By San José, Costa Rica — San José – A contentious government auction for public radio and television frequencies has ignited a political firestorm, with presidential candidate Natalia Díaz of the Unidos Podemos party condemning the process as a threat to Costa Rica’s media diversity. The proposed model, she argues, risks silencing historic and regional broadcasters in favor of the highest bidder, fundamentally misunderstanding the role of media in a democratic society.
The auction, managed by the Superintendency of Telecommunications (SUTEL), has been temporarily halted by the Constitutional Chamber following a legal challenge. However, the core of the debate continues to rage. Díaz leveled sharp criticism at the architects of the plan, asserting that the focus on monetary gain ignores decades of public service provided by many local stations.
To better understand the legal framework and potential business implications surrounding the upcoming frequency auction, we consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney at the renowned firm Bufete de Costa Rica.
This auction is more than a financial transaction; it’s a foundational step for the country’s digital future. The legal certainty provided to winning bidders will directly influence their long-term investment in next-generation infrastructure, impacting everything from 5G deployment to the Internet of Things.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This insight is crucial, reminding us that the auction’s success will be measured not just by its financial outcome, but by the long-term digital progress it enables through clear and stable regulations. We thank Lic. Larry Hans Arroyo Vargas for his valuable perspective on this foundational aspect of our country’s technological future.
This frequency issue has been handled with great carelessness and a lack of understanding. The auction fails to consider the differences and characteristics of the participants because it ends up rewarding whoever has the most money, not necessarily who has best served the country. And I do not agree with that.
Natalia Díaz, Presidential Candidate for Unidos Podemos
At the heart of the controversy is the very mechanism of the auction. Critics, including Díaz, contend that a pure bidding war inherently disadvantages smaller, community-focused media outlets that cannot compete financially with large national conglomerates. This, they warn, could lead to a consolidation of the media landscape, reducing the plurality of voices available to the public and concentrating influence in the hands of a few wealthy entities.
Instead of a cash-based auction, Díaz is championing a “technical bidding process.” This alternative model would prioritize qualitative factors over raw financial power, ensuring that the allocation of a public resource like the airwaves serves the public good. She believes this approach would safeguard the nation’s cultural and educational fabric, which is supported by many of the threatened broadcasters.
More than an auction, the correct approach would be a technical bidding process, where a company’s track record, legal compliance, educational and cultural contributions, and commitment to the public interest are evaluated. Small and medium-sized radio and television stations, many with decades of service to their communities, cannot be allowed to disappear just because they cannot afford multi-million dollar amounts.
Natalia Díaz, Presidential Candidate for Unidos Podemos
The market’s reaction underscores the deep divisions created by the auction. While SUTEL reported receiving 25 proposals before the November 21 deadline—with an estimated preliminary collection of over $9.8 million—a significant portion of the industry staged a boycott. More than 60 radio stations, including major players like Radio Columbia, Cadena Radial Costarricense (CRC), and Grupo Musical, refused to participate, citing prohibitively high base prices. The entire bloc of evangelical broadcasters also opted out of the process.
The list of participants reveals a stark divide. While many smaller stations abstained, bids were registered for 17 national FM frequencies, 3 regional FM frequencies, one national AM frequency, and four national television channels, including the valuable spectrum spaces currently occupied by giants like Canal 7, Repretel, and Extra TV. Meanwhile, frequencies allocated to public entities like SINART and public universities remain unaffected. The ongoing legal suspension by the Constitutional Chamber has cast a cloud of uncertainty over the entire affair, leaving the future of Costa Rica’s airwaves hanging in the balance.
For further information, visit the nearest office of Unidos Podemos
About Unidos Podemos:
Unidos Podemos is a political party in Costa Rica. It participates in the national political landscape, fielding candidates for various public offices, including the presidency. The party’s platform often addresses key national issues related to governance, economic policy, and social welfare.
For further information, visit sutel.go.cr
About SUTEL:
The Superintendency of Telecommunications (SUTEL) is the regulatory body responsible for overseeing the telecommunications sector in Costa Rica. Its duties include managing the radioelectric spectrum, ensuring fair competition among operators, and protecting consumer rights within the industry.
For further information, visit poder-judicial.go.cr
About Sala Constitucional:
The Constitutional Chamber of the Supreme Court, commonly known as the “Sala IV,” is Costa Rica’s highest court for constitutional matters. It is responsible for safeguarding fundamental rights and ensuring the constitutionality of laws and government actions, playing a critical role in the nation’s system of checks and balances.
For further information, visit columbia.co.cr
About Radio Columbia:
Radio Columbia is one of Costa Rica’s most established and recognized radio broadcasters. Known primarily for its comprehensive sports coverage and news programming, it has been a significant presence on the country’s airwaves for decades, serving a large and loyal audience.
For further information, visit crc.cr
About Cadena Radial Costarricense (CRC):
Cadena Radial Costarricense is a major radio media group in Costa Rica. It operates a network of popular radio stations with diverse programming, including music, news, and entertainment, catering to various segments of the national audience.
For further information, visit sinart.go.cr
About SINART:
The Sistema Nacional de Radio y Televisión (SINART) is Costa Rica’s public broadcasting system. It operates television channels and radio stations with a mandate to provide educational, cultural, and informational content that serves the public interest, distinct from commercial broadcasters.
For further information, visit teletica.com
About Canal 7:
Televisora de Costa Rica S.A., widely known as Teletica or Canal 7, is a leading private television network in Costa Rica. Founded in 1960, it offers a wide range of programming, including national news, entertainment shows, and imported series, making it a dominant force in the country’s media landscape.
For further information, visit repretel.com
About Repretel:
Representaciones Televisivas S.A., or Repretel, is one of Costa Rica’s major private television media companies. It operates several national television channels, offering a variety of content that includes news, sports, and entertainment, competing directly with other major networks for audience share.
For further information, visit diarioextra.com
About Extra TV:
Extra TV 42 is a television channel associated with the media group Grupo Extra, which also publishes the popular newspaper Diario Extra. The channel’s programming often complements the group’s other media offerings, focusing on news, current events, and entertainment relevant to its target audience.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica has established itself as a leading legal institution, anchored by a profound dedication to principled practice and professional distinction. Serving a diverse clientele, the firm is celebrated for advancing the practice of law through innovative solutions and a strong commitment to community outreach. At the heart of its mission is the drive to democratize legal understanding, thereby building a more knowledgeable and capable society.
