Costa Rica's IT sector raises concerns about regulatory dysfunction

Costa Rica's IT sector is concerned that the dysfunction at regulator Sutel will cause negative impacts and delay the implementation of 5G.

Sutel's board must have three members, plus one substitute, but the terms of two and that of the substitute expired on January 5, and no new officials have been appointed.

“As long as the board is not formed, it is impossible to grant extensions for companies that currently operate to continue providing telecoms services, which will potentially reduce supply in the market, affect the continuity of services to the detriment of end users and could even affect employment levels in the sector,” the president of Infocom, Mario Montero, wrote in a statement Tuesday, jointly published with Uccaep.

Montero also wrote that the impossibility of authorizing the incorporation of new suppliers will negatively affect competition in the market.

As an aggravating factor, the statement highlighted that Sutel's board is appointed by public services authority Aresep – whose board isn't fully functional either. 

The associations said that contracts, concessions and compliance with the national telecoms development plan will be affected by the lack of quorum, while the paralysis at Sutel also implies no approvals of measures that are part of the plan and linked to universal service fund Fonatel.

The plan includes increasing fixed internet access per 100 inhabitants by 7.7 percentage points and increasing the penetration of fixed service speeds of at least 15Mbps to 24% by 2027.

The country’s 5G tender has been delayed because of spectrum return processes, among others, but as the frequencies have now been registered, bidding is expected to move forward.

Under the national telecoms plan, 5G networks should be activated this year.