With the declaration of effective competition in the mobile telecommunications market it is expected a reduction in prices and an increase in the commercial supply offered by operators.
Mobile telephony and mobile internet services are now free from tariff regulation by the Superintendence of Telecommunications (Sutel).The entity declared effective competition in this segment of the telecommunications marketon September 18.
If the Sutel's proposal is approved, on December Costa Rica will eliminate the tariff regulation for the international telephone, internet and postpaid cellular telephony markets.
From a statement issued by the Superintendency of Telecommunications (Sutel):
The Superintendency of Telecommunications (Sutel), has started a process of public consultation of the technical analysis of the telecommunications markets.
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.
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.
Caps imposed by the Superintendency on tariffs for telecommunications services restrict competition by preventing operators from offering more expensive packages to more affluent segments.
The telecommunications industry is requesting the freeing up of rates with the aim of letting the market itself be responsible for setting them, with oversight by the Superintendency of Telecommunications (Sutel).
The Ministry of Environment in Costa Rica is considering raising the ceiling on the amount of energy private generators are allowed to produce above the current 15%, but these companies are demanding the elimination of the ceiling and free competition.
Private power generation companies are opposed to pricing and limits that are imposed on the participation and sale of power in the country, and consider it a "discriminatory act".
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.
Regulation of mobile telephony tariffs is preventing the development of efficient services and competition between operators.
Removing the tariff regulations on cellular services and improving the availability and access to broadband should be a priority for the new government, say experts in the field.
"Fabio Masís, executive director of the Chamber of Information and Technology Association says it is necessary to issue a declaration of effective mobile phone service competition so that operators can really compete for prices," reported Crhoy.com.