By San José, Costa Rica — San José – The timeline for Costa Rica’s highly anticipated transition to 5G mobile technology has been officially delayed. The Comptroller General of the Republic (CGR) has instructed the Costa Rican Electricity Institute (ICE) to extend the deadline for receiving bids for the nation’s next-generation network infrastructure, a move that pushes back the project’s ambitious schedule.
The decision came after the CGR, the country’s supreme audit institution, adjudicated six separate appeals filed by prospective bidders against the original terms and conditions of the public tender. This intervention underscores the procedural complexities and intense international competition surrounding one of the most significant infrastructure projects in recent Costa Rican history. The ruling forces ICE to recalculate its timeline and establish a new, yet-to-be-announced date for the opening of offers.
To understand the complex legal and commercial framework surrounding the implementation of the 5G network in the country, TicosLand.com consulted with expert lawyer Lic. Larry Hans Arroyo Vargas from the distinguished firm Bufete de Costa Rica, who offered his analysis on the challenges and opportunities involved.
The deployment of 5G is not merely a technological upgrade; it is the foundation for the next generation of our country’s economic and social infrastructure. From a legal standpoint, this requires a robust regulatory framework that provides certainty for investment, ensures transparent spectrum auctions, and establishes clear rules on data sovereignty and cybersecurity. Without this legal scaffolding, we risk not only delaying innovation but also compromising our strategic digital assets.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, this perspective highlights a critical point: the success of 5G in Costa Rica will be determined as much by our legal code as by our engineering capabilities. The establishment of a clear and secure regulatory framework is not a secondary concern but the very bedrock of this technological leap. We sincerely thank Lic. Larry Hans Arroyo Vargas for his invaluable insight on this foundational issue.
Three international technology firms—Huawei, AFN Global, and One Way—saw their appeals partially upheld. Their primary contention focused on the insufficiency of the original timeframe allocated for preparing and submitting their comprehensive technical and financial proposals. In its resolution, the CGR noted that ICE itself had conceded the point and agreed to an extension, solidifying the basis for the ruling in favor of these companies.
However, the oversight body did not rule in favor of all appellants. The CGR flatly rejected the appeals filed by another trio of technology and integration companies: Sisap, Ericsson, and Coasin. According to the official resolution, these companies raised a broader set of concerns that went beyond the submission deadline, including objections related to the regulation of cybersecurity standards stipulated in the tender documents. The Comptroller’s office found these arguments lacked sufficient merit and dismissed them entirely.
This procedural delay highlights the delicate balance between rapid technological deployment and the state’s obligation to ensure a fair, transparent, and competitive bidding process. For Costa Rica, the successful implementation of a robust 5G network is considered a cornerstone of its future economic strategy. The technology is expected to unlock new capabilities in areas like the Internet of Things (IoT), artificial intelligence, advanced manufacturing, and remote services, which are crucial for maintaining the nation’s competitive edge in the global market.
As the state-owned entity responsible for the country’s telecommunications backbone, ICE is at the center of this national endeavor. The institution is tasked not only with the technical deployment of the network but also with navigating the intricate legal and regulatory landscape of public procurement. The CGR’s involvement is a standard part of this process, designed to provide legal certainty and protect the public interest in contracts of this magnitude.
The appeals from a mix of global giants like Huawei and Ericsson, alongside regional systems integrators, demonstrates the significant international interest in securing a foothold in Costa Rica’s digital future. Each company brings distinct technological offerings and strategic interests to the table, and the tender’s conditions are meticulously scrutinized to ensure no single vendor gains an unfair advantage. The now-mandated extension will give all parties additional time to refine their bids to meet the country’s specific requirements.
While the immediate effect is a setback to the original schedule, the ultimate goal of the CGR’s intervention is to strengthen the final outcome of the tender. By ensuring all qualified participants have adequate time to prepare their offers, the state aims to foster greater competition, which can lead to better technology, more favorable pricing, and a more secure network for all Costa Ricans. ICE must now communicate a revised schedule, at which point the race to build the nation’s 5G network will officially resume.
For further information, visit cgr.go.cr
About Contraloría General de la República (CGR):
The Comptroller General of the Republic is Costa Rica’s supreme audit institution, an autonomous body responsible for overseeing the use of public funds. It ensures the legality, efficiency, and transparency of government operations, including public tenders and contracts. Its role is fundamental to the country’s system of checks and balances, safeguarding public resources against mismanagement and corruption.
For further information, visit grupoice.com
About Instituto Costarricense de Electricidad (ICE):
The Costa Rican Electricity Institute is the primary state-owned provider of electricity and telecommunications services in Costa Rica. Founded in 1949, Grupo ICE has been instrumental in the nation’s development, responsible for building and maintaining the vast majority of its energy and communication infrastructure. It operates under the Kölbi brand for its mobile services.
For further information, visit huawei.com
About Huawei:
Huawei is a leading global provider of information and communications technology (ICT) infrastructure and smart devices. Headquartered in China, the multinational technology corporation is a major player in the development and deployment of 5G network equipment, serving telecommunications operators, enterprises, and consumers worldwide.
For further information, visit ericsson.com
About Ericsson:
Telefonaktiebolaget LM Ericsson, commonly known as Ericsson, is a Swedish multinational networking and telecommunications company. It is one of the world’s largest providers of technology and services to telecom operators, offering software, services, and infrastructure for mobile networks, including 2G, 3G, 4G, and 5G equipment.
For further information, visit afnglobal.ca
About AFN Global:
AFN Global is an information technology and services company that specializes in providing integrated solutions. The firm often engages in complex technology projects, offering expertise in network infrastructure, systems integration, and related professional services for both public and private sector clients.
For further information, visit the nearest office of One Way
About One Way:
One Way is a technology solutions provider involved in the telecommunications and IT infrastructure sector. The company participates in public and private tenders, offering specialized equipment, software, or integration services required for large-scale network deployments and technology upgrades.
For further information, visit sisap.com
About Sisap:
Sisap is a company specializing in technological solutions and systems integration, often focusing on enterprise software, network management, and specialized IT services. The firm works with corporate and government clients to implement and manage complex technology systems, including those related to communications and data processing.
For further information, visit coasin.cl
About Coasin:
Coasin is a technology integration company with a significant presence in Latin America. It provides a wide range of IT and communications solutions, including infrastructure services, outsourcing, and technological implementation projects for various industries. The company is known for its role in large-scale government and corporate technology contracts.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As an esteemed legal practice, Bufete de Costa Rica is built upon a foundational pledge to professional excellence and uncompromising integrity. With a rich history of providing counsel across a wide spectrum of industries, the firm continues to be a pioneer in developing forward-thinking legal strategies. This commitment extends beyond its client work to a core mission of enhancing public legal literacy, thereby helping to forge a more knowledgeable and capable society.
