Cellular Rate Hike Not
Expected In Competitive
Market
The pending competition
in the
telecommunications now
that the Instituto
Costarricense de
Electricidad (ICE)
monopoly is at an end is
expected to bring new
services, better rates
and a choice for
consumers. However,
there are some doubts.
One of those doubts are
the rates. Many are
concerned that in a
competitive market
cellular telephone rates
will go up. Walter
Herrera, director of
telecommunications at
the Autoridad Reguladora
de los Servicios
Públicos (Aresep) - the
government regulator of
public prices and
services - says there is
no reason why rates
should jump.
Herrera explained that
although ICE rates will
continue to be
controlled by the Aresep,
competitors are expected
to have similar rates to
compete.
Pedro Pablo Quirós, ICE
president, said that
competitors with higher
rates that the public
institution, will not be
able to compete with ICE
and will be erroneous in
their marketing
strategy. Quirós was
emphatic that ICE will
continue to have
affordable cellular
telephone rates.
According to Quirós, the
cost of cellular and
internet services will
be dependent on the
demand and that the Ley
de Telecomunicaciones -
the law that now
regulates
telecommunications in
the country - ensures
that all operators in
the market connect to
each other.
Quirós explained that
all private companied
are obligated to allow
calls to be connected
between the services,
working together as one
operator.
Legislator Evita
Arquedas explained that
the law guarantees a
"universal service".
Competitors coming into
the Costa Rican market
will have to invest in
towers and radiobases
similar to what ICE now
has installed. The ICE
president said that
competitors will not be
able to use the ICE
towers and radiobases
and that no one in the
market will have better
equipment over the
other, as the law
assures fair
competition.
The Ley de
Telecommunicaciones was
passed on May 14
breaking the monopoly on
telecommunications held
by ICE for the last 60
years.
Competitors will now be
able to offer cellular
telephone and internet
service in competition
with ICE in a market
that will be regulated
by a "superintendencia"
named SUTEL, which is
part of the Aresep.
Mexican telecom
billionaire Carlos Slim,
owner of América Móvil,
the fifth largest mobile
network operator and the
largest corporation in
Latin America, is one
investor that has
expressed an interest in
the Costa Rican market.
Others operators who may
enter the Costa Rican
market are Movistar, TIM
and AT&T. |
