Nearly 70% of Cellular Phones In Cost Rica Are Prepaid

Prepaid cellular service has won the hearts of Costa Rican, accounting for 69% of all active cellular lines in the country, bringing the cellular penetration to 101% in 2011.

Only fours years ago, in 2008 market penetration was only 42%, with the growth attributed to the arrival of foreign operators and the adaptation of the prepaid system.

Carlos Raul Gutierrez, chairman of the SUTEL (the telecom regulator) says that half the devices connected to the thre networks are approved, allowing better services to users.

It is estimate that the state telecom ICE has 4 million subscribers, while Claro and Movistar that began operation last December have 154.000 and 150.000 respectively.

Prior to the opening of telecommunications in Costa Rica, ICE only offered postpaid or subscription service, where customers had to sign up with the service and paid a basic monthly fee plus consumption.

The state telecom began offering prepaid services, as well as the sale of cellular telephones and package deals ahead of the start of the foreign operators, cornering the market.

One of the main reasons ICE customers do not switch is the lack of number portability, that is a customer wanting to leave ICE for another operator would be giving up their number, which for many is for years.

Number portability is expected to be introduced in the next one or two years.