No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeTopicsBusinessCosta Rican Electricity Institute appeals ₡2 billion fine by regulators

Costa Rican Electricity Institute appeals ₡2 billion fine by regulators

The Costa Rican Electricity Institute (ICE) is challenging a ₡2.2 billion ($4 million) fine levied by the Telecommunications Superintendency (SUTEL) for unfair competition involving discounted offers for ICE phone service.

SUTEL sanctioned ICE alleging the carrier carried out anti-competitive practices in 2011 and 2012 that affected its new competitors Movistar and Claro. The investigation was prompted by a complaint filed by Spanish telecom Telefónica, which operates in Costa Rica as the brand Movistar.

The regulatory agency alleges that ICE’s unfair practices consisted of rate discounts offered under a promotion called “Chip Extremo” aimed at attracting prepaid mobile phone users. The promotion was conducted twice in two years, first from November to December 2011, and then from October to November 2012.

ICE’s appeal calls the SUTEL action illegal, inconsistent and flawed due to a “lack of proof and evidence to justify the sanction.” It also argues that ICE’s promotions did not cause any of its competitors to exit the market or block entry to new competitors.

On Wednesday, ICE Telecommunications Manager Jaime Palermo said “SUTEL itself has recognized that the mobile telecommunications’ market is vulnerable to competitive practices from all carriers, as all of them sell below operating costs.” He added that, “even Telefónica has reached the same conclusion.”

The appeal also states that Telefónica filed the complaint with SUTEL only 15 days after launching operations in Costa Rica as a measure to prevent ICE from conducting its promotions.

“During the investigated period this carrier managed to increase its market share and even conducted more aggressive promotions than those from ICE, and yet only ICE was sanctioned,” Palermo said in a public statement.

SUTEL’s council will analyze ICE’s appeal, and in the case that the resolution does not favor the state-owned company, ICE has the right to proceed with a challenge in court.

The regulatory agency last month announced that in coming weeks it will conduct a study to determine which markets have the apropriate conditions to be open for competition. Such a resolution would mean that each carrier would be free to set rates.

ICE, under its brand name kölbi, leads Costa Rica’s mobile market with a 72 percent share, followed by Mexican carrier Claro with 13.6 percent, Movistar with 13.4 percent, and locals Tuyo Móvil and Full Móvil with less than 1 percent each.

Trending Now

Argentina’s Baez Eliminated by Darderi at Australian Open

Sebastian Baez's strong start to the 2026 season hit a roadblock on Thursday at the Australian Open, where the Argentine fell in the second...

4.5 Magnitude Quake Shakes San José

A 4.5 magnitude earthquake struck the capital and surrounding areas causing residents to feel a strong shake but resulting in no reported injuries or...

Virgin Voyages’ Brilliant Lady Makes Debut in Costa Rica’s Limón Port

The cruise ship Brilliant Lady from Virgin Voyages docked for the first time at Puerto Hernán Garrón Salazar in Limón on January 19, marking...

Severe Winter Storm in North America Halts Flights to Costa Rica

A powerful winter storm hitting parts of the United States and Canada is affecting Costa Rica’s flight schedule, triggering cancellations, suspended itineraries, and lengthy...

Costa Rica Strengthens Fight Against Organized Crime

Lawmakers in Costa Rica have passed a significant reform to the Penal Code, establishing contract killing, known locally as sicariato, as a distinct crime...

Why Costa Rica Traffic Fines Feel Out of Proportion on Rural Roads

I once got a speeding ticket for going about 30 kph over the posted speed limit on the Costanera Sur highway near Jacó. While...
L. Arias
L. Arias
Reporter | The Tico Times |
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Travel

Latest News from Costa Rica