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Costa Rica - Telecoms, Mobile and Broadband- Statistics and Analyses

Executive summary
Costa Rica sees consolidation in the cable telecom sector

Costa Rica’s liberalised telecom sector has seen substantial growth in all sectors in recent years. Although the state-owned operator ICE remains the dominant provider of fixed-line services, the regional operators Claro and Movistar are significant players in the important mobile services market.

The number of fixed-lines fell for a number of years though more recently the decline has been offset by growing consumer use of VoIP services. This was stimulated by the 2014 hike in tariffs for fixed-line calls.

Costa Rica’s broadband market is the most developed in Central America, with the highest broadband penetration for this sub-region. Geographical distribution however is unequal, with a much higher digital gap than in the case of telephone services. Compared with the whole of Latin America, Costa Rica’s broadband penetration lags behind Chile, Argentina, Uruguay, and some Caribbean islands.

There was a steady increase in overall telecom sector revenue for a number of years, peaking at 24% 2014 though this has since fallen, being a more moderate 4.2% in 2016 and 3% in 2017. Fixed-line voice services account for about 5% of revenue while revenue from VoIP services, though increasing sharply in recent years, still accounts for only 1%.

The Costa Rican telecom sector has showed greater resilience than most others in the region, and with the implementation of number portability there is greater scope for increased competition in coming years.
Key developments:

    ICE secures access to Telia Carrier’s Central America backbone network;
    Movistar and Claro secure licenses at auction;
    Liberty Latin America (LLA) acquires an 80% stake in Cabletica;
    ICE investing more in multi-technology NGN project;
    Coopesantos launches FttP services in areas of San Pablo, San Marcos and Santa Maria;
    Regulator adopts LRIC model to calculate access and interconnection rates;
    Report includes the regulator’s market data reports for 2017; telcos’ financial and operating data updates, recent market developments.

Companies mentioned in this report include:

Instituto Costarricense de Electricidad (ICE), RASCA, Tigo, Cable Tica.

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Costa Rica - Telecoms, Mobile and Broadband- Statistics and Analyses
Published By :Paul Budde Communication
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