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Costa Rica: Lines Contract Awarded to Huawei Annuled

The Comptroller’s Office rejected the awarding of a total of 2.5 million prepaid lines for cellular and land line telephone systems, granted to the Chinese Huawei Technologies.

Thursday, February 19, 2009

Vanessa Loaiza in her article in Nacion.com writes: "The news was transmitted at the end of the afternoon in electronic version in the newspaper El Financiero. According to this medium, the rejection was given because Huawei initially offered a total of $10.1 million for the pre-paid lines and then later applied a discount that left its offer at $6.4 million."

Source: Nacion.com

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prepaid phone celular phone 3G mobile phone

Key entities

Huawei Technologies Costarican Institute of Electricity

Countries

Costa Rica

Insight

Telecomunications liberalization mobile phone coverage mobile phone tender Information & Communication Technologies IT & Telecomm

Costa Rica: Pre-Paid Cell Phones Continue On Hold

February 2009

The Comptroller’s Office of the Republic ordered ICE to analyze if the price offered by Huawei Technologies would permit it to comply with the contract.

Esteban Oviedo in an article of Nacion.com writes: "The controlling institution revised the order passed last Monday, when they annulled the awarding of the contract to the Chinese company.

Huawei is already the No. 1 supplier to ICE

February 2009

Chinese business has accumulated a total of $266 million in contracts with the Instituto Costarricense de Electricidad (ICE).

With very aggressive pricing policies, Huawei has positioned itself in Costa Rica as the leader in the provision of networks and cellular telephone systems. This leadership position enhances its ability to obtain bids currently under way, such as for the 200 radio bases that ICE needs to acquire.

President of Costa Rica ask that 3G contract not be granted to Huawei

August 2008

Oscar Arias recommended to officials of the Costa Rica Institute of Electricity (ICE) that they not grant the contract for the project to the only company that participated in the bidding process.

The President said in a letter sent yesterday to Pedro Pablo Quiros, head of ICE, that the best option is to redo the process and try to get more telecommunications companies to participate.

Appeals delay prepaid cellular service in Costa Rica

August 2008

Three appeals against the process for acquiring the equipment need for the system will delay the marketing of that technology.

Even though the contract to purchase of the equipment was awarded to Ericsson Costa Rica on July 7, they will not be able to make the purchase until October 2 when the motions are possibly resolved.