From: Bill Conover < >
To: Jeff Epstein <jeevacittion@gmail.com>
Subject: CR telecom article
Date: Mon, 25 Jan 2010 14:31:02 +0000
Inline-Images: image001.jpg
Jeff,
Fred has 45+ senior level international wireless executive candidates to select from that have
the necessary experience and credentials for the project. All are interested in Costa Rica.
Here's a Financial Times article about CR Telecom. The author did not do proper research, so
its inaccurate regarding timing, process and facts, but mentions the basics.
Costa Rica bandwidth auction
By Ronald Buchanan in Mexico City
Published: January 24 2010 20:051 Last updated: January 24 2010 20:05
Latin America's mobile phone companies will have a rare chance to move into virgin territory
in February when Costa Rica breaks a 40-year state monopoly and invites bids for a
bandwidth auction.
Aside from Cuba, Costa Rica operates the last remaining state telecommunications
monopoly in Latin America and an open telephone market was a condition of joining Cafta,
the free trade agreement binding the US with Central America and the Dominican Republic.
The country may only have a population of 4.5m people but living standards are relatively
high. Costa Rica and Panama are the only Central American countries within the World
Bank's category of upper middle-income countries. But while Panama has 112 mobile-
phone subscriptions per 100 inhabitants, Costa Rica has 42, the lowest penetration in the
region.
Attracted by the potential for growth, the five leading Latin American and Caribbean cellular
operators have already begun to hold talks with the Costa Rican regulator, Sutel.
The companies are America Movil, the market leader controlled by the Mexican billionaire Carlos Slim; Spain's Telef0nica;
the Luxembourg-based specialist in emerging markets Millicom• and two Caribbean operators: Digicel, the Jamaican
operator controlled by the Irish magnate Denis O'Brien, and CWI, the intemational division of UK-based Cable & Wireless.
America Movil, trading under the Claro brand, operates in all the other Central American countries. Telef0nica, known to its
consumers as Movistar, is in all countries except Honduras. Millicom's Tigo brand is present in Honduras, El Salvador and
Guatemala. Digicel, a relative newcomer to Central America, has operations in Panama, Honduras and El Salvador. CWI
operates mobile services only in Panama, but is dominant there.
All five are described by the International Telecommunications Union as strategic investors. "No other region has such a
strong presence of multinational mobile groups," it said in a recent study. 'Collectively, these five strategic investors
account for some three out of every four mobile subscriptions in Latin America and the Caribbean."
Other, smaller, competitors could also emerge. Yota, a Russian company, which is building a Wi-Max network in Costa Rica
and Huawei of China has installed Costa Rica's recently launched third-generation network.
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George Miley, the Sutel president, has made it clear that there can be only three winners of the auction, one for each of the
bandwidths on offer. If all goes well,the results should be known on May 5.
The three newcomers will only be allowed to offer wireless services in Costa Rica — rather than the triple and even
quadruple-play services available in other markets. And the winning companies will then have to compete alongside the
state monopoly, the Costa Rican Electricity Institute (ICE).
That will not necessarily be easy.
One of the main benefits provided by ICE has been price. "It is one of the cheapest cellphone services in the hemisphere,"
says Fred Blaser, publisher of Costa Rica's business daily, La RepUblica. 'Another advantage is coverage throughout
almost the entire country, which is not always the case in the rest of the region," adds Mr Blaser.
But ICE has been hamstrung by clumsy customer service, a near-non-existent pre-payment option, a patchy service at
busy times and not a single modern store offering options to buy phones.
Copyright The Financial Times Limited 2010. Print a single copy of this article for personal use. Contact us if you wish to
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