Costa Rica publishes draft specifications for 5G spectrum tender

Costa Rican telecommunications regulator Sutel this week published the draft specifications for the radio spectrum tender that will allow the rollout of 5G across the country.

Unlike previous tenders, the new proposal prioritizes the deployment of infrastructure over collecting fees for spectrum rights. This means that additional funds will not be paid into the Fonatel telecommunications development fund.

“Since it is not based on revenues, there will be no new funds for Fonatel. This tender is not going to be massive nor will it provide funds like the other tenders, so it could create other gaps,” Hannia Vega, a consultant on telecommunications issues, said during a webinar hosted by 5G Americas.

The specifications include a list of areas where operators are required to deploy 5G first.

"What must be reviewed from the economic point of view is that the obligations that are outlined here are in some way economically similar to what would have been collected ... because we won't have Fonatel resources directly, but it would be the operators who deploy this infrastructure,” analyst Edwin Estrada said in the webinar.

Sutel plans to grant concessions for nine blocks of 5MHz in the 700MHz band, four blocks of 50MHz in the 2,300MHz band, ten blocks of 20MHz in the 3,300MHz-3,500MHz band, one 20MHz block and one 5MHz block in 3,600MHz-3,625MHz, twelve 100MHz blocks and one 50MHz block in the 26GHz band, and up to twenty 100MHz blocks in the 28GHz band.

The document states that in the case of the 700MHz band, 60% of the access infrastructure units awarded must be installed within a minimum period of 12 months from the start of the concession. In the medium bands (2,300MHz-3300MHz), that percentage is 20%.

Meanwhile, for high bands, the obligation is for 100% of the base stations deployed to operate with a reference speed of at least 300Mbps for download and 50Mbps for upload within 12 months.

Although the bands offered in this tender are ideal for 5G, Costa Rica has a rule of technological neutrality, so it is necessary to check the coverage could be provided with other technologies such as 4G.

"The deadlines that are being defined in the draft are quite short," said Vega.

The coverage obligations in the tender emphasize the need for regulation of the deployment of infrastructure. "The number of base stations that have to be installed is enormous, especially in urban areas to make efficient use of the radio spectrum," she added.

In a statement published on Wednesday, ICT industry chamber Camtic called for the implementation of the provisions of law 10,216 to promote the deployment of telecommunications networks and infrastructure.

"We call on the corresponding authorities, including the finance ministry, the innovation, telecommunications and technology ministry and the public works and transport ministry to advance with the publication of the regulations related to this law," it said.

Elizabeth Arroyave, deputy chair of the Camtic board of directors, said that, in addition to the spectrum tender and the regulatory needs to allow better deployment of infrastructure in the country, it is essential to work on training talent. 

“We're talking a great deal about all the technological development, but we're not discussing the skills and human talent that will be needed to implement these technologies,” she said during the webinar.

She also mentioned the need for tests to be done to be able to develop solutions for the 5G market.

The document is available for public consultation and comment for 15 business days. it can be seen here, in Spanish (it can also be downloaded from the Documents box in the upper right corner).