Internet Rate Opposed in SUTEL Hearing

The telecommunications agency SUTEL may have to backtrack on its proposed alternative rate for use of the mobile Internet. The agency got an earful at the public hearing Tuesday afternoon.

Usually, SUTEL hearings are quiet affairs but an unusual alliance of unhappy users and service providers Claro and Movistar did not spare words in opposition to the new alternative.

In July, Sutel proposed that service company could charge 0.00076 colones for every kilobyte of traffic in mobile phones for Internet service, ignoring the velocity. User could choose that or the current flat rate with limited navigation.

SUTEL's spokeswoman Cinthya Arias said that those who use the Internet on an intense basis (about 5% of prepaid cell users) "affect the quality of service for the rest of the users."

The agency considers that this use is "irrational and excessive." It is obvious that SUTEL is attempting to nursemaid users as if downloading of data was an addiction, not part of a free marketplace option bought by consumers.

One of the most influential voices against the rate was that of ex-Consitutional Court (Sala IV) magistrate Roxana Salazar, appearing on her own behalf at the hearing.

She sounded much like the constitutional lawyer she is, arguing that the rate was punishing the consumer for using a paid service, a clear violation of consumer rights. The law that opened the telecommunications market guarantees consumers quality of service irrespective of traffic.

The service providers also opposed the tariff for different reasons. They want to eliminate service regulations amd payment models that did not exist after the market was thrown open to free enterprise.

Claro representative Victor Manuel Garcia said he would like to see controls loosen "so that we operators can offer varied service to our customers."

Movistar's Marias Senoran agreed. He said that the Costa Rican market was well enough developed to leave behind the regulations and let the free market take over.

The utility rate agency ARESEP has 30 days to consider the SUTEL proposed rate for approval or rejection.

Commentary: Costa Rican government is still unaccustomed to an open market and the reaction is to play "Big Daddy" to protect consumers because, in the days of yore, much was covered by monopolies.

It is wise if consumers are protected against abuse by monopolies but less regulation is needed in the open market where the consumer is free to seek the best price and the best service.

The consumer would best be served if SUTEL and ARESEP would step back and only use their powers when the customer is being abused. As far as "excessive" use of the Internet, this shows that SUTEL should "get with" the 21st century.

By Rod Hughes, Fijatevos.com