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

General Cañas Highway Lane Closures Begin Monday in Costa Rica

Drivers using the General Cañas Highway between Alajuela and San José should prepare for additional congestion beginning Monday as crews carry out eight days...

Costa Rica Asked to Explain Fishing Boats Seen in Puntarenas Estuary

The appearance of two fishing boats in the Puntarenas estuary has led a Costa Rican ocean conservation advocate to ask authorities for more information...

Costa Rica Lawmakers Challenge Sweeping State-Secrecy Order

Opposition lawmakers asked Costa Rica’s Constitutional Chamber today to immediately suspend a decree that places broad categories of government security information, including budgets and...

Costa Rican Surfers Chase a Home Title as WSL Finals Day Runs at Playa Hermosa

The quarterfinals, semifinals and final of the Garabito Surf City Pro all run Sunday at Playa Hermosa, with Leilani McGonagle carrying the strongest Costa Rican result into the closing rounds.

Panama Canal Cuts Ship Traffic as El Niño Drought Worsens

The Panama Canal will allow fewer ships to pass through the waterway beginning in September as a drought linked to El Niño reduces the...

Costa Rica Heavy Rains Cause Flooding and Travel Disruptions

Heavy rains from Tropical Wave No. 32 left flooding, overflowing rivers, landslides and road problems across several parts of Costa Rica, while forecasters warned...

Costa Rica Investigates Hepatitis A Outbreaks in San José

The Ministry of Health is investigating active hepatitis A outbreaks in Desamparados, Hatillo and Hospital, three heavily populated areas of San José. Health teams...

Costa Rica’s Rebeca Grynspan Slips to Second in UN Race

Costa Rican economist and former vice president Rebeca Grynspan has fallen to second place in the race to become the next secretary-general of the...

Costa Rica Raises Bus Fares Between San José and Nicaragua Border

Taking the bus from San José to the Nicaraguan border became more expensive today.The fare from San José to Peñas Blancas increased from ₡5,820...
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