The Superintendence of Telecommunications authorized the economic concentration requested for Millicom to acquire the shares of Telefonica de Costa Rica TC S.A.
After recording a slowdown in the revenue of companies in the sector in 2018, it is expected that this year in Costa Rica will begin a cycle of better sales and increased investment because of an increase in consumption of services.
During the last year, the revenues of the 152 operators and providers of telecommunications services in the country totaled about $1.422 million, an amount that is similar to that of 2017, since it is only 0.3% higher.
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.
It has been announced that Telefonica will invest $250 million in implementation, in various stages, of the LTE telecommunications network.
From a statement issued by the Presidency of El Salvador:
The Spanish giant in the telecommunications industry, Telefonica, confirmed on Tuesday the good investment climate in El Salvador after announcing an investment of more than $250 million in the country with the installation of Movistar 's LTE network, using the latest technology for internet connection.
An operator has warned that investments in the sector will be jeopardized by uncertainty regarding the renewal of concessions.
The breaking down of the relationship between the Salvadoran government and telecommunications companies has embarked on a new chapter. Uncertainty about whether the General Superintendency of Electricity and Telecommunications (Siget) will or will not auction 40 megahertz of the radio spectrum, is generating unease among some operators.
Claro, Digicel, Telefónica and Tigo have grouped in the Salvadoran Chamber of Telecommunications.
An article on Elfinancierocr.com reports that "... The four major mobile and fixed phone companies in El Salvador, Claro, Digicel, Telefónica and Tigo have announced the establishment of the Salvadoran Chamber of Telecommunications, a non-profit organization that will help ensure sectorial expansion, deployment, enhancement and development of networks and the telecommunications industry in the country, according to a press release. "
Operators are opposed to the proposal to tax phone bills and purchases of technological equipment, while the government has shown itself unwilling to cooperate by reducing tariffs.
While the government insists that telecommunications companies must lower telephone rates in order to minimize the impact of a future tax of 10% for public security, telecoms companies have defended themselves arguing that "... the process of approval of charges and maximum fees does not depend on the willingness of companies, but the process defined in the regulations established for that purpose. "
The telecommunications regulator has not found that the services provided by private operators for regional roaming at no additional cost are anti-competitive.
The complaint filed by the Instituto Costarricense de Electricidad purported to show that its competitors in the mobile phone marketClaro and Telefonica were implementing anti-competitive practices when setting prices for their services in the country. However, the Telecommunications Authority has not found in favor of the complaint, and also "... ruled out establishing precautionary measures against competitors and clarified that neither committed practices contrary to law."
In response to approval of a new tax of $0.65 per telephone line, operating companies have returned 6 million lines to the Telecommunications Superintendency.
Representatives from Claro, Tigo and Telefónica each returned 2 million inactive numbers with the aim of adjusting their internal policies to adapt to the new tax which will come into effect next year. The chief of the Tax Collection Authority, Omar Franco, assured Elperiodico.com.gt that "... Companies will have to make the necessary adjustments in order to estimate how much income will be as a result of the new tax. We did not know that this tax would end up being approved in the 2015 Budget. Congress considered and approved a levy based on the 23 million lines assigned, now that this figure has been reduced it will have to be re-estimated. "
The Ministry of Telecommunications has announced that a tender for allocating frequencies will take place in early 2015 and plans to add a new operator to the process.
Officials added that the tender documents will be ready at the end of the semester and discussed the possibility of adding one more operator to the competition. This option has not been well received by the telecommunications companies currently taking part in the tender for whom "... the frequencies available for a second competition would barely be enough to improve their services."
Movistar's appeal accusing the ICE of concentration of 2.6 Ghz spectrum and impeding it from using the 4G network until the law suit was resolved, has been rejected.
The Instituto Costarricense de Electricidad may continue marketing cellular services for its 4G network after the Administrative Court rejected an appeal by its competitor Movistar.
Costa Rica is the regional leader in 4G data consumption through mobile devices and 4G networks.
America Movil (Claro) and Telefonica (Movistar) agree that Costa Rica is the country with the highest data traffic in Central America, this is because it is the only country that does not charge for downloading data, but rather by the speed offered by providers.
95% of the 21 million handsets registered as operational in July 2013 are prepaid.
The data was released by the Superintendency of Telecommunications (SIT). "Of every 10 active phones, nine are prepaid and only one uses a payment plan by the company providing the service," reported Prensalibre.com.
The Supreme Administrative Court has rejected a suit by Movistar to prevent the state telephone company using 2.6 GHz band to operate its 4G LTE network.
Telefónica, which operates under the Movistar brand, went to court in early October to seek a review of the band spectrum and specifically, "to defend an equitable distribution of the spectrum," said Matias Señorán, spokesman for the company in Costa Rica.
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