Number Portability Will Promote Competition

With its entry into force in late November, both the regulator as well as telephone companies predict fierce competition because of attempts to retain and attract customers.

Thursday, October 24, 2013

"This law promotes stronger dynamism in the market and gives the user the power to negotiate what suits them. It requires companies to provide more service. It is a climate of true market competition," said Eduardo Castellon spokesman for the Superintendencia de Telecomunicaciones (Sutel).

The Sutel estimated that during the first year of implementation of number portability there will be more than 130 000 migrations, which will encourage companies to battle for more customers.

"This gives operators an opportunity to offer more to customers who were reluctant to change before. Our current customers could have changed providers, but this is where we are all forced to pay more attention, we prepared for it," said communications manager at Movistar, Matthias Señorán.

"... Portability is an important step towards real and effective competition," added Señorán.

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More on this topic

Costa Rica : Private Telecoms Gain Ground in Cellular Market

March 2014

The Instituto Costarricense de Electricidad's share in the mobile phone market fell to 65%.

At the end of 2012 Instituto Costarricense de Electricidad (ICE) owned a 79% stake in the mobile market, and this was reduced to 65% in September 2013. That portion of the market was taken over by the foreign competitors Claro and Movistar.

Costa Rica: Telecoms Reach Agreement on Portability

April 2013

The supervisor of telecommunications and major operators have agreed to implement number portability in November 2013.

After arguing that it was technically impossible to implement the necessary equipment until March 2014, "the Costa Rican Electricity Institute (ICE) agreed to accelerate the purchase of equipment in order to implement number portability, while Movistar and Claro operators relaxed deadlines for developing the system which had been agreed on months ago," noted an article in Elfinancierocr.com.

Resistance to Cell Phone Competition

November 2012

The state-owned communications company in Costa Rica has filed 20 law suits in an attempt to stop number portability.

Surveys say that mobile users aren’t currently showing much inclination to switch service providers. New entrants have experienced set backs in providing coverage throughout Costa Rica, due to, among other factors, the difficulties in obtaining the necessary permits from municipalities to install their antennas.

Claro and Movistar Growing in Costa Rica

June 2012

Between the two carriers 100,000 new lines are sold a month and they already have a market share of 20%.

"At the moment, Claro and Movistar between them have a 20% market share. The growth of these companies together is about 100,000 lines per month", said George Miley, a member of the Board of the Telecommunications (Sutel), according to the information portal Signals Telecom News.

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