Costa Rica's ambitious 5G plans

Costa Rica’s science, technology and telecommunications ministry (Micitt) is preparing for the arrival of new mobile technology. But a planned spectrum tender has already been the focus of criticism. 

The ministry is also negotiating with Grupo ICE to return 3.5GHz frequencies, which could be included in the next tender, and it is preparing a six-year telecoms plan.

BNamericas talked to deputy telecommunications minister Teodoro Willink about the 5G tender, spectrum management plans and more.

BNamericas: Reactions to the recently presented spectrum plan and the 5G roadmap have been lukewarm. What is the ministry doing to meet industry demands?

Willink: We've recently modified the frequency allocation plan to enable different technologies, including Wi-Fi 6, as well as other technologies related to internet access via terrestrial mobile stations and satellite services, and, of course, mobile telecommunications applications.

This plan doesn't imply immediate implementation, that is, companies with permits to use frequencies could keep that permission from previous applications. So the concern of some industry associations is that while the update of the plan is a step forward, licenses remain in force.

The ministry has focused on managing the frequency allocation plan, but also the enabling licenses, to make room as new technologies advance.

Now we have a proposal for free bands in the country in the low-, medium- and high-frequency ranges.

However, these bands aren't necessarily or completely recommended by international institutions such as the ITU [International Telecommunication Union].

So, when they’re partially recommended and enabled, we may not be able to use them for the full range of mobile services in a tender [due to the need for regional standardization]. However, the recommendation is still a very significant step forward.

We're now managing the qualifying licenses so that they're available sooner than we'd planned and to be able to address the concerns of the associations.

BNamericas: Which bands are available for a tender?

Willink: We're still working on that, but we already have about 40MHz in the 700MHz band. This band is being freed up by the transition to digital TV currently underway. We also have 75MHz in the 2,300MHz band, which is a medium band and can be used for 5G.

We also have about 100MHz in the 3,500MHz band, which is one of the sexiest bands. It's actually between 3,300MHz and 3,400MHz, which is an extension of the 3.5GHz band.

There's also 1.5GHz in the 26GHz band and we have 2GHz in the 28GHz band.

BNamericas: You modified the frequency allocation plan to enable the 6GHz band for Wi-Fi. But industry representatives highlighted that this band was most attractive for 5G. Which benefits are there from enabling the entire band for Wi-Fi?

Willink: The 6GHz band for 5G isn't that mature. It still requires some discussion in international settings, formal recommendations from agencies.

It's not that we ignoring its value, but we think that, for example, Wi-Fi 6 devices are already on the market and since the band can have free applications, it's not difficult to control.

We carried out a cost-benefit analysis between the gains of enabling that band for free applications ... and other uses because there are even Wi-Fi technologies that use 5G. We think about this complementarity between technologies, instead of seeing them as competitors.

We also made the decision to allocate the full band to Wi-Fi because we had the opportunity. We understand that this is a good time to do it.

BNamericas: How are the negotiations going with Grupo ICE regarding the return of medium frequencies?

Willink: We're talking about Grupo ICE, but it actually also includes other companies such as Radiográfica Costarricense [Racsa]. Grupo ICE has frequencies in the range of 3,400-3,625MHz that are highly developed in terms of 5G. It's a very attractive range, stemming from the opening of the telecommunications market between 2008 and 2010.

Reports by telecoms regulator Sutel suggest the frequencies aren't being used efficiently. So, it falls on us is to conduct a legal study, which is why we can't give the criteria in advance. But we can say that the problems have to be addressed so the market can work with these bands and that there's fair competition.

So, we've worked with Grupo ICE on the voluntary return of a portion of the band, a portion that doesn't weaken the company but allows healthy competition. That process is underway and we hope it'll be resolved during the month.

We don't yet have a return proposal, so I can't comment on the amount to be returned. But we're clear that the return mustn't weaken ICE and must also foster healthy competition.

BNamericas: How long would the process take after ICE presents a proposal?

Willink: Generally, the evaluation of a proposal like this takes a few months; let's say three or four months in the worst case.

We're aiming to launch a 4G spectrum tender in the first half of next year. This spectrum should be available at the time of structuring the tender.

We're targeting July-August. So, we're in the time frame that the months of evaluation are in line with the structuring of the bidding rules.

We also have to take into account the transition to digital TV, as part of which several analog channels will be switched off on July 14. This would finish freeing up the 700MHz band.

So we're aiming to formalize a voluntary frequency return and the liberation of the 700MHz band to gain a very attractive portion of spectrum for 5G.

BNamericas: Is the tender related to a study by Sutel that details the losses that Costa Rica would incur if 5G was delayed?

Willink: It's definitely urgent. And not only to enable 5G, but to tender all bands. It's urgent and important to do it in a timely manner.

What I'd like to be very clear about is that the study methodology generates data on the potential losses while ignoring that we've been working on this roadmap since 2018. So maybe it looks a bit tragic. But if we canceled the tender at this point, the spectrum would certainly not be lost.

BNamericas: How will you structure the 5G tender in terms of spectrum value?

Willink: Part of this will be based on the studies we've conducted. In November 2020, we requested a feasibility study, finding interesting information about the services companies can offer.

Collecting money will definitely not be the only objective, and possibly not even the most important.

We're considering balancing the collection part but, at the same time, emphasizing that various services are enabled and [demand] coverage commitments.

BNamericas: Does the ministry have fiber optics plans?

Willink: The first thing is to work with local governments and municipalities. They have a certain degree of regulatory autonomy to establish a framework that facilitates the deployment of fiber optics poles in coordination with the public works and transportation ministry and the environmental technical department.

We've worked on some specific issues with some municipalities and on regulations with a national scope.

The second issue is to take advantage of the solidarity model to take fiber optics to localities that don’t have a big market. We have a telecommunications development fund. Under the connected communities program, we tried to take telecommunications infrastructure to rural areas, and we had another program, connected public spaces, to take fiber optics to spaces such as parks.

We're rethinking this approach and are developing a new development plan, including a very inclusive discussion on how public policy should regulate investments from this fund.