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COSTA RICA - Thursday 17 December 2009
 

ICE Fails To Hand Over Radio Frequencies Required For Cellular Competition

The Instituto Costarricense de Electricidad (ICE), in typical fashion, once again is at play to delay the coming of competition in the cellular telephone services sector. The latest is the failure to hand over to the Poder Ejecutivo (government), as agreed, the frequencies that will be used by competitors.

ICE and the Poder Ejecutivo signed an agreement last week and for the compensation of us$7 million dollars, it would immediately hand over six sub-bands and two more in January.

The Poder Ejecutivo would then be in a position to authorize the frequencies, which are state property, to be used by Superintendencia de Telecomunicaciones (Sutel) to issue licenses to cellular operators to start up their operations in Costa Rica.

The failure by ICE means Costa Rican president, Oscar Arias, cannot sign the decree that would allow the Sutel to begin the bidding process, which is expected to take up to four months, to issue operating licenses.

The plan had been to bring competition to Costa Rica's cellular market by the middle of 2010. However, ICE's continue stalling and failure to complete agreements, delays the plan to 2011.

The director de Comunicación for ICE, Elbert Durán, said that if there is an agreement in place, it is being defined in talks with the Poder Ejecutivo, as some vital aspects have to be made precise and clear.

The Durán statement is in direct contradiction to the announcement made by Casa Presidencial last week, that an agreement had been reached and signed.

Following the ICE action and Durán statement, Pablo Guerén, spokesperson for the Ministro de la Presidencia, said the matter is not yet resolved and that talks with ICE officials are ongoing and a resolution should be made soon.

The opening of the telecommunications market in Costa Rica followed the signing of the free trade agreement with the US, the Tratado de Libre Comercio (TLC, as it is known locally or CAFTA in the US).

And although legislators, following the ratification of the TLC, passed the law - Ley de Telecommunicaciónes - that effectively broke up the ICE monopoly in the country and the creation of the Superintendencia de Telecomunicaciones (Sutel), ICE continues to the sole provider of fixed line and cellular telephone service in Costa Rica.

Taking part in the talks between ICE and the government are the president of the state institution, Pedro Pablo Quirós and the viceministra de Telecomunicaciones del Minaet, Hannia Vega.
 

 
 

 

 


 
 
 
 

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