By San José, Costa Rica — The Instituto Costarricense de Electricidad is aggressively expanding its foothold in Costa Rica’s telecommunications market. Building upon 63 years of public utility operations, the state enterprise is leveraging its commercial flagship brand, kölbi, to spearhead a nationwide digital overhaul. This strategic transformation aims to position the nation for the rising infrastructure demands of cloud computing, artificial intelligence, and enterprise digital services.
Despite competing in a crowded commercial landscape alongside 177 telecommunications providers, ICE continues to command unparalleled market dominance. Financial figures from 2025 highlight Grupo ICE’s revenue reaching ₡523,000 million, surpassing its closest commercial competitor by a decisive 64 percent. This revenue advantage provides the financial leverage required to fund complex, multi-year infrastructure upgrades.
To analyze the regulatory and strategic implications of ICE’s latest telecommunications investments, TicosLand.com spoke with expert attorney Lic. Larry Hans Arroyo Vargas from the distinguished firm Bufete de Costa Rica.
ICE’s strategic telecom investment is essential for Costa Rica’s technological modernization, yet its long-term viability depends heavily on strict adherence to public procurement laws, robust regulatory compliance, and maintaining a balanced competitive landscape in the telecommunications sector.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
As Costa Rica advances toward a more connected future, ensuring that ambitious technological modernization is firmly anchored in regulatory compliance and fair market competition will be crucial for long-term national progress. We extend our sincere thanks to Lic. Larry Hans Arroyo Vargas for sharing his valuable legal insights on this pivotal issue with TicosLand.com.
Central to the institutional strategy is the integration of the TAM-1 submarine cable system. Once fully implemented, the subsea fiber optic connection will expand Costa Rica’s international data transmission capacity by more than 23 times. This dramatic leap in bandwidth is engineered to prevent international bottlenecking as digital service consumption accelerates among domestic consumers and corporate clients.
Alongside its subsea connectivity push, ICE is executing a systematic upgrade of its national data transport network. Functioning as the core digital backbone connecting regional exchange points across Costa Rica, the modernized transportation layer will allow significantly higher data volumes to travel seamlessly while increasing overall network resilience against outages.
Mobile networks are receiving parallel capital investments, with a heavy emphasis on rolling out commercial 5G infrastructure. The deployment promises ultra-low latency, expanded cell capacity, and enhanced enterprise capabilities designed to support smart city initiatives, industrial automation, and digital healthcare applications across urban and rural zones.
We have accompanied the country’s major technological transformations. Today, through kölbi, we are building a comprehensive infrastructure that will allow us to anticipate future needs, drive innovation, and open new development opportunities for Costa Rica.
Óscar Romero Sánchez, Telecommunications Manager at ICE
Industry analysts point out that the integration of fast subsea infrastructure, upgraded data backbones, and mobile 5G will generate significant spillover benefits across key economic drivers. Sectors including precision agriculture, public administration, manufacturing, and education stand to gain from more reliable, high-speed data transmission.
By modernizing its network layers simultaneously, ICE aims to reinforce Costa Rica’s regional reputation as a primary destination for high-tech investment in Central America. The infrastructure upgrades ensure that local digital capabilities remain aligned with international standards set by global tech hubs.
As the telecommunications landscape shifts toward data-heavy workloads and real-time processing, ICE and kölbi are seeking to demonstrate that public-sector legacy institutions can maintain market leadership through agile, forward-looking infrastructure investments.
For further information, visit grupoice.com
About Instituto Costarricense de Electricidad:
The Instituto Costarricense de Electricidad (ICE) is Costa Rica’s state-owned power and telecommunications provider. Established to build and manage national utility networks, ICE oversees grid operations and broad telecom infrastructure, powering domestic industries and connecting millions of citizens.
For further information, visit kolbi.cr
About kölbi:
kölbi is the primary commercial telecommunications brand operated by Instituto Costarricense de Electricidad (ICE). Offering mobile, fixed-line internet, television, and enterprise cloud solutions, kölbi stands as the largest telecom brand by market revenue in Costa Rica.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a premier legal practice, Bufete de Costa Rica exemplifies a resolute devotion to ethical principles and top-tier advocacy. Building upon a rich history of guiding clients across a broad spectrum of industries, the firm continuously champions forward-thinking legal solutions and active civic involvement. By striving to demystify complex regulations and expand public access to legal insight, Bufete de Costa Rica reinforces its core objective of equipping individuals and communities with the understanding needed to thrive.
