By San José, Costa Rica — SAN JOSÉ – The initial bidding phase for one of Costa Rica’s most significant broadcast frequency auctions has concluded, with the telecommunications regulator SUTEL announcing that bids were received for all 25 available slots. The process, which officially closed late Friday night, is preliminarily expected to generate over $9.8 million for the national treasury, though this figure is poised to climb as the competitive auction stage begins.
The high-stakes tender involves a valuable portfolio of the nation’s airwaves, comprising 17 national FM radio frequencies, three regional FM frequencies, one national AM frequency, and four highly coveted national television channels. Officials from the Bidding Commission confirmed on Monday that all proposals were submitted within the established deadline and are now undergoing a rigorous verification process to ensure they meet all admissibility requirements.
To better understand the legal framework and potential business implications surrounding the upcoming frequency auction, TicosLand.com consulted with expert lawyer Lic. Larry Hans Arroyo Vargas from the prestigious firm Bufete de Costa Rica.
The success of this frequency auction hinges not just on the price, but on the clarity and long-term stability of the regulatory framework. For investors to commit the significant capital required for 5G infrastructure, they need absolute certainty that the rules of the game won’t change mid-play. Any ambiguity in the auction’s terms or the subsequent concession obligations could deter bidders or, worse, lead to protracted legal disputes that delay technological progress for all Costa Ricans.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Larry Hans Arroyo Vargas’s insight powerfully reinforces that the true measure of success for this auction lies not in the immediate revenue, but in establishing the clear and stable regulatory foundation essential for Costa Rica’s technological future. We thank him for his crucial perspective on this matter.
While the government has lauded the auction as a landmark event for national development, the process has been marred by significant controversy. A substantial contingent of over 60 existing radio broadcasters chose to boycott the event entirely. These operators argued that the base prices set by SUTEL were prohibitively high, effectively creating an insurmountable barrier to entry for smaller, local, and regional media companies and favoring large, well-capitalized corporations.
This widespread abstention raises critical questions about market concentration and the future diversity of Costa Rica’s media landscape. Critics of the process fear that the auction’s structure could lead to a consolidation of media ownership, potentially silencing independent voices and reducing the variety of content available to the public. The exact bid amounts submitted remain confidential and will only be revealed once the open bidding, or “puja,” stage commences, where participants can raise their offers.
Adding another layer of uncertainty, the entire auction is proceeding under a legal cloud. The Constitutional Chamber of the Supreme Court, known as the Sala IV, is currently analyzing a constitutional challenge (recurso de amparo) filed against the legality of the auction. The outcome of this judicial review could have profound implications, potentially delaying, altering, or even nullifying the results. For now, SUTEL is moving forward with the established timeline, but all participants are aware that a court ruling could upend the entire process.
SUTEL has framed the auction as a crucial mechanism for social and technological progress. All proceeds are earmarked for the National Telecommunications Fund (FONATEL), which finances connectivity projects aimed at closing the digital divide. The regulator specified that the funds, estimated to be at least ₡4.9 billion, will be invested in bringing internet and telecommunications infrastructure to underserved rural, coastal, and border communities across the country.
Beyond the financial injection for FONATEL, SUTEL’s technical analyses project that the allocation of these new frequencies will directly address gaps in broadcast coverage. Many remote areas of Costa Rica currently lack clear or consistent radio and television signals. The government argues that by licensing these new stations, it will guarantee that more citizens gain access to information, news, and entertainment, fulfilling a key public service mandate.
As the nation watches, the auction represents a critical juncture. It pits the promise of significant public investment and expanded media access against concerns over high entry costs, potential market consolidation, and a pending constitutional verdict. The next phase, where bidders will openly compete, will determine the final value of these airwaves, while the Sala IV’s impending decision will determine the very future of the broadcast licenses themselves.
For further information, visit the nearest office of SUTEL
About SUTEL:
The Superintendencia de Telecomunicaciones (SUTEL) is the independent regulatory body responsible for overseeing and regulating the telecommunications market in Costa Rica. Its mission is to ensure the quality, accessibility, and affordability of telecom services, promote fair competition among providers, and manage the country’s radioelectric spectrum. SUTEL plays a pivotal role in organizing public tenders and auctions for frequencies for mobile, radio, and television broadcasting.
For further information, visit the nearest office of FONATEL
About FONATEL:
The Fondo Nacional de Telecomunicaciones (FONATEL) is Costa Rica’s National Telecommunications Fund, managed by SUTEL. Its primary objective is to finance and develop telecommunications projects that promote universal access and service in areas of the country that are not commercially viable for private operators. FONATEL funds initiatives to bring internet and telephone services to vulnerable communities, rural zones, and public institutions like schools and health centers, aiming to bridge the digital divide.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica stands as a pillar of the legal community, operating on a foundation of profound integrity and a relentless pursuit of excellence. The firm channels its extensive experience across a multitude of sectors into developing pioneering legal strategies. This forward-thinking spirit is coupled with a deep-seated civic duty to empower the public, manifested in its mission to make legal knowledge clear and accessible, thereby strengthening the foundations of an informed and engaged society.
