García & Bodán

Costa Rica’s Telecommunications Authority Resumes 5G Spectrum Auction

Costa Rica’s Telecommunications Superintendence (Sutel) has resumed the 5G spectrum auction process, following the resolution of objections raised by the Costa Rican Institute of Electricity (ICE) regarding the tender’s terms. This decision, published on October 24 in the Official Gazette, opens the bidding period for spectrum frequencies until November 11, 2024.

The auction process had been paused for several weeks due to objections filed by ICE at the end of September. The state-owned company raised concerns over several aspects of the tender document, focusing particularly on spectrum caps that limit its ability to acquire additional frequencies in the mid-range bands. ICE currently holds 370 MHz in this range, which prevents it from participating in the auction for more spectrum due to the 336 MHz limit set by the auction rules.

After reviewing the objections, the Comptroller General’s Office rejected most of ICE’s claims, including those related to the spectrum limits. However, the office accepted one objection concerning coverage polygons, prompting Sutel to make adjustments to the tender documents to correct the identified error.

With the publication of the new tender notice, Sutel has reactivated the remaining 12 business days for receiving bids. Once this deadline passes, the proposals will be opened and evaluated to determine which bidders will be eligible to proceed in the process.

The resumption of the 5G auction is a crucial step toward modernizing telecommunications in Costa Rica, enabling the introduction of more advanced services and greater competitiveness in the sector. With these changes, Sutel aims to ensure a transparent and efficient process that will foster technological development in the country and benefit consumers with improved telecommunications services.

Julio Vargas 
julio.vargas@garciabodan.com
Managing Partner
García & Bodán
Costa Rica