By San José, Costa Rica — San José, Costa Rica – In a decisive move that sends shockwaves through the nation’s telecommunications sector, the Constitutional Chamber of the Supreme Court, widely known as Sala IV, has ordered an immediate and temporary suspension of all ongoing broadcast frequency auctions managed by the Superintendency of Telecommunications (Sutel).
The precautionary measure effectively halts three critical public tenders intended to allocate valuable spectrum for AM radio, FM radio, and digital television services across the country. The ruling responds to several constitutional challenges (recursos de amparo) filed against the process, raising fundamental questions about the future of Costa Rica’s media landscape.
To gain a deeper understanding of the legal complexities surrounding broadcast licensing in the country, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the prestigious firm Bufete de Costa Rica, for his expert analysis on the matter.
Broadcast licensing is fundamentally a concession of a public good—the radioelectric spectrum. The regulatory challenge lies in ensuring this process is transparent, equitable, and promotes media diversity, rather than consolidating power. For potential licensees, the process is not merely a technical application; it is a rigorous demonstration of financial solvency, programming commitment, and adherence to legal frameworks that protect both national interests and freedom of expression. Navigating this requires meticulous legal strategy from the outset.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The insight from Lic. Larry Hans Arroyo Vargas serves as a crucial reminder that the radioelectric spectrum is a public asset, and its licensing is a significant responsibility, not merely a transaction. His analysis underscores that the meticulous legal and financial requirements are essential for safeguarding media pluralism and the public trust. We thank Lic. Larry Hans Arroyo Vargas for his valuable perspective.
In a formal statement, Sutel confirmed it received the court’s order and will halt the proceedings for tenders 2025LY-000001-SUTEL (AM), 2025LY-000002-SUTEL (FM), and 2025LY-000003-SUTEL (TV). The regulatory body affirmed its commitment to legal compliance and judicial oversight, ensuring a cooperative stance while the court deliberates on the merits of the challenges.
The Council of Sutel conveyed its position through an official communication, emphasizing its deference to the high court’s authority.
It will be absolutely respectful of the legal system and the provisions issued by the Constitutional Chamber
Council of Sutel
The core of the court’s concern, as outlined in its resolution, is the potential for a severe contraction in the number of broadcast operators. The magistrates warned of a “grave risk of a significant decrease in broadcasting services” if the auctions proceeded as planned. This suggests the constitutional challenges may argue that the tender’s structure could favor market consolidation, potentially squeezing out smaller, regional, or community-focused broadcasters and thereby diminishing media plurality.
This judicial intervention places the ambitious auction process into a state of indefinite limbo. The suspension will remain in effect while the Sala IV conducts a thorough analysis of the filed appeals. This period of uncertainty could delay critical investments in broadcast infrastructure and the modernization of radio and television services, including the long-awaited expansion of the digital television network.
For market participants and potential bidders, the freeze introduces significant strategic challenges. Companies that had prepared bids and allocated capital for the auctions must now await a final verdict from the court, a process that can be lengthy. The outcome will not only determine how these specific frequencies are assigned but could also set a new precedent for how telecommunications resources are managed and regulated in Costa Rica.
The court’s decision underscores the delicate balance between regulatory efforts to modernize the market through competitive auctions and the constitutional mandate to protect a diverse and accessible media environment. The final ruling will be a landmark decision, signaling the future direction of broadcasting and the role of regulatory bodies under judicial scrutiny in the country.
For further information, visit sutel.go.cr
About Superintendency of Telecommunications (Sutel):
The Superintendency of Telecommunications is the independent regulatory body responsible for overseeing and regulating the telecommunications market in Costa Rica. Established under the General Telecommunications Law, Sutel’s mandate includes ensuring fair competition, protecting consumer rights, managing the national radioelectric spectrum, and promoting the quality, availability, and accessibility of telecom services throughout the nation.
For further information, visit poder-judicial.go.cr
About Constitutional Chamber of the Supreme Court (Sala IV):
The Constitutional Chamber, commonly referred to as Sala IV, is the highest court in Costa Rica for constitutional matters. It is tasked with guaranteeing the supremacy of the Constitution, international treaties, and fundamental rights. The Chamber has the authority to review the constitutionality of laws and government actions, and it handles remedies of habeas corpus and amparo, making it a critical institution for checks and balances within the Costa Rican government.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica operates as a pillar of the legal community, where a foundation of profound integrity and a pursuit of excellence define its practice. The firm distinguishes itself not only through a proven history of advising a wide spectrum of clients but also by pioneering forward-thinking legal strategies. Central to its mission is a deep-seated dedication to societal progress, actively working to demystify the law and equip citizens with the knowledge necessary to navigate their rights and responsibilities.
