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COSTA RICA |
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ICE
Delays Cellular Competition In Costa Rica;
No Competition Until At Least 2011
A move by the Instituto Costarricense de
Electricidad (ICE) delays the entry of new
operators for cellular service and opening
of the cellular market in Costa Rica until
at least 2011. The reason for the delay is
due to ICE's, the state telecom, stall in
providing the government the radio
frequencies that are to be used by the
competition
Last year legislators passed the Ley General
de Telecomunicaciones which opens up the
telecommunications market in Costa Rica, a
market which had been a ICE monopoly for
decades.
Following the passing of the law, the
Superintendencia de Telecomunicaciones (Sutel)
was formed on January 23 of this year, a
government agency to license and regulate
the telecommunications market.
The Sutel says it is ready to begin the
tender process for three new operators, but
it cannot until ICE hands over, as
requested, the radio frequencies that will
be used by the competition.
With the delay, ICE, although it no longer
holds the monopoly, it continues to be the
exclusive provider of cellular service in
the country.
The frequencies are state property. In
September the Ministerio de Ambiente Energía
y Telecomunicaciones (Minaet) asked ICE for
six of frequencies that operate between the
843.5 and 849 MHz; 888.5 and 901 MHz; 1730
and 1805 MHz; 1825 and 9120 MHz; 1935 and
1990 MHz; and, 2125 and 2170 MHz.
The above frequencies would be used by new
cellular operators and to compete with ICE.
George Miley, president of the Sutel, said
that once the frequencies are relinquished
by ICE, it will be at least a year before
the competition can begin offering services
to the public.
Miley explained that the process takes
between four to six months for the approval
of the operators, if there is no appeal, and
at least six months for each operator to
install its network and have it operating.
As such, competition in the cellular market
cannot begin until 2011 at the earliest.
According to Miley, has everything ready to
begin the tender process, less the
frequencies.
Pedro Pablo Quirós, president of ICE, says
the handing over of the frequencies is on
"standby", but rejects the idea that ICE is
stalling on purpose.
Quirós explained that since the middle of
October the ICE board of directors has been
missing a member with the resignation of
Félix Delgado. Delgado resigned as director
following a conflict between ICE and
Consultores Económicos y Financieros S. A. (Cefsa).
The absence of a director does not permit
and concrete decisions by the ICE board. And
a new director can only be appointed by the
Consejo de Gobierno (government cabinet) and
according to the Presidencia de la República
(president's office), no decision on a
replacement member has yet to be made.
Hannia Vega, viceministra de
Telecomunicaciones, is however more
optimistic. Vega said that there are still
three working weeks left this year and that
means that competition in 2010 is still
possible.
Currently there are 1.8 million users of
cellular service in Costa Rica, all
customers of ICE. In addition, in the coming
weeks ICE begins unrolling 950.000 lines of
its 3G network. |
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