Telecom Competitors
Criticize New Regulator
Two telecommunications companies interested in providing telephone
and internet services in Costa Rica, competing with the state
telecom, the Instituto Costarricense de Electricidad (ICE), have
come out fighting.
Intertel Worldwide and R&H International Telecom are charging that
the new Superintendencia de Telecomunicaciones (Sutel) is placing
excessive requirements on their ability to enter the market.
The charge comes after ICE complained to the Sutel for Intertel's
offering cheaper international calling from their public telephone
booths.
The operators say that Sutel is asking for additional information of
the companies who are interested in operating in Costa Rica.
The Sutel defends its position by saying that the stricter measures
are to protect the public of companies suddenly disappearing from
the market.
Leonel Rivera, manager for R&H, says that one of the problems being
encountered is that operators have to maintain a contract with ICE
for an interconnection. Rivera added that the problem is that ICE
will only tell them to get approval before they can negotiate any
contract that needs to be in place before it can obtain any
approval.
R&H, unlike Intertel, is not interested in providing telephone
services, but rather low cost internet connections.
Both R&H and Intertel are up in arms with the Sutel which is request
of them an feasibility study as part of the approval process, where
most of the numbers of the study can only be obtained from ICE.
Juan Manuel Campos, legal adviser to Intertel, said that the Sutel
requirements are too onerous on them and other competitors.
"Sutel does not want to see an opening of the telecommunications
market. It is impossible to provide the material their asking. They
are asking us to negotiate with ICE and Racsa, but that cannot be
done unless there is approval in place", said Campos.
For their part, Worldcomm, which is also interested in setting up
internet service in Costa Rica, did not complain of the Sutel
requirements. The company said it is in agreement with an
interconnection agreeement with ICE.
The R&H and Intertel problem is that ICE has so far rejected any
negotiations for an interconnection. The reason for the rejection,
according to ICE, is that the Sutel has not yet set the financial
formula that would regulate the contract.
George Petrie Miley, president of the Sutel, explained that the
regulator is being careful not to give fly by night companies
authorization to set up shop and then leaving their customers
hanging when things get tough. Miley added that the Sutel will be
requiring from all companies financial statements and provide proof
of the source of their funds for their investment in Costa Rica.
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