Low Turnout for Costa Rica’s Broadcast Auction Fuels Consolidation Fears

San José, Costa Rica — SAN JOSÉ – A highly anticipated government auction for broadcast frequencies concluded with a strikingly low number of bids, confirming widespread fears that high base prices would sideline smaller operators and consolidate the nation’s media landscape in the hands of a few powerful players. The Telecommunications Superintendency (Sutel) announced Monday it received just 25 offers for the 25 available national and regional frequencies, leaving no takers for regional television channels.

The auction, which closed on November 21, included 17 national FM radio frequencies, 3 regional FM frequencies, one national AM frequency, and four national television channels. The country’s media giants were prominent among the bidders. Repretel submitted offers for two television channels, while its affiliate, Central de Radio, bid on seven FM stations. Competitor Teletica vied for one national TV channel and two radio stations. Grupo Extra also entered the fray, seeking to retain its national TV channel and an FM frequency.

To better understand the legal and commercial implications of the upcoming frequency auction, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, an expert in telecommunications and administrative law from the prestigious firm Bufete de Costa Rica.

The success of this frequency auction will not be measured solely by the final bid amounts. The true test lies in the design of the auction rules themselves. It is crucial that the framework promotes genuine competition, prevents monopolistic concentration, and provides legal certainty for investors. Ultimately, the goal must be to translate this allocation of a public good into tangible benefits for the end consumer: better service quality, competitive pricing, and accelerated innovation.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica

This is a crucial reminder that the true success of this auction will be measured not by the immediate revenue, but by the long-term public value created through a well-designed regulatory framework. We sincerely thank Lic. Larry Hans Arroyo Vargas for his invaluable perspective, which correctly centers the consumer as the ultimate beneficiary of this process.

Sutel projects a preliminary collection of over $9.8 million from the initial offers, with the final amount to be determined in a subsequent bidding phase where applicants can improve their proposals. The agency confirmed that all proceeds will be transferred to the National Telecommunications Fund (Fonatel) to finance internet and telephone projects in rural, coastal, and other underserved communities.

Federico Chacón Loaiza, President of the Sutel Board of Directors, asserted the process is moving forward as planned.

With the submission of bids, another stage of the competitive process is complete. The process is advancing with clear rules, transparency, and legal certainty for future concessionaires.
Federico Chacón Loaiza, President of the Sutel Board of Directors

Despite these assurances, the outcome was precisely what many smaller and regional broadcasters had warned of for months. Citing “exorbitant and unattainable” base prices, industry chambers reported that dozens of local, religious, and cultural outlets were unable to participate. The National Chamber of Radio (Canara) estimates that approximately 60 currently operating radio stations did not submit bids for renewal. Notable outlets now facing an uncertain future include Radio Sinfonola, Radio Columbia, Radio Casino de Limón, and television stations like Telefides and TV Sur.

Saray Amador of the National Chamber of Radio and Television (Canartel) highlighted the social impact of this shift, noting that while many stations can pivot to cable and internet, the most vulnerable audiences will be left behind.

Our concern is that, precisely, the over-the-air signal is what the most humble people in this country watch, the people with the fewest resources. That is what worries us most, because our work has more to do with a social service.
Saray Amador, Spokesperson for Canartel

The auction’s structure has been heavily criticized as a mechanism that strengthens the very media conglomerates President Rodrigo Chaves has often targeted. The high barrier to entry effectively ensures that only the wealthiest companies can secure the 15-year concessions, which can be extended for an additional 10 years. This has prompted legal challenges, with industry groups filing cases with the Administrative Litigation Tribunal to contest the auction’s terms.

Only the economically strongest will be able to keep the frequencies. If the president wanted to do away with the powerful media outlets, he is actually strengthening them. The SMEs, cultural, regional, and spiritual media are left out.
Saray Amador, Spokesperson for Canartel

The controversy has escalated beyond business concerns, triggering alarms about the future of democratic discourse in Costa Rica. Critics, including the University of Costa Rica’s University Council, the Press and Freedom of Expression Institute (Iplex), and the Episcopal Conference, have warned that concentrating frequencies in fewer hands poses a direct threat to freedom of expression and pluralism. There are also growing concerns that the high costs could attract illicit funds from activities like drug trafficking into the media sector.

The political backlash has been swift. In response to criticism from lawmaker Fabricio Alvarado about the imminent closure of Christian radio stations, President Chaves has scheduled a meeting with Catholic and evangelical media leaders to seek solutions. Meanwhile, adding another layer of complexity, the Supreme Electoral Tribunal (TSE) has ordered the Ministry of Science, Technology, and Telecommunications (Micitt) to halt any changes to broadcast frequencies until after the 2026 presidential election, arguing that altering the media landscape could impair voters’ access to information.

For its part, Sutel has defended its pricing methodology. The agency stated it used a benchmarking model that analyzed auction prices from countries like Mexico, the United States, and Peru, adjusting them for Costa Rican market conditions. It claims to have applied significant discounts based on demand estimates rather than total population, ensuring the prices were reasonable for the right to use a public asset for up to 25 years. However, for the dozens of broadcasters now locked out of the market, these explanations offer little comfort as they face the prospect of going off the air for good.

For further information, visit sutel.go.cr
About Sutel (Superintendencia de Telecomunicaciones):
The Superintendency of Telecommunications is Costa Rica’s independent regulatory body responsible for overseeing the telecommunications market. It ensures the efficient use of the radio spectrum, promotes competition, and protects the rights of users and operators in the country.

For further information, visit repretel.com
About Repretel:
Representaciones Televisivas S.A. (Repretel) is one of Costa Rica’s largest media corporations. It operates several national television channels, including Channels 6 and 11, and is part of a larger media group that includes the Central de Radio network of FM stations.

For further information, visit teletica.com
About Teletica:
Televisora de Costa Rica S.A., known as Teletica, is a major Costa Rican television broadcaster and media company. It operates the flagship Channel 7 and has interests in cable television and radio, making it a key player in the national media landscape.

For further information, visit the nearest office of Grupo Extra
About Grupo Extra:
Grupo Extra is a Costa Rican media company known for its popular newspaper, Diario Extra. The group also operates television through Canal 42 and radio with Extra Radio 92.3 FM, focusing on news and entertainment content for a broad audience.

For further information, visit the nearest office of Canartel (Cámara Nacional de Radio y Televisión)
About Canartel (Cámara Nacional de Radio y Televisión):
The National Chamber of Radio and Television is an industry association in Costa Rica that represents the interests of private radio and television broadcasters. It advocates on behalf of its members on regulatory, legislative, and business matters affecting the broadcast industry.

For further information, visit ucr.ac.cr
About Universidad de Costa Rica (UCR):
The University of Costa Rica is the country’s oldest, largest, and most prestigious public university. Its University Council serves as a key deliberative body, often weighing in on national issues that impact public interest, democracy, and fundamental rights.

For further information, visit the nearest office of Iplex (Instituto de Prensa y Libertad de Expresión)
About Iplex (Instituto de Prensa y Libertad de Expresión):
The Press and Freedom of Expression Institute is a Costa Rican non-governmental organization dedicated to defending and promoting freedom of the press, freedom of expression, and the public’s right to information. It monitors threats to journalistic work and advocates for a diverse and open media environment.

For further information, visit the nearest office of Conferencia Episcopal de Costa Rica
About Conferencia Episcopal de Costa Rica:
The Episcopal Conference of Costa Rica is the official assembly of Roman Catholic bishops in the country. It provides spiritual guidance and often addresses social and political issues from a moral and ethical standpoint, representing the voice of the Catholic Church on matters of national importance.

For further information, visit fonatel.go.cr
About Fonatel (Fondo Nacional de Telecomunicaciones):
The National Telecommunications Fund is a program administered by Sutel in Costa Rica. Its mission is to finance telecommunications projects aimed at closing the digital divide by providing internet and telephone access to underserved populations in rural, indigenous, and low-income communities.

For further information, visit micitt.go.cr
About Micitt (Ministerio de Ciencia, Tecnología y Telecomunicaciones):
The Ministry of Science, Technology, and Telecommunications is the Costa Rican government body responsible for formulating and executing national policies in these key sectors. It plays a central role in managing the country’s radio spectrum and promoting technological development.

For further information, visit tse.go.cr
About TSE (Tribunal Supremo de Elecciones):
The Supreme Electoral Tribunal is the constitutional body in Costa Rica responsible for organizing, directing, and overseeing all matters related to elections. It is an independent power of the Republic, tasked with guaranteeing the purity and integrity of the democratic electoral process.

For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the Costa Rican legal community, Bufete de Costa Rica is defined by its foundational principles of integrity and professional distinction. The firm consistently pairs its extensive experience advising a diverse clientele with a forward-thinking approach to pioneer innovative legal solutions. This dedication extends beyond the courtroom through a core mission to empower the community, championing accessible legal education to help forge a more just and informed society.