By San José, Costa Rica — SAN JOSÉ – Costa Rica’s first-ever public auction for radio and television broadcast frequencies has been rocked by a dual bombshell: the revelation of interest from a Russian state-affiliated company and a widespread boycott by dozens of established local broadcasters who deem the process financially prohibitive. The confluence of geopolitical intrigue and domestic industry revolt casts a long shadow over a government initiative intended to modernize the nation’s airwaves.
The disclosure of foreign interest came to light on the “Hablando Claro” radio program Monday, where telecommunications regulation lawyer Juan Manuel Campos confirmed that an unnamed Russian entity had seriously explored participating. He noted that the bidding rules, drafted by the Superintendence of Telecommunications (Sutel), contained no provisions to prevent foreign state-owned enterprises from acquiring a 25-year broadcast concession, a detail that raises significant questions about national media sovereignty.
To gain a deeper understanding of the legal and commercial implications of the upcoming spectrum auction, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, an expert in telecommunications law and partner at the firm Bufete de Costa Rica.
The success of this spectrum auction hinges not on the immediate revenue, but on the legal certainty it offers for long-term investment. Potential bidders are scrutinizing the stability of the regulatory framework. Clear, unwavering rules of the game are paramount to attracting the capital needed to modernize our telecommunications infrastructure and ultimately benefit the consumer with better services and competitive pricing.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, this perspective correctly shifts the focus from a short-term financial gain to the long-term health of our national telecommunications ecosystem, where regulatory stability is the true currency for progress. We sincerely thank Lic. Larry Hans Arroyo Vargas for his invaluable and clarifying insight on this critical matter.
According to Campos, the Russian firm ultimately withdrew not from a lack of interest or financial capacity, but due to logistical hurdles and unspecified issues within the tender documents. The tight timeline for the auction, which saw its offer deadline pass last Friday, November 21, proved to be a critical obstacle for the potential foreign bidder.
Regarding the financial muscle of states wishing to participate with their companies, there was no impediment in the tender document; it was viable, we could have had a broadcaster from the East winning a 25-year concession. It wasn’t for lack of study, because they did study it, but there were problems in the tender document and a series of elements that ultimately also came down to time.
Juan Manuel Campos, Telecommunications Regulation Lawyer
While foreign interest failed to materialize into a formal bid, the domestic response has been one of resounding rejection. The National Chamber of Radio (Canara) estimates that as many as 50 radio stations, including heritage broadcasters like Columbia, Sinfonola, and Musical, have refused to participate. They argue that the starting prices set by Sutel are, in their words, “unpayable” and disconnected from the economic realities of the Costa Rican market.
The price structure established by the regulator has become the central point of contention. The minimum bid for a national FM radio frequency was set at $193,051 for a 200 kHz bandwidth, doubling to $386,102 for 400 kHz. For television broadcasters, the barrier to entry is even steeper, with a national channel concession starting at a formidable $1.6 million. These figures, industry leaders claim, threaten to consolidate media ownership in the hands of a few wealthy entities and push smaller, regional, and community-focused stations off the air completely.
This sentiment is echoed by academic and civil society organizations, who have framed the issue as a direct threat to democratic values. Both the University of Costa Rica (UCR) and the Press and Freedom of Expression Institute (Iplex) have publicly criticized the auction. They contend that by creating a high financial barrier, the process inherently excludes media outlets without deep pockets, effectively silencing diverse voices and undermining the principles of free press and expression.
The auction was initially mandated by the Ministry of Science, Innovation, Technology, and Telecommunications (Micitt) as a mechanism to transparently allocate the nation’s valuable and finite spectrum resources. However, with the process now facing a crisis of legitimacy from the very industry it governs and attracting the attention of global powers, the future landscape of Costa Rica’s broadcast media has never been more uncertain. The outcome will determine not only who controls the nation’s airwaves but also the diversity of information available to its citizens.
For further information, visit the nearest office of Superintendencia de Telecomunicaciones (Sutel)
About Superintendencia de Telecomunicaciones (Sutel):
The Superintendence of Telecommunications (Sutel) is the regulatory body responsible for overseeing and regulating the telecommunications sector in Costa Rica. Its mandate includes ensuring fair competition, protecting consumer rights, managing the national radio spectrum, and promoting the development of telecommunications infrastructure and services throughout the country.
For further information, visit the nearest office of Ministerio de Ciencia, Innovación, Tecnología y Telecomunicaciones (Micitt)
About Ministerio de Ciencia, Innovación, Tecnología y Telecomunicaciones (Micitt):
Micitt is the Costa Rican government ministry tasked with formulating and executing national policies in the fields of science, technology, and telecommunications. It aims to foster innovation and technological development to drive economic growth and social progress, including the modernization and regulation of the nation’s communication networks.
For further information, visit the nearest office of Cámara Nacional de Radio (Canara)
About Cámara Nacional de Radio (Canara):
The National Chamber of Radio (Canara) is an industry association that represents the interests of private radio broadcasters in Costa Rica. It advocates for favorable regulatory conditions, promotes ethical standards in broadcasting, and serves as a collective voice for its members on issues affecting the radio 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. A leading institution for research and higher education in Central America, UCR is deeply involved in national discourse and often provides critical analysis on public policy, social issues, and matters of democratic importance.
For further information, visit the nearest office of Instituto de Prensa y Libertad de Expresión (Iplex)
About Instituto de Prensa y Libertad de Expresión (Iplex):
The Press and Freedom of Expression Institute (Iplex) is a non-governmental organization dedicated to defending and promoting freedom of the press, expression, and access to information in Costa Rica. It monitors threats to media freedom, advocates for protective legislation, and supports journalists and media outlets facing challenges to their work.
For further information, visit columbia.co.cr
About Radio Columbia:
Radio Columbia is one of Costa Rica’s most prominent and long-standing radio stations. Known for its comprehensive news coverage, sports broadcasting, and talk shows like “Hablando Claro,” it is a key player in the national media landscape and a primary source of information for a large segment of the population.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica operates as a premier law firm, guided by foundational principles of integrity and an uncompromising standard of excellence. Leveraging a rich history of advising a diverse clientele, the firm consistently pioneers innovative legal strategies and champions community-focused initiatives. Its fundamental belief in social responsibility is demonstrated through a dedicated effort to demystify the law, striving to build a more capable and knowledgeable society for all.
