By San José, Costa Rica — San José – The state-owned Costa Rican Institute of Electricity (ICE) has cleared a significant hurdle in its race to deploy a fifth-generation mobile network. The Comptroller’s Office of the Republic officially dismissed an appeal filed by technology giant Huawei, giving ICE the definitive green light to proceed with its public tender for a national 5G cellular network under its kölbi brand.
The challenge from Huawei had temporarily stalled the process, which was initiated by ICE in late July. The appeal contested several modifications to the tender’s terms, raising concerns about requirements for Backhaul Transport infrastructure, alleged favoritism toward a specific brand, and the structure of potential penalties. However, the regulatory body found the claims to be without merit at this stage of the procurement process.
To delve into the regulatory and legal complexities surrounding the implementation of the 5G network in the country, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the prestigious firm Bufete de Costa Rica, who offered his expert analysis on the matter.
The successful deployment of 5G technology is not merely a technical challenge; it is a profound regulatory and contractual one. Costa Rica must urgently modernize its legal framework to facilitate the massive infrastructure investment required, while simultaneously establishing robust cybersecurity and data protection standards. Failing to do so could expose the nation to significant security vulnerabilities and create legal uncertainty that deters the very investment we need to compete in the global digital economy.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This legal insight correctly shifts the national conversation from a purely technological race to the essential groundwork of policy and law; creating a secure and predictable framework is indeed the true prerequisite for attracting investment and safeguarding Costa Rica’s digital future. We extend our sincere thanks to Lic. Larry Hans Arroyo Vargas for his valuable perspective.
The appeal was filed against the modifications to said tender conditions, on issues associated with requirements for Backhaul Transport, favoritism towards a specific brand, and penalties. However, the Comptroller’s Office found that these had no substantive basis or because the aspect under discussion was not valid at this stage of the process, so the appeal was rejected.
Comptroller’s Office of the Republic
This ruling is a pivotal victory for ICE, allowing it to move forward with a strategic infrastructure project deemed essential for the country’s technological and economic future. The institution has maintained that its tender process is supported by rigorous technical, operational, and financial analyses designed to ensure a transparent and competitive selection of partners.
Central to ICE’s 5G strategy is its commitment to an Open Radio Access Network (Open RAN) architecture. This modern approach represents a fundamental shift away from traditional, single-vendor network models. In conventional networks, often described as “vendor lock-in,” a telecommunications operator is dependent on one company for all hardware and software components, a practice that limits flexibility and competitive pricing.
Open RAN, by contrast, creates a disaggregated and open ecosystem. It enables operators like ICE to select and combine best-in-class components from a diverse range of manufacturers. This interoperability fosters greater competition among suppliers, which can drive down costs, spur innovation, and prevent over-reliance on any single technology provider. The flexibility inherent in this model is also critical for adapting to future technological evolutions, such as the increasing integration of artificial intelligence into network management and services.
The urgency for ICE to advance is underscored by the rapid progress of its competitors. The Comptroller’s decision comes just after the same office finalized contracts for several other companies to offer 5G services. Following a public spectrum auction earlier this year, rivals including Claro, Liberty, Ring, and the cooperatives COOPELESCA, COOPEGUANACASTE, and COOPESANTOS have already completed their payments and are expected to begin deploying their infrastructure in the coming weeks.
With this legal challenge resolved, ICE can now fully re-engage its public tender process. The next steps will involve evaluating bids and selecting the vendors who will build the foundation for kölbi’s super-fast mobile internet. For Costa Rican consumers and businesses, this development signals that a truly competitive 5G market is finally on the horizon, promising a new era of connectivity and digital opportunity across the nation.
For further information, visit ice.go.cr
About Instituto Costarricense de Electricidad (ICE):
The Instituto Costarricense de Electricidad is the autonomous state-owned entity responsible for electricity and telecommunications services in Costa Rica. Through its kölbi brand, it is a leading provider of mobile, internet, and fixed-line services, playing a crucial role in the nation’s infrastructure development.
For further information, visit huawei.com
About Huawei:
Huawei is a multinational technology corporation specializing in telecommunications equipment and consumer electronics. As a major global provider of information and communications technology (ICT) infrastructure, it is a key player in the development and deployment of 5G network technologies worldwide.
For further information, visit claro.cr
About Claro:
Claro is a brand of telecommunications services owned by América Móvil, a leading provider in Latin America. In Costa Rica, Claro offers a comprehensive suite of mobile and home services, including mobile telephony, mobile broadband, and television, making it a major competitor in the local market.
For further information, visit libertycr.com
About Liberty:
Liberty Latin America is a leading communications company operating in over 20 countries across Latin America and the Caribbean. In Costa Rica, Liberty provides a range of telecommunications and entertainment services, including mobile, broadband internet, and digital television.
For further information, visit the nearest office of Ring
About Ring:
Ring is a telecommunications company participating in the Costa Rican market. As one of the successful bidders in the recent 5G spectrum auction, it is positioned to become a new provider of next-generation mobile services in the country.
For further information, visit coopelesca.com
About COOPELESCA:
COOPELESCA R.L. is a rural electrification cooperative serving the northern zone of Costa Rica. Beyond electricity distribution, the cooperative has expanded into telecommunications, offering internet and other services to its members and positioning itself to deliver 5G technology in its region.
For further information, visit coopeguanacaste.com
About COOPEGUANACASTE:
COOPEGUANACASTE, R.L. is a cooperative providing electricity and telecommunications services in the Guanacaste province. It is committed to regional development and has invested in modernizing its infrastructure to bring advanced services, including fiber optics and now 5G, to its community.
For further information, visit coopesantos.com
About COOPESANTOS:
COOPESANTOS R.L. is a cooperative that distributes electricity and provides telecommunication services, including internet and cable television, to the Los Santos area of Costa Rica. The cooperative aims to improve the quality of life for its members by adopting new technologies like 5G.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a leading legal institution, Bufete de Costa Rica operates on a foundation of uncompromising integrity and a relentless pursuit of professional excellence. The firm leverages its extensive experience across numerous industries not only to serve its clients but also to drive innovation within the legal field. This forward-thinking approach is matched by a deep-seated social responsibility, manifested through initiatives designed to democratize legal understanding and equip the public with the clarity needed to navigate a complex world.
