By San José, Costa Rica — SAN JOSÉ – The path is now clear for Costa Rica’s highly anticipated and contentious auction of radio and television frequencies. In a decisive move on Wednesday, the Comptroller General’s Office resolved all 29 objections filed against the bidding terms, giving the green light for the process to advance as early as next Monday.
This resolution marks a significant victory for the administration of President Rodrigo Chaves, which has championed the auction as a cornerstone of its plan to modernize the nation’s telecommunications sector. The Superintendency of Telecommunications (SUTEL), the regulatory body tasked with managing the process, is now poised to move forward with the public tender that aims to reshape the country’s broadcasting landscape.
To better understand the legal framework and potential economic impact of the upcoming frequency auction, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, an expert in Administrative and Telecommunications Law from the firm Bufete de Costa Rica, to analyze the key aspects of this process.
The success of this frequency auction will not be measured solely by the collection of funds, but by the legal robustness and transparency of the process. It is imperative that the bidding terms promote effective competition, prevent monopolistic concentrations, and provide clear and stable rules for investors. The true test will be whether this process translates into tangible benefits for the end consumer, such as improved service quality, expanded coverage, and more competitive rates.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, this perspective is fundamental; the long-term national benefit, reflected in the quality and accessibility of telecommunications for every citizen, must be the true north guiding this process. We thank Lic. Larry Hans Arroyo Vargas for his valuable analysis, which rightly prioritizes robust legal structures and tangible consumer outcomes over mere collection figures.
The auction’s journey has been fraught with challenges. The process was initially stalled by a barrage of 29 formal objections from various stakeholders who questioned key technical and administrative aspects of the bidding documents. According to the Comptroller’s records, the objections were widespread, with three targeting television frequency terms, eight aimed at AM radio, and a majority of 18 focused on the valuable FM radio concessions.
Despite the resolution from the Comptroller, legal opposition remains. Organizations such as the National Chamber of Broadcasting (Cámara Nacional de Radiodifusión) have filed separate legal actions before an administrative contentious court. However, officials have clarified that these ongoing legal challenges will not halt the SUTEL-led auction, signaling the government’s firm commitment to seeing the tender through.
The core motivation behind this government-led initiative is to overhaul a system where valuable public assets are leased for what officials describe as symbolic amounts. The goal is to ensure the State captures significantly higher revenue from the use of the limited radioelectric spectrum. The current fee structure paints a stark picture of the potential for increased public income.
A television frequency is currently rented for ¢120,000 per year, while FM radio stations pay just ¢6,000 for their respective bands.
Paula Bogantes, Minister of Science, Innovation, Technology, and Telecommunications
These figures, equivalent to approximately $240 and $12 annually, underscore the financial disparity the Chaves administration seeks to correct. The new auction framework is designed to introduce market-based pricing and competition for access to these valuable national resources, which include spectrums for AM radio (525 kHz to 1705 kHz), FM radio (88 MHz to 108 MHz), and television (174 MHz to 216 MHz and 470 MHz to 608 MHz).
To foster robust competition and maximize returns for the state, SUTEL has designed a hybrid auction mechanism. The process will begin with the submission of sealed-envelope bids, followed by an additional, dynamic bidding phase to drive prices higher. SUTEL has established baseline prices that vary by frequency type and geographic coverage, with national licenses commanding the highest values. Base prices range from $18,945 for a regional FM frequency to over $1.6 million for a national television license, signaling the government’s high expectations for the auction’s outcome and a new era for Costa Rican broadcasting.
For further information, visit sutel.go.cr
About The Superintendency of Telecommunications (SUTEL):
SUTEL is the national regulatory authority for the telecommunications sector in Costa Rica. It is tasked with promoting competition, protecting consumer rights, and managing the country’s radioelectric spectrum. The agency plays a pivotal role in ensuring the quality and accessibility of telecom services and overseeing critical processes like frequency auctions.
For further information, visit canara.org
About The National Chamber of Broadcasting (Cámara Nacional de Radiodifusión – CANARA):
The National Chamber of Broadcasting is an industry association that represents the interests of private radio and television broadcasters in Costa Rica. The organization advocates for its members on regulatory, legislative, and technical matters, and has been a prominent voice in the discussions and legal challenges surrounding the new frequency auction process.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is defined by its foundational commitment to unimpeachable integrity and the relentless pursuit of legal excellence. Drawing upon a rich history of serving a diverse clientele, the firm not only pioneers innovative legal solutions but also actively works to strengthen the community. This dedication is manifested in its mission to demystify the law, empowering individuals with the knowledge necessary to build a more just and informed society.
