A ruling by the Administrative Court found in favor of the state run telecoms company and obliges the regulator to update the relevant market data and level the playing field for all operators.
In the lawsuit, the Instituto Costarricense de Electricidad (ICE) argued that the failure to update data on relevant markets and operators prevented the Superintendency of Telecommunications from providing equal treatment to all telecommunications companies operating in the country. Because of this, Crhoy.com reports, "... only the ICE can be fined or receive penalties for noncompliance."
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.
Operators of the telecommunications market in Costa Rica are calling for intervention by the regulator in rates to be removed and for operations to be carried out within a framework of real commercial freedom.
After more than six years of having promoted laws which opened up the telecommunications market in Costa Rica, no operator has the ability to unilaterally set final prices or manipulate conditions in the telecommunications market.
The Instituto Costarricense de Electricidad's share in the mobile phone market fell to 65%.
At the end of 2012 Instituto Costarricense de Electricidad (ICE) owned a 79% stake in the mobile market, and this was reduced to 65% in September 2013. That portion of the market was taken over by the foreign competitors Claro and Movistar.
According to figures from the Telecommunications regulator mentioned in an article on Nacion.com , "up to September 2013 the ICE had 4,278,183 active lines, which represents an increase of 0.7 % compared to the 4,248,684 lines it had in the last quarter of 2012."
The Instituto Costarricense de Electricidad has consolidated its leading position in the market without having to return frequencies as initially conditioned by the Telecommunications Superintendency.
Nacion.com reports: "... the company specializing in cable television and broadband internet (via cable modem) services became part of Grupo ICE as a subsidiary company." The state run telecommunications company has not yet reported the amount of the commercial transaction.
Five years after the fall of the monopoly, there are more companies, more users and a greater array of services on offer, with growth of 45% in the sector's contribution to GDP.
According to data reported by telecommunications companies to the Superintendency of Telecommunications (Sutel), the sector's contribution to the economy has grown by 45% over the past five years.
The term "white elephant" is used for possessions whose costs are greater than the benefits they bring, or those which, benefiting others, only cause the owner problems.
Radiographic Costarricense (RACSA) is a subsidiary of the state energy and communications company in Costa Rica, the Instituto Costarricense de Electricidad (ICE).
Racsa, created by a law, which means that its closure must be approved by the Legislature in the country, currently has serious financial problems, and as noted in an article in Elfinancierocr.com, has no clear alternatives or specific projects to ensure its economic viability in the short or medium term. Meanwhile, taxpayers are covering the deficit through taxes or through higher rates from its parent company, the ICE.
After one year of competition in mobile communications, the changes that have taken place reveal a market that is different from how many expected.
The market transformation has been swift and contained surprising nuances. Cellular penetration swiftly exceeded 100%, while the use of mobile Internet exceeded forecasts.
Pablo Fonseca's article in Nacion.com reports that "Although more changes will come in the short and medium term, it is good to take stock. Many people were clear that the Costa Rican market was no ordinary market and had certain characteristics that needed to be taken into account when dealing with it, such as a thirst for technology, the level of information being handled, the requirements to be able to receive what is being offered and the level of spending willing to be made for a handset “
The obstacles faceed in Costa Rica by the companies Claro and Movistar have already stalled investments of more than $300 million.
According to an article in Elfinancierocr.com George Miley, the resigning president of the Superintendency of Telecommunications (Sutel) warns that "it is urgent that there is a major push by the government to level the playing field in the industry sector, as the country has not received between $300 and $400 million in foreign investment in the last year, due to the problems faced by Claro and Movistar in developing their networks. "
The telephone operators Claro and Movistar are still facing serious bureaucratic obstacles with the municipalities of Costa Rica over the installation of cellular towers.
Some municipalities are delaying, hindering or even prohibiting the installation of infrastructure by the operators Claro and Movistar, an operation which needs to be carried out in order to comply with their contracts.
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.
While operators are putting up new antennas, the lack of regulation in the field is creating problems for the future.
The opening of the telecommunications market in the country has been accompanied by a significant increase in the installation of new antennas, many of them owned by private companies that will join the market when the privatisation process is formalized.
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?