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COSTA RICA |
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Roadblock To Cellular Competition In Costa
Rica Cleared
Perhaps with a change or heart or bowing to
political pressure, the Instituto
Costarricense de Electricidad (ICE) board of
directors approved to relinquish its hold on
the radio frequencies that will be used by
competitors in the cellular telephone market
in Costa Rica.
ICE had been stalling relinquishing the
frequencies, thus in effect stalling the
process of market opening, as the government
was unable to hand over to the
Superintendencia de Telecomunicaciones (Sutel)
the frequencies, which in turn could not be
begin the process of tendering bids from
potential operators.
However, all that changed overnight.
ICE president, Pedro Pablo Quirós, is
expected to meet today with the Poder
Ejecutivo (Government) to sign over the
frequencies.
The change now makes it possible for the
Sutel to award licenses, who could in turn
be in a position to offer services to the
market by the third quarter of 2010, with
the first bands 2100 and 1800 MHz freed up
immediately, the 850 Mhz in January and the
others following.
The Sutel is expected to award only licenses
to three operators in addition to ICE, with
more licenses possible in the future,
depending on the market conditions.
Once the government has the frequencies in
its possession, it will then be up to Costa
Rican president, Oscar Arias, to sign a
decree that will give the Sutel the green
light for the opening of the market.
The process is regulated in the new Ley de
Telecomunicaciones that calls for operators,
including ICE, to pay the Sutel fees for the
use of the frequencies.
Notwithstanding the competition, ICE, under
the law, will be guaranteed sufficient
spectrum for future technological
development to provide services to all Costa
Ricans, said an ICE statement announcing the
board decision.
Once the Sutel has the frequencies, it
should take four to six months for the
process of awarding a license, if there are
no appeals, which in Costa Rica has become a
national pastime.
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