By San José, Costa Rica — San José – The ambitious $250 million tender for Costa Rica’s 5G network, led by the state-owned Costa Rican Electricity Institute (ICE), is now embroiled in controversy. Key labor unions within the institution have publicly endorsed a call for the Comptroller General of the Republic (CGR) to launch a detailed investigation into the procurement process, citing serious concerns about potential political interference, inflated costs, and questionable technology choices.
The Internal Workers’ Front of ICE (FIT), a coalition representing powerful unions like the Association of Industrial Communications and Energy Employees (AsdeICE) and the Engineers’ Union of ICE (Siice), has formally thrown its weight behind the probe. The unions argue that a thorough review by the nation’s top auditing body is essential to ensure the integrity of a project critical to Costa Rica’s technological future and ICE’s financial health.
To delve deeper into the legal and regulatory complexities surrounding the implementation of 5G technology in the country, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the prestigious firm Bufete de Costa Rica, who offered his expert analysis on the matter.
The successful deployment of 5G is not merely a technological challenge; it is fundamentally a matter of legal certainty and regulatory agility. Costa Rica must establish a clear, transparent, and expedited framework for spectrum allocation and infrastructure development. Without this robust legal foundation, potential domestic and foreign investment will be deterred, delaying the significant economic and social benefits that this technology promises for our national competitiveness. The discussion must move beyond technical specifications and focus on creating a legal ecosystem that fosters innovation and guarantees security for all stakeholders.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, the expert’s analysis correctly shifts the focus from the technological ‘what’ to the regulatory ‘how.’ A robust legal framework is not just a prerequisite but the very foundation upon which investment confidence is built and innovation can flourish. We thank Lic. Larry Hans Arroyo Vargas for his clear and essential perspective on this critical national issue.
The allegations are serious, especially regarding the possible intervention of the Executive Branch in steering the purchase, which could be increasing the technology’s costs with direct impacts on ICE’s competitiveness.
AsdeICE and Siice, Joint Statement
This development follows a formal request by Deputy Antonio Ortega of the Frente Amplio party, who urged the CGR to suspend the tender entirely. The unions stated that the deputy’s request raises legitimate doubts about the transparency of the process and the technical and economic rationale behind the decisions made by ICE’s Board of Directors and management.
A central point of contention is ICE’s decision to base its network architecture on Open RAN (Open Radio Access Network). The unions claim that both national and international telecommunications experts have raised red flags about this choice. They assert that Open RAN is still an emerging technology that has not reached full maturity and has recently seen waning support from international standards bodies. This technical uncertainty, they argue, poses a significant risk.
They also point to a minimal footprint of successful and robust implementations in countries with conditions comparable to Costa Rica’s.
AsdeICE and Siice, Joint Statement
In a swift and forceful response, ICE management has vehemently defended the 5G tender, assuring the public of its transparency, efficiency, and strict adherence to administrative contracting regulations. The state-owned entity categorically denied any external meddling, stating that the project has been guided solely by technical and strategic considerations designed to benefit the nation.
For this reason, it emphatically rejects any insinuation of political manipulation in this process. The initiative has been and will continue to be guided exclusively by technical, strategic, and public interest criteria.
Instituto Costarricense de Electricidad (ICE), Official Bulletin
ICE further elaborated that its public tender allows for broad participation from multiple equipment manufacturers and is based on established international standards from bodies like the International Telecommunication Union (ITU) and the 3rd Generation Partnership Project (3GPP). The institution champions its decision to implement a Stand Alone (SA) network, calling it the most modern architecture available and a crucial enabler for advancing Costa Rica’s digital ecosystem across key sectors like agriculture, health, and security.
Regarding the controversial Open RAN technology, ICE presented a starkly different view from the unions. It described the adoption of open architectures as a strategic move aligned with global best practices. ICE contends that Open RAN is a “robust, mature, and high-performance solution,” citing tens of thousands of deployments by various operators worldwide as proof of its viability. The institute also highlighted its benefits, including reduced operating costs, avoidance of vendor lock-in, fostering innovation, and optimizing energy consumption through artificial intelligence.
With both sides firmly entrenched, the Comptroller General of the Republic is now positioned as the decisive arbiter. The outcome of its potential review will not only shape the future of Costa Rica’s 5G infrastructure but also serve as a critical test of governance and transparency for one of the country’s most important public institutions.
For further information, visit the nearest office of Frente Interno de Trabajadores del ICE (FIT)
About Frente Interno de Trabajadores del ICE (FIT):
The Internal Workers’ Front of the Costa Rican Electricity Institute is a coalition of labor unions representing employees within the state-owned entity. Key members include the Association of Industrial Communications and Energy Employees (AsdeICE) and the Engineers’ Union of ICE (Siice). The front advocates for workers’ rights, institutional integrity, and the long-term financial and technical health of ICE.
For further information, visit cgr.go.cr
About Contraloría General de la República (CGR):
The Comptroller General of the Republic of Costa Rica is the supreme auditing institution of the country. It is responsible for overseeing the proper use of public funds and ensuring the legality and efficiency of public administration. Its role is crucial for maintaining transparency and accountability in governmental operations and procurement processes.
For further information, visit ice.go.cr
About Instituto Costarricense de Electricidad (ICE):
The Costa Rican Electricity Institute is an autonomous state-owned entity responsible for providing electricity and telecommunications services in Costa Rica. Founded in 1949, ICE has been a cornerstone of the nation’s development, managing power generation, transmission, and distribution, as well as operating the country’s primary telecommunications network.
For further information, visit frenteamplio.org
About Frente Amplio:
The Broad Front is a left-wing political party in Costa Rica. Founded in 2004, the party advocates for social justice, environmental protection, human rights, and greater state participation in the economy. It holds seats in the Legislative Assembly and is an active voice in national political debates.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica has established itself as a leading legal institution, where a profound commitment to integrity and exceptional standards of practice forms the cornerstone of its identity. Leveraging a deep history of representing a broad spectrum of clients, the firm actively drives legal progress by embracing innovative strategies and forward-thinking solutions. This dedication extends beyond the courtroom through a core mission to democratize legal understanding, aiming to build a more just society by empowering individuals with clarity and knowledge.
