The state run company RACSA -which is experiencing serious financial difficulties- has acquired a virtual mobile phone operator that was " about to close".
The state run company Radiográfica Costarricense (ICE) has bought Fullmóvil, the virtual operator that sells prepaid phone services, reported the Telecommunications (Sutel).
An article in Crhoy.com reports that "Ana Victoria Velasquez, of the Committee on the Promotion of Competition, which was consulted on this acquisition, said that because it is a virtual operator which was about to close, the commission saw no problem in approving the purchase, but the last word went to the Sutel. "
With its entry into force in late November, both the regulator as well as telephone companies predict fierce competition because of attempts to retain and attract customers.
"This law promotes stronger dynamism in the market and gives the user the power to negotiate what suits them. It requires companies to provide more service. It is a climate of true market competition," said Eduardo Castellon spokesman for the Superintendencia de Telecomunicaciones (Sutel).
In late 2011 when outside operators came into the country, the Costa Rican Electricity Institute had 90% of the mobile market but a year later this dropped to 79%.
The information comes from the Telecommunications Statistical Report prepared by the Superintendency of Telecommunications (Sutel).
The Sutel has fined the company and given them a month to stop providing the service, for offering Internet services outside of the law.
The Superintendency of Telecommunications (Sutel) sanctioned the company IBW Comunicaciones, which provides mobile internet services under the brand name Japi, with a fine of $38,000 and ordered it to suspend services within one month.
The National Telecommunications Fund plans to develop seven projects in the areas of education, social welfare, health and homes, which will feature, for the first time, internet and telephone services.
According to the Telecommunications Superintendency (Sutel), there are a total of 477 schools, 78 colleges, 155 Ebais (health centres), 25 Cecis and 70 CEN- CINAI which will be connected with a speed of 4 megabytes.
The Government is considering a possible tender for a new radio frequency block that would provide fourth-generation mobile services.
Alejandro Cruz, Minister of Science, Technology and Telecommunications (Micitt), asked the Sutel to define the future of the 70 MHz block not auctioned in 2011, when Telefonica and Claro were awarded frequencies. These companies have shown interest in having more spectrum to expand the supply of fast mobile Internet services.
A spokesman for the Superintendency of Telecommunications in Costa Rica noted that mobile phone use their Internet connection in an "exaggerated" way.
In an attempt to justify Costa Rica’s technical and regulatory backwardness in mobile communications with respect to the developed world, an official from the Telecommunications Authority of Costa Rica (SUTEL), suggests that users of mobile connections limit their access to the internet.
The state-owned communications company in Costa Rica has filed 20 law suits in an attempt to stop number portability.
Surveys say that mobile users aren’t currently showing much inclination to switch service providers. New entrants have experienced set backs in providing coverage throughout Costa Rica, due to, among other factors, the difficulties in obtaining the necessary permits from municipalities to install their antennas.
The labor union of the Costa Rican Electricity Institute (ICE) has convened a national strike in protest against recent actions by the Superintendency of Telecommunications (SUTEL).
Jorge Arguedas, president of Annttec, one of the state unions, explained that the Superintendent has taken specific actions against the ICE, such as the recent requirement of the return of frequencies as a condition for authorizing the acquisition of Cablevision.
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