The Superintendency of Telecommunications in Costa Rica has presented its second statistical report for the period 2010-2013.
From the report by SUTEL:
General Development of Sector
Five years after the adoption of the General Telecommunications Law, No. 8642, evaluation of sector performance shows positive results in revenue, investment, employment, population coverage and diversification of telecommunications services.
In Costa Rica, 71% of users connect to the internet via their cell phone, while 68% do so using a computer at home.
Elfinancierocr.com reports that "that means that about 920,000 people say that they connect to the internet using a mobile device," according to a study prepared by Unimer RED 506, which noted that access through this medium grew by 56% compared to 2011 and 30% compared to 2012.
When portability was allowed in Panama, some expected an stampede of users unhappy with their providers, but the dynamics have been very different.
This same feeling is held by the telecommunications companies in Costa Rica, who could take the situation in Panama as an example, where changes represent only 1.92% of the number of cell phone customers in the country, estimated at 6, 7 million up to the end of 2012.
The Costa Rica state telecom company is moving away from the purpose that justifies its existence and is impeding the exercise of the popular will in terms of the cellular market opening up.
The Instituto Costarricense de Electricidad (ICE), after using every piece of legal chicanery imaginable to prevent the implementation of number portability, is now simply saying "I WONT SIGN", citing technical insolvency as its reason for not integrating the system that allows users to migrate from one cellular communication provider to another, while keeping their phone number.
The privatization of telecommunications in Costa Rica is still hampered by bureaucracy and lack of agreements in favor of consumers.
They are still 13 Costa Rican municipalities who are not authorizing the installation of “so called” cell towers because of lack of regulations in this respect, or because the regulations, where they do exist, contains disproportionate demands which make it "virtually impossible to install the structures."
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. "
The government of Costa Rica does not seem to have much interest in the radio electric spectrum concession which belongs to them. Not only is the state losing money, but opportunities are being lost for society.
Sometime in the not too near future the Costa Rican state will put out to tender a concession for a block of frequencies which was due in 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.
The Costa Rican Electricity Institute (ICE) will buy 400.000 GSM phone lines from Ericsson Costa Rica.
Jaime Palermo, commercial director of the Institute, explained they have many 3G lines available for purchase, but clients prefer the GSM service, especially through pre-paid cards.
An article in Nacion.com noted that users prefer GSM, “because GSM devices are cheaper than their 3G counterparts”.
CableTica, a local cable company, will install a fiber optics network to provide services to mobile telephony operators and internet television.
Parent company Televisora de Costa Rica S.A. reported they signed a contract with Ericsson to build and operate the network over the next 5 years.
“With the network, CableTica will be able to transport any type of data –including television and Internet – and will lay the groundwork for future IPTV services”, reported Elfinancierocr.com.
In 2015 Central America will sell $2 billion in paid television and broadband services, both wireless and cable.
A report from consulting company Signals Telecom foresees a battle in broadband services, as the average speeds offered in Central America are below South American and Caribbean averages.
They also expect competition to cause improvements in 3G coverage, and the introduction of more added value services.
The bidding rules for getting a mobile telephony frequencies will be published on February 5th.
George Miley, president of the council of the Telecommunications Superintendent (Sutel), reported that the frequencies will be awarded on May 5th.
"Sutel will ask bidders to prove they are important companies. It will require 5 years of experience, presence in at least three countries and no less than 3 million phone subscribers", reported Nacion.com..
Mobile phones, the strongest sector for the regional economy, registered a decline in earnings in 2008.
El Periódico reported on its website: "While América Móvil added 1 million new customers in Central America in 2008, revenues from its subsidiaries in Guatemala, El Salvador, Honduras and Nicaragua fell by 3.4 % and its profits were reduced by 26.6%.
China's Huawei was chosen by the Instituto Costarricense de Electricidad to execute the $235 million contract for 950.000 3G mobile phone lines.
This was reported by elfinancierocr.com, whose article states that "This network would be installed through 2009 and would imply an increase in the number of mobile phones per inhabitant of up to 65%, reported Claudio Bermúdez, ICE's vice director of communications".