Costa Rica reactivates 5G tender: What's next?

Costa Rica is on track to complete its 5G spectrum auction successfully after regulator Sutel addressed part of the last objection that was holding up the process.

Sutel reactivated the process last week, after responding to comments by the comptroller general regarding an objection filed by state telco ICE.

The regulator had halted the tender a second time, after the country's three operators – ICE and private companies Claro (América Móvil) and Liberty – filed objections to the auction documents.

"Of the more than 24 arguments presented in this objection, the comptroller general's office only requested to correct a material error related to the reference to five districts, where the awarded operator must build infrastructure for the development of the 5G network," Sutel said in a press release.

The comptroller general dismissed ICE's objections regarding the limits imposed on its participation in the tender.

ICE is the main operator in terms of spectrum accumulation in Costa Rica. Its subsidiary Racsa has 100MHz in the 3.5GHz band, where 5G development is underway.

ICE also has a total of 309MHz in the 2600MHz, 2100MHz, 1800MHz and 850MHz bands, while Claro and Liberty own only 100MHz of spectrum for 3G and 4G services.

In the auction, Sutel will offer spectrum in the 700MHz, 2300MHz, 3500MHz, 26GHz and 28GHz bands.

“Sutel is very satisfied with the comptroller’s resolution, which fully supports the tender process,” its head Cinthya Arias Leitón said in a press release.

With administrative avenues exhausted, the tender could only be halted again if ICE insisted on using legal means.

Bids may be submitted through November 11, and the process is due to conclude in February 2025.

“The delay in 5G networks has a negative and unquantifiable economic impact,” Edwin Estrada, former deputy communications minister and currently lawyer at law firm Ecija, told BNamericas.

Reservation fee

In related news, the science, innovation, technology and telecoms ministry reduced the payment for the 2025 radio spectrum reservation fee proposed by Sutel by 44.7%, representing a blow to efforts to collect more resources through this instrument.

In a statement, deputy telecoms minister Hubert Vargas said the adjusted amount is more in line with market realities.

Operators in Latin America have been warning that high spectrum costs are making operations unviable.