Businesses are showing contempt for the regulation which requires Government approval of the appointment of senior management at telephone and Internet companies.
The measure was issued by Telcor, the entity which regulates telecommunications in Nicaragua, informing intercommunications companies that "as of March 22 they had 30 days to send updated information about their managerial, executive, security and computing staff and information about new contracts to be approved by the institution. "
There will no longer be a mass transfer of cellular antennas located in urban areas.
After a meeting between representatives from Claro, Movistar and Telcor with members of the Infrastructure Committee of the National Assembly, it was decided that within thirty days the telephone companies will submit a draft reform to the committee .
"... phone companies Claro and Movistar along with Telcor have 30 days to submit to the Committee on Infrastructure a comprehensive reform to the law regulating the location and installation of mobile phone masts."
The National Assembly will resume discussion on the law governing the installation and placement of cell phone antennas, pending since 2003.
The project seeks to regulate the location of phone towers, as in Article 11 which was not adopted in 2003 it is established that those near populated areas have to be relocated.
"Opposition ministers believe that this is preparing the ground for Xinwei, who could gain an advantage if the antennas of Claro and Movistar are relocated", noted an article in Laprensa.com.ni.
The announcement by the Costa Rican state telecom company, that it will not take part in the tender organized by TELCOR, apparently leaves the competition with only the Chinese consortium Xinwei.
Laprensa.com.ni reports that "The announcement by the Instituto Costarricense de Electricidad (ICE) occurred following a publication in the newspaper La Prensa which revealed that the bidding terms and conditions established by Telcor for this tender were designed to favor the bid by the Chinese consortium, whose arrival in the country is being promoted by Laureano Ortega, son of President Daniel Ortega, from his post at the para-governmental agency Pro Nicaragua. The ICE’s exit from the tender along with Claro Movil and Telefonica Movistar due to "locks" built into the bidding terms and conditions, leaves Xinwei practically as the only bidder. This means that the main argument for awarding them the contract is that their offer will be the only one."
Chinese companies such as Xin Wei, Wang Wei y Datang Mobile have been added Movistar, Claro and another two unidentified Telecom’s companies in the list of those cinterested in the bidding for the 1785-1805 MHz band.
Indications from Costa Rica are that the state run telecommunications company was one of those who acquired the documents for conditions of the bid, valued at $3,000.
The bidding rules for granting the authorization certificates and frequencies for the band from 1785 to 1805 megahertz are available for purchase in Nicaragua for $3,000.
The call was announced this week by the Nicaraguan Institute for Telecommunications and Postal Services, Telcor.
Orlando Castillo, president of Telcor, said that due to the limited competitivity in the product market in which only two companies operate, Claro and Movistar, investment has been minimal.
The Nicaraguan Institute for Telecommunications and Postal Services is putting out an international public tender in order to expand the mobile phone market to three companies.
The segment of frequencies to be tendered is the 1785-1805 MHz in the 1800 MHz band.
According to an article in Trincheraonline the bidding rules also say that "the new firm may 'operate' in 'rural areas' in order to 'promote' the development of telecommunications in areas outside the cities. '
The telecommunications company Yota has made complaints to Procompetencia of Nicaragua against America Movil, citing "media obstructions."
According to Informe Pastran: "Nicaragua's Procompetencia confirmed this afternoon that it has received an allegation from an operator in the telecommunications market for alleged unfair competitive behavior ... Although Procompetencia has not said so publicly, Informe Pastran is aware that the complaint comes from the transnational company YOTA who denounced Mexico's America Movil, operating here under the brand name Claro, in a new chapter in the war between foreign phone companies, now for the control of Internet customers ... According to Article 46 paragraph b) of Act 601, the accused party could be sanctioned if the indicated anticompetitive behaviour proves to be true... ”
Telecommunications company Claro announced it will extend coverage of its cellular network to rural communities with more than a thousand residents.
The company stated that the expansion of cellular coverage will not only reach 99% of municipalities, but also to other areas in the Atlantic.
"The company says the expansion in coverage reflects the commitment to contribute to the economic and social development through access of telecommunications services in most parts of the country," reported on its Web IT NOW.
Telefonica Movistar filed a complaint to competent authorities for acts of unfair competition against competitor Claro.
The lawsuit was filed before the National Institute for Competition Promotion (Procompetencia).
Oliver Gomez, in his article in El Nuevo Diario, wrote about the complaint filed with Procompetencia, "Movistar has been subject to systematic attacks of deceptive nature by Claro, some attacks are derogatory and imitating some of their products, abusing its dominant market position.”
The industry is characterized by low levels of market penetration in Nicaragua with little competition and huge future growth potential.
An article in Ecommerce Journal analyzes the recent development of Nicaragua's telecommunications market. It highlights the issue of the poorly executed privatization and the resulting fixed-line monoply as being a cause for concern. Mobile and Internet markets, meanwhile, are a controlled by a duopoly.
The subsidiary of Russian state company Rostejnologuii will invest $50 million, looking to double the number of fixed telephony users.
3 other companies participated in the bidding process: Claro, Movistar and Amnet Newcom.
Orlando Castillo, executive president of the Nicaraguan Institute of Telecommunications (Telcor), explained that "... along the way 'some' companies, which were not identified, withdrew from the process, as they didn't clarified which equipment and technology was to be used in developing the fixed telephony network", reported Google News.
Mexico's América Movíl, flagship of Carlos Slim's business empire, is going to acquire Nicaragua's leading pay TV provider, Estesa, said Augusto Vargas, Estesa's general manager said.
The announcement follows the breakdown of talks with two other potential bidders, Benetton and Spain's La Caixa, Vargas said.
Slim, Latin America's most powerful business magnate, will make the acquisition through América Movil's local unit, Enitel, reports said.