Cinthya Arias Leitón, President of the Telecommunications Superintendency Council of Costa Rica (Sutel), spoke with Telecom Review Americas about the advancements, challenges, and opportunities the country faces in bringing connectivity and new technologies like 5G to all citizens.
How is the 5G deployment process going in Costa Rica?
In Costa Rica, it has been a long process. Remember that there are two extremely important elements that enable 5G: the first pertains to the radio spectrum, which is currently under a bidding process, and second, regarding the requirement in terms of network capillarity; it is also necessary to deploy infrastructure in Costa Rica.
We have faced difficulties, as in many other countries, in developing infrastructure swiftly. Therefore, it was established as one of the objectives within public policy and the bidding document that it would be a non-revenue process.
Additionally, a fundamental element is that part of the price set would be covered by infrastructure development, which serves as an incentive for operators to enter the market or process.
We have faced difficulties, as in many other countries, in developing infrastructure swiftly.
What is the strategy for reaching remote areas?
The National Telecommunications Development Plan establishes priority districts. These priority districts are decided according to several elements.
One is the level of coverage that the current market has provided. Another is the level of coverage that the region could have added through interventions from the National Telecommunications Fund (Fonatel), also managed by the regulator.
The level of development and the existence of vulnerable populations, whether due to geographic vulnerability, distance that severely limits access to telecommunications technologies, or the presence of poor populations or those with low purchasing power, making it difficult to acquire services, are considered.
All these elements are ranked, so to speak, from greatest to least need. Accordingly, based on the spectrum bands in which the operator or potential 5G concessionaire will participate, it is necessary to establish a series of conditions that apply to the priority districts to maintain the concession over time.
For the operator, it makes much more sense to develop infrastructure in all those main districts. If, according to their bid in the auction, they meet all conditions and want to continue developing others as an operator, there is another list of districts. It is also important to consider that in some cases, these districts are prioritized to close the digital divide, while in other cases it is to deepen the market, meaning the market has already reached there, but more services are needed.
When will the bidding conclude, and who will deploy the networks?
At this moment, as it is a bidding process, everything is expressed according to the Public Procurement Law. New resources have been submitted to the Attorney General of the Republic, who resolves these issues. We expect to have a resolution by mid-December.
The conclusion of the first stage of the process is the definition of eligible operators, which we hoped to have without these new resources by mid-December. Eligible operators will be announced, and then a date for the auction will be set. So, we could say that by the first or second quarter, the whole process might be complete. However, it will depend on the pace of these legal processes and adherence to the Public Procurement Law.
We could say that by the first or second quarter, the whole process might be complete.
What do you think is Costa Rica's main challenge in terms of connectivity?
In terms of connectivity, closing the significant gap is essential. Currently, we have fairly broad coverage levels, but what is really necessary for 5G or any technology to be developed effectively is to generate the necessary digital skills and promote productive use. Thus, much work is done by the regulator in conjunction with other authorities because it is not a solution from a single entity, but an ecosystem solution, and we are open to working with the industry.
We have always worked closely with the industry, either seeking solutions or supporting them in evangelizing the process within our competencies. Internet penetration in Costa Rica is high, especially mobile internet penetration, which exceeds 150% in mobile data. It may be close to 92% for fixed internet. However, there has been a substitution effect, much driven by the pandemic. We have universal service programs supporting both supply and demand.
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