Results of the Cell Privatization in Costa Rica

After one year of competition in mobile communications, the changes that have taken place reveal a market that is different from how many expected.

Friday, November 16, 2012

The market transformation has been swift and contained surprising nuances. Cellular penetration swiftly exceeded 100%, while the use of mobile Internet exceeded forecasts.

Pablo Fonseca's article in Nacion.com reports that "Although more changes will come in the short and medium term, it is good to take stock. Many people were clear that the Costa Rican market was no ordinary market and had certain characteristics that needed to be taken into account when dealing with it, such as a thirst for technology, the level of information being handled, the requirements to be able to receive what is being offered and the level of spending willing to be made for a handset “

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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: Cellular Market Grows 36% in Seven Months

November 2012

Since the formal break up of the monopoly held by the state communications firm, ICE, the number of allocated cell lines has grown from 3.9 to 5.3 million.

Elfinancierocr.com reports that this information was obtained "by an appeal to the Constitutional Court, which forced the Sutel to provide the number of lines that the ICE had up to November 2011, which was considered a strategic issue by the state company and the regulator.

Movistar Launches Commercial Operations in Costa Rica

October 2011

While announcing that the service coverage will be limited due to problems with local municipalities regarding the installation of antennas, the Spanish company opened pre-registration for clients.

The announcement was made by the Director for Costa Rica, Jorge Abadia, adding "We wont have the 100% coverage that we would like from the first day but we will achieve it."

Costa Rica: The Other Side of Cell Phone Privatisation

October 2011

Cellular stores have had reduced sales since the process of opening the telecommunications market started.

Retail businesses selling cell phones have experienced significant declines since the start of the privatisation process in the telecommunications sector.

The most commercial aggressiveness has been seen by the Instituto Costarricense de Electricidad (ICE) who are offering packages where the phone is free, and added to this is the entry of new competitors such as Claro and Movistar, which has affected traders dedicated to only selling the phones.

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