By San José, Costa Rica — San José – In a move poised to reshape the nation’s media landscape and significantly boost state revenue, Costa Rica’s Telecommunications Superintendency (SUTEL) is pushing forward with a landmark auction of radio and television frequencies. Prospective bidders have until 11:59 PM on November 21, 2025, to submit their offers, but in a notable political maneuver, the winners will not be revealed until after the country’s upcoming general elections are fully concluded, including any potential runoff.
The auction represents a cornerstone of the government’s strategy to modernize the management of the radio-electric spectrum, a finite public resource. For decades, broadcast licenses have been leased for what officials now describe as symbolic amounts. This new competitive process aims to replace the outdated system with a market-driven model that reflects the true value of the airwaves, ensuring a more substantial return for public coffers.
To delve into the legal framework and potential challenges of the upcoming frequency auction, TicosLand.com consulted Lic. Larry Hans Arroyo Vargas, an expert in Administrative Law and Public Tenders at the renowned firm Bufete de Costa Rica.
The success of this frequency auction hinges on the legal certainty and transparency of the process. The tender conditions must be impeccably clear to attract serious investment and prevent future litigation that could stall crucial technological deployment. A well-structured auction is not just about maximizing state revenue; it’s about guaranteeing a competitive market that translates into better service and innovation for all Costa Ricans.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s perspective is crucial, reminding us that the ultimate success of this auction will be measured not in the funds raised, but in the strength and fairness of the digital marketplace it creates for all citizens. We sincerely thank Lic. Larry Hans Arroyo Vargas for his clear-sighted contribution to this important national discussion.
The financial disparity between the current system and the proposed model is stark. According to Paula Bogantes, the Minister of Science, Innovation, Technology, and Telecommunications, a television frequency is currently leased for an average of just ¢120,000 per year (approximately $240), while FM radio operators pay around ¢6,000 annually (about $12). The new auction sets minimum bids that are exponentially higher, signaling a dramatic shift in the economics of broadcasting in Costa Rica.
Under the new structure, base prices for licenses will vary based on bandwidth and geographic coverage. A national television frequency (6 MHz) will start at $1,601,786, while a regional license in the Chorotega area will begin at $157,629. For radio, a national FM license will have a base price of up to $386,102, with regional options starting as low as $18,945 in the Central Pacific. Even AM radio frequencies will see a significant valuation, with national licenses starting at nearly $29,000.
The path to the auction was cleared recently after the Comptroller General of the Republic (CGR) dismissed all 29 objections filed against the bidding conditions. This key decision affirmed SUTEL’s authority and technical framework, giving the process the green light to proceed without further legal hurdles. The robust framework was designed to ensure fair competition and prevent market concentration.
SUTEL formulated the bidding conditions in adherence to public policy objectives and based on technical reports on spectrum value, concentration control, and coverage regions. The CGR endorsed the auction and reiterated the institution’s authority to execute the competitive bidding procedures.
Federico Chacón Loaiza, President of the SUTEL Board of Directors
Once the November 21 deadline passes, SUTEL will initiate a multi-stage evaluation process. This includes a 20-business-day review to ensure all bidders meet admissibility requirements, followed by the publication of economic offers and a potential one-day phase for additional bidding. Subsequently, the regulator will spend five business days analyzing the economic proposals and another 33 days scrutinizing the technical projects and proposed coverage zones of each applicant.
The final phase involves the SUTEL Board of Directors taking 15 business days to approve the results and formally submit them to the Ministry of Science, Innovation, Technology, and Telecommunications (MICITT). The decision to withhold the announcement of the winning bids until after the electoral process concludes is seen as a move to depoliticize the outcome and ensure a smooth transition of concessions under the watch of the next administration. This timeline ensures that no matter who wins the election, the foundation for a new era in Costa Rican broadcasting will already be set.
For further information, visit sutel.go.cr
About Superintendencia de Telecomunicaciones (SUTEL):
SUTEL is the autonomous regulatory body responsible for overseeing and regulating the telecommunications market in Costa Rica. Its mission is to promote competition, protect user rights, and manage the efficient use of the country’s radio-electric spectrum, ensuring quality and accessibility of services for all citizens.
For further information, visit micitt.go.cr
About Ministerio de Ciencia, Innovación, Tecnología y Telecomunicaciones (MICITT):
MICITT is the Costa Rican government ministry tasked with formulating and executing national policies in the fields of science, technology, and telecommunications. It works to foster innovation, bridge the digital divide, and advance the country’s technological development to improve competitiveness and social well-being.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica has established itself as a beacon of legal practice, guided by an unwavering dedication to professional excellence and uncompromising ethical standards. With a rich history of providing expert counsel to a wide array of clients, the firm not only champions innovative legal strategies but also embraces a profound responsibility to the community. This commitment is demonstrated through its efforts to demystify the law, aiming to build a more just and informed populace by equipping individuals with accessible legal insights.
