The regulator, known as SUTEL, will accept price offers Jan. 15 for the three 15-year mobile spectrum licenses after reviewing the technical bid offers, said Carolina Mora, a SUTEL spokeswoman, in an e-mailed response. The concessions have a price floor of $70 million.
"We hope that President Laura Chinchilla will give out the concession in February of 2011..." Mora said.
Bloomberg Businessweek
Although delays in opening the Costa Rican mobile phone market may seem never-ending, the Telecommunications Superintendency (SUTEL) reports that three telecom providers should be selected by mid-January to compete to provide cell phone service in Costa Rica. Currently, five cell phone providers – Digicel, Millicom, Telefónica, Cable & Wireless and América Móvil – have purchased the 200-page document prepared by SUTEL that outlines the guidelines and requirements for market entry.
The Costa Rican mobile phone market was opened for competition with the entry into force of the Central American Free-Trade Agreement with the U.S. on Jan. 1, 2009. However, SUTEL has repeatedly delayed the market’s opening as confusion over frequencies, inadequate cell phone towers and complaints of inadequate guidelines for the bidding process have bogged down progress.
In June, Carlos Gallegos, telecommunications director for the international consulting firm Deloitte, said that the closed Costa Rican cellular market was “the biggest economic obstacle” facing the country. According to some analysts, the opening of the market could create around 3,000 jobs and generate $3 billion for the Costa Rican economy in five years.
On Aug. 30, SUTEL released a 200-page document spelling out the guidelines for companies interested in participating in Costa Rica’s mobile phone market. The companies were given 90 days to submit a bid. However, several companies complained that the guideline were inadequate, forcing SUTEL to make revisions and grant an extension for submitting applications (TT Oct. 5). The new deadline is Dec. 14.
To date, 35 companies, law firms and individuals have purchased the guidelines, although only five are telecom service providers. Carolina Mora, the spokesperson for SUTEL, told The Tico Times that the company will submit the applications of three companies to the Executive Branch for review by mid-January 2011.
www.ticotimes.net
Lawmakers late Tuesday approved legislation to end the government-run Insurance Institute. President Oscar Arias is expected to sign it into law.
Last month, Costa Rica broke up its state-run telecommunications monopoly.
Washington demanded Costa Rica break up its monopolies before Oct. 1 for the implementation of the Central American Free Trade Agreement.
The rest of Central America and the Dominican Republic joined CAFTA in 2006.
Associated Press News-Headlines
Costa Rica has broken up its state-run telecommunications monopoly.
The law signed Wednesday by President Oscar Arias meets one of the
requirements demanded by Washington for the implementation of the
Central American Free Trade Agreement.
The state Electricity Institute has run Costa Rica's telecommunications
industry since it was formed in 1949. Officials say private companies
can now offer cellular phone and Internet services at competitive prices.
Arias also is urging lawmakers to approve other U.S. requirements,
including opening up the state-run insurance sector. The deadline for
meeting the requirements is Oct. 1.
The rest of Central America and the Dominican Republic joined CAFTA in
2006.
May, 2008
The Legislative Assembly of Costa Rica passed at second debate the General Telecommunications Bill of Law.
The new regulation opens the telecommunications sector allowing private and state-owned companies to effectively compete to directly provide customers services such as private networks, Internet, mobile wireless telephony as well as others that may arise by virtue of the technological improvements provided these companies get concessions and state approval.
This new bill of law will come into effect as of its publication in the Official Newspaper “The Gazette”.
However, according to this Bill of Law, within nine months as of its publication, the Executive Power together with the Public Utilities Regulatory Authority should issue the necessary bylaws for the appropriate regulation and full market operation of this law.
