Costa Rica Legislature Approves Opening Telecommunications Market
Costa Rica has taken a major step towards opening its telecommunications market, which until now was controlled by the monopoly of ICE (Instituto Costarricense de Electricidad) and (Racsa) Radiográfica Costarricense. Specifically the sectors that will be open to competition are the provision of cell phone and internet services. Of the 49 diputados voting to approve the Ley General de Telecommunicaciones, 35 voted in favor (all of whom had previously supported the ratification of the TLC - Central America Free Trade Agreement) and 14 were in opposition. This law paves the way for private businesses, whether Costa Rican or foreign, to offer services for cell phone coverage and internet. For firms to offer such services they must obtain a concession for use of frequency. The Superintendencia de Telecommunicaciones (Sutel) and the Ministerio de Ambiente, Energía y Telecommunicaciones (Minaet) will be responsible for issuing concessions. Only concessions for "uso commercial" (for delivery of services to the public at large) will be granted. Yet to be approved in order for the law to go into effect fully is the Ley de Fortalecimiento y Modernización de las Entidas Públicas del Sector Telecommunicaciones. This is a project to update the telecommunications systems and regulations in the country. Once this law goes into effect, Sutel must pass regulations and they have been given nine month to accomplish this.
I believe that Costa Ricans and foreigners that live within Costa Rica are long overdue for some healthy competition in the telecommunications sector. I can't see how this can be anything but good news for all of us!
Link to Article in La Nación (in Spanish): http://www.nacion.com/ln_ee/2008/mayo/15/pais1537156.html















