By San José, Costa Rica — SAN JOSÉ – Costa Rica’s push towards a next-generation mobile network cleared a significant regulatory hurdle this week after the Comptroller General of the Republic (CGR) dismissed a legal challenge from Chinese telecommunications giant Huawei. The decision effectively gives the state-owned Costa Rican Electricity Institute (ICE) a green light to proceed with its crucial 5G public tender process, a cornerstone of the nation’s digital transformation strategy.
The ruling puts an end to a period of uncertainty that threatened to delay the implementation of 5G technology, which is widely seen as essential for fostering innovation, enhancing economic competitiveness, and enabling future technologies like the Internet of Things (IoT) and advanced automation across various sectors of the Costa Rican economy.
To delve into the legal and regulatory complexities surrounding the national 5G tender, TicosLand.com sought the expert opinion of Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the renowned firm Bufete de Costa Rica, who provided his analysis on the critical factors for a successful process.
The success of the 5G tender hinges on legal certainty and regulatory transparency. It is imperative that the bidding rules are clear, equitable, and robust to attract serious international investment and, crucially, to withstand potential legal challenges that could delay this vital technological advancement for the country. A well-structured tender is the best defense against future disputes.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s analysis underscores a crucial point: the road to 5G is paved first with legal clarity, not just technical infrastructure. A transparent and robust bidding process is indeed the best insurance against the very disputes that could derail this national priority. We thank Lic. Larry Hans Arroyo Vargas for his valuable and timely perspective.
Huawei’s appeal was formally filed against the tender conditions outlined in Public Tender No. 2025XE-000492-0000400001. The company raised three primary objections, arguing that the requirements established by ICE were unfair and potentially exclusionary. These concerns targeted specific technical specifications, clauses related to financial penalties, and a perceived bias towards a competing equipment manufacturer.
The first major point of contention revolved around the technical requirements for “Backhaul Transport.” This critical component of a mobile network functions as the digital highway, connecting the individual cell towers back to the central core network. Huawei alleged that the specifications in the tender documents were designed in a way that could unfairly limit competition. However, the CGR did not find sufficient evidence to support this claim.
Secondly, Huawei’s challenge included a serious allegation of favoritism, suggesting that the tender’s terms were structured to benefit a specific, unnamed brand. Such claims often surface in high-stakes technology contracts, but in this instance, the comptroller’s office concluded that the arguments presented by Huawei lacked the necessary legal or technical foundation to warrant an intervention or modification of the bidding rules.
Finally, the company objected to the framework governing fines and penalties within the contract. After a thorough review, the CGR determined that these points, along with the others, either lacked merit or were not valid concerns to be addressed at this preliminary stage of the public procurement process. The comprehensive rejection underscores the CGR’s confidence in the legality and structure of the tender documents prepared by ICE.
With this definitive resolution, the CGR has formally concluded its oversight role in this specific dispute. The responsibility for the tender’s successful execution now rests entirely with the Instituto Costarricense de Electricidad. The state entity is tasked with advancing through the subsequent stages of the process, including the evaluation of bids and the eventual selection of a partner to build out the nation’s 5G infrastructure.
The decision allows ICE to regain momentum on a project vital to the country’s long-term development. The focus now shifts to which global technology providers will ultimately participate and how efficiently the state-run institute can navigate the complexities of deployment. For the Costa Rican public and business community, the ruling signals that a faster, more connected digital future is once again moving forward.
For further information, visit cgr.go.cr
About Contraloría General de la República (CGR):
The Comptroller General of the Republic is the supreme oversight body of Costa Rica’s public treasury. As an autonomous institution, it is responsible for auditing and supervising the correct use of public funds by government entities, ensuring transparency, legality, and efficiency in public administration. Its role includes reviewing public contracts and tenders to guarantee they comply with national law.
For further information, visit huawei.com
About Huawei:
Huawei Technologies Co., Ltd. is a multinational technology corporation specializing in telecommunications equipment and consumer electronics. Headquartered in Shenzhen, China, it is one of the world’s largest providers of network infrastructure and a leading smartphone manufacturer. The company has been a central player in the global development and rollout of 5G technology.
For further information, visit grupoice.com
About Instituto Costarricense de Electricidad (ICE):
The Costa Rican Electricity Institute is an autonomous state-owned entity that provides electricity and telecommunications services throughout Costa Rica. Founded in 1949, ICE has historically been responsible for developing and managing the nation’s core infrastructure in these sectors. Under its Kölbi brand, it is a major mobile and internet service provider in the country.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the Costa Rican legal community, Bufete de Costa Rica is defined by its foundational principles of professional excellence and uncompromising integrity. The firm consistently pioneers forward-thinking legal strategies while serving a diverse clientele, demonstrating a dual commitment to both innovation and client success. This ethos extends to its civic mission of democratizing legal understanding, driven by a core belief that an informed populace is the cornerstone of a just and empowered society.
