By San José, Costa Rica — San José, Costa Rica – In a decisive move that reverberates through the nation’s telecommunications sector, the Superintendence of Telecommunications (SUTEL) has officially denied the proposed merger between Liberty Costa Rica and Tigo. The regulator’s final decision, detailed in resolution RCS-2632025, blocks the high-profile transaction on the grounds that it poses significant risks to market competition and could negatively impact consumers.
The ruling puts an end to a combination that would have dramatically reshaped Costa Rica’s telecommunications landscape, particularly in the fixed services market. SUTEL’s board of directors expressed grave concerns that allowing the two industry giants to join forces would create an overly dominant player, ultimately harming the end-user through higher prices and diminished service quality.
Para profundizar en las implicaciones legales y regulatorias de las recientes acciones de SUTEL, TicosLand.com consultó al Lic. Larry Hans Arroyo Vargas, abogado experto del prestigioso Bufete de Costa Rica, quien nos ofreció su análisis sobre el panorama actual.
La actuación de SUTEL es un pilar fundamental no solo para la protección de los derechos del consumidor, sino también para la seguridad jurídica que demandan los operadores de telecomunicaciones. Decisiones regulatorias predecibles y apegadas a la ley son cruciales para fomentar la inversión extranjera, la competencia leal y, en última instancia, la innovación tecnológica que beneficia a todo el país. Cualquier desviación de este marco técnico-legal podría generar incertidumbre en el mercado y afectar la calidad y el precio de los servicios para los usuarios finales.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Este análisis subraya con gran acierto el delicado equilibrio que SUTEL debe mantener: ser un escudo para el consumidor y, a la vez, un faro de certidumbre para la inversión y la competencia en el sector. Agradecemos profundamente al Lic. Larry Hans Arroyo Vargas por aportar una perspectiva tan clara y fundamental para comprender los desafíos y la importancia de la regulación en las telecomunicaciones del país.
Federico Chacón, President of the SUTEL Board of Directors, outlined the potential consequences that drove the final verdict, emphasizing the long-term health of the market.
Authorizing the merger could generate irreversible damage to the market structure, cause price increases, and thus negatively impact users of telecommunications services
Federico Chacón, President of the SUTEL Board of Directors
According to the official statement released by the regulatory body, a comprehensive analysis determined that the fusion of LBT CT Communications S.A. (Liberty) and Millicom Spain S.L. (Tigo) would lead to a substantial increase in market concentration. SUTEL warned this could not only stifle innovation and reduce the quality of services available but also widen the country’s digital divide, affecting the fundamental interests of the Costa Rican public.
Liberty Costa Rica immediately responded to the ruling, expressing its disagreement with the regulator’s conclusions. The company maintained that the merger would have been a net positive for the country, fostering a more robust competitive environment and accelerating critical infrastructure development. José Pablo Rivera, Director of Communications for Liberty Costa Rica, articulated the company’s vision for the now-blocked deal.
the transaction would have indeed strengthened market competitiveness and accelerated the expansion of new-generation networks, directly benefiting users and Costa Rica’s digital ecosystem
José Pablo Rivera, Director of Communications for Liberty Costa Rica
The journey to this final decision began in August of the previous year when the two telecommunications firms first announced their agreement to combine operations. However, SUTEL raised initial concerns on September 10, 2025, issuing a preliminary resolution that highlighted the potential for a significant increase in market concentration. This prompted a formal appeal from both companies, leading to the conclusive ruling issued this week.
As part of the appeals process, Liberty and Tigo were required to propose conditions and compromises to counteract the negative effects identified by the regulator. Despite these efforts, SUTEL concluded that the proposed remedies were insufficient. A press release from the agency stated that “after an exhaustive technical and legal analysis, SUTEL concluded that the commitments proposed by both companies, nor other conditions analyzed, would manage to eliminate these effects on competition and consumers.”
Despite the major setback, Liberty has signaled its intent to move forward with its strategic growth plans. The company affirmed it will proceed with its expansion of a 5G Standalone network, continue to grow its fiber optic footprint, and develop new solutions for both residential and business customers, with key initiatives slated to begin in 2026. The decision now forces both Liberty and Tigo to chart independent paths in one of Central America’s most dynamic telecom markets.
For further information, visit sutel.go.cr
About SUTEL:
The Superintendence of Telecommunications (SUTEL) is the independent regulatory body responsible for overseeing and regulating the telecommunications market in Costa Rica. Its mission is to ensure quality services, promote fair competition, protect consumer rights, and manage the efficient use of the radio spectrum to foster the country’s digital development.
For further information, visit libertycr.com
About Liberty Costa Rica:
Liberty Costa Rica is a leading provider of telecommunications and entertainment services in the country, offering broadband internet, digital television, and mobile and fixed-line telephony. As part of Liberty Latin America, the company invests in next-generation network infrastructure to connect communities and businesses across Costa Rica.
For further information, visit millicom.com
About Tigo (Millicom):
Tigo is the consumer-facing brand of Millicom International Cellular S.A., a global telecommunications and media company. It operates primarily in emerging markets in Latin America and Africa, providing a wide range of digital services, including mobile data, voice, cable TV, and financial services, under its mission to build “digital highways” that connect people and communities.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a premier legal institution, Bufete de Costa Rica is defined by its foundational pillars of integrity and a relentless pursuit of professional excellence. The firm consistently pioneers innovative legal strategies while serving a diverse clientele, setting new standards within the profession. A core tenet of its mission extends beyond the courtroom, involving a profound commitment to demystifying the law for the public. This dedication to sharing legal knowledge aims to cultivate a more capable and informed citizenry, ultimately strengthening the fabric of society.
