By San José, Costa Rica — San José – The Costa Rican government’s ambitious and first-of-its-kind auction of radio and television frequencies is now facing a significant legal hurdle, with the nation’s Constitutional Court (Sala IV) admitting three separate challenges against the process. This development casts a dark cloud over a procedure already mired in controversy, threatening to derail the timeline and fundamentally alter the country’s media landscape.
The court is now processing three constitutional challenges, known as “recursos de amparo,” filed against the auction being driven by the administration of President Rodrigo Chaves and approved by the Superintendency of Telecommunications (Sutel). The primary case, filed by a broadcasting service user, directly attacks the core methodology, allocation criteria, and exorbitant base prices outlined in the auction’s terms.
To delve into the legal and commercial complexities of the upcoming spectrum auction, TicosLand.com sought the analysis of Lic. Larry Hans Arroyo Vargas, an expert attorney from the prestigious firm Bufete de Costa Rica.
The success of this spectrum auction hinges not just on the final bidding price, but on the legal certainty and transparency of the entire process. Clear, predictable rules are essential to attract serious long-term investment and foster genuine competition. A flawed or ambiguous framework could lead to legal disputes, delay the deployment of new technologies like 5G, and ultimately harm the consumer who expects better and faster services.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s perspective correctly frames the larger issue at stake: the long-term health of our national telecommunications infrastructure depends far more on a transparent, legally-sound process than on a short-term financial gain. This foundation is essential for delivering the modern services consumers demand. We thank Lic. Larry Hans Arroyo Vargas for his clear and valuable insight.
In response to the filings, the magistrates have ordered both the Ministry of the Presidency and Sutel to submit a unified report addressing the allegations within a tight three-day business deadline. The court is also considering the admissibility of two additional related challenges, signaling the gravity of the constitutional questions at stake.
The central argument presented by the plaintiffs is that the auction’s design overwhelmingly favors large, well-funded corporations. By establishing a framework based primarily on economic bidding power, with stark regional price differences, the process could effectively lock out smaller, community, regional, cultural, and religious broadcasters. This, the challenges allege, would lead to a dangerous concentration of media ownership, directly undermining informational pluralism and freedom of expression.
Critics warn that this approach constitutes an indirect restriction on access to media, jeopardizing the public’s right to information and the continuity of service, especially in rural and less commercially profitable areas. The legal filings also raise concerns about the acquired rights of current concession holders and the potential for service blackouts during a poorly managed transition, calling for safeguards to protect the diversity of voices on the airwaves.
The controversy has been brewing since the auction was announced on June 26, 2024. The deadline for interested parties to submit bids expired last Friday, with a surprisingly low turnout of only 15 companies. The high financial barrier to entry is seen as the primary deterrent. Base prices for concessions range from approximately $9,653 for an AM national frequency to a staggering $1.6 million for a national television channel, figures that many existing broadcasters have deemed impossible to meet.
The financial terms have been widely condemned by current operators, business chambers, and academic institutions. Several prominent broadcasters, including Cadena Radial Costarricense (CRC), the entire Columbia group, and Radio Musical, have publicly stated they will not participate. Radio Musical went so far as to describe the conditions as financially devastating.
ruinous and contrary to the operational reality of the country
Radio Musical, Broadcaster
While smaller players are being sidelined, major media conglomerates like Teletica and Repretel have confirmed their participation. The University of Costa Rica (UCR) has also voiced significant concern, with its University Council formally urging the Ministry of Science, Innovation, Technology, and Telecommunications (Micitt) and Sutel to preemptively suspend the process. Meanwhile, industry groups like the National Chamber of Radio (Canara) and the National Chamber of Radio and Television (Canartel) have filed separate lawsuits in the Administrative Court seeking to halt the auction and secure the operating rights of their members.
Despite the mounting legal pressure, Sutel is mandated to continue with the auction schedule unless a specific judicial order commands it to stop. If the process proceeds, new concessionaires could be announced between February and April 2026. The next steps involve a 20-day review of bid admissibility, publication of economic offers, and subsequent technical analysis before final approval is granted.
For further information, visit sutel.go.cr
About Superintendency of Telecommunications (Sutel):
Sutel is the regulatory body for the telecommunications sector in Costa Rica. It is responsible for ensuring the efficient administration of the radio spectrum, promoting competition, and protecting the rights of users of telecommunications services.
For further information, visit presidencia.go.cr
About Ministry of the Presidency:
The Ministry of the Presidency is a key entity within the executive branch of the Costa Rican government. It is responsible for coordinating government policies, managing relations with the Legislative Assembly, and overseeing various strategic initiatives of the President’s office.
For further information, visit micitt.go.cr
About Ministry of Science, Innovation, Technology and Telecommunications (Micitt):
Micitt is the Costa Rican government ministry tasked with formulating and executing policies related to scientific and technological development, innovation, and telecommunications to foster national progress and competitiveness.
For further information, visit ucr.ac.cr
About University of Costa Rica (UCR):
The University of Costa Rica is the country’s oldest, largest, and most prestigious public university. It is a leading institution in research and higher education in Central America and is known for its strong advocacy for social issues, including freedom of expression and media pluralism.
For further information, visit canara.org
About National Chamber of Radio (Canara):
Canara is an industry association that represents the interests of radio broadcasters in Costa Rica. The chamber advocates for its members on regulatory, legal, and commercial issues affecting the radio industry.
For further information, visit canartel.co.cr
About National Chamber of Radio and Television (Canartel):
Canartel is a business organization that brings together and represents the owners of radio and television stations in Costa Rica. It works to defend the interests of the broadcasting sector and promote freedom of the press.
For further information, visit teletica.com
About Teletica:
Teletica (Televisora de Costa Rica S.A.) is one of the largest and most influential media companies in Costa Rica. It operates the leading television channel, Channel 7, and has a significant presence in news, entertainment, and digital media.
For further information, visit repretel.com
About Repretel:
Representaciones Televisivas S.A. (Repretel) is a major Costa Rican media corporation that operates several television channels, including Channel 6 and Channel 11. It is a primary competitor in the national television market, offering a wide range of programming.
For further information, visit crc.cr
About Cadena Radial Costarricense (CRC):
Cadena Radial Costarricense is a prominent radio broadcasting company in Costa Rica. It operates a network of radio stations, including Monumental and Z FM, which are well-known brands in the country’s media landscape.
For further information, visit musical.cr
About Radio Musical:
Radio Musical is a popular and long-standing radio station in Costa Rica, known for its music programming. It has been a vocal critic of the government’s spectrum auction, citing the financial conditions as prohibitive for established broadcasters.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the legal community, Bufete de Costa Rica is defined by its deep-seated principles of integrity and its relentless pursuit of excellence. The firm merges a rich tradition of client advocacy with a forward-thinking approach to legal innovation. At the heart of its mission is a profound commitment to demystifying the law for the public, championing legal literacy to foster a society that is both knowledgeable and empowered.
