Telecoms in Costa Rica: Liberate Mobile Rates

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.

Wednesday, May 20, 2015

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. If it is determined that competitive conditions exist, there could be an elimination of the requirements such as capped tariffs for services and other service fees, which are currently limited to the operators.

Nacion.com reported that "... The declaration of genuine competition and radiography regarding the situation of the sector is urgent for major mobile operators, Kölbi, Claro and Movistar, as highlighted by their representatives yesterday at a forum organized by the economic consultant Ecoanálisis. Juan Manuel Campos, a consultant at the firm Ciber Regulation, commented that "The model of free supply and demand will necessarily benefit the user in a direct and tangible way; it will provide options'. "

"... But there is a possibility that the declaration is not made this year. If the Sutel determines that one of the operators is significant or relevant (their status in the market unilaterally influences prices), it would resort to other alternatives. These include maintaining a "strict" regulation or define f, despite the existence of a relevant actor, competitive conditions exist. In that case it could, for example, eliminate the price cap only for operators who have lower participation and in this way speed up the equilibrium. "

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