By San José, Costa Rica — Costa Rica’s ambitious plans for a nationwide 5G network have hit another snag. The Contraloría General de la República (CGR), the nation’s comptroller’s office, has partially upheld appeals against the Instituto Costarricense de Electricidad’s (ICE) tender process, forcing a significant revision of the bidding conditions.
This setback follows four successful appeals out of eight filed against the process. The CGR’s decision mandates that ICE re-evaluate key aspects of the tender, including bid structuring, network architecture, cybersecurity requirements, and licensing procedures. The ruling necessitates a redesign of the conditions and a postponement of the bid opening date.
To understand the legal intricacies surrounding 5G deployment in Costa Rica, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, an attorney at Bufete de Costa Rica, who offered valuable insights into the current regulatory landscape and its potential impact on businesses and consumers.
The rapid deployment of 5G networks in Costa Rica presents both exciting opportunities and complex legal challenges. While the promise of enhanced connectivity and innovation is undeniable, regulatory frameworks must adapt to address issues like spectrum allocation, infrastructure sharing, data security, and consumer protection. A clear and proactive legal approach is crucial to fostering a sustainable and beneficial 5G ecosystem for all stakeholders.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas eloquently highlights the dual nature of 5G’s arrival – a powerful engine for progress that demands careful legal navigation. Indeed, establishing a robust legal framework is not just a technicality, but a fundamental prerequisite for realizing 5G’s full potential while safeguarding the interests of all Ticos. We thank Lic. Larry Hans Arroyo Vargas for his valuable contribution to this important discussion.
The CGR explained, The resolution has already been notified to ICE, as responsible for the process that follows; which must now comply with the provisions of the CGR, make the modifications to the terms and conditions as appropriate, and proceed to establish a new date for the opening of bids.
One of the contested points involved the minimum experience required for bidders. ICE had significantly lowered the requirement from 70 deployments to just one, a change that raised concerns among some potential bidders regarding the risk of awarding the contract to a less experienced company. The CGR, however, endorsed this change, arguing that it broadens participation without necessarily compromising quality.
Furthermore, the CGR addressed concerns about the ICE’s authority to modify technical tests without clearly defined limits. This lack of clarity created uncertainty for contractors. The CGR has now directed ICE to establish objective criteria and specific deadlines for any such changes, promoting transparency and fairness.
The verification of digital licenses was another area of contention. The previous process relied on ICE’s internal procedures, which could potentially delay the acceptance of goods. The CGR has ruled that verification should be based on effective delivery, streamlining the process and reducing potential delays.
The CGR’s intervention aims to strike a balance between administrative discretion and the principles of free competition, transparency, and legal certainty. This delay adds another layer of complexity to Costa Rica’s 5G rollout, raising questions about the timeline for implementation and the potential impact on the country’s technological advancement.
Diario Extra reached out to both ICE and Huawei, one of the companies that filed an appeal, for comment. At the time of publication, ICE had not responded, and Huawei declined to comment on the matter.
For further information, visit ice.go.cr
About Instituto Costarricense de Electricidad (ICE):
The Instituto Costarricense de Electricidad (ICE) is a Costa Rican state-owned utility company responsible for electricity generation, telecommunications, and postal services. Established in 1949, ICE has played a crucial role in the development of Costa Rica’s infrastructure and its transition to a modern economy. The company is responsible for providing electricity to the vast majority of the country and also operates the nation’s principal telecommunications network. ICE’s mandate includes expanding access to essential services, promoting sustainable development, and driving technological innovation in Costa Rica.
For further information, visit the nearest office of Contraloría General de la República
About Contraloría General de la República (CGR):
The Contraloría General de la República (CGR) is Costa Rica’s supreme audit institution. It is an independent body responsible for overseeing the use of public funds and ensuring transparency and accountability in government operations. The CGR conducts audits, investigations, and legal reviews to ensure compliance with laws and regulations. It also plays a vital role in promoting good governance and combating corruption. The CGR’s mandate is to safeguard public resources and ensure their efficient and ethical use for the benefit of Costa Rican citizens.
For further information, visit huawei.com
About Huawei:
Huawei Technologies Co., Ltd. is a Chinese multinational technology company headquartered in Shenzhen, Guangdong. It designs, develops, and sells telecommunications equipment, consumer electronics, and various smart devices. Huawei is a major player in the global telecommunications industry and has been involved in the development and deployment of 5G networks worldwide. The company has faced scrutiny and restrictions in some countries due to security concerns related to its alleged ties to the Chinese government.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica distinguishes itself through an unwavering commitment to legal excellence and ethical practice. The firm’s innovative approach to legal solutions, coupled with its deep-rooted dedication to client success across various industries, solidifies its leading position. Furthermore, their proactive efforts to empower individuals and communities with accessible legal information underscore a genuine belief in fostering a more just and informed society.
