Businesses have denounced the arbitrariness with which municipalities are establishing rates and conditions for granting permits for setting up telecommunication towers.
The Chamber of Information and Communication Technology (Infocom) claims that the municipalities, citing their legal autonomy, are establishing their own conditions when companies request permits to install telecom towers in different areas.
The arrival of new mobile services could be delayed if the uncertainty surrounding the renewal of licenses to mobile operators continues.
A report by the company GSMA, a firm that brings together more than 800 mobile operators in the world, presented a study which analyzes the state of the radio spectrum in Latin America and how the licenses are renewed for use in countries such as Costa Rica, Guatemala and Panama.
The technology installed in the towers is from the 21st Century. The bureaucracy that is authorizing them is from the 19th century.
The progress of communications is getting slower in Costa Rica, with cell phone companies unable to meet the deadlines for achieving the necessary territorial coverage, because municipalities are taking up to 5 ½ months to give permission for each tower.
The Guatemalan company Continental Towers will receive funding from the International Finance Corporation to build and maintain cell towers in Central America.
According to an article in Elperiodico.com.gt, "The IFC's investment includes a loan of $40 million and a syndicated loan of $80 million with Banco HSBC Panamá, Banco General de Panamá, the Dutch Entrepreneurial Development Bank (FMO) and the Inter American Corporation for Infrastructure Financing. "
Claro and Movistar are bringing forward their plans to grow putting the state run ICE, until recently a monopoly, under pressure.
Claro plans to advance by four years rolling out their infrastructure. For its part, Movistar reports that its sales network has grown 30% since November, when they and Claro entered the market, breaking up the state monopoly by the ICE.
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 businesses are insisting that they be granted the necessary permits for installation of cell phone towers that will enable quality communication services.
A communication from the Costa Rican Union of Chambers and Associations of Private Business Sector (UCCAEP) reads:
UCCAEP urges authorities to act to make privatisation of telecommunications a reality.
Since November 2010 installing a cell phone tower within 15 kilometers of a Costa Rican airport has required a detailed analysis and authorisation by the Civil Aviation Authority.
Prior to that date, the Instituto Costarricense de Electricidad (ICE) had no trouble installing the towers, but now the Directorate General of Civil Aviation (DGCA) has decided to adhere to international standards and make everyone endure the the red tape required for granting installation permits.
The Spanish company plans to use third party infrastructure to accelerate its entry into the market.
Mercedes Agüero journalist for La Nacion newspaper interviewed the highest ranking representative of the company in the country.
"There some issues such as base stations and microwave frequencies that are priorities. How could this affect the speed with which they want to deploy the network?
Only 28% of the country's municipalities have clear rules for granting permission to install radio base stations.
In a note presented to congress on March 31, the Chamber of Info-communication and Technology reported that, "to date, only 23 of the 81 municipalities and 3 district councils have approved celular telephony infrastructure regulations".
Health officials issued a decree regulating the installation of base stations for cellular phones.
The decree requires operators to install special equipment to limit the signal power, so that they do not exceed the limits specified under the rules of the International Telecommunication Union.
"... cell phone companies or those in charge of building the towers should place identification and risk prevention symbols...
Municipalities still have 2.000 pending applications for building towers.
Problems in issuing permits (just the municipality of Turrialba has 200 requests) have to do with the lack of knowledge on how to process such permits.
"The Government asked on Oct. 21st for representatives of local governments to support a general regulation for municipal procedures on telecommunications" publishes El Financiero on its web page.
Costa Rican municipalities are analyzing how to charge for the commercial use of mobile telephony antennas.
Municipalities will study how to implement the charge from a legal and taxation point of view. To date it is not clear who would have to pay: the operator or the company that installs and leases the antenna.
"The issue around the new charge is particularly relevant in the context of an announcement from Costa Rica's Telecommunications Regulator (SUTEL) describing the terms by which the government will grant cell frequency concessions is due to be published in mid August. Three private operators are expected to enter the market," writes Nacion.com.
The Costa Rican Electricity Institute will extend the coverage of its GSM network with 215 new radio bases.
Facing increased demand for GSM phone lines, the institute will buy new ones and make them available to consumers in July.
The decision to invest in GSM would be in response to little consumer interest for 3G devices and technology.
Eduardo Doryan, executive president of the Institute, told Nacion.com that “ICE also wants to improve the 3G platform, to position it among consumers with higher purchasing power”.
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