Telecoms in Costa Rica: Price Fixing Slows Competition

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.

Tuesday, September 30, 2014

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.

In his opinion piece in Elias Soley notes that "... The commercial reality in this market in Costa Rica is that regulatory intervention in the market for mobile Internet access has allowed tariff ceilings up to seven times higher than the rates actually offered by operators to their customers. This scenario confirms that competitive conditions do exist."

"... The state operator has had to adapt to new conditions of competition, so it is important and necessary for the regulator and the rector of the sector to evolve in parallel, at an appropriate speed, and avoid staying with intervention scenarios that distort and affect free competition ".

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Costa Rica: Telecoms Moving Slowly

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Costa Rica: Call for Liberalization of Prices in Telecommunications

August 2014

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

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."