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Mobile penetration to reach 100% in 3 years – watchdog – Costa Rica

BNAmericas | March 24, 2011 | Patrick Nixon

Costa Rica is likely to reach mobile penetration of 100% in three years, boosted by the entrance of new competitors América Móvil (NYSE: AMX) and Telefónica, which won licenses for the newly liberalized market this year, Maryleana Méndez, head of telecoms watchdog Sutel, told BNamericas.

Méndez, who assumed the post of Sutel council president at the beginning of March, said current state telecoms monopoly ICE has registered more than 3mn mobile subscribers of a population of 4.5mn, giving the country a penetration rate of approximately 67%.

“The companies that enter the market will have the important task of reaching 100% coverage with very high standards of quality. According to Sutel’s coverage plan, we should reach that in three years,” Méndez said. The new mobile entrants are expected to launch 3G services.

In January, América Móvil and Telefónica won two of three spectrum blocks up for grabs, with no winner for the third. Méndez said re-auctioning the third block is a decision for the government to make.

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