Sole offer for 3G network rejected in Costa Rica

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

Tuesday, September 2, 2008


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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.

The head of the ICE said that the Chinese firm offered to install the network for $690 million, even though the Institute's budget for this project was $225 million.

More on this topic

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.

ICE reopens tender for new 3G cellular network

October 2008

The second tender process for the 3G network will be launched this week after the failure of the first process.

If there are no more setbacks, the Costa Rica Institute of Electricity (ICE) will make changes to the tender in order to encourage more companies to participate.

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.

Costa Rica may Ask for New Bidders on 3G Contract

August 2008

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.

The company has come under political pressure from the Costa Rican president, Oscar Arias to reject the contract, and will consider retendering the contract.

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