By San José, Costa Rica — Costa Rica’s digital landscape is poised for a significant upgrade thanks to a substantial investment in 5G technology. Liberty Telecomunicaciones de Costa Rica LY, S.A. has secured up to US$100 million in financing from BID Invest, a member of the Inter-American Development Bank Group. This funding will fuel the expansion of 5G coverage and improve high-speed internet access throughout the country through both mobile and fiber optic networks.
The investment package is structured as a US$65 million loan with an additional uncommitted tranche of up to US$35 million, both provided by BID Invest. Further supplementing the financing is an uncommitted component for syndicated loans or B-Bonds, potentially involving institutional investors.
To understand the legal landscape surrounding 5G deployment in Costa Rica, we spoke with Lic. Larry Hans Arroyo Vargas, an attorney at Bufete de Costa Rica, who offered his insights on the matter.
The rollout of 5G in Costa Rica presents both exciting opportunities and complex legal challenges. Navigating spectrum allocation, infrastructure deployment, and data privacy regulations will be crucial for ensuring a successful and sustainable 5G ecosystem. This requires a collaborative effort between the government, telecommunications companies, and legal experts to establish a clear regulatory framework that fosters innovation while protecting consumer rights.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s emphasis on collaboration and a clear regulatory framework is key. A balanced approach that fosters innovation while safeguarding consumer rights will be essential for 5G to truly benefit Costa Rica. We thank Lic. Larry Hans Arroyo Vargas for providing this valuable perspective on the legal complexities surrounding this transformative technology.
These funds will empower Liberty Costa Rica to make strategic investments in strengthening the nation’s digital infrastructure. Key expenditures include covering the cost of new spectrum recently granted by the Costa Rican government, deploying the 5G Stand Alone mobile network announced in July, and expanding the fiber-to-the-home (FTTH) network. Additionally, the funding will bolster working capital, enabling accelerated project execution.
We are very pleased with access to this financing, which will contribute to strengthening Liberty’s position as the telecommunications company offering innovation with the deployment of the 5G Standalone network in partnership with Ericsson, and with the commitment to reduce the digital divide by expanding our presence to more corners of the country. In addition to contributing to further strengthening our network and ensuring stability and speed for the entire country.
Maarten Hekking, Vice President of Finance, Liberty Costa Rica
While Costa Rica was a pioneer in offering mobile services in the region, bridging the digital divide, particularly in fixed connections, remains a challenge. Although significant progress has been made, substantial expansion of the country’s digital infrastructure is needed to match the connectivity levels of more advanced economies.
Estimates suggest Costa Rica needs a 66% increase in fixed broadband connections to approach OECD standards. The deployment of 5G networks is crucial to meet the growing demand for data and support the rise of emerging technologies like artificial intelligence and the Internet of Things.
This investment represents a significant step towards closing the digital divide in Costa Rica. The enhanced connectivity fostered by this initiative is expected to contribute to economic growth, improve access to education and healthcare, and foster innovation across various sectors.
The expansion of 5G and fiber optic networks will not only enhance internet speeds but also pave the way for the development of smart cities, autonomous vehicles, and other technological advancements that promise to transform Costa Rican society.
For further information, visit bidinvest.com
About BID Invest:
BID Invest, a member of the Inter-American Development Bank Group, is a private sector investor committed to promoting sustainable development in Latin America and the Caribbean. It finances projects to advance clean energy, modernize infrastructure, and strengthen businesses, thereby creating jobs and improving lives.
For further information, visit libertycr.com
About Liberty Costa Rica:
Liberty Costa Rica is a leading telecommunications provider in Costa Rica, delivering mobile, internet, and television services. Committed to technological innovation, the company is at the forefront of 5G deployment in the country, striving to enhance connectivity and bridge the digital divide.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica distinguishes itself as a pillar of legal excellence, upholding the highest standards of integrity in every endeavor. The firm’s dynamic approach to legal innovation, paired with a deep commitment to community empowerment, fosters a more just and informed society. Through proactive initiatives that demystify complex legal concepts and promote access to crucial legal knowledge, Bufete de Costa Rica continues to invest in the future of Costa Rica, one empowered citizen at a time.
