No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeTopicsBusinessICE postpaid mobile plans top consumer value ranking in Costa Rica, new...

ICE postpaid mobile plans top consumer value ranking in Costa Rica, new study shows

Amid a national debate over a proposed change in mobile Internet rates, a study released this week shows that rate plans from state-owned carrier Kölbi, part of the Costa Rican Electricity Institute (ICE), are generally less expensive than competing plans with similar features.

New Jersey-based telecom pricing research firm Tarifica on Thursday presented the results of the study and the scores for postpaid mobile plans offered by ICE and private carriers Claro and Movistar.

The results were obtained by evaluating plans divided into two categories: With Phone and Without Phone. ICE offered the top overall plan in both categories: Plan Conectado 3 (With Phone) and Plan Conectado 1 (Without Phone). (See the complete results at the bottom of this story.)

“What’s most interesting about the Costa Rican mobile market is that the factor driving price in many cases is a plan’s data speed, rather than the volume of included data,” said Tarifica Program Director Ken Dolsky.

“This is highly unusual relative to other markets and results in many of the top scoring plans coming from lower priced market segments since they provide reasonably large data allowances, which is very important, but at lower although still usable speeds. In short, for many of the more expensive plans, the increase in speed was simply not worth the cost,” he added.

Each of the two primary categories was further divided into five segments based on monthly cost. ICE-Kölbi was able to capture three of the segments for both the With Phone and Without Phone categories.

“ICE’s success is attributable to a two-fold strategy. First, its plans were generally less expensive than competing plans with similar features – providing consumers with more for their money. Second, ICE offered the largest variety of plans, ensuring that it had an option targeted at every area of consumer need,” Dolsky explained.

While not achieving the same level of success as ICE, private carrier Movistar fared relatively well, with the second highest scoring plan in both the With Phone and Without Phone categories. It also won three price segments outright. Although Movistar’s plans typically offered more minutes and SMS than those from ICE, the additional allowances were not enough to offset the latter’s lower prices.

ICE-Kölbi currently dominates the mobile market that opened to competition from private companies in 2011. The public sector carrier since has lost 29 points of relative market share to 61 percent at the end of last year, according to a Telecommunications Superintendency’ (SUTEL) report issued last July.

The postpaid user segment, however, has noticeably decreased. At the end of 2010, postpaid contracts outnumbered prepaid ones by 1.6 million to 1.5 million. This relationship reversed, and currently, prepaid users represent 81 percent (5.88 million lines) compared to 19 percent (1.22 million lines) of postpaid, SUTEL reported.

The Tarifica Score, the company states, is an advanced algorithm used around the world to evaluate mobile plans based on the value they offer consumers. It incorporates every aspect of a mobile plan including usage allotments, geographic coverage, data speeds and additional features, and weighs them against all of a plan’s associated costs to determine the ultimate consumer value.

Debate over rate model change

Also on Thursday, SUTEL officials appeared before justices of the Constitutional Chamber of the Supreme Court, or Sala IV, in a hearing to study a complaint against the proposed change in mobile Internet rates for both prepaid and postpaid plans. The proposal would charge users based on transferred data instead of connection speed.

SUTEL officials at the hearing justified their proposal based on the need to streamline the use of networks because of spectrum shortage. SUTEL President Marileana Méndez said the agency will stand firm in its arguments, but will respect the Sala IV’s ruling.

A private citizen who filed the complaint, identified only by the surname Chacón, did not attend the hearing. Instead, the argument against changing the rates model was presented by experts from the Ombudsman’s Office and the Science and Technology Ministry, who noted a lack of information in SUTEL’s request. They also questioned its accuracy, including the claim that consumers would pay less with the proposed change. SUTEL’s request fails to explain how that would happen, opponents said.

Justices now will have 30 days to issue a ruling. Tarifica scores for Costa Rica, Sep. 2014

Tarifica scores for Costa Rica, Sep. 2014

 

Trending Now

Costa Rica Faces a Future with Far Fewer Children

Costa Rica marked Children’s Day on Wednesday with a demographic reality that is already changing the schools and will eventually reshape its workforce: there...

Costa Rica Jaguar Reappears After Nearly Three Years Off the Cameras

A jaguar that had not been recorded by a wildlife camera in Costa Rica since 2023 has been photographed again on the Osa Peninsula,...

Costa Rica Bill Proposes to Ban Conversion Therapy

A new bill looks to ban practices aimed at changing, repressing, nullifying, or suppressing a person’s sexual orientation, gender identity, or gender expression, commonly...

Costa Rica Investigates Alleged Mass Data Leak that Included the President

Costa Rica's National Cybersecurity Directorate is investigating a dark web posting in which an unidentified threat actor claims to hold tens of millions of...

What a US Military Presence Could Mean for Costa Rica

Independence Week is here. Drums beat in the distance, schoolkids dress in traditional garb, and Costa Rica celebrates 205 years of freedom and self-determination....

Road Closures Start Monday for Costa Rica’s Independence Holiday

If you are driving anywhere in the Central Valley on Monday afternoon or Tuesday morning, add time. Costa Rica marks 205 years of independence...

Route 1 at Cambronero Closed for up to Two Months After Bridge Damage

If your drive west runs through Cambronero, plan on going another way for a while. The Ministry of Public Works and Transport says the...

Four quakes above magnitude 4 hit Costa Rica’s Southern Area in 32 hours

A magnitude 5.1 quake struck near Golfito on Friday night, the strongest of four events above magnitude 4 recorded in Costa Rica's Southern Zone in roughly 32 hours.

Buying Property in Costa Rica – What Foreign Buyers Need to Know

Foreigners can own land in Costa Rica on the same terms as citizens, with one significant exception, and the country has spent two decades...
L. Arias
L. Arias
Reporter | The Tico Times |
🌴 The Weekly Pura Vida

Costa Rica, Once a Week

The week's top stories, weather & insider tips — delivered every Sunday. One email, zero clutter.

🔒 Free. No spam. Unsubscribe anytime.

Loading…

Latest News from Costa Rica

Costa Rica Coffee Maker Chorreador
Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel