The Superintendence of Telecommunications, as Sectorial Competition Authority, approved the purchase by Cabletica of 100% of the operations of Telefonica de Costa Rica, which offers telephony and mobile Internet services nationwide.
The lack of proper infrastructure and the lack of allocation of radio spectrum are some of the reasons why it is difficult for telecommunications companies to improve Internet connection or lower prices for services.
Internet operators in Costa Rica face adversities to improve service and provide better prices to consumers, including the deficit of appropriate infrastructure.
Instituto Costarricense de Electricidad is evaluating the Salvadoran market to determine if there is an opportunity to establish itself as a new broadband operator.
The state telecommunications company already has a presence in Nicaragua, where in conjunction with the state company Enatrel, it operates the company Telecomunica, which provides internet and television services.
In Costa Rica a tender is being launched for the implementation of 100 MB of wireless internet access in parks, plazas, train stations and other public spaces.
$45 million will be invested in the project, and the aim is to connect 985 wireless access points in 360 districts of the country's 82 cantons, including 62 public libraries, 28 train stations and 7 civic centers for peace.The delivery of offers is scheduled for November 2017.Seedetails of the tender.
A plan is being worked on in Costa Rica to implement a broadband internet network for 2,500 educational centers in different areas of the country.
The proposal which is being worked on by the government and Fonatel is in the planning stage, and aims to develop a broadbandinternet network with different speeds and capacities, which would be defined according to the number of users in each educational center.
The state run electricity company ICE and Claro have obtained contracts to build infrastructure to provide internet and mobile telephony services in 620 communities in the province of Limon.
From a statement issued by the Sutel:
January 5, 2017.The National Telecommunications Fund (FONATEL) through Banco Nacional, as administrator of the Trust, signed contracts with Instituto Costarricense de Electricidad (ICE) and Claro to bring internet telephony to 620 vulnerable communities in the districts of Siquirres, Pococi, Guácimo, Matina, Limón and Talamanca.
A tender is being launched in Costa Rica for seven generic blocks (2 x 5 MHz) in the bands of 1800 MHz and 1900/2100 MHz of the radio spectrum for mobile telephony and Internet.
If the Sutel's proposal is approved, on December Costa Rica will eliminate the tariffregulation for the international telephone, internet and postpaid cellular telephony markets.
From a statement issued by the Superintendency of Telecommunications (Sutel):
A report by Akamai highlights an 8.4% drop in the average connection speed in Costa Rica in the second quarter compared to the same period last year.
Between late 2014 and June this year, Costa Rica fell 20 positions in the ranking of broadband Internet, surpassing only Paraguay, Bolivia and Venezuela. Panama recorded a slight growth of 1% in the period in question, while Guatemala, El Salvador, Nicaragua and Honduras, did not even figure in the report.
The government's proposal sets 40 goals which should be completed by 2021, focused on broadcasting, e-government, spectrum, the broadband digital divide and infrastructure.
From a statement issued by the Ministry of Science, Technology and Telecommunications (MICITT):
The country's loss of competitiveness because of the deterioration of basic infrastructure development, is replicated in the case of the internet where average speeds are only 2.8 Mbps, far from the world average and below that of most countries in the region.
Costa Rica stands out in Central America for the quality and volume of goods and services related to technology which it produces and exports.
Even though demand continues to grow, operators are not able to grow due to lack of effective competition in the mobile market and delays in the allocation of spectrum.
A portion of customers in the cellular market and other telecommunications services such as internet and cable television are still dissatisfied, but telecommunications companies are not able to increase their services due to the slow rate at which the rules are set and at which infrastructure problems are addressed.
The market was declared dead several years ago, but the government of Costa Rica has been keeping it alive artificially at the expense of taxpayers purses.
Editorial
Radiographic Costarricense (RACSA), is a subsidiary of the state-owned Instituto Costarricense de Electricidad (ICE), the major player in the telecommunications industry in Costa Rica, even after the market opened in 2010. The ICE is, in turn, a direct competitor of RACSA, which in recent years has accumulated tens of millions of dollars in losses, while at the same time losing the market share it once had. 2014 losses were estimated at $5 million.
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