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.
After Telefónica was acquired by Millicom, the company plans to invest $1.25 billion in the next five years to expand the network and its services to companies in the country.
On May 16, Millicom reported that it closed the acquisition of Telefonía Celular de Nicaragua, S.A., the number one mobile operator in the country, in addition to TIGO Nicaragua's existing cable operation.
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.
The percentage of the population with Internet access in Central America increased 17% between 2016 and 2018, increasing from 44% to 61%.
Data from the report "Internet in Central America 2018", compiled by the Commercial Trade Area of CentralAmericaData:
Currently, Costa Rica is the Central American country with the highest proportion of households with Internet access, with 77% of the total, followed by Panama with 67% and Honduras with 31%.
If the proposal put forward by the Superintendence of Telecommunications is successful, the rates for telephony and mobile internet will be free of regulation.
The proposal to declare effective competition in the mobile phone market will put to public consultation for the next 15 days.
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.
Government Purchase No. 354-2015 Costa Rica-TEL-MICITT:
"The Superintendency of Telecommunications (Sutel), is putting out to tender by means of a Public Act seven generic blocks (2 x 5 MHz) in the bands of 1800 MHz and 1900/2100 MHz for mobile telephony and internet services.
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.
Improving infrastructure and increasing competition from internet providers not only helps increase coverage and improve the service but also reduces its cost.
The fact that Nicaragua is the most expensive Central American country in terms of connecting to the internet means there is a need not only to improve basic infrastructure, but also to increase competition, thereby improving prices and services provided.
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.
The licenses granted to the Chinese company will allow them to provide basic telephone services, data transmission, internet, phone and TV subscription, for terms of 10 to 20 years.
According to Elnuevodiario.com.ni "... The license to provide public telephone services nationwide was granted for ten years, according to Administrative Resolution 389-2014, contained in La Gaceta 166.
Claro, Movistar and the Instituto Costarricense de Electricidad are competing for a contract for telecommunications services in isolated communities.
These three operators submitted bids in a contest sponsored by the Superintendency of Telecommunications (Sutel) to provide telecommunications services to residents of the communities of La Lidia, La Curia and Aguas Fría in the district of Roxana de Pococí in Limon.
The National Telecommunications Fund plans to develop seven projects in the areas of education, social welfare, health and homes, which will feature, for the first time, internet and telephone services.
According to the Telecommunications Superintendency (Sutel), there are a total of 477 schools, 78 colleges, 155 Ebais (health centres), 25 Cecis and 70 CEN- CINAI which will be connected with a speed of 4 megabytes.
The President of Grupo Digicel has announced investments over the next eighteen months of more than $40 million.
In his short visit to El Salvador, Denis O'Brien was interviewed about the expansion, with topics covered such as the Salvadoran authorities refusal to authorize the sale of Digicel to Claro and the company’s future investments in the country.
The telecommunications industry is one of the most successful in El Salvador; its market is one of the most unregulated of Central America.
An article in Ecommerce Journal analyzed the Salvadoran Telecomm market and its opportunities. It noted that once the market was privatized and opened to competition in 1998, foreign and local operators proceeded to invest millions in infrastructure development.