Costa Rica may Ask for New Bidders on 3G Contract

Costa Rica's monopoly GSM network operator, ICE, has decided not to accept a sole bid from China's Huawei for the supply of a 3G network.

Tuesday, August 26, 2008

The company has come under political pressure from the Costa Rican president, Oscar Arias to reject the contract, and will consider retendering the contract.
Both Nokia and ZTE withdrew from the tender process and Huawei's own bid was roughly double the estimate that ICE had proposed. ICE had expected to spend around US$225 million on the 3G upgrade - but Huawei tendered a contract costing nearly US$583 million for 1.5 million 3G lines.

More on this topic

Sole offer for 3G network rejected in Costa Rica

September 2008

The Costa Rica Institute of Electricity (ICE) confirmed yesterday that it has rejected Huawei Technologies' offer for 1.5 million 3G cellular lines.

The offer was too expensive and did not meet coverage requirements, declared Pedro Pablo Quirós, president of ICE.

Only Huawei participated in the bidding for this contract. Another four telephone companies refrained from participating alleging that the process lacked clarity.

Costa Rica: ICE insists on analyzing Chinese 3G offer

August 2008

ICE (Costa Rican Institute of Electricity) will continue to study the sole offer, by Huawei, to install 1.5 million third generation (3G) cellular lines in the country.

The Institute rejected a letter from President Oscar Arias, who requested that they hold a new tender process so that more companies can take part.

Huawei bids $583 million for 3G network in Costa Rica

August 2008

The chinese firm Huawei made an offer of $582.862 million for the 3G mobile phone project under development by the Instituto Costarricense de Electricidad.

This is the only offer so far for the 1.5 million mobile phone lines tender, which ICE is promoting since 2007.

Huawei offered a leasing in association with the Banco Centroamericano de Integración Económica (BCIE), which is structured in 20 payments for 5 years, with a purchasing option on behalf of ICE. The offer is valid for 60 days.

5 companies quit the bidding process for the 3G contest in Costa Rica

July 2008

Five of the companies with most possibilities of getting the project decided not to participate in the international bidding process.

The companies stated that participating on the project with the current conditions involves a high degree of risk.
These companies are ZTE Corp, Huwaei Technologies, Ericsson Costa Rica, Continex S.A. (Samsung distributor), and Nokia Siemens Network.

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