley asked if those in rural areas will feel discriminated, answered with a resounding "no".

"The new companies will not be in a position to deploy a nationwide system in the first year", said Miley.

Prospective operators are currently in the phase of studying the SUTEL requirements and in the process of preparing their bids.

Each operator must pay us$70 million dollar for a license.
 

 

 

 
 
 
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