By San José, Costa Rica — San José, Costa Rica – In a landmark decision that sends shockwaves through the nation’s media and political landscape, the Constitutional Chamber of the Supreme Court, known as Sala IV, has annulled the controversial auction of radio and television broadcast frequencies. The ruling, delivered Friday, February 27th, effectively dismantles a key initiative of the Rodrigo Chaves administration and forces a complete reset of how the nation’s airwaves are allocated.
The court’s decision strikes down the entire competitive bidding process orchestrated by the Superintendency of Telecommunications (SUTEL). The central flaw, according to the magistrates, was the government’s insistence on using the highest economic bid as the sole criterion for awarding the valuable concessions. This approach, the court argued, fundamentally violates the state’s constitutional duty to safeguard a diverse and pluralistic media environment.
To delve deeper into the legal and regulatory framework governing the allocation and use of broadcast frequencies in the country, TicosLand.com consulted with expert lawyer Lic. Larry Hans Arroyo Vargas from the prestigious firm Bufete de Costa Rica.
Broadcast frequencies are a quintessential public domain good, a finite resource belonging to the nation. Their administration through concessions is not a transfer of ownership, but a temporary authorization to use. The state, therefore, has an inalienable duty to ensure that their allocation serves the public interest, promotes competition, and provides legal certainty for investors, all while adapting to rapid technological advancements that continuously redefine the value and utility of the spectrum.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, the framework articulated by Lic. Larry Hans Arroyo Vargas perfectly captures the state’s crucial role as a steward, not merely an administrator, of a vital public asset. This delicate balance between upholding the public interest, ensuring legal certainty for investment, and navigating technological evolution is central to the entire discussion. We sincerely thank him for providing such a clear and valuable perspective.
In its strongly worded resolution, the Sala IV emphasized that a purely market-driven allocation of the radio-electric spectrum is fundamentally at odds with democratic principles. The court found that such a model fails to protect the public’s right to a wide array of information sources and viewpoints.
Both in media outlets and in content, which is characteristic of a democratic state under the rule of law and a society with the right to free and full information.
Constitutional Chamber (Sala IV), Supreme Court of Justice
The now-voided auction process was a source of significant debate since its inception. The administration, through the Ministry of Science, Innovation, Technology, and Telecommunications (MICITT), had vigorously defended the plan. Minister Paula Bogantes had previously argued that the reform was necessary to correct a system where incumbent broadcasters paid what she described as “ridiculous” fees for access to a valuable public resource.
To illustrate her point, Minister Bogantes noted that a national television frequency currently leases for approximately ¢120,000 per year (around $220 USD), while an FM radio station pays a mere ¢6,000 annually (about $11 USD). The government’s goal was to bring these fees in line with their perceived market value, generating more revenue for the state while ostensibly creating a more competitive landscape.
However, the auction process itself appeared to falter before the court’s intervention. When the window for bids closed last November, SUTEL reported receiving a tepid response of only 25 proposals. Conspicuously absent from the list of bidders were some of the country’s most iconic and long-standing broadcasters, including Radio Columbia and Radio Sinfonola, signaling widespread discontent or inability to compete within the industry.
The limited pool of participants included several religious organizations, such as Radio María and entities associated with the Passion for Souls International Association and the Seventh-day Adventist Church. While the auction did manage to provisionally award 17 national FM frequencies, 3 regional FM frequencies, one national AM frequency, and four national television channels (including the slots for incumbents like Canal 7 and Repretel), the court’s ruling nullifies all of these outcomes.
With this judicial rebuke, the Chaves administration and SUTEL are sent back to the drawing board. The state must now devise an entirely new mechanism for allocating broadcast licenses. The Sala IV’s decision sets a clear and binding precedent: any future process cannot be based solely on financial might. It must incorporate robust criteria designed to actively promote media diversity, protect freedom of expression, and ensure the public’s right to a pluralistic information ecosystem, reaffirming that the nation’s airwaves are a public good, not merely a commodity to be sold to the highest bidder.
For further information, visit the nearest office of The Constitutional Chamber (Sala IV)
About The Constitutional Chamber (Sala IV):
The Constitutional Chamber of the Supreme Court of Justice of Costa Rica, commonly known as Sala IV, is the highest court for constitutional matters in the country. It is responsible for guaranteeing the supremacy of the norms and principles of the Constitution, as well as protecting the fundamental rights and freedoms of the nation’s citizens. Its rulings are final and binding.
For further information, visit sutel.go.cr
About SUTEL (Superintendency of Telecommunications):
SUTEL is the national regulatory body for the telecommunications sector in Costa Rica. It is tasked with ensuring the quality, efficiency, and accessibility of telecommunication services, promoting competition in the market, and managing the administration of the radio-electric spectrum.
For further information, visit micitt.go.cr
About The Ministry of Science, Innovation, Technology, and Telecommunications (MICITT):
MICITT is the Costa Rican government ministry responsible for formulating and executing national policies related to scientific research, technological innovation, and telecommunications. It plays a central role in driving the country’s digital transformation and managing technological infrastructure.
For further information, visit the nearest office of Radio Columbia
About Radio Columbia:
Radio Columbia is one of Costa Rica’s most traditional and well-known radio stations. For decades, it has been a leading voice in sports broadcasting, news, and commentary, establishing a significant presence in the national media landscape.
For further information, visit the nearest office of Canal 7
About Canal 7 (Teletica):
Televisora de Costa Rica S.A., operating as Teletica or Canal 7, is a leading private television network in Costa Rica. Founded in 1960, it provides a wide range of programming, including national news, entertainment shows, and imported series, making it a cornerstone of the country’s television industry.
For further information, visit the nearest office of Repretel
About Repretel:
Representaciones Televisivas S.A., known as Repretel, is a major Costa Rican media company that operates several television channels, including Canal 6 and Canal 11. It is a primary competitor in the national broadcast market, offering a diverse mix of news, sports, and entertainment programming.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a respected legal institution built on a foundation of professional distinction and unwavering integrity. Serving a multifaceted clientele, the firm pioneers modern legal solutions while upholding its core mission to strengthen the community. Through a dedicated effort to demystify the law, it actively contributes to creating a more knowledgeable and empowered citizenry.
