Costa Rica: Call for Liberalization of Prices in Telecommunications

The industry is calling for effective competition to be allowed with the market setting rates and not the Telecommunications Regulator.

Friday, August 8, 2014

Operators of telephony and internet services are asking for the establishment of maximum rates by the Superintendencia de Telecomunicaciones (Sutel) to be eliminated, applying what is contemplated in the Telecommunications Act, which allows the possibility of not intervening in the setting of rates. The companies point out that "... the market prices are up to six times lower than the maximum rate established by the Sutel."

The president of the Sutel Maryleana Méndez, "... agrees that the prices are obviously lower, as she said during an appearance before MPs in July this year. However, the Sutel has not carried out a study to assess whether the market is ready to declare effective competition. "

Crhoy.com reports that "...Another issue addressed by Infocom is the need to manage and diligently execute the National Telecommunications Fund which is funded by the operators in order to fund infrastructure to provide access to areas where there is no connection. "



More on this topic

Competition in Telecommunications Put to Public Consultation

October 2016

If the Sutel's proposal is approved, on December Costa Rica will eliminate the tariff regulation for the international telephone, internet and postpaid cellular telephony markets.

From a statement issued by the Superintendency of Telecommunications (Sutel):

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Six years after the market opened, authorities are assessing whether competition is effective in order to eliminate caps and free up rates for mobile telephony and the internet.

The methodology for determining whether or not there is effective or genuine competition in the telecommunications market has already been approved and the Telecommunications Regulator expects to have the results no later than the end of the year.

Telecoms in Costa Rica: Price Fixing Slows Competition

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Operators of the telecommunications market in Costa Rica are calling for intervention by the regulator in rates to be removed and for operations to be carried out within a framework of real commercial freedom.

After more than six years of having promoted laws which opened up the telecommunications market in Costa Rica, no operator has the ability to unilaterally set final prices or manipulate conditions in the telecommunications market.

Costa Rica: Deregulation of Cell Phone Rates

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Regulation of mobile telephony tariffs is preventing the development of efficient services and competition between operators.

Removing the tariff regulations on cellular services and improving the availability and access to broadband should be a priority for the new government, say experts in the field.